From Mindset to Action: The Interplay of Psychological Capital and Risk-Taking in Women's Entrepreneurship in Balochistan, Pakistan

Background Women’s entrepreneurship is widely recognized as an important driver of growth and socio-economic advancement. However, in regions like Balochistan, Pakistan, women remain underutilized, with a notably low percentage of women entrepreneurs. They encounter substantial barriers such as access to capital, fewer networking opportunities, and prevalent societal norms. Objectives The primary objective of this research is to explore how positive PsyCap impacts Women’s Entrepreneurial Intentions (WEIs), with a particular focus on the mediating role of Risk-Taking Attitude (RTA). This study seeks to uncover the mechanisms through which PsyCap influences RTA and, in turn, affects WEI among women in the culturally conservative region of Balochistan, Pakistan. Methods The study employs a cross-sectional survey method to collect primary data from 280 women entrepreneurs in Balochistan, through questionnaires. Established scales were utilized and the snowball sampling technique is used for identification of participants. Data analysis was performed by using the medsem command in Stata 25. Results Findings reveal a strong direct relationship between PsyCap and WEI, underlining the crucial role of psychological strengths in driving women’s entrepreneurial desires. The significance of RTA as a direct ancestor to WEI, adds a critical dimension to the discourse on entrepreneurship. The mediating role of RTA bridges the influence of PsyCap on WEI. Conclusions This study emphasizes the role of PsyCap and RTA in alleviating fears and failures and prompting success among women entrepreneurs. It recommends the development of training programs and mentorship initiatives to bolster PsyCap and RTA among women entrepreneurs of Balochistan, Pakistan.