BURNOUT AND PSYCHOLOGICAL PERFORMANCE IN FAST-FOOD SMALL BUSINESS ENTREPRENEURS: THE MEDIATING ROLE OF PSYCHOLOGICAL CAPITAL

Abstract

Entrepreneurs in developing economies often face long hours, high pressure, and limited resources, heightening burnout risk. This study examines how burnout influences psychological performance and assesses the mediating role of Psychological Capital (PsyCap) among fast-food small business entrepreneurs in Sindh, Pakistan. A cross-sectional survey of 316 entrepreneurs from Karachi, Hyderabad, Jamshoro, Dadu, Sukkur, and Larkana used validated scales for burnout, PsyCap, and psychological performance (satisfaction, gratitude, and preparedness) rated on a seven-point Likert scale. Simple random sampling ensured representativeness. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), burnout showed a negative effect on psychological performance (β = –0.157, t = 2.830, p < 0.05) and PsyCap (β = –0.143, t = 2.802, p < 0.05). PsyCap also significantly mediated the burnout–performance link (β = –0.042, t = 2.456, p < 0.05). The findings align with the Job Demands–Resources model and highlight the value of psychological resources.