Barriers and Opportunities for Youth Entrepreneurship in Korea: Examining the Dual Role of Social Capital and the Relative Importance of the Four Capitals

In light of the escalating issues of youth unemployment and economic deceleration in Korea, this study investigates the differential effects and relative importance of four key types of capital―human capital, bonding social capital, bridging social capital, and psychological capital―emphasizing the mediating function of entrepreneurial self-efficacy. Based on an integrated capital-cognition model that combines the resource-based view, social capital theory, and social cognitive theory, this study examines the mechanisms by which these different forms of capital are transformed into entrepreneurial intention, highlighting the pivotal role of entrepreneurial self-efficacy. To robustly assess the relative importance of these four capitals, a triangulated analytical approach incorporating structural equation modeling, dominance analysis, and the Wald test were utilized. The results reveal that human capital and bridging social capital—characterized by their externally oriented, dynamic, and execution-focused nature—played a dominant role in strengthening entrepreneurial self-efficacy. Conversely, psychological capital and bonding social capital, which are characterized by their internally oriented, static, and stability-focused characteristics, demonstrated a relatively limited influence on entrepreneurial self-efficacy. Notably, contrary to the positive effects of the other three capitals, bonding social capital was found to actually undermine entrepreneurial self-efficacy within the Korean cultural context. Significantly, the study validates that entrepreneurial self- efficacy functions as a principal mediating mechanism by which various forms of capital affect individuals' entrepreneurial intentions. This study theoretically enhances entrepreneurship research by presenting an integrated capital-cognition model, thereby reinforcing methodological rigor and validity through a triangulation-based analytical framework. Practically, the findings inform policymakers and educators to prioritize experiential entrepreneurship education, foster diverse network expansion, and reframe cultural narratives that inadvertently suppress risk-taking behaviors among youth entrepreneurs.