Entrepreneurial Mindset as Predictor of Resilience among Gambian Youth Entrepreneurs: The Mediating Role of Business Acumen and Business Persistence
Article Sidebar
Main Article Content
Abstract
Background/ problem: In fragile economies, such as The Gambia, young entrepreneurs face persistent structural and contextual challenges, limited financial access, institutional voids, cultural constraints, and underdeveloped infrastructure that threaten business survival. Traditional entrepreneurship models often overlook the behavioral and psychological capacities needed to thrive in such conditions.
Objective/ purpose: Grounded in psychological capital theory, this study investigates how the psychological resources of hope, self-efficacy, and optimism interact with entrepreneurial traits, specifically business acumen and business persistence, to build resilience among young entrepreneurs in The Gambia.
Design and Methodology: A quantitative approach was used, drawing on data from 203 entrepreneurs, aged 18-35 across Banjul City, Kanifing Municipality, and West Coast Region, The Gambia. PLS-SEM was applied to test the hypothesized model.
Results: The entrepreneurial mindset significantly predicts resilience both directly (β = .55, p < .001) and indirectly via business acumen (β = .25, p < .001), indicating partial mediation. Business acumen also positively influences resilience (β = .40, p < .001) and business persistence (β = .51, p < .001). Although entrepreneurial mindset predicts business persistence (β = .33, p < .001), business persistence does not significantly affect resilience (β = .08, p = .26), and its mediating effect is unsupported (β = .01, p = .30).
Conclusion and Implications: These findings contribute to behavioral science by empirically validating resilience as a behavioral outcome shaped by psychological and entrepreneurial traits. The study advances interdisciplinary understanding of youth entrepreneurship and informs behavioral policy design for fragile economies. Specifically, the results can be utilized by policymakers, entrepreneurship educators, and development organizations in contexts such as The Gambia to design targeted interventions that strengthen youth entrepreneurial resilience.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Alessandri, G., Consiglio, C., Luthans, F., & Borgogni, L. (2018). Testing a dynamic model of the impact of psychological capital on work engagement and job performance. Career Development International, 23(1), 33–47. https://doi.org/10.1108/CDI-11-2016-0210 DOI: https://doi.org/10.1108/CDI-11-2016-0210
Al Issa, H. E. (2020). When grit leads to success: The role of individual entrepreneurial orientation. Business: Theory and Practice, 21(2), 643–653. https://doi.org/10.3846/btp.2020.12346 DOI: https://doi.org/10.3846/btp.2020.12346
Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22(2), 127–152. https://doi.org/10.1002/hrdq.20070 DOI: https://doi.org/10.1002/hrdq.20070
Baron, R. A. (2004). The cognitive perspective: A valuable tool for answering entrepreneurship’s basic “why” questions. Journal of Business Venturing, 19(2), 221–239. https://doi.org/10.1016/S0883-9026(03)00008-9 DOI: https://doi.org/10.1016/S0883-9026(03)00008-9
Baum, J. R., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4), 587–598. https://doi.org/10.1037/0021-9010.89.4.587 DOI: https://doi.org/10.1037/0021-9010.89.4.587
Carver, C. S., Scheier, M. F., & Segerstrom, S. C. (2010). Optimism. Clinical Psychology Review, 30(7), 879–889. https://doi.org/10.1016/j.cpr.2010.01.006 DOI: https://doi.org/10.1016/j.cpr.2010.01.006
Dawkins, S., Martin, A., Scott, J., & Sanderson, K. (2015). Advancing conceptualization and measurement of psychological capital as a collective construct. Human Relations, 68(6), 925–949. https://doi.org/10.1177/0018726714549645 DOI: https://doi.org/10.1177/0018726714549645
Díaz-Pincheira, F. (2025). Effects of positive psychological capital on entrepreneurial success: A systematic review. Intangible Capital, 21(2), 290–310. https://doi.org/10.3926/ic.3110 DOI: https://doi.org/10.3926/ic.3110
Endarwati, M. L., Sholikhah, Z., & Pramuka, B. A. (2023). Nurturing entrepreneurial spirit through integrative learning method: The role of entrepreneurial inspiration and mindset. The Journal of Behavioral Science, 18(3), 52–68. https://so06.tci-thaijo.org/index.php/IJBS/article/view/265325
Faal, M. L. (2020). Understanding binding constraints to small and medium enterprises (SMEs) in The Gambia: A critical review. Asian Journal of Management, 11(2), 216–221. https://doi.org/10.5958/2321-5763.2020.00034.7 DOI: https://doi.org/10.5958/2321-5763.2020.00034.7
Fatty, L. K. M., Ode, I. O., & Ahule, B. G. (2023). The role of mentoring services in agricultural small and medium enterprises in The Gambia. Science Journal of Business and Management, 11(1), 52–65. https://doi.org/10.11648/j.sjbm.20231101.17 DOI: https://doi.org/10.11648/j.sjbm.20231101.17
Faye, A., Tadke, R., Gawande, S., Kirpekar, V., Bhave, S., Pakhare, A., & Deepika, S. (2018). Assessment of resilience and coping in undergraduate medical students: A need of the day. Journal of Education Technology in Health Sciences, 5(1), 36–44. https://doi.org/10.18231/2393-8005.2018.0008 DOI: https://doi.org/10.18231/2393-8005.2018.0008
Grilli, L. (2022). Entrepreneurship and new product development: Exploring the “advantage of youth” and “business acumen” views. Journal of Product Innovation Management, 39(5), 662–685. https://doi.org/10.1111/jpim.12625 DOI: https://doi.org/10.1111/jpim.12625
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). An introduction to structural equation modeling: In partial least squares structural equation modeling (PLS-SEM) using R (Classroom Companion: Business). Springer. https://doi.org/10.1007/978-3-030-80519-7_1
Hair, J. F., Jr., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications. DOI: https://doi.org/10.1007/978-3-030-80519-7
Hamzah, M., & Othman, A. (2022). How do locus of control influence business and personal success? The mediating effects of entrepreneurial competency. Frontiers in Psychology, 13, 958911. https://doi.org/10.3389/fpsyg.2022.958911 DOI: https://doi.org/10.3389/fpsyg.2022.958911
Heminger, S., Arghode, V., & Bhattacharyya, S. (2024). Unlocking entrepreneurial well-being: Exploring the interplay of psychological capital and impostor phenomenon. International Journal of Organizational Analysis, 33(1), 85–102. https://doi.org/10.1108/ijoa-07-2023-3846 DOI: https://doi.org/10.1108/IJOA-07-2023-3846
International Trade Centre. (2022a). Entrepreneurship support ecosystem diagnostic – The Gambia: A network analysis of institutions supporting entrepreneurship. https://www.itcbenchmarking.org/node/2146
International Trade Centre. (2022b). Gambian youth entrepreneurship project wraps after creating 10,000 jobs. https://www.intracen.org/news-and-events/news/gambian-youth-entrepreneurship-project-wraps-after-creating-10000-jobs
Isichei, E. E., Olabosinde, S. T., & Shaibu, B. (2024). Entrepreneurial resilience and business survival: The mediating role of self-compassion. The Journal of Entrepreneurship, 33(1), 7–33. https://doi.org/10.1177/09713557241233820 DOI: https://doi.org/10.1177/09713557241233820
Kiptoo, M., Sambajee, P., & Baum, T. (2024). Resilience through adversity: a case of informal artisan entrepreneurs in Kenya. International Journal of Entrepreneurial Behavior & Research, 30(11), 446–465. https://doi.org/10.1108/ijebr-07-2023-0762 DOI: https://doi.org/10.1108/IJEBR-07-2023-0762
Korber, S., & McNaughton, R. B. (2018), Resilience and entrepreneurship: a systematic literature review, International Journal of Entrepreneurial Behavior & Research, 24(7), 1129–1154. https://doi.org/10.1108/IJEBR-10-2016-0356 DOI: https://doi.org/10.1108/IJEBR-10-2016-0356
Liao, Y. K., Nguyen, V. H. A., Chi, H. K., & Nguyen, H. H. (2022). Unravelling the direct and indirect effects of entrepreneurial education and mindset on entrepreneurial intention: The moderating role of entrepreneurial passion. Global Business and Organizational Excellence, 41(3), 23–40. https://doi.org/10.1002/joe.22151 DOI: https://doi.org/10.1002/joe.22151
Lim, S. S., Sonko, L. K., & Cham, E. (2022). Exploring the supportive factors and inhibitors to the growth propensity of women-owned MSMEs in The Gambia. Technology Analysis & Strategic Management, 36(3), 423–439. https://doi.org/10.1080/09537325.2022.2035348 DOI: https://doi.org/10.1080/09537325.2022.2035348
Liu, N., Cao, Y., & Xu, H. (2024). Prosocial behavior associated with trait mindfulness, psychological capital and moral identity among medical students: A moderated mediation model. Frontiers in Psychology, 15. https://doi.org/10.3389/fpsyg.2024.1431861 DOI: https://doi.org/10.3389/fpsyg.2024.1431861
Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. Oxford University Press. https://doi.org/10.1093/acprof:oso/9780195187526.001.0001 DOI: https://doi.org/10.1093/acprof:oso/9780195187526.001.0001
Luthans, K. W., Luthans, B. C., & Palmer, N. F. (2016). A positive approach to management education: The relationship between academic PsyCap and student engagement. Journal of Management Development, 35(9), 1098–1118. https://doi.org/10.1108/JMD-06-2015-0091 DOI: https://doi.org/10.1108/JMD-06-2015-0091
Marques, D., Aubé, C., Rousseau, V., & Brunelle, É. (2024). Psychological resources and new product development team adaptability: A moderated mediation model. Small Group Research, 56(2), 307–337. https://doi.org/10.1177/10464964241283695 DOI: https://doi.org/10.1177/10464964241283695
Ministry of Communications and Digital Economy. (2023). The Gambia digital economy master plan (2023–2033). Ministry of Communications and Digital Economy, Republic of the Gambia. https://mocde.gov.gm/wp-content/uploads/2023/10/Final-The-Gambia-Digital-Economy-Master-Plan-2023-20233.pdf
Mukherjee, S. P. (2019). A Guide to research methodology: An overview of research problems, tasks and methods. CRC Press. https://doi.org/10.1201/9780429289095 DOI: https://doi.org/10.1201/9780429289095
Newman, A., Ucbasaran, D., Zhu, F., & Hirst, G. (2014). Psychological capital: A review and synthesis. Journal of Organizational Behavior, 35(S1), S120–S138. https://doi.org/10.1002/job.1916 DOI: https://doi.org/10.1002/job.1916
Njaramba, F., & Olukuru, J. (2025). Surviving a crisis: A multilevel model of leadership styles, employees’ psychological capital and organizational resilience. PLOS ONE, 20(2), e0318515. https://doi.org/10.1371/journal.pone.0318515 DOI: https://doi.org/10.1371/journal.pone.0318515
Ratinho, T., & Sarasvathy, S. (2024). Entrepreneurial actions under uncertainty: The role of psychological variables and decision logics. International Journal of Entrepreneurial Behavior & Research, 30(10), 2701–2730. https://doi.org/10.1108/ijebr-12-2023-1316 DOI: https://doi.org/10.1108/IJEBR-12-2023-1316
Ringle, C. M., Wende, S., & Becker, J.-M. (2015). SmartPLS 3. SmartPLS GmbH. https://www.smartpls.com
Sahu, S. M. G. (2024). Empowering self-help groups (SHGS): Business acumen, potential, and challenges in managing emerging enterprises. Journal of Informatics Education and Research, 4(2), 903–910. https://doi.org/10.52783/jier.v4i2.858 DOI: https://doi.org/10.52783/jier.v4i2.858
United Nations Conference on Trade and Development. (n.d.). The Gambia - formulating the national entrepreneurship policy. https://unctad.org/es/isar/publication/gambia-formulating-national-entrepreneurship-policy
Veliyath, R., Stivers, B., Hair, J., Joyce, T., & Sarstedt, M. (2012). Developing business acumen in Chinese business school graduates. Journal of Emerging Knowledge on Emerging Markets, 4(1), 1–31. https://doi.org/10.7885/1946-651x.1091 DOI: https://doi.org/10.7885/1946-651X.1091
Vinsensius, & Ryandra, C. (2024). Exploring the entrepreneurial mindset: The impact of innovation, proactiveness, and risk-taking on ITBSS students entrepreneurial interest. Technology, Business and Entrepreneurship, 2(2), 36–44. https://doi.org/10.61245/techbus.v2i2.31 DOI: https://doi.org/10.61245/techbus.v2i2.31
Wong, K. K. (2013). Partial least squares structural equation modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24(1). https://marketing-bulletin.massey.ac.nz/V24/MB_V24_T1_Wong.pdf
Zelenka, M., & Podaras, A. (2021). Increasing the effectivity of business intelligence tools via amplified data knowledge. Studies in Informatics and Control, 30(2), 67–77. https://doi.org/10.24846/v30i2y202106 DOI: https://doi.org/10.24846/v30i2y202106
Zettel, L. (2025). Rethinking the rollercoaster: resilience and affect in entrepreneurship. Strategic Entrepreneurship Journal, 19(2), 368–396. https://doi.org/10.1002/sej.1533 DOI: https://doi.org/10.1002/sej.1533
