The Role of Psychological Capital in Fostering Creativity among Women Entrepreneurs

Abstract

Entrepreneurship is an important topic for a long time and considered as one of the emerging areas in recent times, especially women entrepreneurship. Entrepreneurship gives a new perspective to women’s life that leads to women empowerment. Creative entrepreneurs are found to be more productive and creativity provides a basis for innovation and business growth. creativity is viewed as a significant factor that influence women entrepreneurs achieve success in the dynamic and competitive environment. Over the last decade, research has given the main attention to the positive psychological capacities and women entrepreneurs with strong psychological capacities are considered to be the most valuable resource which creates a competitive advantage for firms. In addition, entrepreneurs with higher psychological capacities tends to be more creative in planning, designing and executing the business operations effectively. Therefore, the current study aimed at analysing the role of psychological capital in fostering creativity among women entrepreneurs. A survey methodology was conducted with 120 women entrepreneurs. The questionnaire contains demographic profile of the respondents and questions related to PsyCap and Creativity using the 24-item Psychological Capital Scale, and the 7 item Zhou and George and Choi et al. Entrepreneurial Creativity Scale. Data analysis was done using Structural Equation Modeling (SEM) and found that the correlation between psychological capital and creativity of women entrepreneurs is positive and significant. Also, it is identified that higher level of psychological capital enhances the level of creativity and innovation and job performance. The present study contributes to better understanding towards the significance of positive psychological capital and its contribution to Entrepreneurial creativity.