Skip to main content
SpringerLink
Log in

A resilient path to prosperity: understanding the impact of entrepreneurial resilience on SMEs

  • Research
  • Published:
Journal of Global Entrepreneurship Research Aims and scope Submit manuscript

Abstract

Entrepreneurial resilience is of utmost importance for SMEs due to the unique challenges they face allowing them to navigate the complexities of business and emerge stronger in the face of adversity. The study aims to explore the connection between the distinct dimensions of resilience of entrepreneurs and success at both the individual and business levels. It provides insight into how resilience contributes to the growth and prosperity of both entrepreneurs and their businesses in the dynamic and competitive Indian business landscape. The study employed the Connor–Davidson resilience scale 25 (CD-RISC 25) to assess resilience among entrepreneurs. A survey method was employed to collect data from 200 owners/managers of SMEs, utilising non-random sampling techniques like convenience sampling. Self-administered questionnaires were used for data collection. Descriptive statistics, correlation, and regression analysis were conducted to analyse the data. The research uncovered a robust positive correlation between entrepreneurial resilience and the success of both individuals and organizations, with multifaceted impacts on personal growth and achievement. Social support networks were crucial in fostering resilience and influencing financial performance. The research emphasised the significance of entrepreneurial resilience in driving non-financial success for SMEs and identified areas for improvement. The study contributes to the field by identifying a gap in research on entrepreneurial resilience, specifically in individual-level resilience among entrepreneurs, as most studies primarily concentrate on firm-level resilience contributing to the advancement of knowledge in the field of entrepreneurial resilience. The study also contributes by filling a void in research on entrepreneurial resilience in developing economies, notably India, offering crucial insights for policymakers and SME owners in Uttarakhand to enhance strategies for success and longevity.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

Data Availability

Not applicable.

Code availability

Not applicable.

References

  • Acs, Z. J. (2010). Entrepreneurship and economic development: The valley of backwardness. Annals of Innovation & Entrepreneurship, 1(1), 5603. https://doi.org/10.3402/aie.v1i1.5602

    Article  MathSciNet  Google Scholar 

  • Adeniran, T. V., & Johnston, K. A. (2012). Investigating the dynamic capabilities and competitive advantage of South African SMEs. African Journal of Business Management, 6(11), 4088. https://doi.org/10.5897/ajbm11.1673

    Article  Google Scholar 

  • Ahmad, N. H., & Seet, P. S. (2009). Understanding business success through the lens of SME founder-owners in Australia and Malaysia. International Journal of Entrepreneurial Venturing, 1(1), 72–87. https://doi.org/10.1504/IJEV.2009.023821

    Article  Google Scholar 

  • Ahmad, N. H., Wilson, C., & Kummerow, L. (2011). Assessing the dimensionality of business success: The perspectives of Malaysian SME owner-managers. Journal of Asia-Pacific Business, 12(3), 207–224. https://doi.org/10.1080/10599231.2011.586855

    Article  Google Scholar 

  • Awotoye, Y., & Singh, R. (2017). Entrepreneurial resilience, high impact challenges, and firm performance. Journal of Management Policy and Practice, 18(2), 28–37.

  • Ayala, J. C., & Manzano, G. (2014). The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis. Journal of Economic Psychology, 42, 126–135. https://doi.org/10.1016/j.joep.2014.02.004

    Article  Google Scholar 

  • Bandura, A. (1986). Social foundations of thought and action. Englewood Cliffs, NJ, 1986(23–28).

  • Bandura, A. (1989). Human agency in social cognitive theory. American Psychologist, 44(9), 1175.

    Article  CAS  PubMed  Google Scholar 

  • Bandura, A. (1997). Self-efficacy; The exercise of control (p. 8). Freernan: VV. H.

    Google Scholar 

  • Baron, R. A., & Markman, G. D. (2003). Beyond social capital: The role of entrepreneurs’ social competence. Journal of Business Venturing, 18, 41–60.

    Article  Google Scholar 

  • Bastianello, M. R., Pacico, J. C., & Hutz, C. S. (2014). Optimism, self-esteem and personality: Adaptation andvalidation of the Brazilian version of the Revised Life Orientation Test (LOT-R). Psico-USF, 19, 523–531.

    Article  Google Scholar 

  • Benight, C. C., & Bandura, A. (2004). Social cognitive theory of posttraumatic recovery: The role of perceived self-efficacy. Behaviour Research and Therapy, 42(10), 1129–1148. https://doi.org/10.1016/j.brat.2003.08.008

    Article  PubMed  Google Scholar 

  • Berkes, F. (2007). Understanding uncertainty and reducing vulnerability: Lessons from resilience thinking. Natural Hazards, 41, 283–295.

    Article  Google Scholar 

  • Bernard, M. J., & Barbosa, S. D. (2016). Resilience and entrepreneurship: A dynamic and biographical approach to the entrepreneurial act. Management (france), 19(2), 89–123. https://doi.org/10.3917/mana.192.0089

    Article  Google Scholar 

  • Bozza, A., Asprone, D., & Fabbrocino, F. (2017). Urban resilience: A civil engineering perspective. Sustainability (switzerland), 9(1), 1–17. https://doi.org/10.3390/su9010103

    Article  Google Scholar 

  • Branicki, L. J., Sullivan-Taylor, B., & Livschitz, S. R. (2018). How entrepreneurial resilience generates resilient SMEs. International Journal of Entrepreneurial Behaviour and Research, 24(7), 1244–1263. https://doi.org/10.1108/IJEBR-11-2016-0396

    Article  Google Scholar 

  • Bullough, A., & Renko, M. (2013). Entrepreneurial resilience during challenging times. Business Horizons, 56(3), 343–350. https://doi.org/10.1016/j.bushor.2013.01.001

    Article  Google Scholar 

  • Calligaro, C., Garcia, J., & Bandura, A. (2001). Bandura social cognitive theory : An agentic perspective. Annual Review of Psychology, 52, 1–26.

    Article  ADS  Google Scholar 

  • Campanella, F., Del Giudice, M., Thrassou, A., & Vrontis, D. (2020). Ambidextrous organizations in the banking sector: An empirical verification of banks’ performance and conceptual development. The International Journal of Human Resource Management, 31(2), 272–302.

    Article  Google Scholar 

  • Campbell-Sills, L., & Stein, M. B. (2007). Psychometric analysis and refinement of the connor–davidson resiliencescale (CD-RISC): Validation of a 10-item measure of resilience. Journal of Traumatic Stress: Official Publication ofThe International Society for Traumatic Stress Studies, 20(6), 1019–1028.

    Article  Google Scholar 

  • Cannon, M. D., & Edmondson, A. C. (2005). Failing to learn and learning to fail (intelligently): How great organizations put failure to work to innovate and improve. Long Range Planning, 38(3), 299–319.

    Article  Google Scholar 

  • Chhatwani, M., Mishra, S. K., Varma, A., & Rai, H. (2022). Psychological resilience and business survival chances: A study of small firms in the USA during COVID-19. Journal of Business Research, 142, 277–286.

    Article  Google Scholar 

  • Chittithaworn, C., Islam, A., Keawchana, T., & Yusuf, D. H. M. (2011). Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science, 7(5), 180–190. https://doi.org/10.5539/ass.v7n5p180

    Article  Google Scholar 

  • Connor, K. M., & Davidson, J. R. (2003). Development of a new resilience scale: The Connor-Davidson resiliencescale (CD-RISC). Depression and Anxiety, 18(2), 76–82.

    Article  PubMed  Google Scholar 

  • Das, K. (2007). SMEs in India: Issues and possibilities in times of globalisation. Asian SMEs and Globalization, ERIA Research Project Report, 5, 69–97.

    Google Scholar 

  • De Vries, H., & Shields, M. (2005). Entrepreneurial resilience: An analysis of the resilience factors in SME owner-managers. University of Central Arkansas Working Paper.

  • De Vries, H., & Shields, M. (2006). Towards a theory of entrepreneurial resilience: Acase study analysis of New Zealand SME owner operators. New Zealand Journal of Applied Business Research, 5(1), 33–43.

    Google Scholar 

  • Envick, B. R. (2005). Beyond human and social capital: The importance of positive psychological capital for entrepreneurial success. The Entrepreneurial Executive, 10(1), 41–52.

    Google Scholar 

  • Fatoki, O. (2018). The impact of entrepreneurial resilience on the success of small and medium enterprises in South Africa. Sustainability, 10(7), 2527. https://doi.org/10.3390/su10072527

    Article  Google Scholar 

  • Fisher, R., Maritz, A., & Lobo, A. (2016). Does individual resilience influence entrepreneurial success. Academy of Entrepreneurship Journal, 22(2), 39–53.

    Google Scholar 

  • Franco, M., & Rodrigues, M. (2022). Indicators to measure the performance of sustainable urban entrepreneurship:an empirical case study applied to Portuguese cities and towns. Smart and Sustainable Built Environment, 11(1), 19–38.

    Article  Google Scholar 

  • Gebhardt, C. (2012). The entrepreneurial state: The German entrepreneurial regions’ programme as an attenuator for the financial crisis. European Planning Studies, 20(9), 1469–1482. https://doi.org/10.1080/09654313.2012.709062

    Article  Google Scholar 

  • Gunasekaran, A., Rai, B. K., & Griffin, M. (2011). Resilience and competitiveness of small and medium size enterprises: An empirical research. International Journal of Production Research, 49(18), 5489–5509.

    Article  Google Scholar 

  • Hair, J. F., Anderson, R. E., Babin, B. J., & Black, W. C. (2010). Multivariate data analysis (7th ed.). Upper Side River, NJ: Prentice Hall.

  • Hayward, M. L. A., Forster, W. R., Sarasvathy, S. D., & Fredrickson, B. L. (2010). Beyond hubris: How highly confident entrepreneurs rebound to venture again. Journal of Business Venturing, 25(6), 569–578. https://doi.org/10.1016/j.jbusvent.2009.03.002

    Article  Google Scholar 

  • Hedner, T., Abouzeedan, A., & Klofsten, M. (2011). Entrepreneurial resilience. Annals of Innovation & Entrepreneurship, 2(1), 7986. https://doi.org/10.3402/aie.v2i1.6002

    Article  Google Scholar 

  • Iborra, M., Safón, V., & Dolz, C. (2020). What explains the resilience of SMEs? Ambidexterity capability andstrategic consistency. Long Range Planning, 53(6), 101947. https://doi.org/10.1016/j.lrp.2019.101947

    Article  Google Scholar 

  • Islam, D. M. Z., Khalid, N., Rayeva, E., & Ahmed, U. (2020). COVID-19 and financial performance of SMEs: Examining the nexus of entrepreneurial self-efficacy, entrepreneurial resilience and innovative work behavior. Revista Argentina de Clínica Psicológica, 29(3), 587. https://doi.org/10.24205/03276716.2020.761

  • Keith, N., Unger, J. M., Rauch, A., & Frese, M. (2016). Informal learning and entrepreneurial success: A longitudinal study of deliberate practice among small business owners. Applied Psychology, 65(3), 515–540. https://doi.org/10.1111/apps.12054

    Article  Google Scholar 

  • Kirmayer, L. J., Dandeneau, S., Marshall, E., Phillips, M. K., & Williamson, K. J. (2011). Rethinking resilience from indigenous perspectives. The Canadian Journal of Psychiatry, 56(2), 84–91.

    Article  PubMed  Google Scholar 

  • Koswatte, I., & Gallage, N. (2022). Entrepreneurial resilience: a renewed perspective. Cultural Entrepreneurship: New Societal Trends (pp. 75–84). Springer Nature Singapore: Singapore.

    Chapter  Google Scholar 

  • Manzano-García, G., & Ayala Calvo, J. C. (2013). Psychometric properties of Connor-Davidson resilience scale in a Spanish sample of entrepreneurs. Psicothema, 25(2), 245–251. https://doi.org/10.7334/psicothema2012.183

    Article  PubMed  Google Scholar 

  • Masten, A. S., Best, K. M., & Garmezy, N. (1990). Resilience and development: Contributions from the study of children who overcome adversity. Development and Psychopathology, 2(4), 425–444. https://doi.org/10.1017/S0954579400005812

    Article  Google Scholar 

  • Mayer, B. W., Dale, K. M., Fraccastoro, K. A., & Moss, G. (2011). Improving transfer of learning: Relationship to methods of using business simulation. Simulation and Gaming, 42(1), 64–84. https://doi.org/10.1177/1046878110376795

    Article  Google Scholar 

  • Miller, D., & Toulouse, J. M. (1986). Chief executive personality and corporate strategy and structure in small firms. Management Science, 32(11), 1389–1409.

    Article  Google Scholar 

  • Miller, D. (2011). Miller (1983) revisited: A reflection on EO research and some suggestions for the future. Entrepreneurship Theory and Practice, 35(5), 873–894.

    Article  Google Scholar 

  • Mukherjee, S. (2018). Challenges to Indian micro small scale and medium enterprises in the era of globalization. Journal of Global Entrepreneurship Research, 8, 1–19.

    Article  Google Scholar 

  • Nautiyal, S., & Pathak, P. (2023). Resilience through the lens of entrepreneurship: A bibliometric analysis and network mapping of the emerging research field. International Journal of Organizational Analysis. https://doi.org/10.1108/IJOA-12-2022-3540

  • Ng, H. S., & Kee, D. M. H. (2012). Intangible factors affecting the success of small and medium enterprises (SMEs). International Journal of Management & Organizational Studies, 1(2), 10–15.

    Google Scholar 

  • Oyeku, O. M., Oduyoye, O., Asikhia, O., Kabuoh, M., & Elemo, G. N. (2014). On entrepreneurial success of small and medium enterprises (SMEs): A conceptual and theoretical framework. Journal of Economics and Sustainable Development, 5(16), 14–24.

    Google Scholar 

  • Rahman, S. A., Amran, A., Ahmad, N. H., & Khadijeh Taghizadeh, S. (2019). The contrasting role of government and NGO support towards the entrepreneurs at base of pyramid and effect on subjective wellbeing. Journal of Small Business and Entrepreneurship, 31(4), 269–295. https://doi.org/10.1080/08276331.2018.1498261

    Article  Google Scholar 

  • Razmus, W., & Laguna, M. (2018). Dimensions of entrepreneurial success: A multilevel study on stakeholders of micro-enterprises. Frontiers in Psychology, 9(MAY), 1–11. https://doi.org/10.3389/fpsyg.2018.00791

    Article  Google Scholar 

  • Reinmoeller, P., & Van Baardwijk, N. (2005). The link between diversity and resilience. MIT Sloan Management Review, 46(4), 61–65.

    Google Scholar 

  • Robert, W. V. (1987). From the SAGE social science collections. All Rights. International Small Business Journal, 16(3), 20–33.

    Google Scholar 

  • Santoro, G., Bertoldi, B., Giachino, C., & Candelo, E. (2020). Exploring the relationship between entrepreneurial resilience and success: The moderating role of stakeholders’ engagement. Journal of Business Research, 119(April), 142–150. https://doi.org/10.1016/j.jbusres.2018.11.052

    Article  Google Scholar 

  • Scoloveno, R. L. (2018). Resilience and self-efficacy: An integrated review of the literature. International Journal of Science and Research Methodology, 9(1), 176–192.

    Google Scholar 

  • Sekaran, U. (2003). Research methods for business: A skill building approach. Fourth Edition. John Wiley & Sons, Inc.

  • Sethibe, T., & Steyn, R. (2016). Innovation and organisational performance: A critical review of the instruments used to measure organisational performance. The Southern African Journal of Entrepreneurship and Small Business Management, 8(1), 12. https://doi.org/10.4102/sajesbm.v8i1.50

    Article  Google Scholar 

  • Singh, K., & Yu, X. N. (2010). Psychometric evaluation of the Connor-Davidson Resilience Scale (CD-RISC) in asample of Indian students. Journal of Psychology, 1(1), 23–30.

    Article  Google Scholar 

  • Srimulyani, V. A., & Hermanto, Y. B. (2021). Impact of entrepreneurial self-efficacy and entrepreneurial motivation on micro and small business success for food and beverage sector in east Java, Indonesia. Economies, 10(1), 10. https://doi.org/10.3390/economies10010010

  • Smallbone, D., Deakins, D., Battisti, M., & Kitching, J. (2012). Small business responses to a major economic downturn: Empirical perspectives from New Zealand and the United Kingdom. International Small Business Journal, 30(7), 754–777.

    Article  Google Scholar 

  • Stoltz, D. P. G. (2000). Adversity quotient: Turning obstacles into opportunities. Technovation, 20(7), 402. https://doi.org/10.1016/s0166-4972(00)00010-9

    Article  Google Scholar 

  • Tejumade V. Adeniran. (2012). Investigating the dynamic capabilities and competitive advantage of South African SMEs. African Journal of Business Management, 6(11). https://doi.org/10.5897/ajbm11.1673

  • Walsh, C. B., & Mccollum, W. (2020). Exploring the impact of individual resilience on entrepreneurial success. Journal of Entrepreneurship & Organization Management, 9(5), 1–6. https://doi.org/10.37421/jeom.2020.9.286

  • Weiner, B. (1985). An attributional theory of achievement motivation and emotion. Psychological Review, 92(4), 548.

    Article  CAS  PubMed  Google Scholar 

  • Yu, X., & Zhang, J. (2007). Factor analysis and psychometric evaluation of the Connor-Davidson Resilience Scale(CD-RISC) with Chinese people. Social Behavior and Personality: An International Journal, 35(1), 19–30.

    Article  MathSciNet  Google Scholar 

  • Zhou, H., Wang, J. A., Wan, J., & Jia, H. (2010). Resilience to natural hazards: A geographic perspective. Natural Hazards, 53, 21–41.

    Article  Google Scholar 

Download references

Acknowledgements

This paper is based on a study funded by the Indian Council of Social Science Research (ICSSR), New Delhi.

Funding

This paper is based on a study funded by the Indian Council of Social Science Research (ICSSR), New Delhi via grant no. RFD/2021–22/GEN/MGT/78.

Author information

Authors and Affiliations

  1. School of Management, Doon University, Dehradun, India

    Shreyasi Nautiyal & Prachi Pathak

Authors
  1. Shreyasi Nautiyal
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Prachi Pathak
    View author publications

    You can also search for this author in PubMed Google Scholar

Contributions

All authors contributed to the study’s conception and design. Material preparation, data collection, and analysis were performed by Shreyasi Nautiyal and Prachi Pathak. The first draft of the manuscript was written by Shreyasi Nautiyal, and all authors commented on previous versions of the manuscript. All authors read and approved the final manuscript.

Corresponding author

Correspondence to Shreyasi Nautiyal.

Ethics declarations

Conflict of interest

The authors declare no competing interest.

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Nautiyal, S., Pathak, P. A resilient path to prosperity: understanding the impact of entrepreneurial resilience on SMEs. J Glob Entrepr Res 14, 8 (2024). https://doi.org/10.1007/s40497-024-00379-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • DOI: https://doi.org/10.1007/s40497-024-00379-3

Keywords

Search

Navigation