Sustainable Entrepreneurship in Textile-Based SMEs: Linking Entrepreneurial Traits to Firm Performance

Purpose: This study examines how Sustainable Entrepreneurship Practices (SEP) mediate the relationship between Individual Entrepreneurial Orientation (IEO) and firm performance among textile-based Small and Medium Enterprises (SMEs) in Odisha. Design/Methodology/Approach: Data from 431 weavers were analysed using PLS-SEM. Systemic constraints, including limited market access and institutional support, were noted as key challenges. Findings: Proactiveness and risk-taking influence performance only through SEP, while innovativeness has both direct and mediated effects. Creativity significantly enhances firm performance. Originality/Value: Focusing on SMEs in Berhampur and Sambalpur -regions renowned for handloom weaving- the study explores how proactiveness, risk-taking, and innovativeness influence sustainability and performance. Practical Implications: Policies promoting the adoption of eco-friendly technology through subsidies and collaborations with organisations like OHHDPC are recommended to enhance sustainability and performance. An integrated framework is necessary to address the structural barriers faced by traditional weaving SMEs. Keywords: Small and Medium Enterprises; Handloom; Firm’s Performance; Individual Entrepreneurial Orientation; Sustainable entrepreneurship practices; Economic Development. Citation: Kumar, A., Vasudevan, A., Sagi, S. and Sowmya, K., R. (2026): Sustainable Entrepreneurship in Textile-Based SMEs: Linking Entrepreneurial Traits to Firm Performance. World Journal of Entrepreneurship, Management and Sustainable Development (WJEMSD), Vol. 22, Nos 1-2, pp. 11-28.