Guts, Grit and God? Spiritual Capital and Entrepreneurial Resilience in a Turbulent Environment

Abstract

Entrepreneurs operating in turbulent environments face significant uncertainty, resource constraints and institutional instability, requiring innovative coping mechanisms. Although resilience research has traditionally focused on tangible and network‐based resources, the role of spiritual capital as a critical, yet largely unexplored, resource for entrepreneurial action remains insufficiently understood. This study addresses this gap by investigating how spiritual capital functions as a distinct yet complementary intangible resource alongside social capital in shaping entrepreneurial resilience. Using a cross‐sectional survey of 622 entrepreneurs in Lagos, Nigeria, a setting marked by economic and political volatility, the study employs structural equation modelling (SEM) to assess the direct and mediating effects of spiritual capital on resilience. The findings indicate that spiritual capital significantly enhances entrepreneurial resilience, particularly in fostering psychological stability, perseverance and adaptive capacity. Moreover, the study reveals that although bonding social capital strengthens resilience through emotional and resource‐based support, its effect is mediated by spiritual capital, which provides deeper existential motivation. Bridging social capital also plays a role but is less significant when spiritual capital is present, suggesting that in environments where external networks are weak or inaccessible, spiritual capital acts as a stabilizing force. The study contributes to the resource‐based view (RBV) by demonstrating that resilience is shaped not only by firm‐level resources but also by deeply embedded internally cultivated assets. Practically, the findings highlight the importance of integrating spirituality and psychological resilience mechanisms into entrepreneurship support programs, particularly in volatile institutional contexts.