Abstract:
Entrepreneurship has become a crucial driver of economic growth, innovation, and
employment across the globe. In Sri Lanka, entrepreneurship is more important due
to its potential to reduce unemployment and boost economic growth. The government
has launched several initiatives—such as establishing entrepreneurship development
programmes, financial support schemes, and integrating entrepreneurship into
curricula from school to university—to encourage youth engagement in
entrepreneurship. Despite these efforts, evidence indicates that university graduates,
particularly those from newly established state universities, show limited interest in
pursuing entrepreneurship as a career. Although many studies have examined the
factors influencing entrepreneurial intentions among university students, there
remains a notable gap concerning management undergraduates at newly established
state universities in Sri Lanka. Therefore, this study aims to identify the factors
affecting youth entrepreneurial intentions within this specific group. Based on an
extensive literature review, social, psychological, and institutional factors were
identified as key variables influencing students’ entrepreneurial intentions. This
research employed a quantitative approach and used convenience sampling to gather
data from 372 management undergraduates out of a total population of 11,607
students across seven newly established state universities in Sri Lanka. Data analysis
involved descriptive statistics, correlation, and multiple regression methods. The
reliability and validity of the measurement tools were verified. The findings
demonstrated that social, psychological, and institutional factors each have a
statistically significant positive influence on entrepreneurial intention. The findings
extend existing knowledge by providing new insights into the determinants of
entrepreneurial intentions among university students in developing economies. The
study also provides directions for educational policymakers, academic institutions,
and entrepreneurship development agencies to strengthen youth entrepreneurial
ecosystems in Sri Lanka
