Psychological Capital as a Driver of Entrepreneurial Satisfaction: Assessing the Mediating Effect of Burnout

Abstract

Although ample research has explored the role of Psychological Capital (PsyCap) in positive outcomes and well-being, yet a little research has been conducted in the context of entrepreneurs with limited resources, applying the perspective of Conservation of Resources (COR) Theory. Addressing the research gap, this study aims to investigate the relationship between PsyCap and satisfaction, and how burnout serves as a mediator among entrepreneurs in Sindh, Pakistan. A quantitative cross-sectional survey gathered data from 315 entrepreneurs in major urban areas of Sindh. The data were run through Structural Equation Modeling (SEM) in SmartPLS 4 for model validation and testing hypotheses. The findings demonstrate that PsyCap has a positive and significant relationship to entrepreneurial satisfaction. However, PsyCap diminishes burnout significantly. Burnout decreases the satisfaction of entrepreneurs by depleting important resources due to persistent stress. It is observed that burnout mediates partially; however, higher PsyCap resources restore entrepreneurs’ energy and motivation, and these positive resources are used in the present and future to safeguard from adverse burnout effects and enhance entrepreneurial satisfaction and well-being. Thus, this study highlights the importance of fostering positive psychological resources, such as hope, optimism, resilience, and efficacy, for handling stress and achieving greater entrepreneurial satisfaction.