Role Of Psychological Capacities

In Dealing With
The Challenges Faced By
Entrepreneurs

18CQCMD046
GANTA SIREESHA
 INTRODUCTION
 Entrepreneurship is a dynamic process of vision, change and creation.
 Features of Entrepreneurship – Accepting challenges, Object oriented,
Innovation, Economic activity, Leadership functions, Risk taking
 Two essential invisible resources for entrepreneurs are social capital and
psychological capital.
 Psychological capital is denoted as “HERO” (Hope, Efficacy, Resilience,
Optimism) by Luthans in 2012.
 Social capital defined by Albrecht (2006) includes situational awareness,
presence, clarity, and empathy (SPACE).
 PsyCap will help companies in developing a strong workforce.
 NEED FOR THE STUDY

The confidence levels and the ability to start new venture.

PsyCap helps companies to achieve the required attitudinal

performance.

If the PsyCap of entrepreneurs is very high, they have the potential to
deal with the challenges in an effective way.
 OBJECTIVES

To identify the challenges faced by entrepreneurs.

To analyze the level of Psychological capacities of

different entrepreneurs.

To determine the influence of the Psychological capacities

of entrepreneurs in dealing with their challenges.
RESEARCH METHODOLOGY

This is an empirical study.

The study area is restricted to the

entrepreneurs in Bangalore city,
with 209 sample size.

A structured questionnaire was

prepared and data collected was
analyzed using SPSS package.
 HYPOTHESIS OF THE STUDY
There is no significant difference between the Psychological
capacities of the entrepreneurs and the way he deals with the early
challenges in his business.

There is no significant difference between the Psychological

capacities of the entrepreneurs and the way he deals with the current
challenges in his business.

There is no significant association between the average

psychological capacities and their number of years of experience.

There is no significant association between the psychological

capacities of entrepreneurs and the reason behind their start of
business.
 DISCUSSION OF RESULTS

Early Challenges: Current Challenges:

• Start-up finance • No rapid growth
• Finding right contacts for your business • Poor cash flow
• Awareness/access to business support • Unforeseen problems
• Lack of information • High attrition rate
• Combining family and work life • Pitfalls in adopting new technology
 DISCUSSION OF RESULTS
 Psychological capacities of the entrepreneurs is highest while networking with people and
balancing their work and family life.
 Psychological capacities tends to be the lowest while there is gender discrimination
particularly for women, and when they lack confidence in themselves and their skills.
 The average PsyCap of Female entrepreneurs is higher than the PsyCap of Male
entrepreneurs.
 Psychological capacities of entrepreneurs tends to be high in their early years as
entrepreneurs and tends to reduce as the years progresses.
 The psychological capacity of entrepreneurs is high in those entrepreneurs who started
their business because their salary was not enough to sustain.
 CONCLUSION

Entrepreneurs have a strong psychological capacity to face the

problems.
Entrepreneurs can think of many ways to get out of tough situations.
Majority of entrepreneurs see themselves in a very good position and
as successful.
Budding/new entrepreneurs feel they have a good scope in future.
They can deal with unexpected events efficiently and with more
confidence.