The Impact of Entrepreneurial Resilience on Sustainable Performance

Abstract

In today's competitive and dynamic market, entrepreneurial resilience is emerging as a significant factor to ensure sustainable business performance, especially in the case of Micro, Small and Medium Enterprises (MSMEs). The impact of Entrepreneurial Resilience on Sustainable performance of MSMEs in South Indian states of Tamil Nadu and Kerala has been discussed in this study. This research used quantitative research design and primary data in the form of a structured questionnaire for respondents, which was MSME owners and entrepreneurs with a total of 411 people were selected by proportionate random sampling. The dimensions of entrepreneurial resilience were measured as adaptability, persistence, opportunity recognition, resourcefulness, and business setback recovery, and the sustainable performance was evaluated using economic, social, and environmental performance indicators. Descriptive statistics, Pearson correlation analysis, and simple linear regression were used to analyze the data collected. The results showed that the entrepreneurial resilience positively correlated with the sustainable performance for the small business, with the result showing strong positive correlation and statistically significant (r = 0.684, p < .001), suggesting that entrepreneurs who are resilient are more likely to successfully sustain the business. The regression analysis also showed that entrepreneurial resilience is significantly associated with sustainable performance (β = 0.684, R² = 0.468, F = 359.82, p < .001) accounting for 46.8% of the variance in sustainable performance of all surveyed MSMEs. The results indicate that entrepreneurs' resilience positively affects their response to market disruptions, helps them cope with uncertainties, inspires them to continuously innovate and keep their operations stable, all of which contribute to sustainable organizational results. The research adds to the expanding corpus of entrepreneurship literature by offering empirical data from MSMEs in the state of Tamil Nadu and Kerala, suggesting the significance of resilience for sustainable enterprise growth. Based on the findings, practical implications for policy makers, entrepreneurship development agencies, financial institutions and MSME support organizations to design initiatives, capacity development programmes and policy interventions that build resilience in MSMEs for sustainable business are provided. In the conclusion of the study, it is stated that the development of entrepreneurial resilience is one of the key steps in the turn of sustainable economic growth and making MSMEs more competitive in emerging economies.