From passion to profit: unveiling the strengths of proactive mindset, perseverance, excellence and education in the entrepreneurial success of MSMEs

Abstract

Purpose: The study investigates the linkage between personality traits and firm performance. It examines the role of the pursuit of excellence, perseverance, a proactive mindset and formal education in determining the entrepreneurial success of MSMEs. Design/methodology/approach: Data were collected from 432 MSME entrepreneurs using a structured questionnaire from India's two major industrial towns to analyze the impact of personality traits on firm performance. Structural equation modeling (SEM) was employed to assess the direct and indirect relationships with the help of mediation analysis. Findings: The findings assert that personality traits improve firm performance and determine the success of MSMEs. The results reveal that the need for achievement, a proactive mindset and the pursuit of excellence are crucial to firm performance. In addition, formal education mediates between perseverance and the pursuit of excellence personality attributes on the one side and firm performance on the other. Research limitations/implications: The research has various theoretical and practical implications for entrepreneurs, financial institutions and policymakers. The results could be productively used to nurture the entrepreneurial ecosystem in India. Originality/value: Although research on personality traits as a driver of firm performance is growing, the pursuit of excellence, perseverance and proactive mindset attributes as enablers of firm performance have not garnered much attention. The study presents a precise conceptual model by integrating the aforementioned dimensions in the backdrop of an emerging market. © 2024, Emerald Publishing Limited.