Insecurity as a catalyst for entrepreneurial resilience: Resourcefulness, optimism, and hardiness among family-owned businesses in Taraba State, Nigeria

Abstract

This study investigates the effects of insecurity on the three constitutive dimensions of entrepreneurial resilience, namely entrepreneurial resourcefulness, entrepreneurial optimism, and entrepreneurial hardiness, among family-owned businesses operating in the markets of Taraba State, Nigeria. Grounded in the Broken Window Theory and the entrepreneurial resilience literature, the study employs a correlational survey research design and criterion sampling to identify 363 family-owned businesses from a population of 6,744 eligible enterprises distributed across 107 markets in the State's 16 Local Government Areas. Data were collected via structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with bias-corrected bootstrapping of 5,000 resamples in SmartPLS 4. The measurement model demonstrates satisfactory reliability and validity, with Cronbach's alpha values exceeding 0.70, composite reliability values above 0.88, Average Variance Extracted values above 0.50, and Heterotrait-Monotrait ratios within acceptable thresholds. Structural model results reveal that insecurity exerts a significant and positive effect on all three resilience dimensions: entrepreneurial resourcefulness (β = 0.825, t = 30.910, p < 0.001, f² = 2.133), entrepreneurial optimism (β = 0.797, t = 25.042, p < 0.001, f² = 1.738), and entrepreneurial hardiness (β = 0.750, t = 18.192, p < 0.001, f² = 1.288). The coefficients of determination indicate that insecurity explains 68.1%, 63.5%, and 56.3% of the variance in resourcefulness, optimism, and hardiness respectively, all with strong predictive relevance (Q² > 0). All three null hypotheses were rejected. The findings establish that exposure to insecurity, far from uniformly suppressing entrepreneurial activity, can stimulate the development of adaptive capabilities, positive psychological orientation, and psychological endurance among owner-managers of family businesses. The study contributes to entrepreneurial resilience theory by demonstrating that adversity-driven resilience is empirically measurable and context-specific in conflict-affected emerging economies.