This study investigates the relationship between individual resilience and the pursuit of sustainability goals of 2616 SMEs across five European countries. Drawing upon Goal Orientation Theory, our findings suggest a nuanced U-shaped relationship. While resilience is crucial for navigating the complexities of sustainable entrepreneurship, excessive focus on performance goals may hinder the adoption of sustainable practices. Entrepreneurs with moderate resilience may prioritize short-term gains over long-term sustainability, potentially neglecting environmental and social considerations. In contrast, both low and high levels of resilience may foster a more conducive environment for sustainable entrepreneurship. Low resilience may encourage experimentation and learning, while high resilience enables entrepreneurs to navigate challenges and adapt to changing circumstances. These findings highlight the importance of a balanced approach, emphasizing learning and adaptation alongside a realistic level of resilience, for successful sustainable entrepreneurship within SMEs.
