Entrepreneurial personality traits, entrepreneurial motivation, and entrepreneurial success of urban poor entrepreneurs in Malaysia

In Malaysia, many urban poor individuals struggle to meet their daily needs, with some turning to entrepreneurship to improve their livelihoods. The government has invested in various entrepreneurship programmes to help the lower-income groups, also known as the B40 group, exploit business opportunities based on their capabilities as they face many obstacles to remain resilient. This study investigates the impact of entrepreneurial personality traits on the success of urban poor entrepreneurs in Malaysia’s metropolitan areas, focusing on the mediating role of entrepreneurial motivation in driving economic empowerment. A quantitative approach was employed, collecting data from 140 urban poor entrepreneurs using purposive sampling to ensure participants met specific criteria relevant to the study. Data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine complex relationships between variables. Findings reveal that traits are significantly linked to higher entrepreneurial success. Entrepreneurial motivation plays a key mediating role, with opportunity-driven entrepreneurs—those seeking to exploit market potential and achieve personal growth—achieving greater success compared to necessity-driven entrepreneurs, who are pushed into entrepreneurship due to a lack of alternatives. These results support the goals of Malaysia’s National Entrepreneurship Policy 2030 (NEP, 2030), which promotes entrepreneurship as a tool for social inclusion and sustainable development. The study highlights the need for targeted support programs—such as training, financing, and mentorship—to foster opportunity-driven entrepreneurship among the urban poor. However, as purposive sampling was used—a non-probability method—the findings are not generalisable to the broader population but offer valuable insights within the sample’s context.