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Psychological capital and entrepreneurial outcomes: the moderating role of social competences of owners of micro-enterprises in East Africa

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  • Martin Mabunda Baluku

    (Makerere University, School of Psychology
    Philipps-Universität)

  • Julius Fred Kikooma

    (Makerere University, School of Psychology)

  • Edward Bantu

    (Kisii University)

  • Kathleen Otto

    (Philipps-Universität)

Abstract

Business success arises out of the total investments in the venture. This is not limited to tangible inputs such as financial capital, but on intangible resources as well. Entrepreneurship is a highly stressing occupation involving undertaking risks and often demanding workloads; hence requiring mental inputs (psychological capital). Moreover, the entrepreneurial job also involves doing business with other people of different statuses including investors, partners, customers, and employees; hence requiring the entrepreneur to exhibit a great deal of social competence to relate with others. Using two independent studies, we assess the contribution of psychological capital and social competence, as well as their interaction to entrepreneurial outcomes including performance (Study 1), and entrepreneurs’ wellbeing, satisfaction, and commitment to their entrepreneurial career role (Study 2). Study 1 uses a sample of 102 owner-managers or managers of small companies in Uganda. In this study, entrepreneurs’ social competence is measured as the relationship between entrepreneurs and their employees. Study 2 uses a sample of 228 young self-employed individuals in Uganda and Kenya; and operationalizes social competence via social intelligence. The results were consistent with our assumptions, highlighting the relevance of both psychological capital and social competence to entrepreneurial outcomes. Yet their interaction also has substantial impact on all outcomes examined in these studies.

Suggested Citation

  • Martin Mabunda Baluku & Julius Fred Kikooma & Edward Bantu & Kathleen Otto, 2018. "Psychological capital and entrepreneurial outcomes: the moderating role of social competences of owners of micro-enterprises in East Africa," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-23, December.
    • Handle: RePEc:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0113-7
    DOI: 10.1186/s40497-018-0113-7
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    Cited by:

    1. Martin Mabunda Baluku & Julius Fred Kikooma & Edward Bantu & Peter Onderi & Kathleen Otto, 2019. "Impact of personal cultural orientations and cultural intelligence on subjective success in self-employment in multi-ethnic societies," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-22, December.
    2. Ebrahim Endris & Andualem Kassegn, 2023. "Profitability of Agricultural Micro and Small-Scale Enterprise in North Wollo Zone, Amhara Regional State, Ethiopia," SAGE Open, , vol. 13(2), pages 21582440231, May.
    3. Akilimali Ndatabaye Ephrem & Paul Martin Dontsop Nguezet & Ishara Kaciko Charmant & McEdward Murimbika & Bola Amoke Awotide & Abdoulaye Tahirou & Mulindangabo Neema Lydie & Victor Manyong, 2021. "Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC," Sustainability, MDPI, vol. 13(8), pages 1-22, April.
    4. Mariluz Fernández-Alles & Dara Hernández-Roque & Mercedes Villanueva-Flores & Mirta Díaz-Fernández, 2022. "The impact of human, social, and psychological capital on academic spin-off internationalization," Journal of International Entrepreneurship, Springer, vol. 20(3), pages 433-473, September.
    5. Himmet Karadal & Belal Hamed Taher Shneikat & A. Mohammad Abubakar & Omar Khalid Bhatti, 2021. "Immigrant Entrepreneurship: the Case of Turkish Entrepreneurs in the United States," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1574-1593, December.

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