Entrepreneurial competencies influence subjective well-being of subsistence entrepreneurs: Examining the mediating role of business performance

This article examines whether entrepreneurial competencies increase the subjective well-being of subsistence entrepreneurs. We anchor our study in the theoretical context of the theory of entrepreneurial competency and the capabilities lens combined with a resource-based view. We hypothesize that the business performance of subsistence enterprises mediates the impact of entrepreneurial competencies on the subjective well-being of subsistence entrepreneurs. We collected data from 1,346 subsistence entrepreneurs in India and analyzed it using PLS-SEM. Our results indicate that entrepreneurial competencies positively impact the business performance and subjective well-being of subsistence entrepreneurs. While nonfinancial performance mediates the relationship between entrepreneurial competencies and subjective well-being for subsistence entrepreneurs, financial performance does not. Further, the direct effect of entrepreneurial competencies on subjective well-being is significantly higher for male entrepreneurs, and the mediation effect through nonfinancial performance is significantly higher for female entrepreneurs. Our study contributes to subsistence entrepreneurship literature and has implications for policymakers.