Zoe Engeman, 8 October, 2024
How do women entrepreneurs thrive in uncertain times? Dr Charmaine Glavas explores this question by examining the psychological strengths that help women in Sri Lanka’s floriculture industry not just survive but thrive. Her research highlights the crucial role of self-efficacy, optimism, hope, and resilience in navigating challenges and seizing opportunities.
Women entrepreneurs and uncertainty
Uncertainty for entrepreneurs has heightened due to uncontrollable events such as the global financial crisis, the COVID-19 pandemic and increasing geo-political tensions. Women entrepreneurs are disproportionately affected by uncertainty and subject to unique challenges which are amplified in developing countries.
Our study draws on 40 interviews with women entrepreneurs from a small-scale flower industry (Floriculture) in Sri Lanka to uncover why some women entrepreneurs are not only able to survive but also thrive during times of uncertainty.
The role of psychological capital
Psychological capital (PsyCap) (self-efficacy, optimism, hope, and resilience) extends beyond human capital (what you know) and social capital (who you know) to focus on 'who you are' and 'who you are becoming' (Luthans et al., 2006). Research (see, Babalola, 2009; Digan et al., 2019) suggests that PsyCap may play a role in assisting women-led businesses and their overall orientation to survive and thrive during times of uncertainty.
Emotional experiences in times of uncertainty
Our findings suggest that the psychological capacities of women entrepreneurs, in conjunction with their emotional mindset, may determine their orientation to either thrive or survive during times of uncertainty. Women entrepreneurs who were thriving during times of uncertainty for example evaluated the situation from a positive emotional mindset, focusing on opportunities that create positive outcomes. In the face of uncertainty, they were able to bypass the challenges and utilise available resources for a new purpose.
Key findings
The findings demonstrate that positive psychological capacities may vary in the way they are experienced according to the entrepreneur’s motivational focus. For instance, some women entrepreneurs are able to survive while others seem to thrive despite uncertainty. Women rely on their PsyCap (i.e., self-efficacy and optimism for survival and hope and resilience to thrive) to cope with uncertainty, adapt to challenges, and successfully recover from adversity.
Table: Classifying psychological capacities according to task orientation
Source: Liyanagamage Glavas, Kodagoda & Schuster, 2024
Our research suggests that not all women entrepreneurs merely try to survive in times of uncertainty but that some women focus on finding new opportunities to grow their businesses. In particular, our work highlights the importance of supporting women entrepreneurs, particularly in assisting them to get in touch with their psychological capacities and emotions during times of uncertainty. Psychological capacities and emotional mindset are significant internal resources that can influence motivational focus to survive or thrive. Shining light on women focusing on new opportunities and growth is important for guiding other women to also mobilise their psychological capacities to thrive. Looking ahead, our research signals the importance of women’s economic empowerment, freedom and equality—the ability to initiate, grow and sustain thriving businesses is essential for achieving this.
Dr Charmaine Glavas
Dr Charmaine Glavas is a Senior Lecturer at the QUT Business School. Her research focuses on international entrepreneurship—the intersection between international business and entrepreneurship. She examines internationalisation phenomena that is centered on the role of decision-makers, as a complement to firm resources and capabilities. As an Accredited Advanced Cultural Intelligence (CQ) Assessor she is also passionate about aiding culturally and linguistically diverse populations to overcome challenges and initiate business ventures which extend beyond national borders.
QUT degrees – Bachelor of Business (Honours) (2010), Doctor of Philosophy (2014) and Graduate Certificate in Academic Practice (2015)
Author
Zoe is a marketing and communications professional and Alumni Communications Coordinator at QUT. She is also a proud alumnus with a Bachelor of Business (Marketing).