Entrepreneurial Start-up Motivations and Growth of Small and Medium Enterprises in Tanzania: The Role of Entrepreneur’s Personality Traits

Ismail J. Ismail

FIIB Business Review, 2022, vol. 11, issue 1, 79-93

Abstract: This study aims to analyze the mediating effect of personality traits in the relationship between entrepreneurial start-up motivations and small and medium enterprises (SMEs) growth. A gap has been identified in the literature, particularly in the indirect association of critical factors that may be beneficial to the growth of SMEs. In this study, a cross-sectional survey design was used because data were collected once in a time. Furthermore, structural equation modeling (SEM) was used to analyze data obtained from 367 SMEs’ owners. The findings indicate that entrepreneurial start-up motivations such as a desire for achievement, financial rewards, social recognition and a desire for independence are positively and significantly related to SMEs’ growth. Also, entrepreneurial start-up motivations positively and significantly influence personality traits among entrepreneurs. It was found that there is a significant link between personality traits and the SMEs’ growth. Additionally, the findings indicate that personality traits mediate the relationship between entrepreneurial start-up motivations and SMEs’ growth. The study’s findings have implications for the practices and theories in the entrepreneurship context.

Keywords: Personality traits; entrepreneurs; entrepreneurial start-up motivations; SMEs’ growth; Tanzania (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:sae:fbbsrw:v:11:y:2022:i:1:p:79-93

DOI: 10.1177/23197145211068599

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