The risk-taking propensity as a mediator to the relationship between personal characteristics, environmental factors and successful women entrepreneurs – cases of micro-enterprise in Malaysia

Women entrepreneurs play a vital role in developing both the economic and social fabric of society. Not only have they been deemed the ‘backbone’ of both economies, but women entrepreneurs also help to reduce unemployment and poverty in many developing countries, including Malaysia. Research has shown that there has been a rise of women entrepreneurs globally despite them being low risk-takers. Besides, the success gap between women entrepreneurs and their men counterparts is much broader in most societies. Although much has been done to investigate various factors that affect the success rate of women entrepreneurs, there are no studies which highlight the relationship between the mediating role of risk-taking propensity and the success of women entrepreneurs. The present study aims to identify and establish a better understanding of personal characteristics and environmental factors and the success of women entrepreneurs in Malaysia, in the case of micro-businesses, taking into account the mediating role of risk-taking propensity. This study adopted the quantitative method using self-administered questionnaires modified from existing literature based on social cognitive and prospect theories as underpinning theories. Samples were drawn from lists provided by several agencies and non-government organisations (NGOs) involved in the development of micro-businesses and women entrepreneurs. A total of six hundred (600) questionnaires were distributed, out of which three hundred and sixteen (316) were collected with a response rate of 52.67%. The Statistical Package for Social Sciences (SPSS) was used to prepare the preliminary data set. In contrast, the Structural Equation Modeling (SEM) AMOS was used to develop a measurement and structural model that was subsequently used to test the hypothesised model. The findings revealed that personal characteristics and environmental factors have significant effects on the business success of women entrepreneurs. The study also established a relationship between the mediating role of risk-taking propensity, personal characteristics and environmental factors on the success of women entrepreneurs. Based on the findings, it is recommended that government and non-government organisations (NGOs) should pay special attention to the micro-businesses run by women entrepreneurs. It is to develop their strength and resilience in terms of personal characteristics and environmental factors to improve their business success. It includes up-skilling of business knowledge and exposure to the latest technological innovations, mentoring and coaching support to build opportunity-driven women entrepreneurs rather than being necessity-driven. Financial assistance and support would also inculcate a culture of taking calculated risks for business growth and enable women entrepreneurs to become more competitive and well-equipped to deal with future competition.