The impact of individual and institutional factors on opportunity recognition and new venture creation among women entrepreneurs

The study investigates the influence of individual and institutional factors on opportunity recognition and new venture creation among women entrepreneurs in India's SME sector. Grounded in Human Capital Theory, Institutional Theory, and Resource-Based Theory, this research examines how education, experience, and political, social, and economic support shape entrepreneurial outcomes. By focusing on women entrepreneurs in a developing country, the study addresses a significant gap in the literature that often concentrates on developed nations. A quantitative methodology was employed, utilizing survey data from 280 women entrepreneurs in southern India. Structural Equation Modeling (SEM) analysed the relationships among variables such as education, experience, and institutional support, while also exploring the mediating role of opportunity recognition. The findings indicate that institutional factors, specifically political, social, and economic support, positively impact opportunity recognition and new venture creation, whereas individual factors like education and experience have a less significant effect. Additionally, the combination of digitalization and institutional support enhances an entrepreneur's ability to innovate and compete in global markets, providing valuable insights for policy interventions. Opportunity recognition was found to mediate the relationship between institutional support and venture creation, but it did not significantly mediate the effects of individual factors. This study contributes both theoretically and practically by enriching the understanding of entrepreneurship, particularly the vital role of institutional support in women's opportunity recognition and venture creation in developing economies. It suggests that policymakers and financial institutions should prioritize strengthening institutional support systems to improve women’s entrepreneurial success. Furthermore, mentorship and family support are essential for fostering opportunity recognition and promoting growth among women entrepreneurs.