Abstract

The transactional theory of stress suggests that through one’s subjective appraisal, an individual’s perception plays a key role in determining the existence of stress (Lazarus & Folkman, 1984). Perception of stress leads to the individual’s choice of coping strategy, which in turn leads to behavioral outcomes that influence performance. Because problem-focused coping actively confronts issues, positive coping strategies such as planful coping should help mitigate the negative effects of perceived stress on performance. Therefore, the identification of factors that facilitate an entrepreneur’s ability to engage in planful coping will not only improve entrepreneurs’ ability to effectively cope with stress, it will also provide information on how entrepreneurs may improve performance. Furthermore, Lyubomirsky et al. (2005) provide evidence that life satisfaction contributes to performance and success. Thus, life satisfaction may act as a buffer against stress while facilitating behaviors that lead to increased performance.

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