Risk Taking, Innovation and Proactiveness in the Age of AI: The Mediating Role of Entrepreneurial Motivation in Driving Business Success

This study examined how three entrepreneurial traits—risk-taking, innovation, and proactiveness—affected business success in the evolving business environment influenced by artificial intelligence (AI). It further investigated the mediating role of entrepreneurial motivation in translating these traits into improved performance among small and medium-sized enterprises (SMEs) in Lahore, Pakistan. A quantitative survey design was employed, collecting data from 350 SME owner-managers operating in the retail, service, and manufacturing sectors of Lahore. Standardized questionnaires measured entrepreneurial traits, entrepreneurial motivation, AI adoption level, and business success. Structural equation modeling (SEM) was applied to test the hypothesized mediation model, and bootstrapping with 5,000 resamples was used to assess the significance of indirect effects. The study found that risk-taking, innovation, and proactiveness significantly enhanced entrepreneurial motivation among SMEs. In turn, entrepreneurial motivation positively influenced business success. The analysis also confirmed that entrepreneurial motivation acted as a partial mediator, linking these entrepreneurial traits to improved business outcomes. The findings suggested that programs designed to enhance entrepreneurial motivation, alongside AI and digital skills training, could substantially improve SME performance in emerging economies. Policymakers, incubators, and entrepreneurship support agencies should integrate personality development, motivational strategies, and technology adoption training into SME development initiatives. This study contributed to the entrepreneurship and technology adoption literature by demonstrating how entrepreneurial traits and motivation interact within an AI-driven context to influence business success. It provided empirical evidence from an emerging market setting, highlighting the importance of both human and technological capabilities in achieving sustainable performance.