Entrepreneurial Intentions in the Absence of Banking Services: The Case of the Lebanese in Crises

Abstract

This paper investigates the complex factors hindering entrepreneurial aspirations in Lebanon, focusing on the absence of a functional financial system and its impact on entrepreneurial intentions. Drawing on surveys conducted with 325 Lebanese participants across three generations, using ordinal regression, the research reveals crucial determinants of entrepreneurial intentions, emphasizing the roles of entrepreneurial attitude, the absence of banking sector services, optimism, risk propensity, and age. Positive attitudes and optimism correlate with stronger intentions; however, the weakened economic situation and lack of a functional financial system diminish this positive correlation. Demographic factors like gender and education do not significantly influence intentions. In addition, the study reveals differences in entrepreneurial intentions determinants across the three generations of X, Y, and Z. This study underscores the urgent need for financial system reforms in Lebanon to enhance stability while advocating for financial literacy programs and private sector initiatives to empower entrepreneurs and expand their businesses.

1. Introduction

In an era where Internet banking is thriving and loans serve as a primary source of funds, where a robust financial system provides a sense of certainty for entrepreneurs worldwide (Urban and Ratsimanetrimanana 2019), and where bank failure is no longer a threat for start-up founders, exemplified by cases like SVB (Analytica 2023; Byrne 2023), Lebanon’s entrepreneurs face a unique challenge. The financial situation in Lebanon is dire, marked by a crippled banking system, soaring inflation, and a devalued currency (World Bank 2021). Widespread economic instability, exacerbated by political and social unrest, has led to limited access to funds, leaving businesses and individuals struggling to navigate a profoundly challenging financial landscape (World Bank 2023; Zougheib 2023).

Lebanon has been facing an economic and political crisis for several years starting in 2019. The crisis has been characterized by hyperinflation aggravated by increased unemployment rates and political instability. The situation became more dire after the pandemic and worsened more after the explosion in the port of Beirut in 2020. A non-functional banking system is certainly a major aspect of the crisis (Dbouk 2020). Many individuals have lost their savings owing to the restrictions set by the bank on withdrawals and transfers. The Lebanese pound has also lost more than 90% of its value (World Bank 2021), leading Lebanese inhabitants to suffer severe consequences such as the inability to cover their basic needs and afford basic commodities. Additionally, the banking system has also faced a shortage of foreign reserves, leading to the inability to provide loans either to individuals or businesses. This has been reflected in a negative way on SMEs as some of them have been forced to shut down while others have taken some precautionary measures to stay afloat. This miserable situation has undoubtedly decreased entrepreneurial intentions among individuals. Furthermore, it is crucial to mention that other than the economic aspect of the crisis, the political aspect has also played a major role in the Lebanese crisis including corruption, sectarianism, and instability, with failure to provide infrastructure (Abouzeid 2021; Barroso Cortés and Kéchichian 2020). In short, the absence of a functional banking system has made it difficult for Lebanese individuals to start a new venture due to the impossibility of accessing financial services like their savings or withdrawing money. The inability to take out loans has also made it hard for new entrepreneurs to grow their businesses. Moreover, the shortcomings in the role of the government to provide the necessary infrastructure have weakened entrepreneurial intentions in terms of physical and social capital. These unfavorable macroeconomic conditions have weakened entrepreneurial intentions among Lebanese individuals. They would prefer to find stable jobs without taking risks to create a new enterprise in this challenging environment.

This study investigates the intricate interplay of factors that hinder entrepreneurial aspirations. Specifically, it explores the profound impact of the absence of a functional financial system and limited access to credit on entrepreneurial intentions. The study addresses a significant gap in the existing literature by providing nuanced insights into the unique challenges faced by Lebanese entrepreneurs, offering valuable contributions to the global entrepreneurial discourse. Understanding these dynamics is crucial not only for comprehending the demotivational barriers faced by aspiring entrepreneurs but also for formulating targeted policy measures that can bridge the gap between limited credit access and entrepreneurial ambitions in Lebanon, thereby fostering a conducive environment for business growth, innovation, and economic resilience.

Based on the literature, studies have shown that personality characteristics are predictors of entrepreneurial intentions (Astuti and Martdianty 2012; Yurtkoru et al. 2014). Perseverance (Biswas and Verma 2021), need for achievement (Ahmed et al. 2010; Wu et al. 2007), risk-taking propensity (Hmieleski and Corbett 2006; Segal et al. 2005; Zhao et al. 2010), positive attitudes toward entrepreneurship (K. E. Keat 2012; Schwarz et al. 2009), and optimism (Bouchard et al. 2017; Storey 2011; Trevelyan 2008) are strongly associated with entrepreneurial intentions (Alshebami and Seraj 2021; Nakara et al. 2020) in addition to having an impact on the economic and financial environment of the country (Arrighetti et al. 2016; Eckhardt and Shane 2003; Henderson and Robertson 1999; Robertson et al. 2003; Van Gelderen et al. 2008). No other studies in the literature have been conducted in an environment where the banking system is completely absent and funding is based solely on donations (Mawad and Makki 2023), hence the importance of this study.

This study aims to shed light on the following questions:

(1)

What are the determinants of the entrepreneurial intentions of Lebanese individuals?

(2)

How does the absence of the banking system impact the entrepreneurial intentions of Lebanese individuals?

To answer the above questions, a survey was conducted involving 325 Lebanese individuals, and an ordinal regression was performed over the entire sample and across three generations. The study identifies key determinants of entrepreneurial intentions for Lebanese individuals in a crisis, highlighting the significance of factors like entrepreneurial attitude, absence of the banking sector, optimism, risk propensity, and age. Positive entrepreneurial attitudes and reliance on stable economic conditions correlate with higher intentions, but the weakened economic situation and absence of a functional financial system diminish this positive relationship. Notably, younger individuals show a greater inclination toward entrepreneurship, while demographic factors like gender, education, and family background do not significantly impact entrepreneurial intention within this context.

This result emphasizes the urgency of financial system reforms in Lebanon, aiming to enhance stability and reliability. Additionally, fostering financial literacy through educational institutions, coupled with private sector initiatives to improve market access is pivotal for empowering entrepreneurs and expanding their businesses.

The remaining parts of the paper are organized as follows. First, a brief literature review of entrepreneurial intention factors is presented and then a description of the data, variables, methodology, and model is presented. The third section presents the results and discussion, and finally, the fifth section concludes with the recommendations.

2. Literature Review

This section offers a clear review of the literature to provide a deep understanding of the emergent variables and their association with entrepreneurial intention. In addition, it provides a detailed conceptualization of the variables in the study so that we can test the relationship between the different personality traits and entrepreneurial intentions.

2.1. TPB, SCT, and Entrepreneurial Intentions

According to established theories such as Ajzen’s (1991) theory of planned behavior and Bandura’s (1986) social cognitive theory, external factors influence individuals’ intention to perform specific behaviors (Bandura 1986; Wood and Bandura 1989). These external influences directly influence how people think, perceive, and act.

The theory of planned behavior (TPB), which is an extension of the theory of reasoned behavior, is very crucial in explaining individuals’ behaviors that are based on their intentions and perceived behavioral control (Ajzen and Fishbein 1975; Vallerand et al. 1992). To wit, a person’s intention leads them to perform a behavior and to have control over that behavior (Ajzen 1991).

The theory of planned behavior (TPB) has been extensively used in different research areas and most notably in entrepreneurship research (Amofah and Saladrigues 2022; Barba-Sánchez et al. 2022; Duan 2022). This research will focus on the model developed by Ajzen (1991), which provides an explanatory framework and context for behaviors and intentions (Ajzen 1991). Entrepreneurship is seen as an intentionally planned behavior. According to TPB, there are two main drivers of intention: desirability and feasibility (Amofah and Saladrigues 2022). Desirability is explained through the motivation of individuals to perform a certain behavior, and this motivation is usually determined by the person’s subjective norms and personal attitudes whereas, concerning the feasibility of the behavior, it is determined by the perceived behavioral control.

Prior research has been conducted on the factors that impact the decision to create a new venture that is centered on the personality and psychological traits of Brockhaus (1980); Krueger et al. (2000); McClelland (1965). According to (Mitton 1989), commitment, the need for control, and the non-fear of challenges are essential psychological characteristics of entrepreneurs (Mitton 1989). This assumption was also supported by other researchers (Brice 2004; Florin et al. 2007; Li et al. 2006). Moreover, it has been hypothesized that various personality traits, such as the need for achievement, innovativeness, internal locus of control, and tolerance for ambiguity, are perceived as factors influencing entrepreneurial intentions (Brice 2004).

Another theory that has been recognized as one of the most prominent theories in highlighting entrepreneurship intentions is social cognitive theory (SCT) (Neneh 2022). It was established by Wood and Bandura (1989) and it sheds light on the learning process of individuals and how people are influenced by the social factors surrounding them. According to social cognitive theory (SCT), factors encompassing environmental, personal, and behavioral inputs have considerable effects on behaviors including entrepreneurship intentions (Kadile and Biraglia 2016). Social cognitive theory (SCT) postulates that the learning process occurs as a result of a reciprocal interaction between individuals, the environment, and behavior (Al-Qadasi et al. 2023). Thus, this interaction is based on three key elements: environmental inputs which include the social context and the cultural background of individuals (sharing information with existing entrepreneurs, observing their work, and being inspired); personal factors encompassing the age, gender, beliefs and values, competencies, and emotional state (being creative and being passionate and skilled) of the person; and behavioral outcomes, which are considered as outcomes of the two precedent components (Kadile and Biraglia 2016). To wit, to succeed in performing a certain behavior, individuals should have the knowledge of what to do and the means to perform such behavior. In brief, individuals who aim to become entrepreneurs should have a high self-efficacy trait that is concerned with the willingness to accomplish duties and tasks to achieve their objectives (Bandura 2012; Stroe et al. 2018).

2.2. Factors Influencing Entrepreneurial Intentions and the Development of Hypotheses

The connection between personality traits and entrepreneurial intentions has been a focal point of research over the last three decades, as they have been consistently correlated in the literature (Al-Qadasi et al. 2023; Farrukh et al. 2017; Gozukara and Colakoglu 2016). Studies have shown that personality characteristics are predictors of start-up ambitions (Astuti and Martdianty 2012; Yurtkoru et al. 2014). Previous studies have shown that personality traits robustly affect the way entrepreneurs think, their interests, and their potential objectives (Cater et al. 2022; Ye and Yee 2023). Entrepreneurs usually have a particular orientation on the way they perceive opportunities in addition to a vigorous belief in their capability to pursue the desired or expected objectives. Motivation has been perceived as being closely associated with entrepreneurial intentions, but personality traits including internal locus of control, need for achievement, risk-taking propensity, innovations, self-efficacy, perseverance, and proactiveness play a major role in developing entrepreneurial intentions among people (Diaz 2003; Duckworth et al. 2007; Farrukh et al. 2017; Gozukara and Colakoglu 2016; Hansemark 2003; Hu et al. 2018; Yurtkoru et al. 2014). It is necessary to mention that Lebanese entrepreneurs have different cultural attitudes depending on their age, gender, and educational background. However, they do have some common traits that characterize Lebanese entrepreneurs. Firstly, Lebanese individuals in general and entrepreneurs in particular are characterized by their resilience and adaptability. They often adapt to new circumstances and volatile situations and try to pursue new opportunities. Second, Lebanese entrepreneurs have strong social networking which helps them gain support and funding in case needed. In addition, they are innovative, creative, and unstoppable. They always seek to be different and create solutions for problems occurring in the market which can help them gain a competitive advantage. For instance, during the crisis, Lebanon has faced a lack of fuel which has led to a shortage of electricity; some entrepreneurs have found a solution to this by creating a business that offers solar panels to people. Overall, the cultural attitudes among Lebanese entrepreneurs are shaped by the circumstances and barriers encountered which push them to continue and strive for success.

2.2.1. Perseverance

Perseverance is illustrated as the willingness of a person to put all his/her efforts toward attaining the desired outcomes regardless of the obstructions, difficulties, and limitations met. It is the process that reflects the hard work, diligence, and persistence of an individual toward achieving his/her objectives (Cater et al. 2022; Ye and Yee 2023). This trait is considered essential to entrepreneurs because it allows the person to stick resolutely to his/ her purpose and keeps them motivated to overcome all the challenges encountered and never give up. It has been shown that individuals who report lower levels of perseverance do not stick to their objectives; they would rather quit or abandon the project once they face failures or opposition. On the other hand, research has indicated that people who demonstrate high levels of perseverance have strong tolerance and bear setbacks and barriers in the pursuit of their desired goals. Perseverance traits are also signaled through the person’s dedication to work—working hard to finish all of their planned duties, completing the tasks in a perfectionist way, and holding steady to their business or project irrespective of distractions. In a study performed by Kern et al. (2016), they found that the perseverance personality trait has a substantial impact on the entrepreneurial intentions of students (Biswas and Verma 2021). Perseverant students showed a significant inclination to start their own businesses. Therefore, and based on the aforementioned arguments, the following hypothesis is proposed:

H1. 

Persistence positively influences the entrepreneurial intentions of individuals in Lebanon.

2.2.2. Need for Achievement

This is another characteristic that illustrates individuals’ desire for personal development and achievement. People seek development and advancement in their lives and therefore, they need to exploit their full potential in order to realize their objectives and goals. Hence, the need for achievement refers to people’s tendency to maximize their performance with the purpose of realizing a completion (Soomro and Shah 2022). Persons holding a high need for achievement hold a high benchmark of performance so they can complete difficult and challenging tasks. Moreover, this type of person is always open to criticism and accepts different opinions because they seek self-development and progress. In addition, individuals who have a higher need for achievement are often ready to exploit their abilities and capabilities in performing tasks—even if they are struggling with them—so that they can be satisfied with the results and outcomes obtained. They have strong levels of commitment and enthusiasm toward their work and these characteristics push them toward setting great standards of performance (Uysal et al. 2022; Wu et al. 2007). Numerous researchers have discovered a positive correlation between the desire for achievement and the entrepreneurial intentions of students exhibiting strong intentions to start their own businesses (Ahmed et al. 2010). Therefore, based on the preceding arguments, the following hypothesis is proposed:

H2. 

The need for achievement positively influences the entrepreneurial intentions of individuals in Lebanon.

2.2.3. Risk-Taking Propensity

Risk-taking propensity is defined as people’s willingness to take risks. Entrepreneurs are exposed to risk when building or growing their businesses; this risk is not only restricted to financial risk but also encompasses career risk, reputational risk, familial risk, and much more. Entrepreneurs are risk-takers because it takes a brave person to leave their job and grow their own business with no guarantee of a return on their investment (Ahmed et al. 2022). Individuals who are willing to bear high risk will definitely, in return, experience highly rewarding alternatives compared to over-cautious and risk-averse persons (Martins et al. 2023). Risk-takers are also ready to make decisions in vague circumstances and situations. According to K.E. Keat (2012), risk-taking is a personality trait that allows one to make a differentiation between managers and entrepreneurs. To wit, entrepreneurs do not fear searching for new adventures and opportunities; they set a clear plan and divide it into tasks, put their money in financing their project regardless of the risky situation, and believe in the prospective success. Entrepreneurship involves bravery and courage to undertake risk and overcome any difficulties confronted (Salameh et al. 2022). Based on the study conducted by Zhao and Seibert (2006), a person who has the willingness to take risks will opt for building their own business and career, demonstrating an entrepreneurial intention (Zhao et al. 2005). This study has since been supported by many authors (Hmieleski and Corbett 2006; Segal et al. 2005). Furthermore, K. E. Keat (2012) investigated the relationship between risk-taking propensity and entrepreneurial intentions and found a positive association among students who reported high willingness to undertake risk (K. Keat 2012; Stewart and Roth 2001; Zhao et al. 2010). Considering the aforementioned points, the following hypothesis is proposed:

H3. 

Risk-taking propensity positively influences the entrepreneurial intentions of individuals in Lebanon.

2.2.4. Entrepreneurial Attitudes

Attitudes have been recognized as a critical motive of entrepreneurial intentions and behaviors. Attitudes are the reflection of individuals’ beliefs about entrepreneurial ventures and whether they are passionate about creating their own firms or not (Rodrigues et al. 2023; Satriadi et al. 2022). Individuals who demonstrate positive and passionate attitudes about starting up their businesses, making profits, and being willing to grow and endure are certainly entrepreneurs. Based on the theory of planned behavior, entrepreneurial attitude is considered a determinant of entrepreneurial intentions. Limited research has explored the connection between attitudes toward entrepreneurship and intentions to pursue entrepreneurial endeavors (Amofah and Saladrigues 2022; Duan 2022). In a study conducted by Schwarz et al. (2009), they revealed that a correlation between these two variables was proven among students (Schwarz et al. 2009). Students who have a mindset of entrepreneurship and a positive attitude about starting their companies reported high levels of entrepreneurial intentions. In line with the above-mentioned discussion, the following hypothesis is expressed:

H4. 

A positive entrepreneurial attitude positively influences the entrepreneurial intentions of individuals in Lebanon.

2.2.5. Optimism

Optimism refers to the extent to which individuals maintain a positive picture of the future. In other words, an optimistic person is a person who has the intention to establish a new business in a risky competitive setting. Many researchers have investigated the relationship between optimism and entrepreneurial intentions and found a positive correlation between the two variables (Haddoud et al. 2024; Neneh 2022; Storey 2011; Trevelyan 2008). Optimism is a substantial personality trait that leads individuals to build an entrepreneurial spirit and it is considered a prerequisite for entrepreneurship (Dushnitsky 2010; Yeşilkaya and Yıldız 2022). Having an optimistic mindset serves as a critical quality for developing entrepreneurial intentions for several reasons. First, when a person is optimistic about events and their surroundings, this can lead them to hold positive stimuli, overlook hurdles, and conquer any bad information (Kelberer et al. 2018). Consequently, optimistic people recognize opportunities more often than pessimists who always look for threatening information to dismiss a project (Baron 2006; Ramos-Rodriguez et al. 2010). This is why entrepreneurs are optimistic people. In addition, according to a study performed by (Madar et al. 2019), optimism allows individuals to be more innovative and creative which will reflect in a positive way on the cultivation of entrepreneurial intentions (Biraglia and Kadile 2017). Moreover, establishing a new venture is not easy at all; it takes someone to be courageous and brave to believe in the future and its uncertainty. In a world overwhelmed with uncertainty and ambiguity, individuals should be optimistic about starting a new initiative, facing failures, and overcoming all the obstacles toward the success of the new venture. Unlike pessimistic individuals, optimistic people do not give up or quit because they believe in the feasibility of their project. Thus, according to Bouchard et al. (2017), optimism is strongly associated with motivation (Bouchard et al. 2017) and reduced financial fragility during crises (Mawad 2022). When people are motivated to pursue their own goals and objectives, they will expect positive things to happen. In research conducted by Giacomin et al. (2015), optimistic students perceived favorable entrepreneurship outcomes such as personal wealth, flexibility, and higher social status and thereby reported greater entrepreneurial intentions. In view of the above, the subsequent hypothesis is proposed:

H5. 

A positive outlook and optimism positively influence the entrepreneurial intentions of individuals in Lebanon.

2.3. The Impact of the Absence of the Banking Sector on Entrepreneurial Intentions

In addition to personality trait factors, entrepreneurial intentions are also affected by contextual factors. Entrepreneurs do not make decisions erratically or randomly; they are driven by the context in which they operate (Eckhardt and Shane 2003). A plethora of research has highlighted the role of contextual units in influencing entrepreneurs’ intentions and the supporting role played by economic institutions and banks (Dohse and Walter 2012; Zulfiqar et al. 2022). One of the most demotivational barriers that can have negative effects on entrepreneurial intentions is limited access to credit since the most difficult part when creating a business is the collection of funds, building capital, and ensuring financial resources (Arrighetti et al. 2016). Many studies have examined the role of financial insecurity in entrepreneurial intentions and found that financial support is one of the essential factors to keep entrepreneurs motivated to build their own businesses (Henderson and Robertson 1999; Robertson et al. 2003; Van Gelderen et al. 2008; Zulfiqar et al. 2022). During a crisis period, most countries face a sharp decline in venture creation, and this is due to the constraints imposed by banks such as the credit crunch.

In contrast, besides the negative effects, the economic crisis can also be a motive for entrepreneurs to boost their activities. Since recessions are always accompanied by a high level of unemployment, becoming an entrepreneur can also be seen as a solution to becoming “self-employed” (Reynolds et al. 2005).

The banking system plays a primordial role in growing the economy in general and expanding entrepreneurship opportunities. Entrepreneurs always need support to finance their new creations and build a robust venture. With the Lebanese financial crisis, important changes have occurred in the Lebanese ecosystem and, most importantly, the change in perceptions of entrepreneurs. Entrepreneurs, presumably, will not have the facilities to create their own businesses in the absence of the banking sector and they will also suffer in this uncertain market. This research addresses this problem—the negative and direct effect of the absence of the banking system on entrepreneurs—because of increased uncertainty and insecurity in the future. Hence, the systemic banking crisis has a detrimental effect on the level of opportunities to implement a new venture.

H6. 

A lack of banking services weakens the positive link between entrepreneurship intentions and other factors.

3. Data and Methodology

3.1. Data Description

This research was carried out through an online survey conducted in English across generations in May 2023. The survey was distributed through various Internet platforms, and participants were selected through convenience sampling, noting the limited data availability in the country. A total of 325 participants were surveyed, comprising 164 females and 138 males. Among them, 55 belonged to Generation X, 126 belonged to Generation Y, and 121 belonged to Generation Z. The educational background of the participants varied, with 168 being graduates, 10 having completed high school, and 124 being educated to university level. In terms of employment, 222 participants were employed, while 80 were unemployed.

3.2. Variable Selection

This study examines entrepreneurial intentions within a diverse context, considering a range of variables and control factors. Perseverance, entrepreneurial attitude, need for achievement, risk-taking propensity, optimism, and economic factors dependence are thoroughly investigated to grasp the participants’ entrepreneurial inclinations.

The study investigates the determinants of the dependent variable entrepreneurial intentions, using a set of independent variables: perseverance, entrepreneurial attitude, need for achievement, risk-taking propensity, optimism, and economic factors dependence; the questionnaire questions sets are presented in

Table A1. Questionnaire items.

VARIABLE	QUESTION	SCALE
FB	Did you grow up in a family business environment?	Yes/No
FBA	If yes, did you actively work (more than 5 h per week) in the family business?	Yes/No
P1	I finish whatever I begin.	Likert 1–5
P2	I keep at my tasks, or schoolwork, or housework, or things to do, until I am finished with them.	Likert 1–5
P3	Once I make a plan to get something done, I stick to it.	Likert 1–5
P4	I am a hard worker.	Likert 1–5
P5	I return to uncompleted tasks and finish them.	Likert 1–5
P6	I give my best to all assigned tasks.	Likert 1–5
EA1	A prospective career as an entrepreneur would be attractive rather than unattractive.	Likert 1–5
EA2	The autonomy of starting my own business would be enjoyable rather than unenjoyable.	Likert 1–5
EA3	The financial reward of starting my own business would be enjoyable rather than unenjoyable.	Likert 1–5
EA4	I think I will start my own business in the future.	Likert 1–5
EA5	If I see a good opportunity in starting up a business, I will be eager to act.	Likert 1–5
NA1	I will do very well in difficult tasks relating to my study and work.	Likert 1–5
NA2	I will try hard to improve my work performance.	Likert 1–5
NA3	I will seek added responsibilities in jobs assigned to me.	Likert 1–5
NA4	I will try to perform better than my counterparts.	Likert 1–5
NA5	I desire and pursue success.	Likert 1–5
NA6	I attribute success and failure to myself rather than to others and circumstances.	Likert 1–5
NA7	I enjoy completing tasks.	Likert 1–5
NA8	I do more than what is expected of me.	Likert 1–5
NA9	I put a great effort sometimes to learn something new.	Likert 1–5
NA10	I plunge into tasks with all my heart.	Likert 1–5
RP1	I am willing to undertake risks in my life.	Likert 1–5
RP2	The risk of failure is not a concern for me.	Likert 1–5
RP3	I would not be hesitant to put my money into a new scheme that could fail if the rewards are high.	Likert 1–5
RP4	I am not afraid to choose a career that I truly enjoy over a more prestigious one.	Likert 1–5
RP5	I am willing to initiate a new project which has a high potential to backfire.	Likert 1–5
RP6	I am not scared of speaking my mind about an unpopular issue in a public meeting.	Likert 1–5
RP7	I am willing to move to a city far away from my extended family.	Likert 1–5
O1	I am optimistic about my future.	Likert 1–5
O2	In uncertain times, I expect the best.	Likert 1–5
O3	I think good things are going to happen to me.	Likert 1–5
O4	I believe that things will work out, no matter how difficult they seem.	Likert 1–5
EFD1	If I had access to bank loans, I would start a business.	Likert 1–5
EFD2	If the country’s economic and financial situation was stable, I would start a business.	Likert 1–5
EFD3	If the country’s financial system was reliable, I would start a business.	Likert 1–5
EI1	My goal is to have my own business.	Likert 1–5
EI2	I will make every effort to start and run my own firm.	Likert 1–5
EI3	I am determined to create a firm in the future.	Likert 1–5
EI4	I have very seriously thought of starting a firm.	Likert 1–5
EI5	I have strong intentions to start a firm someday.	Likert 1–5
EI6	I am ready to do anything to have my own business.	Likert 1–5

in the Appendix A.

The study incorporates a comprehensive set of variables to gauge entrepreneurial intentions among the participants. Perseverance, as outlined by Kern et al. (2016), is measured through indicators such as task completion, adherence to plans, and diligence in work, using six questions, with the highest score being the strongest level of perseverance. Entrepreneurial attitude, based on Ahmed et al. (2010), evaluates the attractiveness of entrepreneurship, autonomy, and financial rewards, providing insights into the participants’ inclination toward entrepreneurial endeavors, measured using five questions, with the highest score showing the strongest level of positive entrepreneurial attitude.

Need for achievement, also from Ahmed et al. (2010), assesses the participants’ drive for excellence, their willingness to take on challenges, and their proactive approach to tasks, measured using 10 questions, with the highest score showing the strongest need for achievement for the individual. Risk-taking propensity, another significant dimension, examines the participants’ openness to risks in personal and professional spheres, revealing their willingness to pursue new opportunities, measured using seven questions, with the highest score showing the strongest openness to risk taken by the individual.

Optimism, drawing from Kern et al. (2016), delves into the participants’ positive outlook on the future, even amidst uncertainty, shedding light on their confidence and positive expectations, measured using four questions, with the highest score showing the strongest level of optimism. Economic and financial factors dependence, based on Zain et al. (2010), considers the impact of stable economic conditions and reliable financial systems on the participants’ business aspirations, highlighting the external influences on entrepreneurial intentions, measured using three questions, with the highest score showing the strongest dependence on the financial system of the individual.

Entrepreneurial intentions, the dependent variable of this study according to Ahmed et al. (2010), the captures participants’ determination and seriousness about establishing their own businesses, measured using six questions, with the highest score showing the strongest level of entrepreneurial intentions.

Furthermore, the study incorporates essential control variables, including age, gender, educational level, the presence of a family business, and individual family business experience. Age and gender were scrutinized to discern potential generational or gender-based differences in entrepreneurial aspirations, while education level was evaluated to understand the influence of education progress. The presence of a family business and personal experience within it is analyzed to recognize the impact of familial surroundings on entrepreneurial intentions. By integrating these diverse variables and controls, the study aims to offer a comprehensive and nuanced understanding of the multifaceted factors shaping participants’ entrepreneurial ambitions, encompassing demographic, socioeconomic, and familial contexts.

3.3. Models and Methodology

3.3.1. Conceptual Model

The conceptual model explores the intricate dynamics of entrepreneurial intentions within a diverse framework. At its core is the dependent variable, “Entrepreneurial Intentions”, reflecting participants’ determination to establish their own businesses. This intention is influenced by several key independent variables: “Perseverance”, highlighting tenacity and diligence; “Entrepreneurial Attitude”, encapsulating attractiveness, autonomy, and financial enjoyment of entrepreneurship; “Need for Achievement”, indicating a proactive approach and desire for excellence; “Risk-Taking Propensity”, representing openness to risks; “Optimism”, reflecting positive outlook; and “Economic and Financial Factors Dependence”, considering the dependence on stable economic conditions and financing access. Additionally, control variables such as age, gender, educational level, family business background, and family business experience moderate these relationships. Perseverance, positive attitudes, a proactive mindset, and financial stability are anticipated to positively influence entrepreneurial intentions. This comprehensive model provides a holistic perspective, encompassing psychological, socioeconomic, and demographic dimensions, offering insights into the complex nature of entrepreneurial aspirations.

$$\mathrm{EI}={\mathsf{\alpha }}_0+{\mathsf{\alpha }}_1\mathrm{P}+{\mathsf{\alpha }}_2\mathrm{EA}+{\mathsf{\alpha }}_3\mathrm{NA}+{\mathsf{\alpha }}_4\mathrm{RP}+{\mathsf{\alpha }}_5\mathrm{O}+{\mathsf{\alpha }}_6\mathrm{EFD}+{\mathsf{\alpha }}_7{\displaystyle \sum }\mathrm{CV}+\mathsf{\epsilon }$$

(1)

The equation includes entrepreneurial intentions (EI), perseverance (P), entrepreneurial attitude (EA), need for achievement (NA), risk-taking propensity (RP), optimism (O), and access to financing (EFD) and the control variables: age, gender, marital status, highest level of education reached, employment, family business environment (FB), and active in their family business (FBA); ε is an independent error term.

3.3.2. Methodology

The study’s dependent variable, entrepreneurial intentions, is of ordinal nature, thus necessitating the use of ordinal regression to examine the hypothesized relationships. The independent variables encompass a mix of ordinal, nominal, and continuous variables (specifically age). After testing for endogeneity absence, ordinal regression was used, and the results are presented in Appendix A. The model exhibits a strong fit, demonstrated by the significance level of the Goodness-of-Fit test, which attains statistical significance at the 1% level (p-value < 0.01), indicating the robustness of the model in capturing the complexities of entrepreneurial intentions across the varied variables under consideration (Crowson 2019; Hahs-Vaughn and Lomax 2013; Osborne 2015; Tabachnick et al. 2013).

4. Empirical Results

4.1. Univariate Analysis

Table 1. Sample demographic distribution.

	Gender		Education			Employed
Frequency	Female	Male	High School	University	Graduate (MBA–Masters–Doctorate)	No	Yes
X	8.62%	9.54%	0.62%	3.08%	14.46%	1.23%	16.92%
Y	23.08%	16.92%	0.31%	11.69%	28.00%	4.00%	36.00%
Z	22.15%	19.69%	2.46%	27.08%	12.31%	21.54%	20.31%
Grand Total	53.85%	46.15%	3.38%	41.85%	54.77%	26.77%	73.23%

provides a description of the sample. The participants’ mean age was 32.11 years, with a standard deviation of 11.148, indicating a relatively wide age range within the sample.

Table 2. Variables descriptive results.

	Age	P	EA	NA	RP	O	EFD	EI
Min	18	1	1	1	1	1	1	1
Max	79	5	5	5	5	5	5	5
Mean	32.11	4.38	4.22	4.50	3.73	4.18	3.75	3.25
Median	30.00	5.00	4.00	5.00	4.00	4.00	4.00	1
Mode	18	5	5	5	3	5	5	5
Std. Deviation	11.148	0.832	0.933	0.740	1.068	0.879	1.168	3.98
Skewness	0.929	−1.412	−1.258	−1.847	−0.504	−0.916	−0.712	1.134
Std. Error of Skewness	0.135	0.135	0.135	0.135	0.135	0.136	0.140	−0.966
Kurtosis	0.673	2.008	1.510	4.513	−0.284	0.507	−0.186	0.135
Std. Error of Kurtosis	0.270	0.270	0.270	0.270	0.270	0.271	0.278	0.126

Note: Entrepreneurial intentions (EI), perseverance (P), entrepreneurial attitude (EA), need for achievement (NA), risk-taking propensity (RP), optimism (O), access to financing (EFD), and age.

below, provides a comprehensive descriptive analysis of the variables. The mean score for perseverance is 4.38, with a negatively skewed distribution (−1.412). This suggests that most participants exhibit high levels of perseverance, as indicated by the median score of 5. The mode at 5 confirms a prevalent tendency among participants toward high perseverance.

Participants show a positive attitude toward entrepreneurship with a mean score of 4.22. The distribution is negatively skewed (−1.258), indicating a tendency toward a more positive attitude. The mode at 5 suggests a strong inclination toward entrepreneurial activities.

The mean score for need for achievement is 4.50, indicating a proactive approach toward tasks. The distribution is negatively skewed (−1.847), revealing a strong inclination toward high achievement. The mode at 5 emphasizes a prevalent need for achievement among the participants.

Participants exhibit a moderate willingness to take risks with a mean score of 3.73. The distribution is negatively skewed (−0.504), indicating a slight tendency toward risk aversion. The mode at 3 suggests a balanced approach toward risk-taking.

The mean optimism score is 4.18, with a negatively skewed distribution (−0.916), suggesting a generally optimistic outlook among participants. The mode at 5 underlines a prevalent optimistic mindset.

Participants display a moderate dependence on economic and financial factors with a mean score of 3.75. The distribution is negatively skewed (−0.712), indicating a slight tendency toward reliance on external factors. The mode at 5 suggests a significant reliance on economic and financial stability.

Among the 325 participants, the mean score for entrepreneurial intentions was 3.98, indicating a moderate inclination toward entrepreneurial activities. The distribution is negatively skewed (−0.966), suggesting a slight tendency toward lower entrepreneurial intentions. The standard deviation of 1.134 reflects a moderate level of variability in intentions within the sample. The mode at 5 signifies a prevalent high intention, while the median at 4 indicates a central tendency toward moderate entrepreneurial intentions. The participants’ intentions to engage in entrepreneurship therefore exhibit a balanced pattern, with a notable trend toward moderate intentions.

In summary, the participants generally exhibit high levels of perseverance, a positive entrepreneurial attitude, a strong need for achievement, and optimism. However, their willingness to take risks is moderate, and there is moderate reliance on economic and financial factors. The overall entrepreneurial intention is moderate, with a prevalent tendency toward low intentions in the sample.

4.2. Ordinal Regression Results

4.2.1. Pre-Estimation Tests

The pre-estimation reliability test, specifically Cronbach’s alpha, assesses the internal consistency and reliability of the measured variables in the study and presented in

Table 3. Cronbach’s alpha reliability result.

Reliability Statistics
Variable	Cronbach’s Alpha	N of Items
P	0.83	6
EA	0.85	5
NA	0.90	10
RP	0.75	7
O	0.85	4
EFD	0.83	3
EI	0.96	6

Note: Entrepreneurial intentions (EI), perseverance (P), entrepreneurial attitude (EA), need for achievement (NA), risk-taking propensity (RP), optimism (O), and access to financing (EFD).

. Cronbach’s alpha values range from 0 to 1, with higher values indicating better reliability. In this test, all measured variables demonstrated strong internal consistency, surpassing the recommended threshold of 0.7.

Variable P (Perseverance): The Cronbach’s alpha value of 0.83 for the Perseverance variable, calculated from six items, suggests a high level of internal consistency. This means that the questions related to perseverance are reliably measuring the same underlying construct, indicating a consistent response pattern among participants.

Variable EA (Entrepreneurial Attitude): With a Cronbach’s alpha of 0.85 derived from five items, the Entrepreneurial Attitude variable exhibits strong internal consistency. This implies that the questions assessing entrepreneurial attitude are cohesive and reliably measure the participants’ attitudes toward entrepreneurship.

Variable NA (Need for Achievement): The Need for Achievement variable, consisting of ten items, demonstrates excellent internal consistency with a Cronbach’s alpha of 0.90. This high alpha value indicates that the questions related to the need for achievement are highly reliable and consistently measure the participants’ desire for accomplishment and success.

Variable RP (Risk-Taking Propensity): The Cronbach’s alpha value of 0.75 for the Risk-Taking Propensity variable (comprising seven items) indicates acceptable internal consistency. While slightly lower than other variables, it still demonstrates a satisfactory level of reliability, suggesting coherence in measuring the participants’ willingness to take risks.

Variable O (Optimism): The Optimism variable, composed of four items, displays strong internal consistency with a Cronbach’s alpha of 0.85. This high alpha value suggests that the questions related to optimism reliably measure the participants’ positive outlook and expectation for favorable outcomes.

Variable EFD (Economic and Financial Factors Dependence): With a Cronbach’s alpha of 0.83 based on three items, the Economic and Financial Factors Dependence variable demonstrates good internal consistency. The questions related to economic and financial factors dependence exhibit reliability in capturing the participants’ reliance on external economic stability.

Variable EI (Entrepreneurial Intentions): The Entrepreneurial Intentions variable, consisting of six items, displays outstanding internal consistency with a Cronbach’s alpha of 0.96. This exceptionally high alpha value indicates exceptionally strong reliability in measuring the participants’ intentions to engage in entrepreneurial activities, suggesting a highly cohesive set of questions measuring the underlying construct effectively.

In summary, Cronbach’s alpha values exceeding 0.7 for all variables indicate that the measurement instruments used in the study are reliable and internally consistent. These results instill confidence in the reliability of the data collected, laying a solid foundation for subsequent statistical analyses and interpretations in the study.

To test for endogeneity between independent variables, the Pearson correlation test was performed, in addition to the VIF tests and the Condition Index presented in the Appendix A, results are presented in

Table A2. Collinearity test results.

Model	(Constant)	Collinearity Statistics
		Tolerance	VIF
1	Age	0.920	1.087
	P	0.745	1.342
	EA	0.688	1.453
	NA	0.616	1.624
	RP	0.756	1.322
	O	0.712	1.405
	EFD	0.844	1.185

and

Table A3. Collinearity diagnosis results.

Collinearity Diagnostics a
Model	Dimension	Eigenvalue	Condition Index	Variance Proportions
				(Constant)	Age	P	EA	NA	RP	O	EFD
1	1	7.692	1.000	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
	2	0.118	8.088	0.00	0.57	0.00	0.01	0.00	0.05	0.00	0.10
	3	0.074	10.202	0.00	0.04	0.00	0.00	0.00	0.21	0.02	0.61
	4	0.040	13.795	0.01	0.28	0.06	0.00	0.02	0.69	0.11	0.06
	5	0.026	17.242	0.00	0.01	0.17	0.85	0.00	0.05	0.00	0.14
	6	0.025	17.640	0.01	0.04	0.35	0.08	0.00	0.00	0.64	0.04
	7	0.015	22.645	0.51	0.05	0.37	0.06	0.13	0.00	0.17	0.03
	8	0.010	27.204	0.47	0.00	0.03	0.00	0.84	0.00	0.05	0.01

^a Dependent variable: EI.

in the Appendix A. The correlation coefficients between the variables are all lower than 0.5, which indicates that there is a weak correlation between the predictors. Moreover, applying the tolerance and VIF tests, the tolerance coefficients are closer to 1, which signals less and less dependence between the variables. With respect to the VIF, the values are close to 1, showing no levels of collinearity between the variables.

As for the Condition Index, they are all lower than 30, which also means the absence of collinearity. As for the variance proportions, no more than one predictor variable has a variance proportion of more than 0.5 for each of the dimensions, which signals the absence of collinearity.

Regarding the ordinal regression fitness tests, several important observations can be made based on the provided results:

The Model Fitting Chi-Square test yielded a highly significant p-value of 0.000, indicating statistical significance at the 1% level. This signifies that the full model, incorporating all independent variables, significantly improves upon the null model. In other words, the inclusion of the independent variables enhances the model’s predictive power and explanatory capabilities.

The Goodness-of-Fit test resulted in a non-significant p-value of 1.000 at the 1% level. This lack of significance implies that the model fits the data well. A non-significant result in this context suggests that the observed and expected values align closely, indicating a good fit between the model and the actual data.

The Parallel Lines test (Proportional Odds Assumption) also yielded a non-significant p-value at the 1% level. This insignificance indicates that the relationships between the independent variables remain consistent across all possible comparisons, regardless of the specific category of the dependent variable. In other words, the proportional odds assumption holds, suggesting a stable relationship across different levels of the dependent variables.

In summary, these findings collectively affirm the robustness of the ordinal regression model. The significant Model Fitting Chi-Square underscores the model’s overall improvement over the null model, while the non-significant Goodness-of-Fit and Parallel Lines tests indicate a strong fit between the model and the data, as well as the consistent relationship between the dependent and independent variables across the various categories.

4.2.2. Results and Discussion

The ordinal regression output in

Table 4. Model fitting result.

Test	Sig.
Model Fitting Chi-Square	0.000
Goodness-of-Fit	1.000
Parallel Lines	1.000

below shows that several independent variables exhibit varying levels of significance in relation to the dependent variable (Entrepreneurial Intentions, EI).

As presented in

Table 5. Regression results.

	[EI = 1]	[EI = 2]	[EI = 3]	[EI = 4]	P	EA	NA	RP	O	EFD	Age	[Gen=X]	[Gen=Y]	[Gen=Z]	[Gender=Female]	[Gender=Male]	[Maritalstatus=In a relationship]	[Maritalstatus=Single]	[EDU=Graduate(MBA-Masters-Doctorate)]	[EDU=High School]	[EDU=University]	[Emp=No]	[Emp=Yes]	[FB=No]	[FB=Yes]	[FBA=No]	[FBA=Yes]
Estimate	1.897	3.826	5.946	7.778	−0.134	1.512	−0.213	0.248	0.284	0.746	−0.061	0.074	−0.397	0	−0.392	0	0.304	0	0.046	0.616	0	−0.235	0	−0.259	0	−0.364	0
Sig.	0.133	0.003	0.000	0.000	0.455	0.000	0.344	0.059	0.097	0.000	0.028	0.928	0.339		0.116		0.261		0.873	0.436		0.488		0.547		0.457

Note: Entrepreneurial intentions (EI), perseverance (P), entrepreneurial attitude (EA), need for achievement (NA), risk-taking propensity (RP), optimism (O), access to financing (EFD, (Gen) generation, (EDU) level of education, (Emp) employment, FB (family business existence), and FBA (family business experience).

, for entrepreneurial attitude (EA), the log odd estimate of 1.512 is highly significant (p-value = 0.000), indicating that participants with a more positive entrepreneurial attitude (EI = 2, 3, 4) are significantly associated with stronger entrepreneurial intentions compared to those with a less positive attitude (EI = 1) study findings supported by (Schwarz et al. 2009).

For economic and financial factors dependence (EFD), the log odd estimate of 0.746 is highly significant (p-value = 0.000), suggesting that individuals who rely more on stable economic and financial conditions are associated with stronger entrepreneurial intentions, which means that in the context of Lebanon, the crisis is causing low entrepreneurial intentions, a study outcome consistent with (Arrighetti et al. 2016; Dohse and Walter 2012; Henderson and Robertson 1999; Robertson et al. 2003; Van Gelderen et al. 2008) but contradicting (Reynolds et al. 2005).

Compared with countries facing similar situations to Lebanon, countries recovering from conflicts such as Yemen and Somalia, in addition to countries with highly dollarized economies, hyperinflation, and the diminished role of a traditional banking system such as Greece during the 2006–2018 crisis, it can be seen that this paper’s results are similar to the results found in Somalia, where the first critical determinant of entrepreneurial intentions is ensuring the structural change of the economic structure (Farah and Taşcıoğlu 2023), in addition to the results of research in Yemen where the economic crisis was found to negatively affect the entrepreneurial intentions of Yemeni students (Al-Qadasi et al. 2023), the same as the result found in European countries in crisis, where it was found that the necessity-driven forces that lead to entrepreneurship due to the crisis are not a determinant of entrepreneurship intentions in European Union economies under crisis (Arrighetti et al. 2016).

As for the variable age, the log odd estimate of −0.061 is significant (p-value = 0.028) at the 5% level. This indicates a negative relationship, implying that younger individuals tend to have stronger entrepreneurial intentions compared to older individuals. For risk-taking propensity (RP), the log odd estimate of 0.248 shows significance (p-value = 0.059) at the 10% level. Participants with a stronger willingness to take risks tend to have slightly higher entrepreneurial intentions, with the study outcomes corroborating those of (Hmieleski and Corbett 2006; K. Keat 2012; Zhao et al. 2005).

For optimism (O), the log odd estimate of 0.284 shows significance (p-value = 0.097) at the 10% level. Participants with a higher optimism level tend to have stronger entrepreneurial intentions, and the study results were consistent with those of (Baron 2006; Biraglia and Kadile 2017; Dushnitsky 2010; Madar et al. 2019; Ramos-Rodriguez et al. 2010; Storey 2011). Finally, variables related to gender, marital status, educational level, employment status, family business background (FB), and family business experience (FBA) did not show significant associations with the entrepreneurial intention results, contrary to the work of Baena-Luna et al. (2022) and Sánchez-Torné et al. (2021) regarding differences in entrepreneurial intentions between genders and the effect of having entrepreneurial parents on entrepreneurial intentions.

In summary, among the variables examined, entrepreneurial attitude, economic and financial factors dependence, optimism, risk propensity, and age were found to be significant or marginally significant determinants of entrepreneurial intentions.

Participants with a positive entrepreneurial attitude and those who rely heavily on stable economic conditions tend to have stronger entrepreneurial intentions; therefore, the weak economic situation and the absence of the financial system are in fact weakening the positive relationship between entrepreneurial intentions and its determinants. The results of the study, while not conducted in the same economic circumstances, align with the work of (Arrighetti et al. 2016; Dohse and Walter 2012; Eckhardt and Shane 2003), who stress the positive impact of financial support, and good economic conditions on entrepreneurial endeavors.

Additionally, younger individuals are more inclined toward entrepreneurial pursuits. Other demographic and background factors such as gender, education, and family background do not appear to significantly influence entrepreneurial intentions in this context, contrary to the work of Sánchez-Torné et al. (2021).

Therefore, financial insecurity plays a crucial role in shaping entrepreneurial intentions. Entrepreneurs who have access to stable economic and financial conditions are more likely to have stronger intentions of starting their businesses. However, in Lebanon’s current crisis situation, where economic stability is lacking and the financial system is unreliable, the positive relationship between entrepreneurial intentions and stability is disrupted.

In addition, individuals with a positive entrepreneurial attitude and those who are not overly reliant on stable economic conditions tend to have stronger entrepreneurial intentions. This suggests that a strong entrepreneurial mindset can mitigate the demotivating effects of the unstable economic situation in Lebanon. However, even with a positive attitude, entrepreneurs still struggle due to the absence of a functional financial system.

4.2.3. Further Analysis: Do Generations Matter?

Age is a significant factor influencing entrepreneurial intentions, as seen in the previous section. This makes it interesting to study the differences in the factors influencing entrepreneurial intentions between the different generations included in this research.

The table providing descriptive statistics for three generational groups (X, Y, and Z) regarding their entrepreneurial intentions (EI), age, and psychological traits are shown in

Table A4. Descriptive statistics for Gen X, Y, and Z.

GEN	VARIABLE	MINIMUM	MAXIMUM	MEAN	SKEWNESS	KURTOSIS
X	EI	1	5	3.69	−0.553	−0.515
	Age	43	79	50.75	1.349	2.88
	P	3	5	4.68	−1.613	1.708
	EA	1	5	4.22	−1.097	1.526
	NA	3	5	4.73	−1.516	1.361
	RP	1	5	3.76	−0.46	−0.309
	O	3	5	4.26	−0.495	−1.127
	EFD	1	5	3.68	−0.542	−0.443
Y	EI	1	5	3.78	−0.823	−0.253
	Age	29	42	33.91	0.393	−0.9
	P	2	5	4.38	−1.284	1.531
	EA	1	5	4.2	−1.429	1.827
	NA	2	5	4.5	−1.471	2.296
	RP	1	5	3.48	−0.353	−0.281
	O	2	5	4.15	−0.655	−0.474
	EFD	1	5	3.65	−0.611	−0.438
Z	EI	1	5	4.29	−1.228	0.866
	Age	18	28	22.3	0.349	−1.218
	P	1	5	4.24	−1.25	1.393
	EA	1	5	4.24	−1.037	0.702
	NA	1	5	4.4	−1.851	4.32
	RP	1	5	3.96	−0.699	−0.036
	O	1	5	4.18	−1.192	1.394
	EFD	1	5	3.89	−0.914	0.442

in the Appendix A. Entrepreneurial intentions (EI) highlight notable generational disparities, with Generation Z exhibiting significantly stronger intentions (mean: 4.29) compared to Generation Y (mean: 3.78) and Generation X (mean: 3.69). Perseverance (P) reflects a strong commitment to tasks among Generation X (mean: 4.68), followed closely by Generation Y (mean: 4.38) and a slightly lower but still moderate level in Generation Z (Mean: 4.24). Entrepreneurial attitude (EA) shows a positive outlook across all generations, with generation X (mean: 4.22) demonstrating a slightly lower attitude compared to Generations Y and Z. These results indicate varying degrees of determination, entrepreneurial inclination, and attitude within each generational group, emphasizing the nuanced psychological differences that influence entrepreneurial intentions across different age cohorts.

The ordinal regression outputs across the three generations (X, Y, and Z), shown in

Table A5. Regression results for Gen X, Y, and Z.

GENERATION	X		Y		Z
VARIABLE	Estimate	Sig.	Estimate	Sig.	Estimate	Sig.
[EI = 1]	7.272	0.127	4.227	0.078	1.687	0.525
[EI = 2]	9.374	0.056	6.138	0.011	3.808	0.154
[EI = 3]	11.964	0.018	8.576	0.001	5.754	0.033
[EI = 4]	13.519	0.008	10.824	0.000	−0.135	0.587
P	−0.383	0.545	−0.133	0.692	0.993	0.001
EA	2.457	0.000	2.022	0.000	−0.449	0.186
NA	1.084	0.187	−0.281	0.464	0.674	0.011
RP	−0.426	0.212	0.445	0.033	0.056	0.849
O	0.572	0.193	0.159	0.576	0.723	0.001
EFD	0.450	0.088	1.076	0.000	0.002	0.984
AGE	−0.099	0.031	−0.088	0.111	0.314	0.512
[GEN=X]	0		−0.483	0.221	0
[GENDER=FEMALE]	−0.779	0.197	0		−0.450	0.393
[GENDER=MALE]	0		0.375	0.375	0
[MARITALSTATUS=IN A RELATIONSHIP]	0.505	0.483	0		−0.156	0.804
[MARITALSTATUS=SINGLE]	0		0.132	0.773	0.588	0.549
[EDU=GRADUATE(MBA-MASTERS-DOCTORATE)]	0.737	0.367	3.414	0.129	0
[EDU=HIGH SCHOOL]	−1.278	0.456	0		−0.516	0.273
[EDU=UNIVERSITY]	0		0.521	0.435	0
[EMP=NO]	0.339	0.826	0		−1.212	0.146
[EMP=YES]	0		−0.184	0.777	0
[FB=NO]	−0.238	0.828	0		−0.510	0.617
[FB=YES]	0		−0.494	0.508	0
[FBA=NO]	0.574	0.629	0		0
[FBA=YES]	0		0

in the Appendix A, provide valuable insights into the factors influencing entrepreneurial intentions within each group. For Generation X, positive entrepreneurial attitudes (EAs) have a significant impact (estimate: 2.457; Sig: 0.000) on higher entrepreneurial intentions, with this being the same for Generation Y, while for Generation Z positive entrepreneurial attitudes have no impact, but the need for achievement (NA) and optimism (O) are influential.

For Generations X and Y, the reliance on the financial system and the weak economy in Lebanon has a positive impact on entrepreneurial intentions, which means that both generations are waiting for funding from banks and loans to have entrepreneurial intentions. Therefore, the financial crisis is holding back their entrepreneurial activities.

Age seems to have an impact on Generation X within the group and is negatively impacting the entrepreneurial intentions of this generation.

Finally, risk propensity is influential for Generation Y, which is the older one, and is positively impacting the entrepreneurial intentions of individuals in this generation.

Interestingly, gender, employment status, and family background variables do not hold significant influence across the generations. These findings underscore the generation-specific nuances in the factors shaping entrepreneurial intentions, emphasizing the need for tailored approaches when understanding and fostering entrepreneurial aspirations within diverse age cohorts.

5. Conclusions

The study highlights the dire situation for entrepreneurs in Lebanon, where the absence of a functional financial system and limited access to credit severely hinder entrepreneurial intentions. The lack of stable economic conditions and financial support weakens the overall entrepreneurial ecosystem in the country, despite the presence of a positive entrepreneurial attitude among some individuals. Lebanese entrepreneurs rely on external sources for funding, which further underscores the challenges they face, making it essential for policymakers and stakeholders to address these issues to promote entrepreneurship and economic growth in the nation.

This study’s results indicate that limited access to credit is a significant barrier to entrepreneurial intentions in Lebanon due to the challenge of gathering funds and building capital in the presence of economic uncertainty. In the Lebanese context, where the financial system is absent and banks have stopped providing loans since the 2019 crisis, entrepreneurs are facing a demotivational barrier that hampers their ability to start businesses. This lack of financial support negatively affects entrepreneurial motivation and contributes to weak entrepreneurial intentions in the country.

In the absence of support from traditional financial institutions like banks, Lebanese entrepreneurs have to rely on alternative funding sources such as donors and international non-governmental organizations (INGOs), while the latter focus on funding urgent matters more than entrepreneurship endeavors given the country’s needs (Mawad and Makki 2023). This reliance on external sources indicates the severity of the financial crisis in Lebanon and the desperate measures entrepreneurs have to resort to in order to fund their ventures.

Our results have important policy implications, first, the country is in deep and urgent need of financial system reform, and the implementation of those reforms should be directed toward rebuilding the national financial system, making it more stable and reliable for entrepreneurs, which in turn will make it possible for banks to provide, again, reasonable and accessible loans to small- and medium-sized enterprises (SMEs) by establishing favorable loan conditions and interest rates, re-introduce government-backed loan programs specifically designed for entrepreneurs, providing them with the necessary capital to start and sustain their businesses, and offer grants and subsidies to start-ups and SMEs, especially those focusing on innovative and sustainable solutions. New policies should target Generation Z since they show stronger entrepreneurial intentions despite the absence of the banking sector.

Moreover, educational institutions and NGOs should work on promoting financial literacy by implementing financial literacy programs to educate entrepreneurs about managing their finances, accessing credit, and making informed financial decisions (Mawad et al. 2022).

In addition, the private sector, in coordination with the entrepreneurial ecosystem, should work on improving access to new markets. This partnership should develop initiatives to help entrepreneurs access domestic and international markets, promoting exports and expanding business opportunities, and support the development of e-commerce platforms and digital marketing strategies, enabling entrepreneurs to reach a wider customer base.

Despite its importance and the fact that it is a one-of-a-kind study in Lebanon and the MENA region, our study has several limitations; first, the data collected, while sufficient for statistically significant results, could be more diverse in terms of different entrepreneurial fields and sectors. In addition, the study is in a unique country context, which makes it a bit limiting to generalize to other countries unless they experience the same number and intensity of crises. As a consequence, and for the sake of improvement, further research could be carried out with differentiation of the different business fields in the country and checking the differences in entrepreneurial intentions. Furthermore, the study should be repeated and expanded to future years in order to track the changes in entrepreneurial intentions over time, and with the progress of the crisis, which will allow us to study long term trends. In addition, a comparative study could be made with Venezuela for example, since the Venezuelan economy is facing a similar crisis, in addition to a similar political and social crisis.