Demographic correlates of locus of control and perceived ladder of success: a study on women entrepreneurs.
Ganesan, R. ; Kaur, Dilbagh ; Maheshwari, R.C. 等
ABSTRACT
The study examined some important demographic correlates such as,
age, education, social category, year of experience, husband's and
parents' education, previous occupation, and present occupation,
family's income, membership in associations and training of locus
of control of 32 women entrepreneurs in two metro cities in India. Locus
of Control Scale (Rao, 1985), self-constructed scale to measure
perceptions of present ladder of success and success rate were used for
the present study. Results on Pearson's correlations revealed that
a majority of women entrepreneurs had internal perceptions about taking
up a challenging task and success in it. Only age had significant and
positive correlation with locus of control. Perceptions of ladder of
success at present had significant inverse correlations with
father's previous and present occupation and significant positive
correlations with success rate perceived by women entrepreneurs.
INTRODUCTION
Locus of Control (Rotter, 1966) is treated as an enduring
individual characteristics. People with internal locus of control
believe that they themselves are primarily responsible for what happens
to them and people with external locus of control believe that major
events in their lives are mainly determined by other people or forces
beyond themselves. Their beliefs are assumed to be stable over time and
situations and can affect strain and stress relationship. Some studies,
(Halpin, Harris & Halpin, 1985; Lester, 1982; Reiche & May,
1986; Storms & Spector, 1987; Vredenburgh & Trinkaus, 1983) have
shown main effects of locus of control involving such stresses as role
conflict, role ambiguity and overload, which can alternatively affect
one's performance or success in life particularly, of women's.
The concept of internality or externality orientation of control is both
a property of the person and situation, hence, success of any product
can be affected by this. Locus of control is a learned behaviour and
behaviour is shaped through the socialization process and family
background. Locus of control of women in developing countries, like
India, could affect their performance accordingly. Many studies have
shown relationship between locus of control and performance is
agro-businesses (Box, White & Barr, 1993; Govindarajan, 1988; Miller
& Toulouse, 1986; Miller, Kets & Toulouse, 1982). Box, Beisel
and Watts (1995) reported that successful entrepreneurs tend to be
internal and have high for achievement. It was found that entrepreneurs
having previous experience were more satisfied and successful than those
who did not have. Similar findings reported by Hisrich & Peters
(2000) and Box, White and Barr (1993) indicated the impact of experience
in this field on performance. In addition, age and level of education
also correlated (Birley & Norburn, 1987; and Hisrich & Brush,
1984), with performance in the enterprise. However, hardly any study is
reported in India showing relationship between background variables and
locus of control particularly, in women entrepreneurs.
Thus, studies varied from perspective to perspective but gave a
global picture of the positive impact of background and locus of control
on entrepreneurial performance. However, keeping inequalities in
socialization process, sex-role stereotypes and distribution of societal resources on the basis of gender, very few researchers focus on women
entrepreneurs. Most of the research on women entrepreneurs have focused
on demographic, family, occupational and educational backgrounds as well
as any differences between male and female entrepreneurs. Especially
when we take age, education and community into account according to Indian context different researchers have reported differently,
Generally male entrepreneurs tend to start their significant venture in
the early 30s, while women entrepreneurs tend to do so in their middle
30s (Ronstadt, 1983)
The typical woman entrepreneur is the first born; from a middle or
upper class family; has a self-employed father' has a college
degree; is married with children; starts their significant
entrepreneurial career between the ages of 40-45; has previous
experience in the venture; and independence, achievement and job
satisfaction are the strongest motivations to starting their own
business (Hisrich and Brush, 1985).
Rani (1986), found in her study that most of the women
entrepreneurs were in the age group of 21-30 years, have come from
middle class families and belonged to nuclear families (76.7%) as
against only 23.3 percent from joint families. She went on further;
saying that majority of the respondents thought of taking up
entrepreneurship on their own and was not influenced by others.
Anna (1990) in his study found that majority of women entrepreneurs
entered the business in the age-group 30-40, at a time when they had
attained self-confidence and decision making capacity, majority hailed
from lower and middle income groups. He stressed that low level of
education did not inhibit entrepreneurs from entering into trade.
Nigam (1995) in her study reported that a good many women
entrepreneurs were in the age-group of 31-40 years (42.5%) and a
majority were married (79.5%), were drawn from nuclear families (60.3%),
belonged to middle and upper middle class (86.3%), lived in big cities
(70%), were graduates (50.7%), 'often' took the risk in making
decisions (63%) perceived their enterprise as fairly successful (57.5%),
did not receiving any training (59.0%), went for face to face
communication (82.1%) or used magazines, circulars and newspapers in the
mass media and communication and also indicated that the biggest
problems during 'starting-up' were lack of business training
and obtaining lines of credit.
Rani (1986) reported that majority of women entrepreneurs were in
the age group of 21-30 years. In contrast, Anna (1990), found that the
age group to be between 30-40 years, which was again supported by Nigam
(1995), but it was contradicted with the study by Hisrich and Brush
(1986) found in their study on women entrepreneurs that the age-groups
40-45 years for right for start-up which contradicts with the study by
Rani (1986) and Anna (1990) and Nigam (1995). In our study majority of
the women entrepreneurs lie in the age group of 30-50 years.
Entrepreneurs generally hail from communities, which have been
traditionally practicing entrepreneurial activities thus imbibing the
entrepreneurial qualities (Anna, 1990). Caste is one of the important
factors, which helps the emergence, and growth of entrepreneurs
(Manimekalai, 1998).
Chandra (1991) revealed in her study that majority of women
entrepreneurs belonged to the educated class. Azad (1989) found that
conflict or the difficulty in managing both the home and the job as
experienced by married women, has a negative influence over Indian women
entrepreneurs. Singh and Singh & Singh (1992) found that the
problems and difficulties of working women are multi-dimensional i.e.,
environmental, social and psychological and emerge under two
situations--home and work. While, women entrepreneurs are still very
small part of all entrepreneurial activity, their absolute member is
substantial and increasing in all enterprising areas in India. Very few
studies have been done on women entrepreneurs and no studies focused on
the relationship exists between women entrepreneurs and locus of
control, their locus of control and perception of success in
entrepreneurs and how the demographic variables are related to their of
locus of control and success in their ventures. The present study tried
to find out all these queries in Indian food processing enterprises, as
they not only accelerate the pace of any rural industrialization and
economic growth, also uplift women's role and status in society.
This study aimed to find out locus of control orientation of women
entrepreneurs and addressed the issues related to the relationship among
their background, locus of control orientation and perception of success
they have achieved so far.
METHODOLOGY
Sample
Thirty-two (32) women entrepreneurs were selected randomly from two
metro cities (16 each, Bangalore and Chennai) in India. The women were
between 30-60 years of age and a majority of them were graduates. All
were married.
Variables and Tools
Locus of control (LOC): Locus of Control scale by (Rao, 1985),
consisting of 20 statements was used. High score (greater than 3.0)
indicated that entrepreneurs are more inclined towards internality. Low
score (less than 1.0) indicated that entrepreneurs are more inclined
towards externality and medium score (1.0-3.0) indicates that
entrepreneurs tend towards internality (i.e., they will be internal with
time).
Ladder of Success (LASP) and Success Rate (SR): 'Ladder of
success at present' and 'Success rate' questionnaires
were developed to measure perceptions of success rate of women
entrepreneur. The ladder of success at present scale consisted of ten
steps in which the entrepreneur rated herself in steps they are
currently operating with respect to their enterprise, likewise the
success rate was ranged between 10 percent to 100 percent.
Demographic Variables
A personal proforma including Age(A), Education(E), Category(C),
Self Previous occupation(O), Year of experience(Y), Husband's
Education(HE), Training received(ETTT), Parents occupation(Father's
Previous and Present Occupation(FOPV) and (FOPR) and Mother's
Previous and Present Occupation(MOPV) and (MOPR), Husband's
Previous and Present Occupation(HOPV) and (HOPR), Family Income(FI) and
Membership Associated(MA) was prepared to collect demographic
information.
Objective
The objective of this study is to find out the correlation between
the demographic and psychosocial variables.
Assumption
The assumption behind it was as social learning, maturity and
problem solving skills are enhanced with age and person's (women
entrepreneur's) experience in her life, self-belief and one's
own conviction about her own control over the event also increase due to
this fact. Therefore, person's perception about attributions could
also change with time.
Hypotheses
[H.sub.1]: Locus of control (LOC), ladder of success at present (LASP)
and success rate (SR) would be significantly correlated with background
variables.
[H.sub.2]: Perceptions of ladder of success at present (LASP) and
success rate (SR) would be significantly related with each other.
PROCEDURE
As all the measures were of self-reported type, questionnaires were
administered to all agreed entrepreneurs. Initially, about 80 women
entrepreneurs were contacted among whom only 32 entrepreneurs agreed to
participate in the study. Measuring tools along with the instructions
were administered individually in the enterprise setting only.
Statistical analyses were done by using Mean, Standard Deviation and
Pearson's Correlation coefficients.
RESULTS AND DISCUSSION
It was revealed from table-14, that locus of control had
significant positive correlation(r = .37, p<.05) with age only, which
indicated that older women entrepreneurs had more internal perceptions
of locus of control. As locus of control was shaped through learning and
one's experience of perceptions of success or failure and her
attitude to attribute it to external and internal factors, those who
were older in age due to their experience in this line they developed
external orientation towards their success or failure. It was found from
the percentage table (Table-1) that more than 50% of women were between
the age of 30-40 years and the next largest group constituted 38% was
between 40-50 years of age. 97% of the total women were found to have a
tendency towards increasing internal locus of control perceptions.
This indicated that with increasing age, hence, more number of
years in a particular line enhanced internal orientation in perceptions
and thus, fostered their actual rate of success. This was substantiated
by the result which revealed significant positive correlation (r = .42,
p<0.5) between locus of control and perceptions of success rate
(Table-11). 60.5% of women entrepreneurs rated their success rate
or growth rate over the years in this industry as 60%, which can be
considered as more than average growth in the enterprise. This finding
was partially in support of the studies done by Box, Beisel and Watts
(1995) reporting successful entrepreneurs tend to be internal and have
high for achievement and by Hisrich & Peters (2000) and Box, White
and Barr (1993), who found that entrepreneurs having previous experience
were more satisfied and successful than those who did not have. In
addition, this was in line of the studies finding age and level of
education correlating (Birley & Norburn, 1987; and Hisrich &
Brush, 1984) positively with performance in the enterprise. However,
locus of control did not correlate significantly with any other
demographic variable. It could be due to the small size of the sample or
as the total sample were from south Indian region they constituted more
or less a homogenous group (socially and culturally), hence their
control perceptions remained more or less equal.
Women's perceptions about their present ladder of success
correlated significantly and inversely with fathers previous (r= -.45,
p<.05) and present (r= -.37, p<.05) occupation. This indicated
that women whose fathers did not have better occupations perceived
themselves more successful in their enterprises. From percentage
analyses (Table-12) it was found out that 59.59% of fathers were
government salary class people and 71.87% were presently not in any
occupation. Again it was found out that (Table-10) 56.25% of these women
entrepreneurs perceived themselves in the fifth and 18.75% in the sixth
ladder of success in a scale of 10. This showed that their perceptions
and expectations of self-growth in this line was quite encouraging for
others want to pursue this as a career. This finding could be attributed
to the fact that perceptions about oneself takes shape into a positive
whole on the basis of social comparison (Festinger, 1954), basically in
a close social circle like family, relatives and friends. When these
women entrepreneurs compared their performance including earning, social
status, reputation, etc with their elders they found themselves in a
better position in each sphere, which affected their perceptions of
success or failure, hence, they perceived themselves as more successful.
Another plausible explanation could be that in families where
parents were from middle socio-economic status, gender inequality could
be more prevalent. Fathers are typically unsupportive whereas mothers
were devoted to and mostly relied on the son, which could have deeply
influenced women's personality. This could have made them more
interested in achievement, independent, autonomous and self-reliant,
hence, perceived themselves as more successful. In line of the above
result, expectedly those who perceived themselves are more successful
and they also ranked more to the percentage scale of growth of their
enterprises.
According to Timmons (1978), the entrepreneur does not believe in
success or failure of a new business venture depends mostly upon luck or
fate, or other external, personality uncontrollable factors. Rather, the
entrepreneur tends to believe that one's personal accomplishments
as well as setbacks lie within one's personal control and
influence. This sense of personal causation as the determinant of
success or failure is linked to the entrepreneur's achievement
motivation and preference for moderate risk-taking. Several researches
have reported to a positive correlation between one's
entrepreneurial activity and the entrepreneur's belief that the
locus of control over these entrepreneurial events is internal rather
than external and just a matter of luck or circumstances. This has been
found from the table-14 that success rate has been positively correlated
with locus of control.
Nonetheless, in this study, there were many correlations found to
be insignificant despite the fact that they were approaching towards the
level of significance could be due to the small size of the sample or as
the total sample were from south India they constituted more or less a
homogenous group (socially and culturally), hence the variations were
statistically not significant. Again not using a more comprehensive tool
to collect socio-economic data could also be another reason for these
results.
CONCLUSIONS AND SUGGESTIONS
The following conclusions were drawn from the study:
* Age had significant positive correlation with locus of control
(LOC) And locus of control had positive correlation with the success
rate (SR).
* Father's previous and present occupation and perceptions of ladder
of success at present (LASP) were inversely correlated.
* Perceptions of ladder of success and success rate in percentage were
positively correlated.
This study achieved its initial purpose of beginning to understand
Indian women entrepreneurs, the relationship between their psychological
profiles, their perceptions and performance. This demanded more
researches to be done in this line in developing countries to widen the
generalizability of the findings. Future research could be done, wherein a larger sample of female entrepreneurs from different parts of the
country (with cultural variations) should be included. A longitudinal
study could also show the impact of age on locus of control perceptions
(LOC) and ladder of success at present (LASP).
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R. Ganesan, Indian Institute of Technology
Dilbagh Kaur, Indian Institute of Technology
R.C. Maheshwari, Indian Institute of Technology
Sujata Satapathy, Indian Institute of Technology
Table--1: Distribution of Respondents according to Age (n = 32)
Age Group in Years (A) Percentage
30 and Below 1
3.13%
31-40 17
53.13%
41-50 12
37.50%
51-60 2
6.25%
Table--2: Distribution of Respondents according Social Category
(N = 32)
Category(C) Percentage
General 25
78.13%
Other Backward Class 7
21.87%
Table--3: Distribution of Respondents according to Education
(N = 32)
Educational Level (E) Percentage
Primary 1
3.13%
Secondary --
0.00%
Higher Secondary 6
18.75%
Graduate 23
71.87%
Post Graduate 1
3.13%
Others/Technical 1
3.13%
Table--4: Distribution of Respondents according to Experience
(N = 32)
Years of Experience (Y) Percentage
2-4 16
50.00%
5-7 12
37.50%
8-10 1
3.13%
11-13 1
3.13%
14- 16 1
3.13%
16 and Above 1
3.13%
Table--5: Distribution of Husbands' Education (N = 32)
Educational Level (HE) Percentage
Primary 1
3.13%
Secondary 0
0.00%
Higher Secondary 6
18.75%
Graduate 23
71.87%
Post Graduate 1
3.13%
Others /Technical Degree 1
3.13%
Table--6: Distribution of Respondents according to Family Income
(N = 32)
Family Income (FI)in Rs. Percentage
< 3500 3
9.37%
3501-5500 25
78.13%
5501-7500 0
0.00%
7501-9500 2
6.25%
9501-11500 2
6.25%
Table--7: Distribution of Respondents according to Membership in
Associations (N = 32)
Membership in Associations(MA) Percentage
One 10
31.25%
Two 8
25.00%
Three 8
25.00%
Four 2
6.25%
Five 4
12.50%
Table--8: Distribution of Respondents according to Training (N = 32)
Training (ETT) Percentage
Yes 26
81.25%
No 6
18.75%
Table--9: Distribution of Respondents according to Locus of Control
(N = 32)
Locus of Control(LOC) Percentage
< 1.0 1
3.13%
1.0-3.0 31
96.87%
> 3.0 0
0.00%
Table 10: Distribution of Respondents according to Ladder of Success
at present (N = 32)
Ladder of Success (LASP) Percentage
One 0.00%
0.00%
Two 1
3.13%
Three 0.00%
0.00%
Four 4
12.50%
Five 18
56.25%
Ladder of Success (LASP) Percentage
Six 6
18.75%
Seven 3
9.37%
Eight/ Nine/ Ten 0
0.00%
Table - 11: Distribution of Respondents according to perceived
Success Rate at present (N = 32)
Success Rate (SR) Percentage
Ten/ Twenty/ Thirty/ Forty 0
0.00%
Fifty 2
6.25%
Sixty 20
62.50%
Seventy 9
28.13%
Eighty 1
3.13%
Ninety/ Hundred 0
0.00%
Table--12: Distribution of Respondents According to Occupational
Background (n = 32)
Occupation Self Father's Father's Husband's
Previous Previous Present Previous
(O) (FOPV) (FOPR) (HOPV)
Agriculture 0 2 1 0
0.00% 6.25% 3.13% 0.00%
Business 1 6 7 5
3.13% 18.75% 21.87% 15.63%
Service 0 5 0 1
0.00% 15.63% 0.00% 3.13%
Salaried 23 0 0 9
Private 71.87% 0.00% 0.00% 28.13%
Salaried 0 19 1 17
Government 0.00% 59.39% 3.13% 53.13%
No 8 0 23 0
Occupation 25.00% 0.00% 71.87% 0.00%
Occupation Husband's Mother's Mother's
Present Previous Present
(HOPR) (MOPV) (MOPR)
Agriculture 0 0 0
0.00% 0.00% 0.00%
Business 5 0 0
15.63% 0.00% 0.00%
Service 1 0 0
3.13% 0.00% 0.00%
Salaried 9 0 0
Private 28.13% 0.00% 0.00%
Salaried 17 3 1
Government 53.13% 9.37% 3.13%
No 0 29 31
Occupation 0.00% 90.63% 96.87%
Table--13: Mean and Standard Deviation on measured variables
(n = 32)
Standard
Dependent Variables Mean Deviation
Locus of Control (LOC) 1.87 .4762
Ladder of Success Present(LASP) 5.16 .9873
Success Rate(SR) 62.5 6.2217
Table--14: Correlations between demographic and measured variables
A E C O Y HE
LOC 0.37 * 0.08 -0.16 -0.17 0.06 0.06
LASP 0.18 0.03 0.07 0.26 0.19 -0.05
SR 0.1 0.19 -0.1 0.13 0.24 -0.04
ETT FOPV FOPR MOPV MOR HOPV
LOC .32 -0.04 -0.09 0.07 0.19 -0.19
LASP .34 -0.45 * -0.37 * 0.05 0.03 -0.16
SR .07 -0.11 -0.03 -0.04 0.07 -0.01
HOPR FI MA LASP SR
LOC -0.18 -0.12 -0.04 .01 .42 *
LASP -0.164 .27 .43 * 1.0 -.62 **
SR -0.01 .12 .275 .62 ** 1.0