Psychometric Evaluation of a Model Linking the Fixed Mindset, Entrepreneurial Success Factors, and Growth Performance of SMMEs

A fixed mindset, characterized by the belief that abilities and intelligence are static, may hinder entrepreneurs from embracing challenges, learning from failure, and adapting to change, which are factors critical for the growth of a business. While the perceived entrepreneurial success factors such as creativity, opportunity recognition, innovation, adaptability, resilience, and risk-taking are known to influence business growth performance, limited research exists on how a fixed mindset interacts with these factors, particularly in the South African SMME context. The aim of this study was to assess the psychometric properties of an eight-factor measurement model that incorporates the fixed mindset alongside six entrepreneurial success factors (creativity, opportunity recognition, innovation, adaptability, resilience, and risk-taking) and the growth performance of SMMEs. Data were collected through an online self-administered questionnaire distributed to 533 South African SMME owners via an international research company. The data were analyzed using statistical techniques in AMOS, including reliability and validity analysis, confirmatory factor analysis, correlation analysis, and collinearity diagnostics. Results revealed that the eight-factor model is psychometrically sound, showing high levels of reliability and validity. Cronbach’s alpha and composite reliability values for each factor exceeded the acceptable 0.60 threshold. Evidence of construct, convergent, and discriminant validity was also found, indicating strong measurement quality. This model provides a validated framework for future research to explore the effects of a fixed mindset on entrepreneurial success and the growth performance of SMMEs. Understanding the relationship between these factors may assist in developing mindset-shifting interventions to support SMME sustainability and performance.