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10ECONOMIC SCIENCES
ANALYSIS OF BUSINESS MENTALITY FORMATION IN YOUTH IN TERMS OF GENDER
Kurtanidze M.
PHD student Business Technology Faculty Georgian Technical University
Abstract
Unemployment is one of the main challenges of our country nowadays. One of the best ways to tackle unemployment is through entrepreneurship. This is a phenomenon that affects the socio-economic level of the country. This underscores the importance of doing business and makes those individuals even more valuable who have an entrepreneurial mindset. The business mentality is entrepreneurial thinking, entrepreneurial prejudice, a combination of entrepreneurial stereotypes and attitudes. It is a vision, a combination of perceptions, correct assessments, and the ability to react quickly, to adapt, to take risks, and to take responsibility. The creation of new jobs depends on the effective functioning of the business sector, which is crucial for the formation and development of a modern business mentality, especially among the young population, and the creation of an appropriate educational base, for the formation of competitive human capital. Unemployment among young people worldwide is three times higher than among older people. However, in addition to age, it is very important to assess the level of unemployment and success in production in terms of gender. Studies show, there're significant differences between successful female and male entrepreneurs in many aspects. It is a well-known fact that young people are a vital force for developing countries and the state itself should be interested in realizing their potential and engaging in economic activities. In general, we can consider the involvement of young people in economic activities, increase their motivation and activation in the arena as a global challenge. Consequently, the study and research of entrepreneurial attitudes are of great importance for the planning and implementation of policies that are conducive to entrepre-neurship.
Keywords: Business Mentality; Entrepreneurial mindset.
Gender characteristics of the modern entrepreneurial mentality
In the 21st century, when the issue of gender role redistribution is actively raised, it is interesting and topical what is the difference between the business mentality of women and men.
Studies show that women entrepreneurs around the world do not achieve the same level of success as men. In case of revealing the characteristics and differences that cause this event, it will be possible to proceed differently in the process of forming a modern business mentality, depending on what strengths and weaknesses will be revealed under the influence of gender. Numerous studies have been conducted around the world in recent years to investigate these differences, although none of them have focused directly on developing specific education programs and entrepreneurial skills databases based on these differences.
Methodology
There is currently no universal approach to studying the formation of business thinking. Due to the complexity of the category to be studied, multidimension-ality and the specifics of the research topic, as well as due to the problem of quantitative assessment (measurement), the methodology of the article will be predominantly based on a systematic analysis of the research, using historical and statistical data.
Review of studies
A number of studies have confirmed the existence of several consistent gender differences, though none of them would be a comprehensive answer to the question of why female entrepreneurs are not as effective as men.
There is empirical evidence that women in small and medium-sized businesses have refused to use available financial resources. In Uganda, for example, only 9% of registered small and medium-sized business owners went to all available financial providers for credit. While this number in male entrepreneurs was 51%, who eagerly sought financial help to start a business (Z.Iusufus., 2009). There seems to be a tendency that as the amount of loans increases, the loans demanded by women decrease which is the opposite in the case of men.
In 2009, fifty-four female entrepreneurs were interviewed in "Greater Sudbury", Canada. The results showed that the main reason for owning a business was personal satisfaction and growth, fun. The results showed that small business ownership, for a woman, was driven by internal factors as opposed to monetary motives. In terms of business success variables, the most important thing for them was the reputation of the entrepreneurs among the honesty and good name of the customers.
Despite the clear evidence of an escalation of entrepreneurial activity by women, only half of women entrepreneurs are able to turn a start-up business into a large empire. At the same time, women-owned firms are smaller and less growth-oriented compared to men-owned businesses (Mint., Et al. 2004; Runi., Et al. 2003).
According to the authors, Kalberg and Leicht (1991), the liberal feminist theory implies that women are vulnerable compared to men, they experience overt discrimination, or are influenced by systemic factors that deprive them of vital resources such as business
education and experience. However, this theory has not been substantiated by a number of studies, which has raised additional questions about why the results achieved by male businessmen differ from those of female businessmen. Here emerged the social feminist theory propagated by Kaleberg and Leicht, which suggests that because of early differences and also under the influence of current socialization, women and men are substantially different from each other. However, it is also noted here that this does not mean that women are inferior to men, as women and men may be different but have developed equally effectively.
According to the Global Entrepreneurship Monitor (2007), women's participation in business is steadily increasing, although it remains less effective than men's participation in business.
In 2000, another theory emerged that the economy and government were hindering women's activities. They suppress three components: motivation; Success factors; Raises barriers to better performance. Studies have shown that women entrepreneurs need increased encouragement and support in the form of well-designed technical and financial assistance packages. It is important to develop different loans and schemes for women entrepreneurs, as well as to develop training programs and seminars to increase entrepreneurial efficiency in women.
The qualities of entrepreneurs that are crucial to success in business: Innovation, business vigilance, and creativity. The synergy of these three components makes it possible for men to achieve better results, and do a better job than their female counterparts could. The difference in thinking turned out to be an important gender determinant for business success.
Spain was hit by an economic recession in 2008 that affected the country at many levels, including the organizational sector. This has reduced the rate of entrepreneurial activity and, although it has been gradually improving in recent years, they still had the lowest rate among the EU (Pena., 2019).
In Spain, recent reports that measure entrepreneurial thinking in university students are mostly descriptive and do not fully cover entrepreneurial potential in theoretical terms (Santos., 2013) establish a causal link between perceptions.
The entrepreneurial potential is a useful concept because it not only incorporates entrepreneurial-related qualities, but also takes into account entrepreneurial intentions, or mindset about acting in the direction of starting a business (Santos., Et al. 2013). Intentions are especially important because they have real behavioral power, high predictive power (Krueger, 2017) and make it a good opportunity to predict the short-term future of business.
There is empirical evidence that women and women entrepreneurship differ boths in the structure of the business (Kelly., Et al. 2017) as well as in individual goals and thought processes (Minit, 2009).
Because of this, clear schemes are distinguished between women and men entrepreneurship, such as concentrating in different types of enterprises (e.g., men are more focused in the fields of science
(technology, engineering, mathematics), women in the service of highly routine tasks) (Kelly., Et al. 2017 ).
The reason for these differences may be considered old stereotypes, which means that sometimes business has become a relevant activity of masculine behavior models (e.g., high profit, high ambition, and growth goals) (Balachandra., Et al. 2017).
The process of starting a business and, in fact, the antecedents that lead to it are different experiences, including perceptual and cognitive factors that lead to the start of the process directly from intentions (Gupta et al., 2017; Ssekasi et al., 2019). Entrepreneurial potential depends on whether these variables take into account gender differences and in what way these factors may influence the increase in potential.
The importance of education for future success in entrepreneurship was highlighted. There is an opinion that with the help of certain subjects it is possible to acquire "entrepreneurial skills" through training and exposure (Kuratko., 2005).
However, given that the population has equal access to higher education regardless of gender, a second hypothesis has been developed. Competencies, in themselves, are not enough conditions for entrepreneurs. Interest in business may be driven by their personal desire to be recognized, to receive an inward reward, or to achieve the entrepreneurial success that would make them desirable (Krugel and Bazel., 1994). There is also some difference between the sexes in these motives, for example, women are mostly seeking independence (Sanches., Et al. 2010), men are seeking gain (Maes., Et al. 2014), and both are equally seeking personal satisfaction (Butner and Mure., 1997).
On the other hand, these perception factors may be influenced by environmental pressures, leading to the next stage. Entrepreneurship itself creates different environments that pose different challenges for women and men (Jenning., 2007), some of which may relate to stereotypes (Marlow and Patton., 2005) that can create barriers for self-employed women (Langovic., Et al, 2007). In other words, it is difficult for them to succeed or it is not first-rate for them, as evidenced by studies that have shown some bias towards traits more often favored by women (Balachandra et al., 2017) or stereotypes.
Brown's 2006 study found that positive public perceptions of entrepreneurship have a stronger impact on women than men in entrepreneurial activities, and that gender equality does not increase the number of female entrepreneurs without the necessary feedback from the society.
Given how women can be empowered and included in the labor market, according to the UNDP Gender Inequality Index (UNDP, 2018), Spain ranks 14th in the world in terms of gender equality (out of 189 countries), so it was reasonable to find a positive effect on social perception for both groups. Encourage women.
Some authors have examined risk aversion as an endogenous variable and found that it also acts as a mediator of entrepreneurial goals (Altinay., Et al.
2012), as well as increasing self-efficacy and self-confidence perception (Densberger., 2014). Therefore, we think that risk will also depend on whether a person has any measurable competence for action, thus mediating his or her influence on intent. In other words, even if both expressed high fears of uncertainty about entrepreneurship (Guero., 2016; Pena., 2019), researchers still expected to take risks whereas women this move may be more dependent on skills and competencies.
"Crowdfunding", is a form of enterprise that is funded by the masses or consumers on the platform where the money is requested and used accordingly and conducted following their interests. Project control is, for the most part, in the hands of its creator and the community, whose goal should be the success of production (Molik., 2014). Crowdfunding showed that there is no negative bias towards women, and one study found that society favors women's communication style over men (Nelson. 2015). Have to run their business ideas independently, given the low support of political institutions and the social norm in Spain. While politics is important, researchers believe that there is a strong prospect of increasing entrepreneurial potential among Spanish University students and that it is possible for them to have individual control over the entrepreneurial process where everyone will have the opportunity to implement their creative ideas. This is what an innovation-oriented society aims for.
The present study, in addition to gender differences in the business mentality, highlighted the role of innovation and creativity in business success.
The impact of education on the formation of business mentality
Some studies prove that students can develop the entrepreneurial skills and behaviors needed for successful business operations.
Data were collected using qualitative and quantitative research methods. The findings from the study indicate that the theoretical approach to entrepreneurial thinking broadened students' entrepreneurial understanding and allowed students to develop the entrepreneurial skills and behaviors needed for entrepreneurship. The paper discusses the practical consequences of university entrepreneurship, which pushes students towards entrepreneurial thinking.
The goal of entrepreneurship education is to encourage entrepreneurial behavior. According to the Literary Review of the Entrepreneurship Education Program, these programs motivate entrepreneurs to start a business or help improve business performance. Enterprise education programs are a kind of social experience, such as the ability to take on important responsibilities and implement them, start your own business, and adhere to relevant models (Peterman and Kennedy, 2003).
Psycho-social analysis of women and men entrepreneurs
Men are more likely to say that they like to compete with people, that they prefer to live and work in a competitive environment (this opinion is expressed by almost half of respondents - men). On the other hand, the majority of women report a neutral attitude
towards competition and more often than men say they do not like competition.
An important factor is the behavioral strategies in conflict situations and the differences discussed in terms of gender.
In both study groups, the most commonly preferred behavioral strategy during the conflict was compromising, the second most explicit strategy was cooperation, followed by rivalry, and avoidance and adaptation were relatively less pronounced. At the same time, there were some differences when comparing male and female samples: male entrepreneurs more often than women preferred competition and compromise, while female entrepreneurs preferred cooperation and avoidance. The difference between the samples is statistically insignificant and only some can be considered as trending. The interpersonal interactions of women and men entrepreneurs reveal both similarities in the style of personal relationships as well as differences between the data of the two samples. Both groups have the most distinct types of interpersonal relationships: imperial-leading, independent-dominant, and direct-aggressive. The least pronounced are the obedient - shy and dependent -obedient types.
At the same time, in the male group of entrepreneurs, the independent dominant type is more obvious (reveals such a style of interpersonal relationships as - confident, independent, competitive) and the direct - aggressive type (reveals indicators such as - sincerity, spontaneity, directness, persevering, persistent) Differences are statistically significant).
In the group of women entrepreneurs are more pronounced: dependent - obedient (need for help and trust of others, their recognition) and responsible -generous (expressed desire to help others, developed sense of responsibility) types of personal relationships (differences between samples are not statistically significant).
Thus, this study found common social and psychological personality traits that are characteristic of the entrepreneurial group, manifested in comparison to the severity of a personal imperial-leading, direct-aggressive, and independent-dominant style. Relationships and relatively low scores for such indicators as obedient - shy and dependent - obedient style. The difference between the samples is manifested only in the fact that in relations with others, men-entrepreneurs show a greater desire for self-realization, self-confidence, a tendency to compete and persistent defense of their own opinions, ie. They are dominated by indicators of individual - dominant and direct -aggressive interpersonal relationships. Women entrepreneurs, somewhat more than men, are characterized by the need for help, trust and friendliness, a sense of responsibility (this is evidenced by more than men, their responsibility and generous type of indicators in interpersonal relationships).
One gets the impression that the socio-psychological characteristics of women entrepreneurs identified in the study, according to the degree of gender role characteristics (masculinity or femininity), do not correspond to the cultural expectations and
stereotypes that are normally correlated with ordinary men. However, this provision needs further verification during special further studies.
In general, the obtained results indicate the similarity of the socio-psychological characteristics of the representatives of the studied social group - as well as the existence of certain differences due to their belonging to the group of men and women.
Conclusions and Suggestions
Studies have shown that there is a difference between the business mentality of women and men. It has also been proven that entrepreneurial thinking is a set of thinking types, attitudes, and skills that can be learned or refined/enhanced. However, it is still unclear what type of training is needed for each sex to learn or develop these skills, and in what form you should provide them with this information for maximum results? How to form a modern business mentality according to gender?
As international studies and economic indicators show, the most effective conditions for the formation of entrepreneurial potential are created in the United States. Which is based on the general education of the population in entrepreneurship and business and the development of practical skills.
From all the above we can conclude that in the youth, the formation and realization of a modern business mentality is a complex problem and involves complex measures to solve, in which the research question should distinguish: Develop and form a multilevel educational base and programs: family-school-university (vocational college) with further support mechanism;
Formation of personal-psychological readiness for entrepreneurial activity in the society, which means: overcoming gender stigmas based on the development of systemic education, revealing and developing intellectual, emotional, behavioral, and motivational qualities and skills.
Getting acquainted with successful entrepreneurs and their activities, experience. In this regard, young people can be assisted by higher education institutions, which will help to deepen contacts with young student entrepreneurs.
Promoting entrepreneurship education in higher education institutions and increasing the internship and internship component of the enterprise in educational curricula, which is important for enhancing the personal and professional readiness component of entre-preneurship among young people;
The introduction of technology education programs for the development of entrepreneurial personal-psychological skills plays an important role in revealing and developing the business mentality among young people (Khayenko TG, 2006).
The formation of a modern business mentality should be based on gender, based on a systematic personal education, development, which combines the expression and development of intellectual, emotional, behavioral, and motivational qualities and skills. The
combination of these qualities determines the ability of an individual to combine internal and external data. Accordingly assess business risks, potential, own capabilities, and be able to be a successful entrepreneur.
The need to raise the level of education and knowledge is generally recognized. Part of the population is aware of the need to raise the level of skills and knowledge necessary for entrepreneurship. However, apart from individual international or local projects, they do not have the opportunity to acquire such education or skills.
It follows from all the above that the formation of a business mentality among youth should be done primarily at the expense of raising the level of motivation and changing awareness.
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