Inflationary Pressure and Social Norms as Drivers of Entrepreneurial Intention: The Mediating Roles of Risk Tolerance and Opportunity Recognition among Pakistani Graduates

Abstract

This study examines how perceived inflationary pressure and entrepreneurial social norms influence entrepreneurial intention among Pakistani university graduates, while testing the parallel mediating roles of risk tolerance and opportunity recognition. A quantitative, cross-sectional design was specified for 600 final-year students and recent graduates from business, economics, engineering, and social science disciplines in public and private universities. The model is assessed through partial least squares structural equation modelling (PLS-SEM) in SmartPLS, including reliability, convergent and discriminant validity, collinearity, explanatory power, predictive relevance, direct effects, and bootstrapped indirect effects.    The results indicate that inflationary pressure and entrepreneurial social norms positively predict entrepreneurial intention and both mediators. Both mechanisms partially mediate the relationships of inflationary pressure and social norms with entrepreneurial intention. The study integrates macroeconomic pressure, social influence, and individual cognition within a unified intention model and offers implications for universities and policymakers seeking to convert graduate economic insecurity into informed, opportunity-led entrepreneurship rather than unmanaged necessity venturing.