(CW1): Case Study on an International Entrepreneur
An international entrepreneur is a confluence of inventive, ambitious, and risk-seeking attitudes that span geographical lines and are aimed at creating value in a business (Reuber et al., 2018). The behavioural and academic research at the person, community, and corporate levels are covered. In order to be an international entrepreneur, one must have a driving interest in expanding their business outside the borders of their own country. Since 2008, Sheryl Sandberg has been Facebook’s COO, a position she has held since the social media company’s inception (Taylor, 2020). Advertising income increased by 21% in 2020 as a result of her emphasis on presenting Facebook as an advertising network for small businesses. As a result, Facebook CEO Mark Zuckerberg and COO Sheryl Sandberg spent most of 2020 explaining the company’s policies against offensive speech. Despite the turmoil, Facebook CEO Mark Zuckerberg has reaffirmed his faith in Sandberg’s leadership and the company’s future.
Sheryl Sandberg graduated from North Miami Beach Senior High School with a 4.6 GPA, making her one of the best students in the school. In addition to being a member of the National Honor Society. Sandberg’s rise to the top of the IT business was unconventional. She didn’t do well in arithmetic in high school and didn’t have access to either the web or mobile while completing her undergraduate degree at Harvard (Sang, 2021). While at the World Bank, she worked as a researcher for Chief Economist Larry Summers, and then returned to Harvard to pursue an MBA. As a part-time job, while working at the World Bank, she taught aerobics lessons. When Summers became Deputy Secretary of the Treasury in Clinton’s administration, Sandberg joined him as his chief of staff in the Treasury Department. Until 2001, Sandberg remained a part of Summers’ team as Treasury Secretary. Diverse viewpoints have been taken by researchers looking at the connection between an individual’s past experience and entrepreneurial conduct.
While some researchers have examined how the sort of work environment could impact the attitude toward opportunity, others have investigated how age, as a measure for life experience, potentially impact the growth prospects of entrepreneurial orientation (Reuber et al., 2018). In line with the context of the experiential push for having entrepreneurial zeal, Sheryl Sandberg can be exemplified in this category as she had prior experience at a professional level which might have created the path for her further development.
Application of Trait theory
When it comes to effective leadership, the trait theory aims at finding several temperament traits and attributes that are associated to performance. Sheryl Sandberg has experiential conviction in her which led her to become one of the most influential personalities (Mainela, Puhakka and Sipola, 2018). She had compassion from the growing years as she witnessed her grandmother and mother juggling both career and family. This aspect built inherent strength to have both vulnerability and motivation which helped her to amalgamate with her future employee teams and have that trustworthiness in her where her employees could relate to her. It enhanced the motivating power in her, therefore it can be declared that she was born in an ambience that allowed her to adopt the positive traits. It can be anticipated that Sheryl Sandberg was made to think creatively and compassionately to act with her employees.
Theory of Saraswathy
Dr Saras Sarasvathy is an Indian-born professor at the University of Virginia who studies strategies, entrepreneurship, and corporate ethics. When Sarasvathy first presented the notion of effectuation, he was looking at entrepreneurs from all walks of life. The idea of effectuation is sometimes referred to as a process theory since it describes how entrepreneurs start new businesses. The notion of effectuation is based on how successful entrepreneurs approach challenges and the solutions they come up with (Matalamäki, 2017). In order to what Sarasvathy refers to as "causation theories," the entrepreneur is said to begin with a purpose and then acquire the resources necessary to fulfil that objective in a linear method, according to effectuation logic.
A little step forward is made with each resource acquired. Effectuation logic, on the other hand, focuses on assessing the resources that are now accessible and then creating objectives based on the recombination of those resources (Matalamäki, 2017). By accepting flexible objectives with constraints, entrepreneurs don’t merely rearrange resources to fulfil objectives; instead, they depend on the availability to help them develop new methods. Because they don’t have to use costly resources like a huge amount of starting cash, they make transactions in kind to attain their goals.
According to Sarasvathy, there are five essential factors to achieve success. In his proposed list of five principles of decision making, the bird in hand principle is in close alignment with the success journey of Sheryl Sandberg. This principle states that an entrepreneur’s past and experience, as well as the individuals they are surrounded with and their capabilities, should be used to the maximum extent possible. Sandberg had an incredible learning experience before joining Facebook. She had most of her skills and knowledge built while working at Google and the World Bank. While working for the Clinton administration, she gained valuable experience in the corporate world and in building relationships with others (Taylor, 2020). She craves more responsibilities and tries to take on as many as she can. Rather than becoming Google’s CFO, she found herself at Facebook rather. Pre-traumatic growth is a term often used by Sheryl Sandberg.
That is to say, gaining knowledge from the blunders and difficulties of others. In order to learn from someone else’s failures, one might not have to repeat the same. Sandberg emphasizes the significance of drawing lessons from failures (Taylor, 2020). It not only allows her to develop relations with the people around her but also grow their knowledge. It allows her to combine these elements with her own prior experience to draw meaningful opportunities and decisions.
Lesson Learnt from the Discussion
Being an international entrepreneur, Sheryl Sandberg has inspired many people to become confident and participative in business ventures and come forward to take responsibility. Her compassion for others’ work and flexibility to adapt are two of the most virtuous traits which can be inspirational for many. Her consistency and communication skills have also allowed her to be more involved with others and share the knowledge and experience she has with her employee team.
Gender And International Entrepreneurship
Employment, development, and prosperity may all be generated via entrepreneurial activity. As a result, both academics and governments have taken an increased interest in women’s entrepreneurship. There has been an emphasis on the importance of women’s participation in the economy, empowerment, and social acceptance in the growth of women’s entrepreneurship for a long time (Cervone and Pervin, 2020). As a general phrase, the word "women entrepreneur" refers to women who engage in industrial facilities such as manufacturing and assembly, as well as professional duties such as various commercial endeavours. Women entrepreneurs are those who start, develop, and run a company on their own or as part of a collective. Entrepreneurial women are expected to do more than just follow in the footsteps of their male counterparts. The theme of gender in international. entrepreneurship has several underlying nuances which define the genera specifically.
When it comes to company goals, business development and success, gender plays an important role. Gender disparities in entrepreneurship may be explained by looking at the social and economic background of entrepreneurship, which may also describe these inequalities (Ji et al., 2019). The approaches and characteristics of women and men are different and those traits typically impact variedly in commercial functioning.
Rationalizing the Features of the chosen theme selected above and the Application of the features to the chosen IE
Men and women have different mindsets which drove them to be different in their respective endeavours. In entrepreneurship also, the approaches of men are different from women. Researches show that men have slightly more achievement orientation than women (Khavarinezhad, Biancone and Jafari-Sadeghi, 2021). Most women entrepreneurs believe that driving the workforce with a positive approach and compassion has a better prospect to deliver better results. It is significantly true with Sheryl Sandberg. When considering the features of a gender-based entrepreneurial mindset, it is prominent that Sheryl Sandberg has shown compassion for others and has learnt to be adaptable with both success and failure.
Current Debates on The Chosen Theme of Gender and International Entrepreneurship
The number of women who run their own businesses has climbed by 114% in the previous two decades, according to data. Private enterprises in Ghana owned by women account for 46 per cent of the country’s total. Almost three-quarters of all small enterprises are owned by women. With 1.3 million businesses, California has the greatest percentage of women-owned businesses in the United States. More than 860,000 women-owned businesses exist in Texas. Every day, more than 1,200 new enterprises are started by women in the United States (Sajjad et al., 2020). Approximately 1.9 trillion dollars is generated by enterprises run by women. Women-owned enterprises are rising at a pace of 5% per year. Over a third of the businesses in Uganda and Vietnam are owned by women. An estimated 7205 of the 22,257 enterprises were started by women. Figures from the Office for National Statistics show that 32.37 per cent of enterprises in the UK are founded by women, a significant increase from only 17 per cent four years ago.
The entire discussion formed on the rationale of international entrepreneurship has attempted to combine the insights on the subject to justify and intensify knowledge about the aspect. The discussion has been formed with the exemplification of Sheryl Sandberg to provide a theme-based perspective on the topic.
Table of Contents
The focus of this document is to refine the context of entrepreneurship with relation to the psychological factors to define a crucial understanding relevant to the subject. The report has been developed to bring out the impact and relationship between entrepreneurship and psychology. Extensive research has been carried out to establish a set of perspectives in a juxtaposed manner to place varied ideas and opinions which helped top present rational and futuristic ideas of the concept. A set of psychological factors have been illustrated and adequately explained to relate those to the entrepreneurial drive. The theoretical perspectives also define the aspects which are intricately associated with the entrepreneurial approaches. In a nutshell, the importance of the entrepreneurial ventures and growth prospects of this domain has necessitated an analysis of this subject. Therefore, the need for expansion of knowledge in this area has contributed to the development of this report positively.
Entrepreneurship has become an integral factor in the global commercial sphere. The growing induction of entrepreneurial ventures have benefited the economic growth on a global scale and amplified the pace of commercialization as well as social integration (da Silva Veiga et al., 2017). Entrepreneurship is a result of conviction and is driven by psychological factors. These ventures are heavily reliant on effective strategic tactics and also require emphasis on the execution of the process with proper introspection. Having an entrepreneurial psychology help to build self-assurance and make people more willing to seize chances and take risks. Being able to confront challenging topics and discussions with employees with self-assurance helps improve leadership style and enhance social contact in the business.
The entrepreneurial mindset of taking chances and not giving up is a powerful path for excellence (da Silva Veiga et al., 2017). Therefore, a focused set of insights in this subject is required to outline the necessary context for the prospective development of entrepreneurial ventures. In this present report, the attempt is to illustrate the significance and association of psychological aspects in developing entrepreneurial approaches.
Psychological Factors Affecting Entrepreneurship
Competition and Collaboration: An entrepreneur's key physiological attribute is that they are self-motivated (Hasan, Guampe and Maruf, 2019). Competitiveness and frequent collaboration with others are the entrepreneur's strategies. Because of this, he separates work from personal relationships. Because of this, his work approach is based on success.
Entrepreneur Challenges: He enjoys the difficulties of entrepreneurship, but not to the point where he takes unnecessary risks. He dislikes tasks that are too simple since they don't provide any obstacles (Gielnik, Bledow and Stark, 2020). He is apprehensive about projects and judgments that have a poor chance of success. The entrepreneur devotes a lot of time and effort to prepare for the future. In addition, he devotes a lot of time to examining the industry's viability and comparing it to other industries.
Expectations from Employees: They set high goals for themselves and their staff, and they also inspire them to accomplish those goals. This is a key physiological trait of entrepreneurship (Frese and Gielnik, 2014). Employees are expected to put in a lot of time and effort. In addition, they provide as a source of guidance and direction for those under their care.
Dignity Towards Labour: Entrepreneurs who are motivated by social causes have a strong sense of pride in their work and are always willing to put in the time and effort necessary for people who do physical labour (Mukherjee, 2016).
Sense Of Effectivity: The entrepreneur's primary purpose is to attain the goals and objectives he or she has set for himself or herself. He is self-assured in terms of his abilities and assets (Mukherjee, 2016). As a result, he prefers to focus on finding solutions to difficulties rather than ignoring them altogether. As a result, the realisation of competence maintains the entrepreneur active, creative, self-confident, and motivated to take action and solve difficulties.
The application of theoretical perspective
Psychological theories of entrepreneurship focus on the emotional and intellectual components of the people who are driving their entrepreneurial endeavours (Mukherjee, 2016). Psychological theories of entrepreneurship include the following three cornerstones: McClelland's thesis illustrates how an entrepreneur's desire for success typically dictates his or her behaviour. It is because of this that the locus of control that influences entrepreneurial behaviours is emphasized by Rotter's thesis. Action regulation theory shows that the effectiveness of entrepreneurs is directly related to their activities.
David McClelland’s theory
Psychologists look to a person’s characteristic features to help them understand why they decide to go into business for themselves. In this aspect, McClillands work in the early 1960s is groundbreaking. People who are motivated by the desire to succeed are more likely to become entrepreneurs, according to him. Motivational theory is founded on the idea that every conduct is geared toward achieving a certain objective. He described the entrepreneurial character as the one who arranges the business for the accomplishment over the hindrance and reaches the objectives and boosts its output. This interpretation is predicated on the idea that certain psychological traits increase a person's likelihood to become an entrepreneur (Boyatzis, 2020). McClilland argued that a person's desire for success transfers into economic growth. According to his definition, entrepreneurs are those who have the ability to start their own businesses but also those who have the ability to work for major corporations.
He said that persons with a strong desire for success exhibit five essential characteristics. High achievers prefer situations in which they are empowered to solve challenges on their own. Second, top achievers want to know whether they're making progress quickly so they can see if they're making progress or not. Third, high performers avoid projects that they believe to be either simple or tough, and they prevent success by coincidence (Boyatzis, 2020). They want to work toward goals that are challenging but not impossible to reach. High achievers want to know how their actions have impacted their lives, and wealth is frequently a strong indicator of success.
In this theory, the scholar also mentioned the need for affiliation, achievement and power which motivates an individual.
Rotter’s locus of control theory
Rotter's locus of control is a widely used personality theory of entrepreneurship that has received much consideration. Julian Rotter came up with this notion in 1954, and it has been widely accepted ever since (GAR?PA?AO?LU and GÜLO?LU, 2021). Additionally, the locus of control provides individuals with the perception that they have power over their lives, either inwardly or outwardly, and that this control may be achieved.
High internal locus of control: When individuals think they are in command of their own decisions, they are more likely to succeed in life (GAR?PA?AO?LU and GÜLO?LU, 2021). A person's character and actions would be taken into consideration while judging an occurrence.
High external locus of control: Individuals who have a high external locus of control feel that external forces such as destiny, transformation, and so on, have a massive influence on their results.
Entrepreneurship is more likely to appeal to those with a propensity for taking risks. Risk-taking is also the most fundamental activity that entrepreneurs do to reach to the highest level of productivity (GAR?PA?AO?LU and GÜLO?LU, 2021). Entrepreneurs with an internal locus of control feel that their talents and actions are responsible for their achievement, and this theory explains why this is the case. Entrepreneurs with an external locus of control think that their prospects of success or survival are determined by environmental and structural factors.
Criticism of the theory
The methodological and theoretical aspects of this theory have been questioned as much as any other concept. The inadequacies in the theory's measuring scales were brought out in methodological constraints. Scholars, on the other hand, have highlighted those other temperamental aspects, such as self-efficacy, that have been overlooked in the theoretical perspective.
Action regulation theory
Michael Frese explains how Action Theory may be used in the context of starting a business. To put it another way, it is a meta-theory that governs goal-directed behaviour (Zacher and Frese, 2018). This theory describes how humans manage their cognitive behaviours via brain functions such as identification and development, direction, surveillance and organizing, and absorbing feedback.
It is possible to evaluate human behaviour in three ways using this theory:
The sequence shows the route followed from the objectives to the feedback.
the emphasis shifts from the activity to one's self
The structure of an activity is defined by the amount of regulation that it is subject to
This theory's fundamental applicability to entrepreneurship may be observed in terms of preparation. Opportunistic, complete planning and review are some of the action stages that have been used to explain entrepreneurial planning behaviour in this study (Zacher and Frese, 2018). In Frese's view, new tasks are more likely to be noticed by early-stage entrepreneurs. This further emphasizes the importance of the cognitive capacity for business owners. This idea has received substantially less criticism.
The core aspect of this report has been to demonstrate a comprehensive cognition of the subject of psychology in entrepreneurship. In the report, a clear focus was centred on the significant relationship between the psychological drivers behind the entrepreneurial approaches. The fundamental subject of the document is also to illustrate the core psychological factors that affect the endeavours of the entrepreneurs. Depending on the psychological factors, entrepreneurs carry out their actions and accomplishments are also highly reliant on these approaches. Therefore, the importance of psychological factors and the underlying relations are essential factors that should be examined in-depth to achieve a broader perspective on the subject.
A wide theoretical perspective has also been amalgamated in the report to provide a series of intellectual insights from different proponents for a better idea of the aspects and their correlations. In a nutshell, the entire report has been formed to bring out the essential components relevant to the subject and establish a concise concept about the subject.