Personality and performance of household non-farm enterprises in Ghana

The study investigates the relationship between personality traits of operators of household non-farm enterprises and performance in Ghana using the first two waves of the EGC-ISSER socio-economic panel survey. Results based on OLS, Random effects and Hausman and Taylor models are presented using 1,280 enterprises in both waves. The Big Five personality model of 44 items was used to measure the traits. The study finds a positive relationship between extraversion and enterprise performance while emotional instability and openness have negative effects on performance. The results are consistent with the practice of bargaining for prices in the informal sector. This evidence of a strong relationship between specific traits and performance could inform trainers of employees in formal and informal labour markets not to focus on developing only cognitive skills but also non-cognitive skills.