EFFECT OF INTELLECTUAL CAPITAL ON START-UP INTENTIONS OF NIGERIAN YOUTH: ROLE OF FINANCIAL CAPITAL

Abstract

The role of intellectual capital in venture creation, particularly its impact on startup
intentions, has been an area of interest among researchers. However, there is still a lack of
research on measuring the influence of intellectual capital on start-ups. This study aims to
examine the influence of intellectual capital on startup intentions using a data set of 364
respondents comprising Nigerian youth in Ahmadu Bello University, Zaria, Nigeria. The
study utilizes the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique
to analyze the relationship between intellectual capital components (knowledge and skills,
entrepreneurial opportunities, and network), financial capital and startup intentions. The
findings reveal that the components of intellectual capital have a positive and significant
impact on startup intentions. Specifically, knowledge and skills, entrepreneurial
opportunities, affect startup intention positive and significant, and network found to influence
startup intentions positively. Furthermore, the study examines the moderating role of
financial capital on the relationship between knowledge and skills and startup opportunities.
The results indicate that financial capital moderates this relationship positively and
significantly. However, in the case of network, the moderation by financial capital is positive
but insignificant. This study contributes to the existing literature by examining the
relationship between intellectual capital and startup intentions, particularly in the context of
developing countries like Nigeria. This research sheds light on the importance of intellectual
capital in the entrepreneurial process and provides valuable insights for policymakers and
practitioners in fostering entrepreneurship and venture creation in Nigeria.