From Risk to Reward: Understanding the Influence of Generation Z and Personality Factors on Sustainable Entrepreneurial Behaviour

Entrepreneurial intent has transformed over the last few decades to respond to current environmental, societal and economic challenges. An essential role in this transformation has been bequeathed to Generation Z. This study aims to evaluate the influence of Generation Z personality traits measured by internal locus control, perceived creativity (PC), proactive personality (PP) and sustainable perceived behavioural control (SPBC) on sustainable entrepreneurial intention (SEI) when mediated by Generation Z’s perception of risk. The sample for this study was collected through a data collection instrument in which 505 young people from Portuguese Generation Z participated. A quantitative methodology was applied through the Partial Least Square method. The results show that the personality traits, PC, PP and sustainable perceived control behaviour of Generation Z positively influence their risk perception (RP) and SEI. In turn, RP positively influences the SEI of these young people. No statistically significant relationship was found between the internal locus control of Generation Z youth and RP or SEI. This study is key to expanding identity theory to the context of sustainable entrepreneurship among Generation Z youth, highlighting how RP shapes their entrepreneurial practices. By contributing to the still scarce literature on generational cohorts in the field of entrepreneurial activity, the study offers a valuable empirical analysis of the relationship between personality traits and entrepreneurial intention. In addition, it deepens understanding of the emerging concept of sustainable entrepreneurship, providing important insights for promoting environmentally responsible business practices among younger generations.