When the going gets tough, some women get going. A fresh study sheds light on how psychological strength is helping female entrepreneurs not just survive, but thrive in unpredictable environments.
Women Entrepreneurs Rising Despite Global Challenges
Amid the chaos of financial downturns and health crises like COVID-19, women around the globe are stepping up in the business world. It’s impressive to see how their numbers are growing even when the odds are stacked against them.
Take Sri Lanka, for example. Women in the small-scale floriculture sector have been navigating through storms—both literal and metaphorical. Their ability to adapt and stay resilient caught the attention of researchers eager to understand their secret sauce.
Dr. Nelly Liyanagamage from the University of Wollongong’s School of Business leads the charge. “In emerging markets and low to lower-middle-income contexts, women entrepreneurs face many limitations in initiating and sustaining their businesses,” she explains. Limited access to finance, education hurdles, and cultural expectations are just a few of the obstacles these women overcome daily.
But here’s the kicker—they’re not letting these barriers define their success. Instead, they’re leveraging their inner strengths to turn challenges into opportunities.
Psychological Capital: The Hidden Driver of Success
So, what exactly is this psychological capital everyone’s talking about? Simply put, it’s the mental muscle that includes self-efficacy, optimism, resilience, and hope. These are the qualities that help individuals push through tough times and keep moving forward.
Key Components of Psychological Capital
| Component | Description |
|---|---|
| Self-Efficacy | Confidence in one’s abilities |
| Optimism | Positive outlook towards the future |
| Resilience | Ability to bounce back from setbacks |
| Hope | Determination and planning to achieve goals |
Dr. Liyanagamage points out that in developing countries, where resources are scarce, these psychological traits become even more crucial. “Female entrepreneurs in these contexts can’t rely as heavily on what they have, what they know, and who they know. Instead, they rely heavily on individual-level psychological capital – so this is about who they are,” she notes.
It’s fascinating to see how these women use their psychological capital to weather the storms—be it a pandemic, natural disaster, or economic instability—and come out stronger on the other side.
Lessons for Australian Women in Business
What’s in it for Australia? Plenty, it turns out. Australian small businesses are the backbone of the economy, contributing over $500 billion to the national GDP and employing more than five million people. Yet, many are struggling, especially women-owned businesses.
According to The Hon Julie Collins MP, Australia’s Minister for Small Business, one third of these businesses are owned by women who are grappling with unpaid work, caregiving responsibilities, and insufficient government support. A survey by Women’s Agenda reveals that 70% of 800 female business owners feel unsupported by their governments. Ouch.
Dr. Liyanagamage believes that the resilience and psychological strength seen in Sri Lankan women entrepreneurs can offer valuable insights for their Australian counterparts. “What we found fascinating in Sri Lanka was that even in resource-constrained environments, women can harness their individual psychological resources to not only survive but to thrive,” she says.
Key Takeaways for Australian Policy Makers
- Invest in Psychological Training: Just like financial and educational support, psychological training can empower women to handle uncertainties.
- Create Support Networks: Building communities where women can share experiences and strategies can bolster their resilience.
- Recognize Unpaid Work: Acknowledging and supporting the unpaid labor that women often undertake can free up resources for business growth.
It’s clear that fostering psychological capital should be as much a priority as providing access to finance and networks. After all, a strong mind can turn even the toughest situations around.
Moving Forward: Bridging the Gap Between Research and Policy
The study isn’t just an academic exercise; it’s a call to action. By understanding and implementing the strategies that have worked in places like Sri Lanka, Australia can better support its female entrepreneurs.
Imagine a world where every woman entrepreneur feels confident, hopeful, and resilient enough to tackle any challenge. It’s not just a dream—it’s a possible reality if we take the right steps.
Dr. Liyanagamage wraps it up by emphasizing the need for targeted funding. “Ultimately, we’d love to see more targeted funding to develop entrepreneurial psychological capital. This is critical to business success, on par with access to finance, networks, and knowledge. It certainly deserves more attention in policy discussions.”
This research opens the door to a future where women entrepreneurs are not just surviving but truly thriving, no matter what comes their way.
