Exploring the role of internship education programmes in fostering students’ entrepreneurship competencies in higher educational institutions

Saudi Arabia’s economic transformation necessitates a skilled entrepreneurial workforce; currently, educational frameworks struggle to develop these capabilities in graduates. This study investigates how internship programs in Saudi higher educational institutions contribute to developing students’ entrepreneurial competencies through a set of skills and attributes that enable individuals to start and sustain entrepreneurial ventures, addressing a critical gap in understanding the effectiveness of experiential learning approaches in entrepreneurship education. Using data from 325 graduate students across four Saudi universities, this research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine how five key components of internship programs design and structure, mentorship and supervision, organizational resources, relevance, and duration/intensity influence entrepreneurial competency development. The findings challenge conventional assumptions about internship effectiveness. While organizational resources and program duration/intensity significantly enhance entrepreneurial competencies, traditional focus areas such as program design, mentorship, and relevance show no significant impact. These unexpected results suggest that resource availability and sustained exposure to practical experiences matter more than program structure or supervision in developing entrepreneurial capabilities. These findings have important implications for policy and practice in higher education. Universities and industry partners should prioritize allocating sufficient resources to internship programs and design longer, more intensive experiences rather than focusing primarily on program structure or mentorship systems. This study contributes to human capital and entrepreneurship education theory by highlighting the critical role of resource-rich, sustained practical experiences in developing entrepreneurial competencies in the Saudi context, and by demonstrating how context-specific entrepreneurial skills can enhance graduate employability in the job market. This theoretical insight emphasizes the significance of aligning educational outcomes with market demands and entrepreneurial ecosystems.