Author(s): Mpho Mokgaetji Chidi, Olawale Fatoki
Small and medium enterprises (SMEs) play an important role in the economy as they contribute to job creation, poverty alleviation, innovation, economic growth and development. However, SMEs suffer from a high failure rate. One of the solutions to business failure is entrepreneurs’ level of self-efficacy towards normal and challenging business activities, which consequently leads to sustainable performance. This study investigated the relationship between Entrepreneurial Self-Efficacy (ESE) and social and environmental performance of SMEs. The Cronbach’s alpha was applied to measure reliability. The results of regression analysis revealed a significant positive relationship between ESE and social and environmental performance. Recommendations to improve the ESE of SMEs are suggested.