Entrepreneurs’ mental resilience and new venture sustainability in Ghana, the mediating role of service delivery quality

Abstract

This study investigated the relationship between entrepreneurs’ mental resilience, service delivery, and new venture sustainability among small and medium-sized enterprises (SMEs) operating between 1-5 years in the Greater Accra Region of Ghana. A total of 337 SME entrepreneurs participated in the study, and the data were analyzed using structural equation modeling. The results showed that service delivery has a strong positive and significant effect on new venture sustainability. SMEs that consistently provide reliable and customer-focused services are more likely to survive, grow, and compete effectively. High-quality service delivery builds customer satisfaction, loyalty, and reputation, which are essential for long-term sustainability. This supports the SERVQUAL model (Parasuraman et al., 1988), which emphasizes service quality as a foundation for customer retention, and the Sustainable Development Theory, which positions effective service delivery as a strategic pathway for achieving long-term growth and socio-economic development. The mediation analysis revealed that service delivery significantly mediates the relationship between entrepreneurs’ mental resilience and sustainability. While resilience enables entrepreneurs to withstand stress and adapt to challenges, its positive impact on sustainability is amplified when it is translated into effective and consistent service practices. This finding reflects the Conservation of Resources Theory, which posits that individuals with greater psychological resources such as resilience are better equipped to preserve and deploy resources in ways that enhance performance and survival. By combining these perspectives, the study provides both theoretical and practical contributions. Theoretically, it extends SERVQUAL model, Sustainable Development Theory, and COR into the SME context, showing how personal resilience and service delivery interact to drive sustainability. Practically, the findings highlight the importance of entrepreneurs not only cultivating resilience but also channeling it into high-quality, customer-centered service delivery to secure long-term success. In summary, the research demonstrates that service delivery is both a direct driver of sustainability and a bridge through which entrepreneurial resilience is transformed into long-term venture survival and growth.