Abstract
Earthquakes have become a constant threat in West Sumatra, Indonesia, with the most recent occurring in 2009. This phenomenon has been observed to be due to the inhabitation of people, predominantly the Minangkabau ethnic group in the “ring of fire,” which potentially causes the megathrust earthquakes and arguably shaped entrepreneurial behaviors. Therefore, the objective of this study was to examine the relationship between earthquake impact, preparedness for megathrust, fear of failure, Small Medium Enterprise (SME) financial performance, and entrepreneurs' wellbeing. Furthermore, the fear of failure was regarded as a construct which significantly shaped the responses of entrepreneurs towards natural disasters. This investigation adopted a quantitative approach, using SmartPLS, to survey 120 small and medium enterprises affected by the 2009 West Sumatra's earthquake. The results showed the post-earthquake impact was positively and significantly related to fear of failure while the relationships between fear of failure, financial performance, and well-being of SME were also established. Moreover, the context of Minangkabau as a completely Muslim society generated arguments regarding religiosity and organizational resilience. These factors were discovered to have influenced entrepreneurship towards making a significant contribution to the body of knowledge in disaster entrepreneurship studies.
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