Purpose-Driven Resilience: A Blueprint for Sustainable Growth in Micro- and Small Enterprises in Turbulent Contexts

Micro- and small enterprises, despite their effective and significant role in strengthening the economy, especially in developing countries, continue to struggle, particularly in adverse conditions and unstable governments. Accordingly, there is a need to understand the key factors that can internally enhance micro- and small enterprises and support them in standing strong and becoming more resilient during adverse times, ultimately ensuring better economic contribution. This research investigates how coping with unexpected challenges, described as the ability to manage and adapt to unexpected challenges, and defining core purpose, defined as the ability to define core vision and values for the business, enhances micro- and small enterprises’ resilience during adverse conditions. This study further investigates whether business resilience, described as the ability of a business to adapt effectively to changing unstable environments, positively influences business economic sustainability. This study also examined whether business resilience can positively mediate the relationship between coping with unexpected challenges, defining core purpose and having business economic sustainability. Accordingly, a sample of 303 respondents was collected from micro- and small entrepreneurs operating different types of activities. This study’s findings reported that coping with unexpected challenges and defining core purposes positively influenced business resilience and economic sustainability. This study also revealed that business resilience can directly and significantly influence business economic sustainability and could partially mediate the connection between coping with unexpected challenges, defining core purpose and having business economic sustainability. This study concluded by offering theoretical and practical implications to entrepreneurs, policymakers and stakeholders.