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Entrepreneurial Competency, Financial Literacy, and Sustainable Performance—Examining the Mediating Role of Entrepreneurial Resilience among Saudi Entrepreneurs

Author

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  • Abdullah Hamoud Ali Seraj

    (The Saudi Investment Bank Chair for Investment Awareness Studies, the Deanship of Scientific Research, the Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al Ahsa 31982, Saudi Arabia
    College of Business Administration, King Faisal University, Al Ahsa 31982, Saudi Arabia)

  • Syed Ali Fazal

    (UKM-Graduate School of Business, Universiti Kebangsaan Malaysia, Bangi 43600, Malaysia)

  • Ali Saleh Alshebami

    (The Saudi Investment Bank Chair for Investment Awareness Studies, the Deanship of Scientific Research, the Vice Presidency for Graduate Studies and Scientific Research, King Faisal University, Al Ahsa 31982, Saudi Arabia
    Applied College in Abqaiq, King Faisal University, Al Ahsa 31982, Saudi Arabia)

Abstract

This paper investigated the influence of entrepreneurial competency and financial literacy on sustainable small enterprise performance. We simultaneously investigated the mediating role of entrepreneurial resilience on the association between competence and financial literacy with sustainable business performance. We used a quantitative method for collecting data from 220 small business entrepreneurs in Saudi Arabia using an online questionnaire. The collected data were analysed with the help of PLS-SEM. The results reveal that financial literacy significantly positively affects entrepreneurial competency and resilience. Entrepreneurial competency has a significant positive effect on Saudi SMEs’ entrepreneurial resilience and sustainable performance. Finally, entrepreneurial resilience was simultaneously found to have a considerable impact on sustainable performance while mediating the effect of financial literacy and competency on sustainable performance across Saudi SMEs. In line with Saudi Vision 2030, with its profound focus on entrepreneurship and developing a financially independent entrepreneurial community, this research contributes to creating economic opportunities for local entrepreneurs managing small enterprises. Apart from extending the body of knowledge, this research can support policymakers in formulating relevant strategies to encourage SMEs that have been worst hit by the COVID-19 pandemic to perform sustainably. Several other implications for financial institutions and entrepreneurs have also been drawn.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:17:p:10689-:d:899421
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    1. Mina Nikolaeva Angelova & Daniela Dobreva Pastarmadzhieva & Aleksandar Tsvetanov Naydenov, 2022. "Determinants of the Entrepreneurial Initiative during a Pandemic: The Case of Plovdiv," Sustainability, MDPI, vol. 14(21), pages 1-28, October.
    2. Syed Ali Fazal & Abdullah Al Mamun & Ali Saleh Alshebami & Rajennd Muniady & Mohd Helmi Ali & Sayed Samer Ali Al Shami & Salem Handhal Al Marri & Abdullah Hamoud Ali Seraj & Murad Thomran & Faiz Algob, 2022. "Entrepreneurial Motivation, Competency and Micro-Enterprise Sustainability Performance: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 14(19), pages 1-20, October.
    3. Jasna Gačić & Stefan Milojević & Snežana Knežević & Miljan Adamović, 2023. "Financial Literacy of Managers in Serbian Health Care Organizations as a Path to Sustainability," Sustainability, MDPI, vol. 15(7), pages 1-26, April.
    4. Yuanyuan Guo & Can Liu & Hao Liu & Ke Chen & Dan He, 2023. "Financial Literacy, Borrowing Behavior and Rural Households’ Income: Evidence from the Collective Forest Area, China," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    5. Ali Saleh Alshebami & Abdullah Hamoud Ali Seraj & Ibrahim A. Elshaer & Abdullah Sultan Al Shammre & Salem Handhal Al Marri & Abdalwali Lutfi & Mostafa Aboulnour Salem & Ashraf Mahrous Nour Zaher, 2023. "Improving Social Performance through Innovative Small Green Businesses: Knowledge Sharing and Green Entrepreneurial Intention as Antecedents," Sustainability, MDPI, vol. 15(10), pages 1-18, May.
    6. Happiness Ozioma Obi-Anike & Ogohi Cross Daniel & Ifeoma Joanes Onodugo & Ikechukwu Joseph Attamah & Benedict Ogbemudia Imhanrenialena, 2023. "The Role of Financial Information Literacy in Strategic Decision-Making Effectiveness and Sustainable Performance among Agribusiness Entrepreneurs in Nigeria," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    7. Li, Xiaolin & Zhang, Mengjie & Liu, Weiwei & Wang, Ziyue, 2024. "The impact of entrepreneurial co-founders' support on founders' entrepreneurial resilience in the high-tech industry: The roles of perceived digital technology and perceived failure-tolerant climate," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    8. Claude Bernard Lontchi & Baochen Yang & Kabir Musa Shuaib, 2023. "Effect of Financial Technology on SMEs Performance in Cameroon amid COVID-19 Recovery: The Mediating Effect of Financial Literacy," Sustainability, MDPI, vol. 15(3), pages 1-15, January.

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