The impact of sustainable entrepreneurship orientation on business performance in South Africa

Abstract

This study investigates how sustainable-entrepreneurship orientations influence business performance among South African SMEs, drawing on the Triple Bottom Line (TBL), Resource-Based View (RBV), and Stakeholder Theory. Using a quantitative cross-sectional design, data from 105 entrepreneurs were analysed through Ordinary Least Squares (OLS) regression to test three hypotheses and one exploratory relationship. Results showed that Perceived Business Performance (PBP)—reflecting entrepreneurial confidence and self-efficacy—was the only statistically significant predictor of reported business performance, while stakeholder, sustainable-practice, and financial-viability orientations were positive but non-significant. The model explained 13.3 % of the variance in performance. The findings indicate that in emerging markets, psychological and relational capabilities exert stronger short-term effects than formal sustainability practices, whose benefits materialise over longer horizons. The research advances theory by integrating the RBV and Stakeholder Theory, demonstrating that stakeholder trust and legitimacy operate as intangible resources that enhance sustainable advantage when supported by institutional stability. It positions sustainability as a capability-driven, cognition-dependent process, offering practical implications for policy and SME-development programmes aiming to align profitability with social and environmental purpose.