Construing the Relationship Between Entrepreneurial Adversity and Mental Well-being of Small Business Owners During COVID-19 Outbreak: The Mediating Role of Entrepreneurial Resilience

Abstract

The purpose of this study was to look at small business owners’ entrepreneurial resilience and mental well-being during adversity. This paper tries to gauge the effect of the COVID-19 pandemic on an entrepreneur’s mental wellness and how being resilient in their approach to handling uncertainties mediates and positively envisages their mental wellness. The quantitative approach was utilized to collect data and achieve the specified goal. The information was gathered from 159 small business owners in Varanasi, India. The partial least squares method was used to analyze the collected data. Future research should look for more accurate ways to measure resilience as well as personal traits that could be used to further analyze the person–entrepreneurial context fit. In order to improve the generalizability of the study’s findings, researchers can also consider perceived adversity and resilience as mediating factors, in addition to the actual adversity and resilience assessed in this study.

Keywords

Adversity quotient COVID- 19 entrepreneur mental well-being resilience small business owners

Get full access to this article

View all access options for this article.

References

Akula

S. C.

, & Singh

(2021). Impact of COVID-19 on entrepreneurship: a systemetic literature review. International Journal of EBusiness and EGovernment Studies, 13(1), 2146–2744. https://doi.org/10.34111/ijebeg.202113101

Arroyo-Belmonte

, Natera-Rey

, Tiburcio-Sainz

, & Martínez-Vélez

(2021). Development and psychometric properties of the adversity and stress, scale (ASS): Validation in the adult Mexican population. International Journal of Mental Health and Addiction, 101. https://doi.org/10.1007/s11469-021-00669-x

Ayala

J. C.

, & Manzano

(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

Bhamra

, Dani

, & Burnard

(2011). Resilience: the concept, a literature review and future directions. International Journal of Production Research, 49(18), 5375–5393.

Braeken

, & van Assen

M. A. L. M.

(2017). An empirical Kaiser criterion. Psychological Methods, 22(3), 450–466. https://doi.org/10.1037/met0000074

Bublitz

M. G.

, Chaplin

L. N.

, Peracchio

L. A.

, Cermin

A. D.

, Dida

, Escalas

J. E.

, Eilert

, Gloukhovtsev

, & Miller

E. G.

(2021). Rise up: Understanding youth social entrepreneurs and their ecosystems. Journal of Public Policy and Marketing, 40(2), 206–225. https://doi.org/10.1177/0743915620937702

Bullough

, & Renko

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

Bulmash

(2016). Entrepreneurial resilience: Locus of control and well-being of entrepreneurs. Journal of Entrepreneurship & Organization Management, 5(1), 1–6. https://doi.org/10.4172/2169-026x.1000171

Burns

R. A.

, Anstey

K. J.

, & Windsor

T. D.

(2011). Subjective well-being mediates the effects of resilience and mastery on depression and anxiety in a large community sample of young and middle-aged adults. Australian and New Zealand Journal of Psychiatry, 45(3), 240–248. https://doi.org/10.3109/00048674.2010.529604

10.

Fornell

& Larcker

. (2012). Equation algebra unobservable error: Variables. Journal of Marketing Research, 18(3), 382–388.

11.

Cardon

M. S.

, Gregoire

D. A.

, Stevens

C. E.

, & Patel

P. C.

(2013). Measuring entrepreneurial passion: Conceptual foundations and scale validation. Journal of Business Venturing, 28(3), 373–396. https://doi.org/10.1016/j.jbusvent.2012.03.003

12.

Castro

M. P.

, & Zermeño

M. G. G.

(2020). Being an entrepreneur post-COVID-19 – resilience in times of crisis: a systematic literature review. Journal of Entrepreneurship in Emerging Economies, 13(4), 721–746. https://doi.org/10.1108/JEEE-07-2020-0246

13.

Chaturvedi

, & Karri

(2022). Entrepreneurship in the times of pandemic: Barriers and strategies. FIIB Business Review, 11(1), 52–66. https://doi.org/10.1177/23197145211043799

14.

Coaffee

, Wood

D. M.

, & Rogers

(2009). The everyday resilience of the city. Palgrave Macmillan. https://doi.org/10.9780230583337

15.

Davydov

D. M.

, Stewart

, Ritchie

, & Chaudieu

(2010). Resilience and mental health. Clinical Psychology Review, 30(5), 479–495. https://doi.org/10.1016/j.cpr.2010.03.003

16.

De Vries

M. K.

(1977). The entrepreneurial personality: A person at the crossroads. Journal of Management Studies, 14(1), 34–57.

17.

Duchek

(2018). Entrepreneurial resilience: a biographical analysis of successful entrepreneurs. International Entrepreneurship and Management Journal, 14(2), 429–455. https://doi.org/10.1007/s11365-017-0467-2

18.

Duening

T. N.

(2010). Five minds for the entrepreneurial future: Cognitive skills as the intellectual foundation for next generation entrepreneurship curricula. The Journal of Entrepreneurship, 19(1), 1–22.

19.

Duit

(2016). Resilience thinking: Lessons for public administration. Public Administration, 94(2), 364–380.

20.

Faisal

, Abidin

, & Haryanto

(2021). Enterprise risk management (ERM) and firm value: The mediating role of investment decisions. Cogent Economics and Finance, 9(1). https://doi.org/10.1080/23322039.2021.2009090

21.

Fatoki

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

22.

Flinchbaugh

, Luth

M. T.

, & Li

(2015). A challenge or a hindrance? Understanding the effects of stressors and thriving on life satisfaction. International Journal of Stress Management, 22(4), 323–345. https://doi.org/10.1037/a0039136

23.

Fisher

, Maritz

, & Lobo

(2016). Does individual resilience influence entrepreneurial success? Academy of Entrepreneurship Journal, 22(2), 39.

24.

Freitas

, Simões

M. R.

, Marôco

, Alves

, & Santana

(2012). Construct validity of the montreal cognitive assessment (MoCA). Journal of the International Neuropsychological Society, 18(2), 242–250.

25.

Gardner

(2007). Five minds for the future. Harvard Business School Press.

26.

Gunasekaran

, Rai

B. K.

, & Griffin

(2011). Resilience and competitiveness of small and medium size enterprises: An empirical research. In International Journal of Production Research, 49(18), 5489–5509). https://doi.org/10.1080/00207543.2011.563831

27.

Hair

J. F.

, Risher

J. J.

, Sarstedt

, & Ringle

C. M.

(2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

28.

Hale

, Angrist

, Goldszmidt

, Kira

, Petherick

, Phillips

, Webster

, Cameron-Blake

, Hallas

, Majumdar

, & Tatlow

(2021). A global panel database of pandemic policies (Oxford COVID-19 Government Response Tracker). Nature Human Behaviour, 5(4), 529–538.

29.

Harms

P. D.

, Brady

, Wood

, & Silard

(2018). Resilience and well-being. In Diener

, Oishi

& Tay

(Eds), Handbook of well-being (pp. 1–12). DEF Publishers

30.

Harms

P. D.

, & Wood

(2016). Bouncing back to the future: A look at the road ahead for the assessment of resilience. Industrial and Organizational Psychology, 9(2), 438–442. https://doi.org/10.1017/iop.2016.35

31.

Hedner

, Abouzeedan

, & Klofsten

(2011). Entrepreneurial resilience. Annals of Innovation & Entrepreneurship, 2(1), 7986. https://doi.org/10.3402/aie.v2i1.6002

32.

Henseler

, Ringle

C. M.

, & Sarstedt

(2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

33.

Herbane

(2019). Rethinking organizational resilience and strategic renewal in SMEs. Entrepreneurship and Regional Development, 31(5–6), 476–495. https://doi.org/10.1080/08985626.2018.1541594

34.

Holling

C. S.

(1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systematics, 1–23.

35.

L.-t.

, & Bentler

P. M.

(1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6, 1–55. https://doi.org/10.1080/10705519909540118

36.

, Zhang

, & Wang

(2015). A meta-analysis of the trait resilience and mental health. Personality and Individual Differences, 76, 18–27. https://doi.org/10.1016/j.paid.2014.11.039

37.

Ikpesu

O. C.

(2018). Business environment characteristics and new venture creation in rivers state, Nigeria. Journal of Asia Entrepreneurship and Sustainability, 14(2), 64–94.

38.

Kanupriya. (2020). COVID-19: A socio-economic perspective. FIIB Business Review, 9(3), 161–166. https://doi.org/10.1177/2319714520923918

39.

Kato

T. A.

, Sartorius

, & Shinfuku

(2020). Forced social isolation due to COVID-19 and consequent mental health problems: Lessons from hikikomori. Psychiatry and Clinical Neurosciences, 74(9), 506–507. https://doi.org/10.1111/pcn.13112

40.

Kaur

, & Kaur

(2020). COVID-19 and the rise of the new experience economy. FIIB Business Review, 9(4), 239–248. https://doi.org/10.1177/2319714520958575

41.

Kaur

, & Vohra

(2012). Women and stock market participation: A review of empirical evidences. Management and Labour Studies, 37(4), 283–293. https://doi.org/10.1177/0258042X13484868

42.

Ketchen Jr.

D. J.

(2013). A primer on partial least squares structural equation modeling. Long Range Planning, 46(1–2). https://doi.org/10.1016/j.lrp.2013.01.002

43.

Khanzad

Z. G.

, & Gooyabadi

A. A.

(2021). Development of strategic resilience framework for small businesses post-COVID-19. Businesses, 1(3), 127–141.

44.

Kovid

R. K.

, Rana

, & Omrane

(2022). The promise of entrepreneurship and innovation as a strategic response to global turmoils. FIIB Business Review, 11(1), 7–10. https://doi.org/10.1177/23197145221083730

45.

Kuntz

J. R. C.

, Naswall

, & Malinen

(2016). Resilient employees in resilient organizations: Flourishing beyond adversity. Industrial and Organizational Psychology, 9(2), 456–462. https://doi.org/10.1017/iop.2016.39

46.

Lee

, & Wang

(2017). Developing entrepreneurial resilience: implications for human resource development. European Journal of Training and Development, 41(6), 519–539. https://doi.org/10.1108/EJTD-12-2016-0090

47.

Lenzen

, Li

, Malik

, Pomponi

, Sun

Y. Y.

, Wiedmann

, Faturay

, Fry

, Gallego

, Geschke

, & Gómez-Paredes

(2020). Global socio-economic losses and environmental gains from the coronavirus pandemic. PLoS ONE, 15(7). https://doi.org/10.1371/journal.pone.0235654

48.

Liebenberg

, & Moore

J. C.

(2018). A social ecological measure of resilience for adults: The RRC-ARM. Social Indicators Research, 136(1), 1–19. https://doi.org/10.1007/s11205-016-1523-y

49.

Linnenluecke

M. K.

, & Griffiths

(2015). The climate resilient organization: Adaptation and resilience to climate change and weather extremes. Edward Elgar Publishing.

50.

Madni

A. M.

, & Jackson

(2009). Towards a conceptual framework for resilience engineering. IEEE Systems Journal, 3(2), 181–191. https://doi.org/0.1109/JSYST.2009.2017397

51.

Mainelli

, & Milne

(2016). The impact and potential of blockchain on securities transaction lifecycle (SWIFT Institute Working Paper, 2015–007). http://ssrn.com/abstract=2777404http://ssrn.com/abstract=2777404Electroniccopyavailableat:http://ssrn.com/abstract=2777404

52.

Marshall

D. R.

, Meek

W. R.

, Swab

R. G.

, & Markin

(2020). Access to resources and entrepreneurial well-being: A self-efficacy approach. Journal of Business Research, 120, 203–212. https://doi.org/10.1016/j.jbusres.2020.08.015

53.

Masten

A. S.

(2001). Ordinary magic: Resilience processes in development. American Psychologist, 56(3), 227.

54.

McMullen

J. S.

, & Shepherd

D. A.

(2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management Review, 31(1), 132–152.

55.

Miller

(2015). A downside to the entrepreneurial personality? Entrepreneurship Theory and Practice, 39(1), 1–8.

56.

Morris

M. H.

, Kuratko

D. F.

, Schindehutte

, & Spivack

A. J.

(2012). Framing the entrepreneurial experience. Entrepreneurship: Theory and Practice, 36(1), 11–40. https://doi.org/10.1111/j.1540-6520.2011.00471.x

57.

Mueller

(2011). The remnants of war. Cornell University Press.

58.

Najjar

, & Gaudiot

J. L.

(1990). Network resilience: A measure of network fault tolerance. IEEE Transactions on Computers, 39(2), 174–181.

59.

Neupane

(2020). Effect of social media on Nepali consumer purchase decision. Pravaha, 25(1), 167–174. https://doi.org/10.3126/pravaha.v25i1.31955

60.

Panetta

(2020, May 29). Create a resilient business model in the face of covid-19. Gartner. Retrieved August 17, 2022, from https://www.gartner.com/smarterwithgartner/create-a-resilient-business-model-in-the-face-of-covid-19.

61.

Podsakoff

P. M.

, MacKenzie

S. B.

, Lee

J. Y.

, & Podsakoff

N. P.

(2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.

62.

Pollack

J. M.

, Rutherford

M. W.

, & Nagy

B. G.

(2012). Preparedness and cognitive legitimacy as antecedents of new venture funding in televised business pitches. Entrepreneurship: Theory and Practice, 36(5), 915–939. https://doi.org/10.1111/j.1540-6520.2012.00531.x

63.

Pollack

J. M.

, Vanepps

E. M.

, & Hayes

A. F.

(2012). The moderating role of social ties on entrepreneurs’ depressed affect and withdrawal intentions in response to economic stress. Journal of Organizational Behavior, 33(6), 789–810. https://doi.org/10.1002/job.1794

64.

Raithel

, Sarstedt

, Scharf

, & Schwaiger

(2012). On the value relevance of customer satisfaction. Multiple drivers and multiple markets. Journal of the Academy of Marketing Science, 40(4), 509–525. https://doi.org/10.1007/s11747-011-0247-4

65.

Ringle

C. M.

, Wende

, & Becker

J. M.

(2015). SmartPLS 3. SmartPLS GmbH.

66.

Sarstedt

, Ringle

C. M.

, Smith

, Reams

, & Hair

J. F.

(2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105–115. https://doi.org/10.1016/j.jfbs.2014.01.002

67.

Shehata

S. M.

, Abdeljawad

A. M.

, Mazouz

L. A.

, Aldossary

L. Y. K.

, Alsaeed

M. Y.

, & Sayed

M. N.

(2021). The moderating role of perceived risks in the relationship between financial knowledge and the intention to invest in the Saudi Arabian stock market. International Journal of Financial Studies, 9(1), 1–16. https://doi.org/10.3390/IJFS9010009

68.

Shepherd

D. A.

, Saade

F. P.

, & Wincent

(2020). How to circumvent adversity? Refugee-entrepreneurs’ resilience in the face of substantial and persistent adversity. Journal of Business Venturing, 35(4), 1–26. https://doi.org/10.1016/j.jbusvent.2019.06.001

69.

Shivaranjini. (2014). Adversity quotient: One stop solution to combat attrition rate of women in Indian IT sector. International Journal of Business and Administration Research Review, 1(5), 181–189.

70.

Sohil

, Sohali

M. U.

, & Shabbir

(2021). An introduction to statistical learning with applications in R. Statistical Theory and Related Fields, 1–1. https://doi.org/10.1080/24754269.2021.1980261

71.

Spain

S. M.

, Harms

P. D.

, & Wood

(2016). Stress, well-being, and the dark side of leadership. Research in Occupational Stress and Well Being, 14, 33–59. https://doi.org/10.1108/S1479-355520160000014002

72.

Stafford

(2004). What good are positive emotions? Psychologist, 17(6), 331. https://doi.org/10.1037//1089-2680.2.3.300

73.

Stark

(2014). On resilience. Social Sciences, 3(1), 60–70.

74.

Stephan

(2018). Entrepreneurs’ mental health and well-being: A review and research Agenda. Academy of Management Learning and Education, 17(3), 290–322. https://doi.org/10.5465/amp.2017.0001

75.

Sutcliffe

K. M.

, & Vogus

T. J.

(2003). Organizing for resilience. In Cameron

K. S.

, Dutton

J. E.

& Quinn

R. E.

(Eds), Positive organizational scholarship: Foundations of a new discipline (pp. 94–110). Berrett-Koehler.

76.

Voorhees

C. M.

, Brady

M. K.

, Calantone

, & Ramirez

(2016). Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing Science, 44(1), 119–134. https://doi.org/10.1007/s11747-015-0455-4

77.

Wach

, Stephan

, Weinberger

, & Wegge

(2021). Entrepreneurs’ stressors and well-being: A recovery perspective and diary study. Journal of Business Venturing, 36(5), 106016. https://doi.org/10.1016/j.jbusvent.2020.106016

78.

Walker

, Gunderson

, Kinzig

, Folke

, Carpenter

, & Schultz

(2006). A handful of heuristics and some propositions for understanding resilience in social-ecological systems. Ecology and Society, 11(1), 13.

79.

Wang

, Liu

, Tee

, & Dai

(2021). Analysis of adversity quotient of nursing students in Macao: A cross-section and correlation study. International Journal of Nursing Sciences, 8(2), 204–209. https://doi.org/10.1016/j.ijnss.2021.02.003

80.

Weick

K. E.

(1993). The collapse of sensemaking in organizations: The Mann Gulch disaster. Administrative Science Quarterly, 628–652.

81.

Werner

E. E.

, & Smith

R. S.

(1992). Overcoming the odds: High risk children from birth to adulthood. Cornell University Press.

82.

Werner

E. E.

(1995). Resilience in development. Current Directions in Psychological Science, 4(3), 81–84. https://doi.org/10.1111/1467-8721.ep10772327

83.

Windle

, Bennett

K. M.

, & Noyes

(2011). A methodological review of resilience measurement scales. Health and Quality of Life Outcomes, 9(1), 8. https://doi.org/10.1186/1477-7525-9-8

84.

Wong

C. W. Y.

, Lai

K. H.

, Shang

K. C.

, Lu

C. S.

, & Leung

T. K. P.

(2012). Green operations and the moderating role of environmental management capability of suppliers on manufacturing firm performance. International Journal of Production Economics, 140(1), 283–294. https://doi.org/10.1016/j.ijpe.2011.08.031

85.

World Trade Organization. (2020). Cross-border mobility, COVID-19 and global trade. Wto.org. https://www.wto.org/english/tratop_e/covid19_e/mobility_report_e.pdf

86.

Zhu

, Tian

, & Chen

(2010). Notice of retraction: An analysis of herding behavior under cognitive bias structure: A stock market case study. In Proceedings of the International Conference on E-business and E-Government, ICEE 2010 (pp. 5369–5372). https://doi.org/10.1109/ICEE.2010.1343