Developing Comprehensive Model of New Venture Creation for Women Entrepreneurs and Psychology in Malaysia

Abstract

New venture creation by women entrepreneurs has impact on a country’s economic development in terms of increased job supply or enhanced product innovation. Despite the contributions and benefits of women entrepreneurship to the national economy, their participation in entrepreneurship has received less attention from the society. Their accomplishments are comparable to those of other entrepreneurs, but women entrepreneurs are not considered as successful entrepreneurs in the Forbes 2021 list. Many women entrepreneurs encounter challenges linked to personal characteristics, entrepreneurship capacities, capability to seize opportunities, risk readiness, inability to display managerial skills, and the lack of confidence and foresight. Furthermore, women entrepreneurs are affected by organisational elements, culture, and ability to source, especially capital, which lead them to choose low-risk enterprises that yield low income. As a result, it is vital to explore the participation of women in entrepreneurial activities. Focusing on the context of women entrepreneurs, this study aimed to develop a comprehensive model to describe the new venture creation process. There are four components that contribute to women entrepreneurship (Gartner, 1985). The first component involves the psychological perspective, which influences one’s decisions to engage in entrepreneurial activities. The second component involves the environmental perspective, which refers to the influence of the surroundings on entrepreneurial actions. The third component involves the organisational perspective or the type of organisation, which motivates one to engage in entrepreneurial activities. The final component involves the entrepreneurial process, which influences one’s decision to engage in entrepreneurship. The adaptation of new venture creation model based on the views of Gartner (1985) has been considered multi-dimensional, rather than single-dimensional, to explain women’s entrepreneurial activities. The proposed comprehensive model in this study to elucidate the women entrepreneurship phenomenon in relation to new venture creation, beneficial towards policymakers to establish effective policies and promote the engagement of Malaysian women in entrepreneurship and ultimately aid in poverty alleviation.