Building Resilience: How Malaysian Women Entrepreneurs Use Strengths and Resources to Navigate Challenges

Abstract

The robust global growth of women-led Small and Medium Enterprises (SME), particularly in developing economies like Malaysia, highlights an essential yet under-realized economic potential. In Malaysia, women-led SME contribute significantly to gross output, but their overall GDP contribution remains below potential, constrained by systemic barriers. This qualitative study, framed by the Resource-Based View (RBV) and Psychological Capital (PsyCap) theories, investigates how Malaysian women SME entrepreneurs utilize their strengths and resources to overcome business challenges and foster resilience. Employing thematic analysis on data from focus group discussions with women entrepreneurs in Selangor, Malaysia, the study reveals a dynamic, synergistic process. Entrepreneurs draw upon their PsyCap (hope, efficacy, optimism, resilience) as an invaluable internal resource (Proactive Adaptation and Strategic Agency). This inner strength, in turn, drives the strategic mobilization of external, RBV-aligned resources, notably through Relational Resilience (support networks) and the use of Fuel for the Journey (customer affirmation and market validation). The findings establish that PsyCap and RBV are not independent but are mutually reinforcing, forming a virtuous cycle that transforms adversity into competitive advantage. The study’s key theoretical contribution is the integration of these frameworks, demonstrating how internal psychological resources drive the acquisition of external strategic resources, which then renew and strengthen the psychological capital. Practically, the results advocate for policies that not only enhance financial resources but also strengthen the psychological resilience of women entrepreneurs to unlock their full economic potential.