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SUPPORTING WOMEN ENTREPRENEURS in GERMANY Rapid Policy Assessments of Inclusive Entrepreneurship Policies and Programmes FOREWORD

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SUPPORTING WOMEN ENTREPRENEURS in GERMANY Rapid Policy Assessments of Inclusive Entrepreneurship Policies and Programmes FOREWORD SUPPORTING WOMEN ENTREPRENEURS IN GERMANY Rapid Policy Assessments of Inclusive Entrepreneurship Policies and Programmes FOREWORD Entrepreneurship development is an important requirement for achieving the goal of smart, sustainable and inclusive growth set out in the Europe 2020 strategy. It is also a means to respond to new economic challenges, to create jobs and to fight social and financial exclusion. The impact of the global financial and economic crisis calls for giving entrepreneurship and self-employment a stronger role in economic and social development policies. Inclusive entrepreneurship policies and programmes are particularly relevant for women who continue to face challenges in the labour market and are under-represented in entrepreneurship activities. However, the effectiveness of national, regional and local measures and actions to promote inclusive entrepreneurship development in Europe can be hindered by a fragmentation of responsibilities, resources and strategies, and a failure to understand the goals of inclusive entrepreneurship. This project is part of a series of rapid policy assessment projects on inclusive entrepreneurship policies and programmes that are conducted by the Local Economic and Employment Development (LEED) Programme of the Organisation for Economic Co-operation and Development (OECD) in collaboration with the Directorate General for Employment, Social Affairs and Inclusion of the European Commission. This work builds on a collaborative project between the OECD and the European Commission on inclusive entrepreneurship. For more information on this project, please refer to: http://www.oecd.org/employment/leed/inclusive-entrepreneurship.htm. 2 ACKNOWLEDGEMENTS This study has been a collaborative project between the Local Economic and Employment Development (LEED) Programme of the Organisation for Economic Co-operation and Development (OECD) and the Directorate General for Employment, Social Affairs and Inclusion of the European Commission, with the co-operation of the German Federal Ministry for Economic Affairs and Energy. It is part of a multi-year programme of work on inclusive entrepreneurship, undertaken by the LEED Programme of the OECD and DG Employment of the European Commission. The report was prepared by Dr. Teita Bijedić and Dr. Friederike Welter of Institut für Mittelstandsforschung, and David Halabisky of the LEED Programme of the OECD. The report authors would also like to acknowledge the assistance received from the Federal Ministry of Economic Affairs and Energy who provided background material, commented on a draft report and assisted with the organisation of a workshop on 2 September 2015. Discussions at the workshop were valuable for the preparation of this report. Participants included representatives from the Fraunhofer CERRI, Beirat Junge Digitale Wirtschaft of the BMWi, Bundesministerium für Familie, Senioren, Frauen und Jugend (Federal Ministry for Family Affairs, Senior Citizens, Women and Youth), RKW Kompetenzentrum, IW JUNIOR, DIHK and Verband deutscher Unternehmerinnen. Guy Lejeune and Risto Raivio from DG Employment of the European Commission also provided insightful comments on a draft report. Finally, Eleanor Davies and François Iglesias of the LEED Programme had an invaluable role in providing technical assistance. 3 ABBREVIATIONS AWE Alberta Women Entrepreneurs bga Bundesweite Gründerinnenagentur (National Agency for Women Start-up Activities and Services) BMBF Bundesministerium für Bildung und Forschung (German Federal Ministry for Education and Research) BMFSFJ Bundesministerium für Familie, Senioren, Frauen und Jugend (German Federal Ministry for Family Affairs, Seniors, Women and Youth) BMWi Bundesministerium für Wirtschaft und Energie (German Federal Ministry for Economic Affairs and Energy) CAD Canadian Dollars DM Deutsches Mikrofinanzinstitut EC European Commission ERDF European Regional Development Fund ESF European Social Fund FEI Female Entrepreneurship index GEI Global Entrepreneurship Index HVB Hypo Vereinsbank IW Institut der deutschen Wirtschaft KfW Kreditanstalt für Wiederaufbau LEED Local Economic and Employment Development NRW North Rhine-Westphalia OECD Organisation for Economic Cooperation and Development R&D Research and development SME Small and medium-sized enterprises 4 STEM Science, technology, engineering and mathematics TWIN Two Women Win VdU Verband deutscher Unternehmerinnen WEI Women’s Enterprise Initiative 5 TABLE OF CONTENTS FOREWORD ................................................................................................................................ 2 ACKNOWLEDGEMENTS .......................................................................................................... 3 ABBREVIATIONS ....................................................................................................................... 4 EXECUTIVE SUMMARY ........................................................................................................... 8 Key strengths of women’s entrepreneurship support................................................................. 8 Areas for improvement .............................................................................................................. 8 Key recommendations ............................................................................................................... 9 INTRODUCTION ....................................................................................................................... 11 OECD-European Commission rapid policy assessments on inclusive entrepreneurship policy11 OECD-European Commission rapid policy assessment criteria ............................................. 11 Project methodology ................................................................................................................ 12 CHARACTERISTICS OF WOMEN’S ENTREPRENEURSHIP .............................................. 13 Frequency of self-employment by women .............................................................................. 13 Scope of self-employment activities by women ...................................................................... 15 Women’s self-employment and industry ................................................................................. 15 Start-up capital for women’s self-employment activities ........................................................ 15 Performance of women-operated businesses ........................................................................... 16 Demographic characteristics of self-employed women ........................................................... 16 POLICIES AND PROGRAMMES TO SUPPORT WOMEN’S ENTREPRENEURSHIP ....... 18 Policies and programmes to foster entrepreneurial skills for women ...................................... 19 Policies and programmes to facilitate access to financing with a focus on women ................ 25 The institutional environment for women entrepreneurs ......................................................... 30 CONCLUSIONS ......................................................................................................................... 35 REFERENCES ............................................................................................................................ 37 Website references ................................................................................................................... 41 ANNEX A. LIST OF WORKSHOP PARTICIPANTS .............................................................. 45 Tables Table 1. SWOT analysis of women’s entrepreneurship support in Germany ......................... 36 6 Figures Figure 1. Frequency of self-employment in Germany and European Union, 2014 ................. 14 Figure 2. Number of total annual business entrants, 2004-13 ................................................. 14 Figure 3. Financial resources during business foundation, 2013 ............................................. 16 Figure 4. Women's labour market activity in Germany by education level, 2014 ................... 17 Boxes Box 1. OECD-European Commission rapid policy assessment criteria .................................. 12 Box 2. Bundesweite Gründerinnenagentur (bga - National Agency for Women Start-up Activities and Services) ............................................................................................................................ 18 Box 3. Examples of business counselling and consulting in Germany ................................... 20 Box 4. Examples of mentoring and role model initiatives for women entreprenuers in Germany 21 Box 5. Two Women Win (TWIN) ........................................................................................... 22 Box 6. Examples of entrepreneurship networks for women in Germany ................................ 23 Box 7. Going for Growth, Ireland............................................................................................ 25 Box 8. The HVB-Frauenbeirat ................................................................................................ 30 Box 9. National Women's Enterprise Day, Ireland .................................................................. 34 Box 10. Fostering business development and growth – The Alberta Entrepreneurs Centre, Canada 34 Box 11. An action plan for women’s employment, Scotland .................................................. 34 7 EXECUTIVE SUMMARY This project is part of a series of “rapid policy assessments” that are undertaken by the
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