The Role of Need for Achievement and Risk-Taking Propensity towards Entrepreneurial Success among Young Entrepreneurs in Sabah
List of Authors
Jaratin Lily, Mohamad Ashraf Ismail, Noor Fzlinda Fabeil, Nur Lisa Zaharin, Syuhaida Ismail
Keyword
Entrepreneurial Success, Need for Achievement, Risk-Taking Propensity, Young Entrepreneurs, Sabah, Malaysia
Abstract
Despite substantial national investments in young entrepreneurship via Malaysia’s New Economic Policy 2030, the performance of young entrepreneurs in Sabah exhibits considerable variability, prompting inquiry into the drivers of business success within structurally disadvantaged regions. Anchored in Personality Traits Theory and contextualized through Resource-Based Theory, this study assesses the extent to which need for achievement and risk-taking propensity shape entrepreneurial success among Sabah’s young entrepreneurs. Adopting a quantitative cross-sectional methodology, data were obtained from 300 entrepreneurs aged 18–40 managing small and medium-sized enterprises throughout Sabah. Partial Least Squares Structural Equation Modelling was applied to evaluate the postulated associations. The measurement model met standards for reliability and convergent validity. Structural model results reveal a contrasting dynamic: NFA exhibits no significant predictive effect on entrepreneurial success, while RTP demonstrates a substantial positive influence. These outcomes indicate that motivational orientation alone proves inadequate for elevating firm performance amid structural impediments, including constrained capital access, infrastructural shortcomings, and circumscribed market prospects. By comparison, deliberate risk propensity emerges as more prominent to business expansion and persistence within Sabah’s precarious entrepreneurial landscape. The research furnishes contextually attuned evidence to the personality traits–performance discourse and advocates policy measures to augment resource provision, market integration, mentorship, and risk-management capabilities for young entrepreneurs.