The effect of entrepreneurial resilience on business sustainability among micro and small enterprises in Ethiopia

This study examines the effect of entrepreneurial resilience on the business sustainability of Micro and Small Enterprises (MSEs) in Ethiopia, evidence from Bale and East Bale Zones. Anchored in a resilience-based framework, it integrates psychological (optimism, self-efficacy, emotional regulation), behavioral (adaptability, persistence, resourcefulness), and situational (access to capital, social support, local market dynamics) dimensions. Using a quantitative approach with descriptive and explanatory designs, usable data were gathered from 303 MSEs through a standardized questionnaire. As data analysis techniques, both descriptive and multiple linear regression were used. The results revealed that self-efficacy, emotional regulation, persistence, adaptability, access to capital, and social support dimensions significantly predict business sustainability, explaining 68.4% of the variance. Theoretically, the study advances resilience theory by integrating psychological, behavioral, and situational constructs, while practically, it informs entrepreneurship policy and strategies to build resilient entrepreneurs to enhance their business sustainability, especially in rural business ecosystems.