On the interplay between the entrepreneurs' challenges and the business performance: empirical study and evidence from emerging economies

Abstract

PurposeThis study aims and tries to identify and examine the effect of the entrepreneurs' challenges factors (i.e. financial, governmental, personal, educational social and cultural, infrastructural, operational, ethical, and Covid-19) on entrepreneurs' business performance in Jordan country as an emerging economy. Further, try to clarify and identify the main critical factors that affect an entrepreneur's business performance.Design/methodology/approachA quantitative methodology was used by conducting web-based survey questionnaires with 178 useful responses out of 443 entrepreneurs listed in the Chamber of the industry of Jordan, representing a 40.2% response rate. Data were analyzed by using Statistical Package for the Social Sciences (SPSS) Sofware.FindingsThe results of this study confirmed the existence of an inverse relationship between entrepreneurs' challenges and entrepreneurs' business performance. The Covid-19 challenges and governmental challenges were found to be the most affecting on entrepreneurs' business performance, whereby the personal challenges had no impact on entrepreneurs' business performance.Research limitations/implicationsThe study provides a clear classification of entrepreneurs' challenges, which can be useful for both researchers and entrepreneurs.Practical implicationsThis study developed some recommendations that emphasized the government's role in promoting entrepreneurship and supporting entrepreneurs.Originality/valueThis study attempts to define and clarify the impact of entrepreneurs' challenges on their business performance. In addition, this study can be used to promote entrepreneurship and an innovation-stimulating environment through decision-makers.