Abstract
Following the devastating effects of the recent global economic and financial crisis, both developing and developed countries are desperate to boost economic development and reduce unemployment rates. Consequently, entrepreneurship is being promoted. The resulting enterprises contribute to economic development and create employment opportunities. However, the contribution to economic development can only be realized if the enterprises themselves are growing. Whereas the contribution of both startup capital and personality to entrepreneurial success is well researched, the interaction between the two leading to entrepreneurial success has not been investigated. Using a sample of 384 owners of micro-enterprises from a cross-section of industry sectors in Uganda, The study examine the moderating effect of Big Five personality factors on the relationship between startup capital and entrepreneurial success. The study observes that startup capital, agreeableness and extraversion positively predict entrepreneurial success. Neuroticism, on the other hand, negatively predicts entrepreneurial success. Extraversion is the only factor in the Big Five model that moderates the relationship between startup capital and entrepreneurial success, highlighting the importance of interpersonal skills in microenterprises. The study also discusses implications for research, entrepreneurial education and support in relation to startup capital, specific personality factors. Key words: Big Five personality factors, business, entrepreneurial success, micro entrepreneurs, startup capital.
Highlights
Entrepreneurship stimulates economic transformation (Chattopadhyay and Ghosh, 2002; Ireland and Webb, 2007; Skriabikova et al, 2014; Williams et al, 2013; Zahra, 2005)
The study focused on examining the moderation effect of personality on startup capital, entrepreneurial success relationship, and whether startup and personality predict entrepreneurial success
Results of the regression analysis (Table 1) show that startup capital is a significant predictor of entrepreneurial success (t = 3.14, p .01), it only contributed two percent of entrepreneurial success (Adjusted R2 = .02)
Summary
Entrepreneurship stimulates economic transformation (Chattopadhyay and Ghosh, 2002; Ireland and Webb, 2007; Skriabikova et al, 2014; Williams et al, 2013; Zahra, 2005). This is the motivation behind enormous efforts of developing nations and their development partners aimed at intensifying entrepreneurial activities. Whereas these efforts are yielding reasonable results, there are still significant challenges (Singer et al, 2015).
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