Entrepreneurs' psychological capital as a mediator: a broaden-and-build perspective on burnout and psychological well-being.

BACKGROUND: This study explores how psychological capital (PsyCap) mitigates the negative effects of burnout on psychological well-being (PWB) among entrepreneurs in stressful business environments. Drawing on the broaden-and-build theory of positive emotions, this approach offers new insights into how positive psychological resources enhance entrepreneurial resilience, particularly in underdeveloped regions. METHODS: A cross-sectional quantitative design was employed with a structured questionnaire adapted from validated scales. Data were collected from 312 entrepreneurs across Karachi, Hyderabad, and Sukkur in Sindh, Pakistan, via simple random sampling. The analysis was conducted via PLS-SEM in SmartPLS 4. RESULTS: A significant negative correlation was identified between burnout and both PWB (β = -0.151, t = 2.734, p < 0.05) and PsyCap (β = -0.190, t = 3.737, p < 0.05). Furthermore, PsyCap significantly mediated the link between burnout and PWB, as evidenced by a notable indirect effect (β = -0.088, t = 3.471, p < 0.05), underlining its buffering role in mitigating the detrimental psychological outcomes of burnout. CONCLUSIONS: This study highlights the importance of PsyCap-encompassing hope, optimism, resilience, and self-efficacy-as a protective psychological resource. Strengthening PsyCap can enhance well-being and performance among entrepreneurs. These findings extend the application of broaden-and-build theory and provide evidence for targeted psychological interventions in entrepreneurial settings.