Psychological capital and the startup capital–entrepreneurial success relationship

Abstract

Research has demonstrated that psychological strengths have important influences on entrepreneurial behavior. The current study explored the interaction between entrepreneurs' positive psychological capital and startup capital in leading to entrepreneurial success. Focus is on how owners of small scale enterprises use their psychological strengths to achieve their business goals. Using a sample of 384 entrepreneurs selected from the two leading business districts in Uganda, we observe that optimism is the component of psychological capital that significantly moderates the relationship between startup capital and entrepreneurial success. Both startup capital and psychological capital are significant predictors of entrepreneurial success; however, psychological capital is the better predictor. The theoretical and practical implications of these findings on entrepreneurial behavior, success and entrepreneurship promotion interventions are discussed.

La recherche a démontré que les forces psychologiques ont une influence importante sur le comportement entrepreneurial. La présente étude a exploré l'interaction entre le capital psychologique positif et le capital de départ, vers le succès entrepreneurial. L'accent est mis sur la manière dont les propriétaires de petites entreprises emploient leurs forces psychologiques pour atteindre leurs objectifs commerciaux. En nous appuyant sur un échantillon composé de 384 entrepreneurs sélectionnés dans les deux quartiers d'affaires les plus importants de l'Ouganda, nous observons que l'optimisme est la composante du capital psychologique qui modère considérablement le rapport entre le capital de départ et le succès entrepreneurial. Le capital de départ comme le capital psychologique sont des prédicteurs significatifs du succès entrepreneurial, bien que le capital psychologique s'avère être le plus précis des deux. Les implications théoriques et pratiques de ces constatations sur le comportement entrepreneurial, le succès et la promotion de l'entreprenariat sont discutées.

Keywords:

• entrepreneurial success
• micro-enterprises
• optimism, psychological capital
• startup capital

Mots-clés:

• succès entrepreneurial
• micro-entreprises
• optimisme, capital psychologique
• capital de départ

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Martin Mabunda Baluku

Martin Mabunda Baluku is a PhD student at Philipps Universität-Marburg, Germany, and Assistant Lecturer at Makerere University, Department of Educational, Organizational and Social Psychology. His current research interests are psychological attributes and entrepreneurship; career transition; the psychological contract; the psychology of cheating and corruption; retirement and psychological well-being; and organizational politics and change.

Julius Fred Kikooma

Julius Fred Kikooma (PhD) is the Dean of Makerere University School of Psychology. His current research interests are higher education, corporate realities, employment of university graduates, innovation and entrepreneurship, family business, and consumerism and identity.

Grace Milly Kibanja

Grace Milly Kibanja (PhD) is a Senior Lecturer in the Department of Educational, Organizational and Social Psychology, Makerere University. Her current research interests include individual and cultural values, behavioral poverty and well-being, social change and community development, conflict, peace building and reconciliation.