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

Author:

Ismail Ismail J.1ORCID

Affiliation:

1. Department of Business Administration and Management, College of Business and Economics, University of Dodoma, Dodoma, Tanzania

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.

Publisher

SAGE Publications

Subject

Organizational Behavior and Human Resource Management,Strategy and Management,Business, Management and Accounting (miscellaneous),Business and International Management

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