Entrepreneurship skills in university students to improve local economic development

Abstract

Local economic development is becoming an increasingly important activity as it addresses the economic and employment challenges faced by all developing countries. Therefore, the purpose of this study was to determine the entrepreneurial skills of university students for the promotion of local economic development. A quantitative, non-experimental, cross-sectional, and interpretative causal approach was adopted for the research. The sample consisted of 240 students chosen through non-probabilistic convenience sampling. Questionnaires were used as a tool for data collection, validated by expert judgment in the field, with a reliability of 98.2% determined by the Cronbach’s alpha coefficient, and the survey was employed as a technique. Inference results provided by ordinal logistic regression, using the model goodness-of-fit test, χ² = 203.902, allowed demonstrating the explanatory variable. The goodness of fit for deviation was p = 0.099, determining the presence of an effect corresponding to the Nagelkerke predictor = 64.4% of the explained variability in the dependent variable. It was concluded that improving the entrepreneurial skills of university students has a significant positive effect on enhancing local economic development. Therefore, harnessing the entrepreneurial skills of university students requires a combination of educational approaches, financial support, networks, and specific policies. Collaboration among different stakeholders, including government, the private sector, and academic institutions, is essential to achieve a significant impact on local economic development.

Introduction

The conditions of the current economy, post-COVID-19 pandemic, require more than ever new ideas that allow the economy to be reactivated, and thus generate new sources of work for those millions of workers who have become unemployed as a result of the quarantines decreed by governments, to be able to face the pandemic. In this context, the participation of university youth takes on greater importance, as they are the ones who directly receive the general and specific competencies of the universities, which distinguish them from other local actors, to be able to more successfully initiate their intervention in the economic development of your community.

The evolution of universities, in terms of their third missionary objective, includes the link with the social environment, which requires a clear delimitation, to be able to develop not only teaching and research. However, universities have approached this third missionary objective through entrepreneurial or innovation activities. In that sense, entrepreneurship is one of the ways that universities have been promoting this third missionary axis, generating productive or business activities, as well as providing their students with the expertise that drives them to generate companies (Valenzuela-Keller et al., 2021). It should be noted that the university continues to be the fundamental institution of the knowledge sector, as long as it preserves its original educational mission (Borda-Rivera & Ortega-Paredes, 2021).

It is also important to consider that with the rapid change in technology and learning approaches, university institutions are adopting other forms of learning such as online digital learning in conjunction with business skills (Mittal & Raghuvaran, 2021). In this sense, ventures, even more so if they are developed in rural areas, require the participation of local organizations as well as the formation of incubators and support groups (Hasan et al., 2023), in the same way the government participation helping in the creation of networks of community companies with external organizations, at each stage of the value chain, with the aim of improving the competitiveness of companies (Pholfirul et al., 2023).

Different investigations establish the importance that universities have in local economic development, but what is important for universities is success in economic performance, student enrollment or issued patents. In this context, it is believed that universities give more importance to the utilitarian paradigm, the number of students enrolled, or the skills of the students, leaving aside individual growth and the reason for the university (Apostol, 2022).

Several of the studies on entrepreneurship and university training are based on the entrepreneurial intention of students, so it is necessary to investigate how university training at the business level can, or cannot, influence business behavior. Managing to determine that programs aimed at transferring knowledge and strengthening entrepreneurial activities increase the relationship between intention and behavior at the university level (Lechuga Sancho et al., 2022). It is necessary to emphasize that young people view entrepreneurial skills positively and also have an entrepreneurial vocation; the issue is that they do not consider themselves self-sufficient and competent (Barrientos-Báez et al., 2022).

It is also important to specify that non-formal entrepreneurial education allows community empowerment, both of micro-, small- and medium-sized businesses, achieving more independent growth (Suryono et al., 2023). In the same way, it is necessary to mention that an entrepreneurship education model that is not aligned with the particular contextual aspects may not adequately produce the desired result (Olutuase et al., 2023). The social participation of the university refers to the creation of knowledge and achieving the participation of citizens in search of solutions to their community problems, and therefore their economic development. By encouraging the participation of students and teachers by attracting resources to the university, through innovation and commercialization circles, the university makes possible the development of economic infrastructure in different fields of industry and commerce (Bagherianfar & Dolati, 2023).

The relationship between university education and local economic development has been the subject of growing interest in academia and society in general. In this context, special attention has been paid to the entrepreneurial skills of university students as a key factor that can significantly influence the economic development of local communities. This research topic seeks to address the problem of how the entrepreneurship skills acquired by university students can contribute to the strengthening of local economies.

Entrepreneurship has become an essential engine for economic growth and job creation around the world. In this sense, universities play a fundamental role in providing students with the skills and knowledge necessary to become successful entrepreneurs. However, despite the growing importance of entrepreneurship, there are still significant gaps in our understanding of how university students’ entrepreneurship competencies relate to local economic development.

The university under investigation is located in the eastern area of Metropolitan Lima, which comprises 14.58% of the population of the capital city of Peru. It is a university that has 12 professional courses and 2 graduate schools. The students who study at this university almost entirely belong to the district where it is located and a smaller percentage belong to the surrounding districts.

This research is justified for several reasons. First, university education is considered an important means of fostering an entrepreneurial culture among young people, which in turn can boost the creation of new businesses and the growth of existing ones in local communities. Second, the relationship between student entrepreneurship and local economic development is a relatively new field of study that requires greater attention and analysis.

Therefore, it is necessary to deepen the studies of the entrepreneurial skills of students to promote successful ventures and, thus, contribute to development, for the benefit of the local level.

The general problem was formulated as follows: how do the entrepreneurship skills of university students influence local economic development? Likewise, the specific problems were: how does the absorption capacity of university-level students influence local economic development? How does the innovation capacity of university-level students influence local economic development? How does it influence the learning capacity of university-level students in local economic development? Finally, how does the adaptation capacity of university-level students influence local economic development?

The general objective was: to determine the influence of entrepreneurship skills of university students on local economic development. Likewise, the specific objectives were: to determine the influence of the absorption capacities of university students on local economic development; determine the influence of university students’ innovation capabilities on local economic development; determine the influence of university students’ learning capabilities on local economic development; finally, determine the influence of the adaptation capacities of university students on local economic development.

The general hypothesis formulated was: the entrepreneurship skills of university students influence local economic development. Continuing, the specific hypotheses were the following: the absorption capacities of university students influence local economic development; the innovation capabilities of university students influence local economic development; the learning capabilities of university students influence local economic development; finally, the adaptation capacities of university students influence local economic development.

In this article, it was based on a review of the literature and empirical data that confirm the influence of entrepreneurship competencies on local economic development, to provide the reader with a preliminary overview of this section. The background and theories related to the topic, and the methodological approach of the research were discussed. Finally, the results were discussed, allowing us to conclude by providing some recommendations.

Theoretical framework

Regarding the background, it is necessary to specify that one of the important factors is the entrepreneurial attitude to develop entrepreneurship skills and competencies. Entrepreneurial attitudes in university students include self-esteem, internal personnel control, risk-taking, innovation, and the desire for achievement (Valenzuela-Keller et al., 2021). It can be inferred that one essential element of an entrepreneurial person is the personal decision to take risks, often without sparing efforts and knowing the outcome. Therefore, entrepreneurial attitude becomes important for initiating any activity. However, in the case of university students, during their formative process, in addition to providing psychological support, there is a need to enhance skills for identifying opportunities and developing innovative ventures. This work is related to the objective of the research conducted, as the mentioned values encourage students to take on entrepreneurial risks with greater knowledge and skills support.

From an early age, business goals are strongly influenced by the country’s culture and business environment, creating business archetypes that define the entrepreneur and the influence of imitators. All of these factors depend on the personality of the aspiring entrepreneurs and the business education they receive at an early age (Porfírio et al., 2023). More importantly, in this context, universities can intervene with academic content to change limiting influences by encouraging the culture of creativity and innovation.

One of the ways to develop the structural transformation of a small local community is retail commerce, which to promote it requires collaboration between retailers, customer citizens, and the municipality (Ekström & Jönsson, 2022). Knowing the local actors, the university must seek forms of cooperation with each of them, so that entrepreneurial policies can be designed that benefit all local actors. Entrepreneurship policies can be developed, even with the involvement of the community and other local stakeholders, taking into consideration the third mission that universities have, which is their connection with society.

Entrepreneurship-focused universities wield significant influence worldwide, and studies demonstrate the positive value of entrepreneurship in institutions that engage in numerous related activities aligning with their core objectives of teaching and research. These universities are adapting business education through the development of models and methods. Ultimately, collaboration between research, industry, and government is crucial to support the innovation process in education (Ozen et al., 2023). To demonstrate this, the university is obligated to monitor the progress of its students, even if its impact extends to an individual, community, or country (Alvarez & Cammayo, 2023). In this way, the involvement of all three entities—university, society, and the state—is vital for implementing models and methods that foster the emergence of new enterprises. Moreover, this involves the university focused on cultivating professionals with an entrepreneurial mindset, the local community offering opportunities through businesses, and the government creating an ecosystem for entrepreneurship.

There is a big difference between the ability to allocate educational resources for innovation and business to different universities and students’ thinking about their conditions, characteristics or geographical distribution. Therefore, many of the university’s resources intended for students and the tools of the learning platform affect the success of academic and business innovation (Wang & Fu, 2023).

In this sense, the participation of the university in the promotion of entrepreneurship must be by promoting models that seek to make curricular plans compatible with the requirements of the labor market, relations with the community and alliances, promoting academic exchanges, entrepreneurial education and university internationalization (Awad & Salaimeh, 2023). The teaching of entrepreneurship, understood as that person who is innovative and who is endowed with many individual characteristics such as taking risks, being intelligent, possessing leadership, being creative, knowing how to handle problems and always being dissatisfied (Bustillos Bailey et al., 2020). It is not always the most appropriate in all universities, since it will be limited by its status as a public or private university, the country and the region where it is located. It can be inferred from the above that economic resources are scarce, and many universities, especially those in the public domain, if not well managed, face serious limitations in developing innovative projects, even more so with new models.

Referring to learning to improve entrepreneurial skills, research carried out in 46 colleges and universities in China sought to explore the relationship between different forms of entrepreneurial capital, their synergy, and entrepreneurial intention: the results showed that the provision of business resources to encourage entrepreneurship in university students is very important. Emphasizing that to promote entrepreneurship, it is of utmost importance to promote human and social capital, without neglecting their psychological capital and encouraging the creation of a business environment that encourages innovation and tolerates failure (Bu et al., 2023). In the same way, at the Austral University of Chile, a project was applied that encourages entrepreneurship and skill development, through a subject to facilitate the development of entrepreneurship with a social, collaborative, and interdisciplinary sense. The result obtained was the creation of 39 entrepreneurship projects during the analysis period, concluding that the model can provide contributions for the analysis and development of this type of projects in universities (Colther et al., 2020). Regardless of providing business resources, it is necessary for learning to be accompanied by comprehensive development, through a business model promoted at the university so that the creation of entrepreneurial and innovative projects can be put into practice.

According to Deza-Loyaga et al., (2021), in research carried out at the University of Santa María in Arequipa, Peru, by adopting a “Know the Business” model—CODE, it has been shown that students develop their skills in management techniques, entrepreneurship, business opportunities, and business plans, because thanks to their investigative skills, they have a better understanding. For this reason, university entrepreneurship is considered fundamental for the development and growth of the country’s economy. The adaptation of a business management model, developed by the university, allows students in the field of activity to adapt the various learning received in their training; However, the above does not imply that this practice remains relatively little studied in the literature for social economic development.

In addition, leaders must innovate and find resources to do so, including practical products such as cloning technology. In a study called the new cloning method, for innovation, it was analyzed for its relationship with business success in terms of owner’s profit and expected financial profit. The manager’s experience in choosing the item to clone and its adaptation to the consumer’s needs contributes to the achievement of the company’s objectives. Using, cloning and modifying innovations is a practical way for small businesses to succeed (Chaniago, 2022). This modality, when adapted by the university, provides a better way to achieve greater success in the generation of entrepreneurship. In particular, little is mentioned about the capacity of good practices to generate innovation that contributes to the development of the local community.

According to Atmono et al. (2023), their study sought to verify the effects of course participation and extracurricular activities on entrepreneurship and entrepreneurial intention among Indonesian students, developed quantitatively to understand the phenomena studied by SEM-PLS (Quantitative Method to Study a Phenomenon). The results showed that the presence in the curriculum and external activities had a positive absorption effect on the entrepreneur’s self-efficacy and entrepreneurial intentions. Some academic activities and business independence have a positive effect on business plans. However, the existence of the resume does not affect business plans. This is the first step for universities and students to highlight the importance of having the curriculum to assimilate the fulfillment of business objectives. From the above, it can be deduced that universities that are committed to entrepreneurship must establish business models tailored to their realities, allowing students to develop their entrepreneurial skills.

In research whose purpose was to find out the relationship between entrepreneurial education and entrepreneurial capacity and to strengthen the mediating role of students’ entrepreneurial capacity, the results indicated that entrepreneurship education has a positive effect on students’ entrepreneurial intentions. Furthermore, business and education contribute to the development of students’ business skills and the latter contribute to achieving students’ business goals (Nguyen & Nguyen, 2023). It should be noted that the research carried out confirms that the entrepreneurial spirit of students acts as a mediating role between the education of entrepreneurs and their entrepreneurial intentions. But for this entrepreneurial spirit to materialize into success, it must be accompanied by guidance from the university.

Continuing, in another investigation, referring to the efficiency of universities in local economic development, they reveal that the existence of efficient universities drives economic growth at the local level (Agasisti et al., 2019). This is enhanced by the efficient participation of universities, which also promotes the need to create satellite campuses, arguing that they are in a unique position to meet the needs of their peripheral locations (Rossi & Goglio, 2020). Furthermore, knowledge and positive experiences are generated in areas geographically close to these efficient universities, making them solid bases where strategies are estimated and adapted to address the main needs of the community.

Finally, in research on rural development in Europe, due to the concentration of the population in urban areas, causing a drop in the population and growth of rural regions, it has been found that broader social and structural policies at the European level positively influence rural communities. This includes the education of local communities, improvement of local economic infrastructure, as well as its digitalization, support for local production, incentive for the interrelation between communities and local producers, and greater economic aid to companies and those dedicated to exploitation (Kusio et al., 2022). The importance of education in the local community, the cooperation of local actors, and the awareness that entrepreneurial skills allow them to be recognized and adopted for local economic development are emphasized.

Regarding the conceptual framework, entrepreneurial skills are addressed at the university level, defined as those that are aimed at preparing students in the various knowledge related to social demands, in such a way that their participation is committed, responsible, and creative, oriented to the development of society. These competencies are linked to operational knowledge of the business, understanding of human talent management, as well as finance and marketing (Miriam et al., 2022).

Entrepreneurial competence can be defined as the ability to act autonomously, taking into account three basic skills: the ability to act in a general context, the ability to carry out and execute personal life plans and projects, and the ability to specify rights, interests, restrictions, and needs. From the social and cognitive perspective, entrepreneurial competence implies the need for entrepreneurs to take the contributions of others in the formation of companies as models, contributing to new empirical knowledge regarding entrepreneurial metacognition (Bastian & Zucchella, 2022).

In business management, skills can be viewed from two aspects: general skills from the perspective of individual personal experience and professional skills from the perspective of personal work experience (Slišāne et al., 2022). Likewise, entrepreneurs are always looking for opportunities and developing innovations, therefore communication skills are essential to materialize risks; however, the relationship between entrepreneurship and communication skills has not been sufficiently studied in the literature (Abaci, 2022). Complementing this, business education is essential to promote business success and reduce poverty (Valle et al., 2022). However, the main reason that entrepreneurs do not develop a business is mainly due to cultural factors, largely because they did not develop the entrepreneurial spirit in people (Morales et al., 2022).

Some mechanisms to measure business behavior and actual business performance that could be incorporated to establish a more direct link between business education and local economic development outcomes—(i)financial indicators: measures such as revenues, profits, profit margins, returns on investment (ROI), cash flow, and sales growth can provide a quantitative assessment of the financial performance of companies, (ii) employment growth: tracking employment growth in local companies can indicate their contribution to job creation in the community and its ability to generate job opportunities, (iii) innovation and product development: measures such as the number of new products or services developed, patents registered, investments in research and development (R&D), and collaborations with academic institutions or research centers can reflect the capacity of companies to innovate and adapt to market demands, (iv) exports and internationalization: evaluating the volume and value of exports of local companies, as well as their presence in international markets, can indicate their ability to compete globally and contribute to economic growth at the local level, (v) participation in the value chain: analyzing the integration of local companies in global or regional value chains can provide information on their competitive position and their contribution to the development of the local economy, (vi) social and environmental impact: considering the social and environmental impact of business activities, such as sustainable job creation, carbon footprint reduction, and corporate social responsibility practices, can reflect their contribution to the sustainable community development, (vii) business surveys and in-depth interviews: conducting surveys or in-depth interviews with local business owners to gather qualitative information about their experiences, challenges, and business strategies can provide a more holistic understanding of business behavior and its impact in local economic development.

These mechanisms can be adapted and combined according to the specific needs and characteristics of each business and economic context, allowing a more complete and precise evaluation of the impact of business education on local economic development.

To study entrepreneurship, there are different approaches and theories such as the Theory of Planned Behavior by Ajzen (1991); according to Ruiz (2023), the intention is the ability of a person to put their ideas into practice. They are motivational factors that influence behavior, an indicator of how strong people’s desire is to perform an action and how much effort they plan to use to achieve a specific performance. Intention is a motivational factor that drives a person to act or have a specific behavior, in this case, to be successful.

Intentions, which depend on attitude, subjective norms, and perceived control, also affect behavior. The following is Ajzen’s (1991) definition: The degree to which people value their behavior as entrepreneurs is known as attitude. Subjective norms measure the perceived social pressure to carry out entrepreneurial behavior, that is, they refer to the perception of approval of the decision to undertake from the reference people. The perception of the ease or difficulty of carrying out the behavior is known as perceived control over the behavior.

According to Montoya and Herrera (2021) Douglass North’s institutional approach, although considered an economic theory, focuses more on informal institutions that affect the individual, examines North’s institutional approach (1990, 2005) from the perspective of the elements key to the environment, which, from its impact, explain commercial activity.

North’s theory has many similarities with the conception of entrepreneurial culture and how the environment affects entrepreneurs. Family, friendship, community, and society that surround the individual are considered fundamental and important elements, and have a positive or negative impact on their decision to undertake. Montoya and Herrera (2021) continues that the entrepreneurship ecosystem proposed by Isenberg (2010) is thoroughly analyzed by examining six main areas of its model: politics, finance, culture, support services, human capital, and markets. The ecosystem provides a series of norms that include economic, psychological, social, and cultural aspects, in addition to management and institutional structures.

The Isenberg ecosystem reflects the most important entrepreneurship theories on the subject from the main domains, offering a multidimensional look at the study of entrepreneurship. In other words, the economic, cultural, institutional, and human points of view are included, with complementarity being the most prominent characteristic of the model. This establishes an appropriate multidimensional guideline for the study of entrepreneurship, whose complexity requires the greatest possible complementarity between economic, cultural, humanistic, and institutional aspects, which allows a better approach to the phenomenon as a whole.

There is also the theory of dynamic abilities (DC).This approach focuses on a company’s ability with its dynamically changing environment to update, create, change, compose, and reconfigure the content of its resources. The dynamic capacity highlights three aspects that motivate this concept; first, the companies that have a strong presence in these capacities are highly entrepreneurial; second, they are based on innovation and support with other organizations, and finally, that a knowledge asset is difficult to replicate (Zea-Fernández et al., 2020). The categories that allow studying business entrepreneurship according to the dynamic possibilities approach are described according to Table 1.

Table 1 Business entrepreneurship categories

Regarding the second variable, called local economic development (LED), the concept is related to the growth of the per-capita income of the region or district that is the subject of study. There can be no LED if there is no economic growth. LED is defined as the process of expanding the capabilities that people enjoy. That is why it is important to empower them, because this is not only about growth rates, but also about the condition, the diffusion, the disposition, and the sustainability which are important in the same way. It should be noted that it also strengthens the composition of LED, several other elements, such as quality and sustainability, so that the government can support such development.

There is no single methodology to study DEL, according to Bernal Suárez et al. (2021). However, by proposing the “Local Economic Development Hexagon” that establish the basic concepts or tools within the six triangles that make up the proposed hexagon (Fig. 1).

Fig. 1

Source: adapted from The Meyer-Stamer (2004) Local Economic Development Hexagon, cited by Bernal Suárez et al. (2021)

The hexagon of local economic development.

The LED target group addresses three kinds of organizations or institutions: local businesses, external investors, and start-ups, where the location factor refers to the attractiveness of a geographical area for investments, which can be tangible or intangible. The next factor, referring to synergies, is manifested in three interrelated areas: in the economic boost for job creation, poverty reduction and community promotion with urban development, to group them in a meaningful way to create a synergy effect. Regarding sustainable development, it has to do with economic, environmental, and social aspects of development, to ensure opportunities with innovative approaches. The governance factor leads the public–private association, based on the administrative and regulatory order of the public sector and strategies planned in organizations in the private sphere. Finally, process management, interactively, based on an analysis of its reality and planning, execution, monitoring, evaluation, benchmarking and reflection make adjustments and additional planning (Bernal Suárez et al., 2021).

Possible moderating or mediating factors that could influence entrepreneurial skills and local economic development, considering absorption, innovation, learning and adaptation capacities, could include (i) institutional environment: government regulations, economic policies, and legal frameworks can affect the way companies operate and access key resources. A favorable institutional environment can promote investment and innovation. (ii) Business culture: the business culture of a region can influence the willingness of companies to take risks, innovate, and collaborate. A business culture that values creativity, initiative, and collaboration can drive local economic development. (iii) Access to financial resources: the availability of financing and accessibility to loans or investments can facilitate the growth and expansion of companies, allowing them invest in new technologies, employee training, and product development. (iv) Business networks and associations: participation in business networks and associations can provide opportunities for learning, collaboration, and access to shared resources, such as expertise, business contacts, and best practices. (v) Education and training: the level of education and training of the workforce can influence the capacity for absorption and application of new skills and technologies in local companies, driving innovation and economic development. (vi) Infrastructure: the quality and availability of physical infrastructure, such as roads, ports, airports, and telecommunications, can affect operational efficiency of companies and their ability to compete in global markets. (vii) Government support and development policies: government policies aimed at business promotion, research and development, the promotion of foreign investment and the creation of industrial clusters can have a significant impact on local economic development and improving business skills.

These factors can act as facilitators or barriers to the development of entrepreneurial skills and local economic growth, and their consideration can enrich the understanding of entrepreneurial dynamics in a given region.

Methods

The study was designed as a quantitative approach to be able to measure them, following the hypothetical-deductive method (Castañeda Mota, 2022). In this case, we sought to measure the influence of the entrepreneurship capabilities of university students on local economic development, with a non-experimental, transversal, and explanatory-causal design. In casual investigations, with a quantitative approach, explanations operate, which when contrasted can be considered good or bad, taking into account the number and varieties of interventions, where causal relationships continue without variation. The research was of an applied type, this is due to the pragmatic conditions of quantitative research, because its implementation is considered to be more likely to be implemented (Hull et al., 2022).

The population was made up of 7500 corresponding to the second semester of 2022 from a private university located east of the city of Lima, from different academic disciplines. A representative and diverse sample was sought to guarantee the validity of the results. The population was defined as a finite population, considering the research units with previously established selection criteria.

The selected sample was constituted by a non-probabilistic convenience sampling of 240 students, considering the student from the university located in the eastern area of Lima as the unit of analysis. This type of sampling is a technique used in quantitative research, which involves selecting elements from the population based on their availability, accessibility, practicality, and convenience. This was because, during data collection, students were gradually transitioning to the new hybrid or semi-presential modality.

The instrument used for data collection was the closed-structure questionnaire, considered as a data collection tool through questions that are formulated and listed in a table (De la Lama Zubirán et al., 2021). The instrument was developed by the authors and validated through the judgment of entrepreneurship experts. Data collection was carried out over a specific time period and a variety of channels were used, both online and in-person, depending on the preference of the participants. Reliability and informed consent were guaranteed prior to participation. To measure reliability, a pilot test was carried out on 10% of the sample (24 students), reaching an index of 98.2% of Cronbach’s alpha and an excellent level to be applied. The level obtained is represented by the internal consistency of the data presented on an ordinal scale, where its interpretation indicates that the items on the scale are highly related to each other. Furthermore, the reliability of the measurement is crucial for obtaining valid and accurate results, allowing for increased confidence in the findings and capturing the variability of the data within the study population.

The data were analyzed using descriptive and inferential statistical techniques, such as comprehensive logistics, Chi-square and predictors, to test the hypothesis, as well as identify significant relationships and measure the degree of influence of entrepreneurship competencies on development local economic.

Results and discussion

Results

Descriptive statistics

Table 2 shows the descriptive results of the study variables, where the entrepreneurial skills variable demonstrated a significant positive result of 57.90 and 29.20%, respectively for responding that agree and strongly agree with the entrepreneurial skills developed in their university education. Next, 54.20 and 21.20%, respectively, expressed their agreement and strong agreement with the perception of the contribution to local economic development.

Table 2 Descriptive results of the variables and dimensions

Likewise, specifically in the dimensions of entrepreneurship skills: absorption capacity 58.30 and 28.30%, innovation capacity 53.30 and 30.40%, learning capacity 52.10 and 36.30%, and lastly, the ability to adapt 53.30 and 30.80% said they agreed and strongly agreed, respectively, proportionally reaffirming the importance of entrepreneurial skills in local development.

Inferential statistics

For the test of inclusion of explanatory variables for the model, it was stated that: H₀ is convenient only with the constant and that H₁ is not convenient only with the constant.

For the decision of the test, an α of 0.05 was considered, where the null hypothesis is rejected when the p value is equal to or greater than significance and is accepted when it is less than significance.

Table 3 shows the result of the test of model fit information. This test seeks to determine if the model includes the explanatory variables. Given what was stated in the hypothesis test, which begins with the assumption that there is an ordinal logistic regression model to expose an adequate standard with a single constant, it is interpreted that the explanatory variables do not improve the fit of the data model. The result of the general and specific hypotheses indicates a significance lower than α = 0.05, for which the general and specific null hypotheses are rejected and the alternative hypotheses are accepted; that is, the model is not good with only one constant; therefore, it can be determined that the model with the selected explanatory variables and included in the regression models significantly improves the fit of the data compared to the models with a single constant.

Table 3 Test of model fit information

This indicates that ordinal logistic regression, as per the proposed model, includes all specific variables to determine their influence on local economic development. The main function of this model is to verify that the model also fits the observed data. In the case of ordinal logistic regression, the model predicts the probability of an observation belonging to a specific category of the ordinal variable based on predictor variables. The model fit information test examines the discrepancy between the model’s predictions and the actual data. In simple terms, it can be said if the constructed model can adequately explain the variability in the observed data. If the model fits well, it means that the predicted probabilities closely resemble the actual observed categories.

Hypothesis test for data fit to the model

For the goodness-of-fit hypothesis test, it was proposed that: the null hypothesis H0 = there is no significant difference between the expected and observed frequencies, indicating that your model fits well with the data; and the alternative hypothesis H1 = there is a significant difference between the expected and observed frequencies, suggesting that your model may not fit the data properly.

For the test decision, an α of 0.05 was considered, where the null hypothesis is rejected when the p value is less than the significance level and accepted when it is equal to or greater than the significance level.

Table 4 shows the result of two statistics, the Pearson score, and the Deviance, which are linked to the likelihood function and the deviance function. Both statistics are assumed to be suitable provisions for testing the hypotheses. The Pearson statistic is a test based on errors, while the Deviance is the result of splitting two components, that of the saturated model and that of the model under study. The objectives of this statistic are to establish whether the data in the perceived sample are inconsistent with the fitted model.

Table 4 Goodness-of-fit hypothesis test

It must be kept in mind that the demonstration of the hypothesis should not be significant in the case of the Deviance statistic, that is to say, does not reject the null hypothesis when the significant values (p value) are high. In this case, the Deviance shows a significant value of the general and specific hypotheses greater than the significant level α = 0.05; thus, the null hypothesis cannot be rejected, that is to say, the model does not adequately fit the data. As a result, it can be concluded that there is an influence of the variable entrepreneurial skills of students in local economic development, as well as the absorption, innovation, learning, and adaptation dimensions influence local economic development.

In summary, the goodness-of-fit hypothesis test helps assess the quality of fit of the ordinal logistic regression model by comparing observed frequencies with predicted ones. If the p value is low, it could indicate areas where the model needs improvement to accurately describe the observed data.

Determination coefficient

Table 5 shows the values of the pseudo R-square of the general and specific hypothesis which are the predictors of the dependent variable. Taking into account the independent variable of entrepreneurial skills and the dimensions of absorption, innovation, learning, and adaptation, the Nagelkerke indicator estimates 64.4% versatility of the dependent variable, that is to say, the local economic development variable is influenced in this proportion by the variable of entrepreneurial skills of the students. Regarding the dimensions, the results show 55.70%, 56.60%, 62.70%, and 59.80%, respectively, of the influence of the absorption, innovation, learning and adaptation dimensions, with respect to the dependent variable of local economic development.

Table 5 Determination of the pseudo R-square of the general hypothesis and specific hypotheses

Discussion

The findings achieved give evidence that the general objective of establishing the entrepreneurial skills of university-level students affect local economic development. In this sense, the results coincide with the studies carried out by Bu et al., (2023) who showed that the provision of business resources is of utmost importance to motivate entrepreneurship in university students. Highlighting that to promote entrepreneurship, it is important to promote human and social capital, without neglecting psychological capital and fostering the creation of a business environment that encourages innovation and tolerates failure.

Other research from the Latin American field that helps improve the comparison is the case of Mexico, according to Montiel et al. (2023) in a research whose purpose was to describe, the case of a Mexican public university, how university education affects the entrepreneurial mentality of students. The result indicated that, based on the knowledge acquired in class, the beginning of an entrepreneurial mentality training is evident. It is concluded that it is essential that students receive a more complete education focused on the development of entrepreneurial skills in the medium and long term, either as part of an organization or in their own business project.

There is also Ortega et al. (2023), who analyze the pedagogical strategies, technological integration, and economic effects of the role of entrepreneurship in entrepreneurial education in Latin America. The findings confirmed that innovation in entrepreneurship education is important, how technology and entrepreneurship have a positive relationship, and how economic development affects regional development. To address the challenges, the importance of strong teacher training and inter-institutional collaboration is highlighted. These results confirm the importance of adapting entrepreneurial education to local contexts and promoting teamwork to maximize socioeconomic effects in Latin America.

The research by Oré (2023) behaves in the same way, which sought to examine the digital entrepreneurship developed by higher education students. It was found that higher education students’ perceptions of digital entrepreneurship are not uniform; some emphasize the business aspect, while others believe that the business aspect is related to a parallel social dimension. Therefore, it was discovered that the main obstacles or obstacles that higher education students face when entrepreneurship digitally are financing and skills, the latter being the easiest to overcome.

In the same way, it is possible to determine the influence of the absorption capacities of university students on local economic development, by proving statistically significant: that when compared with Nguyen and Nguyen (2023), the results indicated that business education has a positive effect on the entrepreneurial intentions of students. Likewise, business and education contribute to the development of students’ business skills and the latter contribute to achieving the business goals of students. It must be specified that the research carried out proves that the entrepreneurial spirit of the students acts as a mediating role between the education of entrepreneurs and their entrepreneurial intentions.

On the other hand, the effect of the innovation capacities of university students on local economic development is confirmed. In view of these results, it coincides with what was found by Bustillos Bailey et al. (2020); Chaniago (2022), who argued that the teaching of entrepreneurship understood as that person who is innovative and who is endowed with many individual characteristics such as taking risks, being intelligent, having leadership, creative, knowing how to handle problems and always being dissatisfied. In this sense, it is not always the most appropriate in all universities, since it will be limited by its status as a public or private university, the country, and the region where it is located.

In relation to the specific objective that seeks to determine the effect of the learning abilities of university students on local economic development, the results were significant and positive, coinciding with those achieved in previous empirical studies by Colther et al. (2020) who carried out research at the Austral University of Chile, applying a project that encourages entrepreneurship and skills development, the result of which was the creation of 39 entrepreneurship projects, concluding that the model can provide contributions for the analysis and elaboration of this kind of projects in universities. On the other hand, the learning capacity refers to the organization’s ability to acquire knowledge, acquiring it from abroad or creating it (Zea-Fernández et al., 2020).

Regarding the specific objective, it is determined that the adaptation capacities of university students influence local economic development. It is statistically confirmed that the result allows us to establish coincidences with those obtained by Deza-Loyaga et al., (2021). In research carried out, it was shown that students who develop their skills in management techniques, entrepreneurship, business opportunities, and business plans business have a better understanding; Therefore, the entrepreneurship of university students is considered essential for the development and growth of a country.

In the same way, the limitations of the research are as follows. It is specified that these have occurred above all in relation to being able to work with a larger population, as well as with the intervention of other graduates from other universities located in the area of influence. It can also be mentioned that, due to the focus and level of the research, it has not been possible to directly know the opinions of those involved in the research, which can be done in a mixed or qualitative approach. However, it should be recognized that applied convenience sampling involves selecting participants based on their accessibility and willingness to participate, rather than using random methods. This approach, although practical and efficient in terms of time and resources, can introduce significant biases that affect the representativeness of the sample. In our study, having collected data exclusively from a private university, the sociodemographic, economic, and cultural characteristics of the participants may not adequately reflect those of the general student population. This limits the ability to extrapolate our findings to other educational institutions, especially public universities or universities from different geographic and cultural contexts. Accordingly, the following should be taken into account—(i) implications for generalization: to strengthen the external validity of our results, it is crucial to recognize these limitations and discuss the implications for broader applicability, (ii) institutional diversity: private universities can have different characteristics in terms of access to resources, academic programs, and socioeconomic profile of the students. Therefore, our findings may not be applicable to institutions with different characteristics, (iii) socioeconomic context: the socioeconomic composition of students in private universities tends to be different from that of public universities. This could influence the variables studied, limiting generalization to contexts with greater socioeconomic diversity, (iv) cultural and regional: cultural norms and values can vary significantly between regions and types of institutions. Our results may not be representative of cultural contexts other than the university studied, (v) recommendations for future research: to address these limitations, we recommend that future studies use probability sampling methods to obtain a more representative sample. Furthermore, expanding the study to multiple institutions from diverse regions and socioeconomic contexts would provide a more complete and generalizable understanding of the investigated phenomena.

In the same way, specify that this is a report of a completed investigation and therefore responds to an established design; however, it can be included as an additional recommendation that these results be taken into account in future research, and thus be able to expand the knowledge on this matter, which will further enrich the understanding of the contributions of the various actors in local economic development.

In summary, although the convenience sampling used in our study provides valuable information, it is important to interpret the results with caution and within the specific context of the sample. Recognizing these limitations not only strengthens our manuscript, but also provides a solid foundation for future research that seeks to expand and validate these findings in broader and more diverse contexts.

Likewise, it must be taken into account that although it is true that research reliably demonstrates the influence of entrepreneurship skills on local economic development, it must be taken into account that Peruvian universities, especially public ones, lack the economic resources sufficient to develop projects linked to local economic development; Then once the validity of the research model is demonstrated, it can be used to carry out other research in other geographical areas or countries, as an alternative for local economic development.

The main implication suggests that universities can play an important role in promoting entrepreneurship and, therefore, LED. Finally, public policies are aimed at promoting entrepreneurship focused on the development of entrepreneurial skills of university students.

Conclusion

Research on the entrepreneurship competencies of university students and their influence on local economic development is of utmost importance in a constantly changing world. Understanding how students can contribute to strengthening local economies through their entrepreneurial skills is essential to guide educational policies and entrepreneurship support programs. The results of this study will provide valuable insights for decision makers, educational institutions, and local businesses seeking to drive economic development in their communities. Data were obtained using a structured closed-ended questionnaire from a total of 240 participants selected using a convenience sampling technique; the same ones that were collected in-person and electronically.

The analysis of the quantitative data was carried out using descriptive and inferential statistics, using tables and frequencies, Chi-square, goodness-of-fit tests and influence predictors such as Nagelkerke, the hypothesis testing statistic being the Ordinal Logista, because it has a quantitative approach and qualitative variables and is also an explanatory-causal investigation.

The research highlights the entrepreneurial skills of university students in local economic development, providing suggestions for policymakers and academic institutions to enhance local government policies. The integration of entrepreneurial education into academic programs is proposed, promoting innovation and critical thinking. Strengthening business incubators and shared workspaces is suggested as effective support for young entrepreneurs, providing physical resources and collaboration opportunities. In addition, facilitating access to financing through local investment funds or grants for start-ups is emphasized as crucial. Encouraging mentorship networks and networking events allows the transfer of knowledge from experienced entrepreneurs. Specifically, the formulation of policies that streamline procedures, reduce taxes, or incentivize local hiring to support the establishment of local businesses is highlighted. Collaboration among government, the private sector, and academia, possibly through advisory councils, is presented as effective. The implementation of continuous monitoring and evaluation mechanisms ensures ongoing adoption to maximize impact and benefits.

We recognize the importance of providing concrete policy recommendations and practical implications based on our findings to maximize the impact of the study, which is why we include specific educational strategies, policy initiatives, and programs aimed at harnessing the entrepreneurial potential of university students, thus contributing to the local economic development.

Practical implications and policy recommendations—(i) specific educational strategies integration of business education in the curriculum, (ii) entrepreneurship courses and workshops: incorporate mandatory and optional courses on entrepreneurship and business management in all academic programs. These courses should include topics such as creating business plans, financing strategies, and leadership skills.

(c) Innovation projects: promote practical projects where students develop and present innovative business ideas, with the support of experienced mentors from the business sector. (iii) development of transversal skills, (iv) soft skills training: implement programs to develop soft skills, such as leadership, effective communication, teamwork and problem solving, which are essential for business success, (v) competitions and hackathons: organize entrepreneurship competitions and hackathons that encourage creativity and critical thinking among students, promoting an environment of constant innovation.

Political initiatives—(i) promotion of student entrepreneurship, (ii) support programs for entrepreneurs, (iii) establish business incubators and accelerators within universities, which offer resources, mentoring, and co-working spaces to student entrepreneurs, (iv) financing and scholarships: create investment funds and specific scholarships for entrepreneurial projects led by students, encouraging the creation and development of new companies, (v) links with the business and government sector, (vi) strategic alliances: establish alliances with local companies, chambers of commerce and government entities to facilitate professional internships, collaborative projects and networking opportunities for students, (vii) startup support policies: promote local and regional policies that facilitate the creation and growth of start-ups led by students, including tax incentives, access to financing and markets.

Programs for local economic development—(i) promotion of innovation ecosystems: (ii) innovation and technology centers: create innovation and technology centers in universities that serve as hubs for the development of business projects, offering access to laboratories, advanced technologies and specialized advice, (iii) entrepreneurship networks: develop entrepreneurship networks that connect students, alumni, local entrepreneurs and industry experts, facilitating the exchange of knowledge and resources.

Community development initiatives: (i) social impact programs: promote business projects with social impact that address local problems, such as sustainability, inclusion and community development, thus promoting inclusive and sustainable economic development, (ii) support for social enterprises: establish support programs for student-led social enterprises that seek to solve community challenges while generating economic value.

In summary, these educational strategies, policy initiatives, and programs have the potential to harness the entrepreneurial spirit of university students, contributing significantly to local economic development and the creation of a robust and sustainable innovation ecosystem.

As strategies that help put into practice what is suggested in the conclusions, the following recommendations can be formulated, taking into account the local environment, where the university is located: (i) sign agreements with the district municipality of the university, (ii) sign agreements with associations of entrepreneurs in the areas to be able to provide them with training and advice in the use of management tools, (iii) train teachers of subjects that are related to university social responsibility courses, (iv) carry out qualitative research with interviews in-depth to better understand the entrepreneur in the area of influence of the university, (v) create business models with students that allow them to put into practice what they have learned, (vi) manage funds with private entities in the area that allow financing the business models undertaken by students.