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The Role of Personality Traits and Entrepreneurial Self-Efficacy in SME Sustainability

Cover: Corporate social responsibility and environmental management
  • SEB research

Authors:

Keywords:

Big Five | Entrepreneurial self‐efficacy | Personality | SME | Sustainable business practices

Abstract:

This study examines the role of personality traits in shaping sustainable business practices among entrepreneurs, focusing on the mediating role of entrepreneurial self-efficacy. Grounded in Social Cognitive Theory, we conceptualize entrepreneurial self-efficacy as a cognitive belief mechanism that strengthens entrepreneurs' confidence in their ability to implement sustainable strategies. Using data from Slovenian SME owners, the results show that conscientiousness and openness to experience are positively associated with the adoption of sustainability strategies. Entrepreneurs who exhibit these traits are more likely to adopt environmentally and socially responsible business practices. Furthermore, entrepreneurial self-efficacy plays a crucial mediating role by strengthening the link between extraversion, openness, and sustainable business practices and underpinning the role of cognitive beliefs in entrepreneurs' sustainable business practices. The study contributes to the growing body of research on sustainability in entrepreneurship by clarifying how personality determinants relate to sustainability efforts in SMEs through the lens of Social Cognitive Theory. These findings offer practical implications for policymakers, educators, and support institutions and emphasize the importance of fostering entrepreneurial self-efficacy and the personality traits that drive sustainable behaviors in business to promote sustainable entrepreneurship.

The Sustainable Development Goals (SDGs) addressed in the article are:

  • SDG 8 – Decent work and economic growth
  • SDG 12 – Responsible consumption and production
  • SDG 17 – Partnerships for the goals

The article is published in:
Corporate social responsibility and environmental management (Wiley)

The content is freely accessible at:

The role of personality traits and entrepreneurial self-efficacy in SME sustainability

SDG's eng.