Personality, psychological capital and startup capital–entrepreneurial success relationship.
The study investigated the moderating influence of personality and psychological capital on the start-up capital – entrepreneurial success relationship. Whereas the role of psychological capital and personality in entrepreneurial behavior is well researched, it is not known how the entrepreneurs’ positive mental state and character interact with amount of capital in leading to entrepreneurial success or failure. In addition, in an economy where majority of entrepreneurs are local small scale and informal business operators, it is important to contextualize the effect of entrepreneur’s psychological attributes on entrepreneurial success. Survey design was adopted. A sample of 384 entrepreneurs was selected from Kampala and Wakiso districts. Data was collected by use of a standardized self-administered structured questionnaire. John and Srivastava (1999) Big Five Inventory and Luthans, Avolio, and Avey (2007) Psychological Capital Questionnaire were adopted. Statistical tests used in analysis included: correlation, chi-square, one way ANOVA and Moderated Multiple Regression Results showed that startup capital is significantly related to entrepreneurial success; that none of the Big Five Personality factors strongly influence amount of startup capital that entrepreneurs use for business startup. Only hope and resiliency aspects of psychological capital strongly influence amount of startup capital. Results also suggest that personality and psychological capital strongly influence entrepreneurial success. Of the Big Five Personality factors and the aspects of psychological capital, only optimism had a strong moderation effect on the startup capital – entrepreneurial success relationship. The results of the study imply that entrepreneurship promotion and support programmes in Uganda should focus on psychological aspects as well in addition to promoting access to capital resources and basic skills training.