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Entrepreneurial Self Efficacy (ESE) has gained immense importance in the past few years in the field of entrepreneurship. The focus of this study is to test the effect of each of the five dimensions of ESE and understand their importance in connection with firms’ performance. This study was carried out among small businesses entrepreneurs in Pakistan and a valid sample of 353 entrepreneurs was selected for this purpose. A survey technique was used for data collection and AMOS was used for data analysis. In line with expectation, the analysis concluded a significant positive relationship between ESE dimensions and performance of small businesses. It was also concluded that the Risk dimension of ESE contributes majorly in the improvement of firms’ performance whereas the financial control dimension of ESE contribution was least. It is also suggested that all five dimensions of ESE are important to achieve desirable performance outcomes.