A new study from the University of Wollongong reveals that psychological strength is a critical factor for women entrepreneurs thriving in uncertain times. Researchers, led by Dr. Nelly Liyanagamage, focused on women in Sri Lanka’s floriculture sector, finding that inner resilience, hope, and optimism are key drivers of success, offering valuable lessons for businesswomen globally, including in Australia.
The Unseen Challenges for Women in Business
In developing nations and emerging markets, women entrepreneurs face a unique set of hurdles. Dr. Nelly Liyanagamage from the University of Wollongong’s School of Business highlights these struggles, which often go unnoticed in broader economic discussions.
These women frequently encounter limited access to finance, face educational barriers, and must navigate restrictive cultural expectations. The study specifically looked at women in Sri Lanka’s small-scale floriculture industry, who have shown remarkable strength despite these obstacles. Instead of being defined by their limitations, they are using their inner resources to succeed.
Understanding the Power of Psychological Capital
The core of the study revolves around a concept called psychological capital. This isn’t about money in the bank; it’s about the wealth of mental and emotional strength an individual possesses. It is the inner engine that powers entrepreneurs through difficult periods.
Dr. Liyanagamage explains that this is especially vital where traditional resources are scarce. “They rely heavily on individual-level psychological capital – so this is about who they are,” she notes. This mental toolkit is what helps them adapt and innovate when faced with economic downturns, health crises, or natural disasters.
| Component | Description |
| Self-Efficacy | Having the confidence in your own ability to succeed. |
| Optimism | Maintaining a positive outlook and expecting good outcomes. |
| Resilience | The capacity to recover quickly from difficulties and setbacks. |
| Hope | Persevering toward goals and finding ways to achieve them. |
Lessons for Australia’s Women Entrepreneurs
The findings from Sri Lanka have significant implications for Australia. Small businesses are vital to the Australian economy, contributing over $500 billion to the national GDP. However, many women-owned businesses are struggling.
According to Australia’s Minister for Small Business, The Hon Julie Collins MP, about one-third of these businesses are run by women, who often juggle unpaid work and caregiving duties with little government support. A shocking survey by Women’s Agenda found that 70% of female business owners feel unsupported by their governments. This highlights a critical gap that needs to be addressed.
Dr. Liyanagamage suggests that the strategies used by Sri Lankan women can provide a blueprint for building resilience among their Australian peers.
From Research to Real-World Policy Changes
The study is more than just an academic paper; it’s a direct call to action for policymakers in Australia and beyond. To truly support women in business, the focus must expand beyond just financial aid and networking opportunities. The research proposes several key actions.
- Invest in Psychological Training: Programs designed to build self-efficacy, optimism, and resilience can equip women with the mental tools to navigate uncertainty.
- Foster Strong Support Networks: Creating communities where female entrepreneurs can connect, share their experiences, and offer mutual support is crucial for bolstering their collective strength.
- Acknowledge Unpaid Labor: Policies that recognize and support the unpaid caregiving work predominantly done by women can free up their time and energy to focus on business growth.
Dr. Liyanagamage concludes by stressing the need for dedicated funding. “This is critical to business success, on par with access to finance, networks, and knowledge. It certainly deserves more attention in policy discussions.” By investing in the psychological capital of women, we can help them not just survive, but truly thrive.
