The relationship between entrepreneurial self-efficacy and sustainable performance of small and medium enterprises in Polokwane Municipality, South Africa

Abstract

SMEs play an important role in the economy as they contribute to job creation, poverty alleviation, innovation, economic growth and development. However, they tend to fail due to business challenges such as poor performance. One of the solutions to business failure is entrepreneurs’ level of self-efficacy towards normal and challenging business activities, which consequently leads to sustainable performance. The aim of this study was to investigate the relationship between entrepreneurial self-efficacy (ESE) and sustainable performance. A quantitative method was used and self-administered questionnaires were distributed for the purpose of data collection. The questionnaire covered three sections which are made of demographic information, entrepreneurial self-efficacy measures and sustainable performance. This study used non probability sampling where convenience sampling and snowball sampling methods were used to select the sample. Convenience and snowball sampling were used because a sample frame of SMEs in the study area does not exist. 320 questionnaires were issued to SME owners in Polokwane Municipality, Limpopo Province. A total of 180 questionnaires were returned. Descriptive statistics was undertaken to evaluate respondents against ESE and sustainable performance. The Statistical Package of Social Sciences (SPSS) software was used to analyse collected information for confirmation of accuracy and reliability of results. ANOVA and T-test samples were used to determine the significant difference between ESE and sustainable performance according to owners’ demographic characteristics. Correlation and regression were used to determine the relationship between ESE and sustainable performance. The Cronbach’s alpha was applied to measure reliability. Findings of the study revealed that ESE positively impacts the sustainable performance of SMEs. Recommendations were made for improvement on ESE and sustainable performance of SMEs.