Entrepreneurial Resilience as a Driver of Family-Owned Business Performance

Abstract

The negative consequences of insecurity in Taraba State include the high cost of doing business and declining firm performance. Since the majority of businesses in the state are family-owned, this study examines the extent to which entrepreneurial resilience contributes to the performance of such businesses. With a specific focus on entrepreneurial resourcefulness, entrepreneurial optimism and entrepreneurial hardiness as dimensions of entrepreneurial resilience, the study adopts a survey research design to collect data from a sample of 363 owner-managers of registered family business using a structured questionnaire. The results of the Partial Least Squares Structural Equation Modeling (PLS SEM) analysis indicate that all three dimensions have significant positive effects on the performance of family-owned businesses, with entrepreneurial optimism demonstrating the strongest effect. In conclusion, entrepreneurial resilience should be considered a key factor in enhancing performance in business environments characterized by resource constraints and uncertainty. Therefore, capacity-building and mentorship programs aimed at helping business operators develop entrepreneurial resourcefulness, cultivate an optimistic mindset, and strengthen hardiness are recommended. This is important, as the overall impact could lead to improved and sustainable performance of family-owned businesses in Taraba State.