Factors of Entrepreneurial Personality Characteristics on Business Failure of SMEs

The purpose of this research is to identifythefactorofentrepreneurialpersonality characteristics that can lead to the business failure of Small and Medium Enterprises (SME) in Melaka, Malaysia. This research used the Big Five Personality Model or OCEAN Model as the independent variables which include openness, conscientiousness, extraversion, agreeableness, and neuroticism. The quantitative method had been conducted by the researcher to collect the data through the questionnaire that was distributed and answered by the respondent of this research. A total of 379 Small and Medium Enterprises (SME) that established and operate in the business in Melaka, Malaysia had been participating in this data collection process. The result of the analysis showed that openness, conscientiousness, extraversion, and neuroticism have significant relationship with the factors of entrepreneurial personality characteristics on business failure of Small and Medium Enterprises (SME) in Melaka, Malaysia. There is one factor of entrepreneurial personality characteristics which is agreeableness has no significant relationship with factors of entrepreneurial personality characteristics on business failure of Small and Medium Enterprises (SME) in Melaka, Malaysia. The result of this study contributes in improve the rate of business success among SME in Melaka, Malaysia by eliminating the possibility of business failure.Keywords—Entrepreneurial personality characteristics, Big Five Personality Model, business failure, Small and Medium Enterprises (SME), Melaka.