Does Entrepreneur's Self-Compassion Improve the Family-Owned Small Business's Performance?

ABSTRACT

The present study intends to investigate the influence of entrepreneurs' self-compassion (i.e., self-judgment, self-isolation, and mindfulness) on family-owned small business (F-OSB) performance during the pandemic. A conceptual model with self-judgment, self-isolation, mindfulness (formative constructs), and F-OSB performance (reflective construct) was based on three hypotheses. Primary data (n=227) was collected from entrepreneurs designated as CEO, Chairman, or managing directors in F-OSBs in Pakistan. The study used Partial Least Square Structural Equation Modelling (PLS-SEM) through Smart-PLS software version 3.3.2. First, the reliability and validity of the constructs were tested. In the next step bootstrapping to test the hypothesis was implemented. Self-control theory is used to explain the conceptual model. Results revealed that self-judgment and self-isolation have a significant negative while mindfulness has a significant positive association with F-OSB performance. The research contributed to literature and theory and has a post-pandemic practical contribution. First, the study filled a research gap by investigating the relationship between self-compassion and F-OSB performance. Second, this study contributed to the self-control theory by explaining the aforementioned relationship in the F-OSB context. Third, the results implied that, along with vaccination and financial support by the governments, F-OSB entrepreneurs must be provided psychological training sessions to cope with the negative effects of self-judgment and self-isolation due to lockdowns. Thus, F-OSB entrepreneurs not only perform well after COVID and become psychologically strong to take vigilant and calculated initiative for their businesses' and families' betterment.