In the USA, 30% of businesses owned by women are small businesses. Saras Sarasvathy discusses female entrepreneurs concentrating on women and effectuation. She highlights various reasons that most female-owned enterprises stay small. However, there is Yan Cheung, the founder of Nine Dragon Paper who succeeded against all odds. We are talking about if Women and Effectuation go hand in hand.
Some of the barriers hindering women progress include social, financial and cultural. Traditionally women hadn’t been involved in entrepreneurship, therefore, to transition is a process. In the corporate world or partnership, women deal with men who may not favour female in entrepreneurship. Other women don’t aspire for large business because they want a different lifestyle. This includes wanting to spend more time with their families or comfortability being employed. Also, some women have difficulty in negotiating and handling other delegating parts of the business.
To break some of the barriers hindering the success of the female enterprise, more education is required. Educating families, spouses and parents to adjust to this lifestyle is vital. Moreover, reducing sexism to recognise that women are as capable as their male counterparts.
According to the research Saras Sarasvathy did on expert entrepreneurs, Yan Cheung showed that women and effectuation principles in entrepreneurship lead to success. She used principles of effectuation in establishing Nine Dragon Paper. The company was established with resources she could easily attain which is bird in hand principle. Affordable loss principle is when invested 5000 USD which she could afford to lose. Also, she negotiated to recycle the cartons and made a deal to shipping company. This is crazy quilts.