The Importance of Developing Locus of Control and Social Capital

Oct 13, 2025 by leolavanderia.com.br 63 views

Introduction

In today's highly competitive business world, understanding the factors that influence business success is crucial for entrepreneurs and business owners. The Faculty of Economics and Business, University of North Sumatra (FEB USU), has a significant number of students who are engaged in online businesses, and it is essential to understand the factors that contribute to their success. This study aims to investigate the effect of Locus of Control and Social Capital on the success of online business people who are students of FEB USU.

Locus of Control: Understanding the Concept

Locus of control refers to an individual's beliefs about how much they control the results of their own actions. It is a concept that has been extensively studied in the field of psychology and has been found to have a significant impact on an individual's behavior and outcomes. Individuals with an internal locus of control believe that their efforts and actions will determine their success, whereas those with an external locus of control believe that their success is determined by external factors such as luck or chance.

Social Capital: The Importance of Social Networks

Social capital refers to the social network and relationships that an individual has, which can provide support and access to information and resources needed to succeed in business. It is a concept that has been widely studied in the field of sociology and has been found to have a significant impact on an individual's success. Social capital can provide individuals with access to valuable information, resources, and opportunities that can help them achieve their goals.

The Relationship Between Locus of Control, Social Capital, and Business Success

The results of this study showed that Locus of Control and Social Capital had a significant effect on business success simultaneously. This means that both internal factors (Locus of Control) and external factors (social capital) have an important role in achieving success in business. Further analysis revealed that these two factors also had a positive influence on business success. Students with high Locus of Control tend to be more confident and initiative, while students with strong social networks have better access to business opportunities and support.

The Importance of Developing Locus of Control and Social Capital

The findings of this study highlight the importance of developing Locus of Control and Social Capital for online business people, especially students. Increasing Locus of Control can be done by building a positive mindset and training decision-making skills. Meanwhile, social capital development can be done through networking, joining the business community, and actively interacting with others inside and outside the academic environment.

Implications of the Study

The results of this study have several implications for online business people, especially students. Firstly, it highlights the importance of developing Locus of Control and Social Capital for achieving business success. Secondly, it provides valuable insights for USU FEB students and other business people about the importance of these two factors in achieving business success. By understanding and optimizing these two factors, students can increase their chances of success in the online business they run.

Conclusion

In conclusion, this study provides valuable insights into the effect of Locus of Control and Social Capital on business success. The findings of this study highlight the importance of developing these two factors for online business people, especially students. By understanding and optimizing these two factors, students can increase their chances of success in the online business they run. Through a combination of personal development and extensive network, business success is no longer just a dream, but a goal that can be achieved.

Recommendations for Future Research

This study provides several recommendations for future research. Firstly, it suggests that further research should be conducted to investigate the relationship between Locus of Control and Social Capital and other factors that influence business success. Secondly, it suggests that further research should be conducted to investigate the impact of Locus of Control and Social Capital on business success in different contexts and industries.

Limitations of the Study

This study has several limitations. Firstly, it was conducted using a sample of 96 students, which may not be representative of the larger population of online business people. Secondly, it was conducted using a quantitative method, which may not capture the complexity of the relationship between Locus of Control, Social Capital, and business success.

Future Directions

This study provides several future directions for research. Firstly, it suggests that further research should be conducted to investigate the impact of Locus of Control and Social Capital on business success in different contexts and industries. Secondly, it suggests that further research should be conducted to investigate the relationship between Locus of Control and Social Capital and other factors that influence business success.

Conclusion

Q: What is Locus of Control, and how does it affect business success?

A: Locus of control refers to an individual's beliefs about how much they control the results of their own actions. Individuals with an internal locus of control believe that their efforts and actions will determine their success, whereas those with an external locus of control believe that their success is determined by external factors such as luck or chance. Research has shown that individuals with an internal locus of control tend to be more confident and initiative, which can lead to greater business success.

Q: What is Social Capital, and how does it affect business success?

A: Social capital refers to the social network and relationships that an individual has, which can provide support and access to information and resources needed to succeed in business. Social capital can provide individuals with access to valuable information, resources, and opportunities that can help them achieve their goals. Research has shown that individuals with strong social networks tend to have better access to business opportunities and support, which can lead to greater business success.

Q: How can individuals develop their Locus of Control and Social Capital?

A: Developing Locus of Control and Social Capital requires a combination of personal development and extensive networking. Individuals can build a positive mindset and train decision-making skills to increase their Locus of Control. Meanwhile, social capital development can be done through networking, joining the business community, and actively interacting with others inside and outside the academic environment.

Q: What are the implications of this study for online business people, especially students?

A: The findings of this study highlight the importance of developing Locus of Control and Social Capital for online business people, especially students. By understanding and optimizing these two factors, students can increase their chances of success in the online business they run. Through a combination of personal development and extensive network, business success is no longer just a dream, but a goal that can be achieved.

Q: What are the limitations of this study?

A: This study has several limitations. Firstly, it was conducted using a sample of 96 students, which may not be representative of the larger population of online business people. Secondly, it was conducted using a quantitative method, which may not capture the complexity of the relationship between Locus of Control, Social Capital, and business success.

Q: What are the future directions for research based on this study?

A: This study provides several future directions for research. Firstly, it suggests that further research should be conducted to investigate the impact of Locus of Control and Social Capital on business success in different contexts and industries. Secondly, it suggests that further research should be conducted to investigate the relationship between Locus of Control and Social Capital and other factors that influence business success.

Q: How can individuals apply the findings of this study to their own business?

A: Individuals can apply the findings of this study to their own business by developing their Locus of Control and Social Capital. This can be done by building a positive mindset and training decision-making skills to increase their Locus of Control. Meanwhile, social capital development can be done through networking, joining the business community, and actively interacting with others inside and outside the academic environment.

Q: What are the key takeaways from this study?

A: The key takeaways from this study are:

Locus of Control and Social Capital have a significant effect on business success.
Developing Locus of Control and Social Capital can increase an individual's chances of success in business.
A combination of personal development and extensive networking is necessary to develop Locus of Control and Social Capital.
Business success is no longer just a dream, but a goal that can be achieved through a combination of personal development and extensive network.