The conception of self-efficacy is suitable to understand the literature on entrepreneurship as it is built with specific tasks to assess an individual’s beliefs and confidence about external environment and internal factors which define the existing possibilities and constraints in any model. For instance, a study established self-efficacy as a key predictor of growth in a new business venture and personal victory (Markman, 2002). It is also considered a good determinant of intentions of a start-up which further leads to action. One researcher also explored the usefulness of self-efficacy in the decision making process and is proposed to have strong positive impact of the same (Wilson and Marlino, 2007). It is also argued that high self-efficacy in an entrepreneur also suggests that an entrepreneur is more capable to develop better strategies for a task and able to show persistence when faced with consistent setbacks or challenges. Throughout the study, it is believed that self-efficacy has a strong influence on the overall performance of an entrepreneur and is a beneficial quality to have. The theoretical foundations have emphasised self-efficacy as an important construct in entrepreneurship.
However, there are few disagreements on what self-efficacy covers and whether it is supposed to be focussed on outcomes or tasks (Markman and Baron, 2002). It poses serious challenge in terms of identifying if self-efficacy implies ability of an individual to carry out a task successfully or drives self-confidence. Some researchers argue that assessing the cumulative effects of entrepreneurial self-efficacy might make it a multi-dimensional concept, but while analysing the individual impact, the results vary drastically. In this model, researchers address the unresolved questions of self-efficacy (Estrin, Korosteleva and Mickiewicz, 2013). There are some individuals who although are able to identify opportunities in a start-up business process but get stuck when it comes to capitalizing or taking advantage of those opportunities. Apparently, there are some entrepreneurs who are efficacious in their nascent stage of business but when faced with strong resistance tend to give up. As suggested by Gartner, self-efficacy needs to be looked at from a multi-dimensional aspect where there may be various aspects of self-efficacy in entrepreneurship but these aspects may be a part of the same model and can be referred to as a part of “whole elephant” (Gartner, 2001). This can be taken to imply that there is a need to understand the scope and nature of entrepreneurial self-efficacy by adapting to the conception of self-efficacy in social cognitive scenario in the required field.
Further to this, another stream of analysis can be channelized to entrepreneurial self-efficacy versus general self-efficacy. The relation between and ESE and performance of a firm/individual is strong as compared to General self-efficacy of an individual, as suggested by various research studies (Wilson and Marlino, 2007). The approach followed under entrepreneurial self-efficacy scale is a more constructive approach to increase the potential of the firm to bearing risks. It covers various aspects such as control of finances, management of operations, innovation and other related processes. Other dimensions of self-efficacy also includes interpersonal skills, resource allocation, networking and procurement. In contrast to this, the general self-efficacy does not capture traits required specifically for an entrepreneurial domain.