IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i7p2527-d158763.html
   My bibliography  Save this article

The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa

Author

Listed:
  • Olawale Fatoki

    (Department of Business Management, University of Limpopo, Private Bag X1314, Sovenga 0727, South Africa)

Abstract

Small and medium enterprises (SMEs) have a significant role to play in a country’s sustainable development. The measures of a country’s sustainable development include economic and social factors. The sustainability of small and medium enterprises is vital to job creation, poverty reduction, and sustainable economic growth. The high failure rate of SMEs negatively impacts on South Africa’s sustainable development. The purpose of the study was to investigate the relationship between entrepreneurial resilience and the success of SMEs in South Africa. Success was measured using both organisational and individual criteria. The Connor–Davidson Resilience Scale 10 (CD-RISC 10) was used to measure entrepreneurial resilience. Data was collected from 170 small business owners through the survey method. The self-administered questionnaire method was used to collect data from the participants. Convenience and snowball methods were used for sampling. Descriptive statistics, confirmatory factor analysis, correlation, and regression analysis were used for data analysis. Cronbach’s alpha was used as a measure of reliability. The results indicated that there is a significant positive relationship between entrepreneurial resilience and individual and organisational success. Ways to enhance the resilience of small business owners in order to ensure the sustainability of SMEs are suggested.

Suggested Citation

  • Olawale Fatoki, 2018. "The Impact of Entrepreneurial Resilience on the Success of Small and Medium Enterprises in South Africa," Sustainability, MDPI, vol. 10(7), pages 1-12, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2527-:d:158763
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/7/2527/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/7/2527/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Clifford Kendrick Hlatywayo & Chioneso Show Marange & Willie Tafadzwa Chinyamurindi, 2017. "A Hierarchical Multiple Regression Approach on Determining the Effect of Psychological Capital on Entrepreneurial Intention amongst Prospective University Graduates in South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(1), pages 166-178.
    2. Rocsana Tonis (Bucea-Manea), 2015. "SMEs Role in Achieving Sustainable Development," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 4(1), pages 41-50, March.
    3. Nor Aishah Buang, 2012. "Entrepreneurs' Resilience Measurement," Chapters, in: Thierry Burger-Helmchen (ed.), Entrepreneurship - Born, Made and Educated, IntechOpen.
    4. Hayward, Mathew L.A. & Forster, William R. & Sarasvathy, Saras D. & Fredrickson, Barbara L., 2010. "Beyond hubris: How highly confident entrepreneurs rebound to venture again," Journal of Business Venturing, Elsevier, vol. 25(6), pages 569-578, November.
    5. Bullough, Amanda & Renko, Maija, 2013. "Entrepreneurial resilience during challenging times," Business Horizons, Elsevier, vol. 56(3), pages 343-350.
    6. Ayala, Juan-Carlos & Manzano, Guadalupe, 2014. "The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis," Journal of Economic Psychology, Elsevier, vol. 42(C), pages 126-135.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Keqiang Wu & Xin Zhao & Xinyu Wang & Xiongying Chen & Tsang-Kai Hung & Zijun Wang & Shu-Chuan Lee, 2023. "The Impact of Entrepreneurial Resilience on the Entrepreneurial Intention of Return Migrants: An Empirical Study Based on Survey Data From Multiple Provinces in China," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. Abdullah Hamoud Ali Seraj & Syed Ali Fazal & Ali Saleh Alshebami, 2022. "Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    3. Kanayo K. Ogujiuba & Ebenezer Olamide & Azikiwe Isaac Agholor & Estelle Boshoff & Phetole Semosa, 2022. "Impact of Government Support, Business Style, and Entrepreneurial Sustainability on Business Location of SMEs in South Africa’s Mpumalanga Province," Administrative Sciences, MDPI, vol. 12(3), pages 1-19, September.
    4. Sari, Puteri Andika & Sari, Wiendy Puspita & Rinaldo, Dito, 2022. "Business performance during the COVID-19 crisis: a major contribution of entrepreneurial resilience," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 9(2), pages 1-20, August.
    5. Mashudu Andra Mabibibi & Kaitano Dube & Konanani Thwala, 2021. "Successes and Challenges in Sustainable Development Goals Localisation for Host Communities around Kruger National Park," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    6. Fatemeh Badzaban & Kurosh Rezaei-Moghaddam & Mahsa Fatemi, 2021. "Analysing the individual entrepreneurial resilience of rural women," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 241-254, December.
    7. Henry Egbezien Inegbedion & Perejite Roseline Thikan & Joseph Olusegun David & John Oluwasayo Ajani & Fred Ojochide Peter, 2024. "Small and medium enterprise (SME) competitiveness and employment creation: the mediating role of SME growth," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    8. Oluwafemi Dele-Ijagbulu & Menisha Moos & Chukuakadibia Eresia-Eke, 2020. "The Relationship Between Environmental Hostility and Entrepreneurial Orientation of Small Businesses," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(2), pages 347-362, July.
    9. Mohammad Imtiaz Hossain & Mosab I. Tabash & May Ling Siow & Tze San Ong & Suhaib Anagreh, 2023. "Entrepreneurial intentions of Gen Z university students and entrepreneurial constraints in Bangladesh," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-34, December.
    10. Juan-Pierré Bruwer & Lindiwe Mabesele & Timeeka Brown & Courtney Charles & Ingrid Coulter & Edlin Williams & Nadine Witbooi, 2021. "The Feasibility of Plastic Bag Usage for Newly Established South African Small, Medium and Micro Enterprises Amidst Increases in Sin tax: An Online Desktop Study," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 12(4), pages 175-190, August.
    11. Msomi Thabiso Sthembiso & Olarewaju Odunayo Magret & Ngcobo Xolani, 2021. "Sustaining South African Small and Medium-sized Enterprises Through Monetary Access and Literacy in the COVID-19 ERA," Folia Oeconomica Stetinensia, Sciendo, vol. 21(2), pages 57-75, December.
    12. Juan-Pierré BRUWER & Mariaan LOMBARD & Yolandé SMIT & Ankit KATRODIA, 2019. "The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise," Expert Journal of Business and Management, Sprint Investify, vol. 7(1), pages 100-106.
    13. Michael Huber & Nikola Komatina & Vladan Paunović & Snežana Nestić, 2023. "Analysis of the Relationship between the Organizational Resilience Factors and Key Performance Indicators’ Recovery Time in Uncertain Environments in Industrial Enterprises," Mathematics, MDPI, vol. 11(14), pages 1-19, July.
    14. Ibrahim A. Elshaer, 2022. "Dimensionality Analysis of Entrepreneurial Resilience amid the COVID-19 Pandemic: Comparative Models with Confirmatory Factor Analysis and Structural Equation Modeling," Mathematics, MDPI, vol. 10(13), pages 1-17, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephanie Duchek, 2018. "Entrepreneurial resilience: a biographical analysis of successful entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 429-455, June.
    2. Javier Esteban Curiel & Arta Antonovica & Beatriz Rodríguez Herráez, 2024. "Longitudinal analysis of gender differences regarding entrepreneurial resilience," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 2811-2838, December.
    3. Mohammad Imtiaz Hossain & Mosab I. Tabash & May Ling Siow & Tze San Ong & Suhaib Anagreh, 2023. "Entrepreneurial intentions of Gen Z university students and entrepreneurial constraints in Bangladesh," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-34, December.
    4. Erica L. Steckler & Sandra Waddock, 2018. "Self-Sustaining Practices of Successful Social Change Agents: A Retreats Framework for Supporting Transformational Change," Humanistic Management Journal, Springer, vol. 2(2), pages 171-198, February.
    5. Hallak, Rob & Assaker, Guy & O’Connor, Peter & Lee, Craig, 2018. "Firm performance in the upscale restaurant sector: The effects of resilience, creative self-efficacy, innovation and industry experience," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 229-240.
    6. Santoro, Gabriele & Bertoldi, Bernardo & Giachino, Chiara & Candelo, Elena, 2020. "Exploring the relationship between entrepreneurial resilience and success: The moderating role of stakeholders' engagement," Journal of Business Research, Elsevier, vol. 119(C), pages 142-150.
    7. Ingrid C. Chadwick & Jana L. Raver, 2020. "Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 44(2), pages 233-255, March.
    8. Hau-Lin Tam & Edward Asamoah & Angus Yuk-Fung Chan, 2021. "Developing Social Entrepreneurship as an Intervention to Enhance Disadvantaged Young People’s Sense of Self-Worth and Career Competence in Hong Kong," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 16(6), pages 2497-2526, December.
    9. Martín-Rojas, Rodrigo & Garrido-Moreno, Aurora & García-Morales, Víctor J., 2023. "Social media use, corporate entrepreneurship and organizational resilience: A recipe for SMEs success in a post-Covid scenario," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    10. Marc Dressler, 2023. "Generic strategic profiling of entrepreneurial SMEs – environmentalism as hygiene factor," International Entrepreneurship and Management Journal, Springer, vol. 19(1), pages 121-150, March.
    11. Anna Doś & Monika Wieczorek-Kosmala & Joanna Błach, 2022. "The Effect of Business Legal Form on the Perception of COVID-19-Related Disruptions by Households Running a Business," Risks, MDPI, vol. 10(4), pages 1-17, April.
    12. Gabriele Santoro & Antonio Messeni-Petruzzelli & Manlio Giudice, 2021. "Searching for resilience: the impact of employee-level and entrepreneur-level resilience on firm performance in small family firms," Small Business Economics, Springer, vol. 57(1), pages 455-471, June.
    13. Welter, Chris & Scrimpshire, Alex, 2021. "The missing capital: The case for psychological capital in entrepreneurship research," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    14. Conz, Elisa & Lamb, Peter William & De Massis, Alfredo, 2020. "Practicing resilience in family firms: An investigation through phenomenography," Journal of Family Business Strategy, Elsevier, vol. 11(2).
    15. YACOUBI Larbi, 2024. "Factors Underlying Organizational Resilience in SMEs," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(2), pages 1458-1469, February.
    16. Ika Indrawaty Hamzah & Farouk Djermani & Idris M. Ben Omran, 2021. "A Review of resilience effects of single mother entrepreneurs and lifestyle," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(3), pages 264-271, March.
    17. Ibrahim A. Elshaer, 2022. "Dimensionality Analysis of Entrepreneurial Resilience amid the COVID-19 Pandemic: Comparative Models with Confirmatory Factor Analysis and Structural Equation Modeling," Mathematics, MDPI, vol. 10(13), pages 1-17, June.
    18. Ana-Maria Zamfir & Cristina Mocanu & Adriana Grigorescu, 2018. "Resilient Entrepreneurship among European Higher Education Graduates," Sustainability, MDPI, vol. 10(8), pages 1-24, July.
    19. Julien Cusin, 2017. "The Role of the Tutor in the Resilience of the Post-Bankruptcy Entrepreneur: The Case of the 60.000 Rebonds Association," Post-Print hal-03239143, HAL.
    20. Kaciak, Eugene & Welsh, Dianne H.B., 2020. "Women entrepreneurs and work–life interface: The impact of sustainable economies on success," Journal of Business Research, Elsevier, vol. 112(C), pages 281-290.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2527-:d:158763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.