Examining Entrepreneurial Self-Efficacy and Basic Psychological Needs Satisfaction on Entrepreneurial Resilience Among Entrepreneurs

Abstract

The development of resilience in entrepreneurs is seen as a possible response to the highly competitive and unpredictable environments in which they work. Entrepreneurs are frequently overwhelmed with unforeseen circumstances such as financial crises, technological innovations, or new competitors in the field which could potentially threaten their venture survival and success, particularly for small and medium-sized enterprises. Thus, the problem of the failure of the small and medium-sized enterprise was also the front burner among entrepreneurs. Even so, researchers have several explanations on why the rate of failure of small and medium-sized businesses is high but have not been able to provide solutions to avoid it. Thus, the emergence of resilience in entrepreneurs is seen as a possible response to the highly competitive and unpredictable environments in which they work. By being resilient in the face of adversity and having the ability to start again is critical to venture continuation and success. Thus, this study tries to find out whether resilience can help to reduce this scourge to a large extent as this study is focused on the individual entrepreneur rather than the entrepreneurial process. However, entrepreneurial resilience research is still at an early stage even though academic interest in the concept of resilience has gradually increased in recent years but yet it still largely remains unclear, what entrepreneurial resilience means and which factors help to enhance this individual capacity. To help to fill this research gap, this study aims to examine the relationship between entrepreneurial self-efficacy, and basic psychological needs satisfaction on entrepreneurial resilience which capitalizes small and medium-sized enterprise entrepreneurs as the study setting. Social Cognitive theory and Self-determination theory as underpinning theory to support the established framework. The present study takes into consideration the entrepreneurial self-efficacy as an independent variable. The basic psychological needs satisfaction is considered the mediating variable whereas entrepreneurial resilience is the dependent variable.

Entrepreneurial Resilience: Strategies for MSMEs to Navigate Uncertainties and Challenges in Contemporary Markets

“…This resilience is not only crucial for the survival of individual businesses but also for the stability and prosperity of the broader economy (Pathak et al, 2024). Studies have shown that resilient MSMEs are better equipped to navigate crises, recover from economic downturns, and exploit new opportunities, thereby ensuring long-term sustainability (Cherevatskyi, 2023;Shafie & Isa, 2022).…”