This research examines the link between depression and self-efficacy in women entrepreneurs based in Herat, focusing especially on how self-esteem mediates this connection. Although starting and running a business can bring financial autonomy and opportunities for personal development, it also places women under considerable mental strain due to issues such as unstable income, traditional gender roles, and lack of adequate social networks. In total, 110 women entrepreneurs aged 20 to 45 years participated in the study via convenience sampling. Information was gathered using well-established questionnaires: the Beck Depression Inventory-II (BDI-II), the Coopersmith Self-Esteem Inventory (SEI), and the General Self-Efficacy Scale (GSE). The collected data were analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM). Results showed that depression had a negative influence on both self-esteem and self-efficacy. At the same time, self-esteem produced a strong positive effect on self-efficacy. Further analysis confirmed that self-esteem acted as a partial mediator in the relationship between depression and self-efficacy, accounting for a large share of the variation in self-efficacy (R² = 0.49). These outcomes emphasize the combined psychological difficulties confronting women entrepreneurs, where symptoms of depression weaken both their sense of competence and their sense of personal value, which in turn lowers their overall efficacy. The study indicates that building stronger self-esteem is a crucial route to reducing the negative consequences of depression and boosting resilience in entrepreneurial work. Practical suggestions include designing specific programs, such as cognitive-behavioral therapy sessions, workshops to improve self-esteem, and support groups for people in entrepreneurial roles. By dealing with depressive symptoms alongside self-esteem issues, these measures can enhance self-efficacy, promote better mental health among women, and help achieve lasting business success in developing economies.
