Abstract
The main purpose of the study is to explore the employability of business graduates through the mediating effect of level of competency with reference to Woldia University business graduates. In this study, a cross-section research design was applied and a quantitative research approach was followed. The data was collected by using questionnaires from the sample of 223 business graduates. The respondents were selected by using the systematic random sampling technique. The collected data were analyzed through descriptive analysis, factor analysis, and path analysis by using SPSS AMOS 23 version. The study finding revealed that exogenous variables of the study have affected the endogenous variable directly and indirectly. Among the variables, university reputation, self-efficacy, and the mediating variable level of competency of graduates affected the employability of business graduates with a statistically significant level (p < 0.05). The path analysis finding indicated that self-efficacy affects the business graduate level of competency with a statistically significant level. On the other hand, English language proficiency affected the business graduates' self-efficacy with a statistically significant level. Finally, the researcher recommends that the higher institution better strive to support its graduates improve their English language skills, enhance their level of competency, and self-efficacy. Besides, building reputation is key for the institution so that its graduates become employees.