Introduction
Entrepreneurship entails more than just starting a business or taking advantage of chances. This could result from conceptualization, which is more concerned with the nature of ideas, and growth, which aligns with getting other people to agree with these concepts. Entrepreneurship is “the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world” (“What Is entrepreneurship?” 2021).
An entrepreneur is a person who launches a new company to create a novel product or alter an existing one (Herron, 2020). It is essential to consider the case study of an entrepreneur Mashael Al-Qahtani and connect it with the existing frameworks to develop an understanding of the underlying processes of this phenomenon.
Background
Mashael Al-Qahtani is a 37-year-old woman with a bachelor’s degree and a member of one of Saudi Arabia’s major tribes, Qahtani. At the age of fifteen, her father launched his business career. Essentially, he was the one who inspired and helped her to start her own company. Mashael al-Qahtani created her company of cutting-edge and comprehensive solutions for organizing and managing events, “Perfection.”
Currently, entrepreneurship is gaining in popularity, and it plays a significant role in the economy of different nations like Saudi Arabia that support creative solutions in line with their 2030 vision. The World Economic Forum (WEF) has Saudi Arabia as the fourth-best country for entrepreneurs in 2022 (Staff, 2022). According to the General Directorate of Small and Medium Companies (Monsha’at), women would hold 45% of start-up company ownership until the first half of 2022, an increase from the previous year (Person, 2023). To further boost investment and involvement in the ecosystem, the Saudi government is backing private institutions that are start-up focused.
Entrepreneurial Characteristics
There are several entrepreneurial characteristics that are considered when analyzing the development of a specific start-up or enterprise. In summary, scientists frequently use cognitive psychology to understand the psychological success of entrepreneurial behavior (Herron, 2020). Aamir et al. (2021) point out that according to this theoretical approach, entrepreneur work requires having a rational cognitive style to lead the behavior of individuals. This allows for correlating the entrepreneur’s personality with certain patterns and concentrating on the business and possible challenges effectively.
McClelland identified three distinct needs: the need for accomplishment, power, and belonging; he noted that people assess their needs differently. The desire to succeed is what drives entrepreneurs the most (Sarri & Trihopoulou, 2005). According to McClelland’s idea, people with a high need for accomplishment frequently enter the business world and do better than others as female entrepreneurs (Gupta, 2009).
Internality has been cited as one of the most crucial traits of entrepreneurs, and locus of control has been a hot issue in entrepreneurship studies (Venkatapathy, 1984). By focusing on Mashael’s entrepreneurial journey, the need for achievement is one of her goals, and she also has an internal locus of control. Tables 1 and 2 indicate the education level and age of the female entrepreneur, which reflects that Mashaei is at the age and level of education of the majority.
Table 1: Education level of entrepreneurs (Sarri & Trihopoulou, 2005, p.7)
Table 2: Average age of entrepreneurs (Sarri & Trihopoulou, 2005, p.8)
Female entrepreneurship is of great importance when considering the case of Mashael Al-Qahtani. This is due to the fact that at the moment “a total of 17.7 percent of the Kingdom’s women are engaged in entrepreneurial activity,” which shows a positive trend in establishing equality in this area (Ferrari, 2021, para. 2). For a long time, women have experienced difficulties finding work due to traditional views in the country. Therefore, the desire of Mashael Al-Qahtani for successful and effective business activities contributes to the expansion of opportunities for working women in Saudi Arabia.
Entrepreneur and Theory
It is crucial to connect Mashael’s entrepreneurial endeavors to the theoretical underpinnings. Joseph Alois Schumpeter developed a well-known innovation theory that altered the entrepreneur’s perspective. By introducing their own originality and ingenuity, entrepreneurs, in Schumpeter’s view, are advancing the stagnant economy (Becker et al., 2012). Entrepreneurs essentially innovate in two ways: by lowering manufacturing costs and by spurring demand for certain goods, which create contexts in which entrepreneurial and innovative activity can emerge.
The social facets of entrepreneurship are discussed in the sociological theory of entrepreneurship. An entrepreneur may have a successful firm that fulfills the needs of every customer if he or she considers all social factors, including social taboos, conventions, culture, and other religious beliefs (Lounsbury et al., 2019). In his sociological theory of entrepreneurship, Max Weber argued that for entrepreneurs to advance both personally and professionally, they must embrace the social order (Landström, 2020). Thus, social entrepreneurial activity is influenced by cultural values, including the willingness to take risks or bring innovations that differ from the norm.
One of the fundamental theories of entrepreneurship is the theory of innovation in business. It highlights that entrepreneurs do not start a firm only to better themselves (Mehmood et al., 2019). A new product frequently enters the market to improve society or address a specific issue. They develop a novel way of manufacturing to expand the business and increase profits. Another instance of innovation is when an entrepreneur unearths a new market, which is frequently done with the help of identifying possible economic issues and chances for growth.
The main internal force affecting innovation is a businessman’s openness to implementing changes. Regarding external factors, it is necessary to note legal and governmental acts that may restrict the activities of entrepreneurs and prevent innovations. Therefore, entrepreneurship and innovation are vital sources of business competitive advantage and development. It contributes to the concept of continuous growth and gaining the entrepreneur’s success.
Mashael’s case can be closely connected to most of the theories discussed. Sociological and innovation theories correlate strongly with this case since they emphasize such critical factors as social aspects and innovation for Saudi Arabia. The latter theory is essential since it puts forth the concept of innovation and innovative ideas, which strongly resonates with Saudi Arabia’s vision of its local policies and regulations. Mashael was able to present her innovative vision and become successful within these settings of innovation and social factors.
Challenges and Barriers
There were several significant challenges and barriers for Mashael in business sphere. First, women were not well-represented in the entrepreneurial environment. In September 2016, Saudi males made up 35.6% of the country’s overall workforce, while Saudi women made up just 10.1%. (Kemppainen, 2019). Up until 2017, a woman had to hire a male agent to handle any issues with the government (Nielsen et al., 2021). Mashael had to choose a man to fill her position and hired a subcontractor to complete the work the first time, but she was let down. He planned to coerce her into rejecting the agreement and acquiring the task directly from the customer rather than through subcontracting.
The discourse in the KSA has included the terms “Saudization,” “nationalization,” or replacing foreign workers with Saudi nationals to achieve a specific percentage, but it has recently gained greater prominence (Kemppainen, 2019). Saudi women are generating new industries that are flourishing amid the socioeconomic revolution in Saudi Arabia (Al-Kwifi et al., 2019).
They make up a sizeable portion of the increase in the private sector’s commodities, including e-commerce, retail, food and beverage, and financial technology (Bloomberg, 2023). Mashael may now negotiate a deal at a table with both men and women and sign the contract herself. For women entrepreneurs, everything has gotten simpler.
Mashael also had to deal with the non-linearity of development because entrepreneurship requires to face problems to gain success. She had no idea what difficulties she might face, from unforeseen logistics concerns to problems with sourcing, personnel, money, and quality. She accepted the fact that uncertainty is a constant in entrepreneurship and that there would probably be more downs than ups in the beginning phases of a firm. The long-term benefits of solving these early, challenging difficulties have been substantial. Rejection is also not simply an early-stage issue for many businesses. Every step of the way, company owners rely on collaboration and persuasion to succeed.
Entrepreneur Mistakes
Mashael made many mistakes in the beginning. She said that one of the biggest mistakes is not taking care of financial management and its correct establishment methods since it is the most crucial department in any entrepreneurship. Each entrepreneur’s actions have an effect on financial performance; thus, the firm owner should assess and manage them. Even if, during the first few months of operation, suppliers take more money than they bring in, the business owner must ensure that he has enough cash on hand to pay them back (Alsos et al., 2020). Once Mashael anticipated the financial impact of these negative cash flows, she was able to estimate the amount of capital required to fund the company until it turned a profit.
One of the most essential entrepreneur decisions is whether to finance an expansion internally or obtain financing from outside lenders. Mashael’s first efforts to reduce costs by limiting the company’s cost of capital were unsuccessful, which had the potential to be harmful for credit rating (Baker and Welter, 2020).
Entrepreneur may better comprehend their financial status while developing company strategies by developing a sound financial strategy. Within these considerations, the entrepreneur lists all of his financial resources when managing operations. This guarantees that all resources are utilized to their fullest potential. Understanding that this is a dynamic process that boosts income and has the potential to provide value and well-being is crucial.
Strategies and Factors to Gain Success
There are different ways and strategies to gain success in entrepreneurship. It is important to understand the business environment, its repercussions, and the theoretical underpinnings of operations conducted. In addition, there are several vital factors as psychological and personal traits, that can contribute to the success of the business (TEDx, 2019). They directly influence how entrepreneurs conduct their work, develop it, and safeguard from shortcomings and unexpected situations.
Time management is another factor that is essential in the field of entrepreneurship and its development. Most business owners will notice a difference in their organization’s efficiency and higher output as a result, which is always a bonus (TheEllenShow, 2019). Mashael has a strong sense of organization and is highly efficient with her time. To effectively lead the firm, an entrepreneur needs to know which activities should be completed first, how much time should be allotted to each activity, and what to outsource to other staff members (TEDTalks, 2019).
The brain’s bandwidth can be restored therefore, lowering the likelihood of making mistakes (Herron, 2020). These strategies helped Mashael to build a successful firm despite the setbacks and challenges that she encountered. Therefore, such critical success factors as time management and personal traits demonstrated by entrepreneurs assist in delivering growth and innovation in their sector.
Conclusion
Entrepreneurs are important because they have an impact on larger communities in addition to having power over their own businesses. The economy is built on innovation, and a large portion of it is produced by forward-thinking individuals who possess the zeal, know-how, and experience necessary to make a corporate concept a reality. The Marshall case demonstrates that there are several elements that might hinder achievement and even more challenges that can be encountered.
There are several possibilities and winning tactics available at the same time. When employed properly, an entrepreneur may create a prosperous business in practically any setting by considering cutting-edge solutions and societal considerations. Entrepreneurs have played a significant role in fostering social change and enhancing people’s quality of life. By generating jobs and enhancing the functionality and safety of products, they contribute to raising the quality of life for everyone.
Reference List
Aamir, M, et al. (2021) ‘Signifying the effect of relational and experiential cognitive styles on entrepreneurial behavior: A mediated moderated model,’ Frontier Psychology, 12. Web.
Alsos, G.A., Clausen, T.H., Mauer, R., Read, S. and Sarasvathy, S.D. (2020) ‘Effectual exchange: From entrepreneurship to the disciplines and beyond’, Small Business Economics, 54(1), pp. 605–619. Web.
Baker, T. and Welter, F., (2020) Contextualizing entrepreneurship theory. Routledge.
Becker, M.C., Knudsen, T. and Swedberg, R. (2012) ‘Schumpeter’s theory of economic development: 100 years of development’, Journal of Evolutionary Economics, 22(5), pp. 917–933. Web.
Ferrari, M. (2021) Saudi Arabia has world’s third-highest share of female entrepreneurs: Report. Web.
Gupta, V.K. (2009) ‘The role of gender stereotypes in perceptions of entrepreneurs and intentions to become an entrepreneur’, Entrepreneurship Theory and Practice, 33(2), pp. 397–417. Web.
Herron, L., (2020) Do skills predict profits: A study of successful entrepreneurship. Routledge.
Kemppainen, R.P. (2019) ‘Saudi female innovators as entrepreneurs – theoretical underpinnings’, International Journal of Gender and Entrepreneurship, 11(2), pp. 166–185. Web.
Landström, H. (2020) ‘The evolution of entrepreneurship as a scholarly field’, Foundations and Trends in Entrepreneurship, 16(2), pp. 65–243. Web.
Lounsbury, M., Gehman, J. and Ann Glynn, M. (2019) ‘Beyond homo entrepreneurs: Judgment and the theory of cultural entrepreneurship’, Journal of Management Studies, 56(6), pp. 1214–1236. Web.
Mehmood, T., Alzoubi, H.M. and Ahmed, G. (2019) ‘Schumpeterian entrepreneurship theory: Evolution and relevance,’ Academy of Entrepreneurship Journal, 25(4).
Nielsen, S.L., Klyver, K., Evald, M.R. and Hager, T., (2021) Entrepreneurship in theory and practice: Paradoxes in play. Edward Elgar Publishing.
Person (2023) Saudi Arabia’s entrepreneurial ecosystem demonstrating significant change, Arab News. Web.
Sarri, K. and Trihopoulou, A. (2005) ‘Female entrepreneurs’ personal characteristics and motivation: A review of the Greek situation’, Women in Management Review, 20(1), pp. 24–36. Web.
Staff, A.B. (2022) 11 Saudi entrepreneurs shaping Saudi Arabia’s future, Al Bawaba. Web.
TEDTalks (2019) ‘The secret power of female entrepreneurs‘, YouTube. Web.
TEDx (2019) ‘The future of female entrepreneurship: Girlhood pipeline‘, YouTube. Web.
TheEllenShow (2019) ‘6 female entrepreneurs that Ellen loved‘, YouTube. Web.
Wadhwa, V. (2009) ‘Anatomy of an entrepreneur: Family background and motivation’, SSRN Electronic Journal [Preprint]. Web.
What Is entrepreneurship? (2021). Web.
Zhou, M. (2004) ‘Revisiting ethnic entrepreneurship: Convergencies, controversies, and conceptual advancements’, International Migration Review, 38(3), pp. 1040–1074. Web.