Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
Women's Business Potential from the Western Part of Romania
ELENA BOTEZAT Department of Management Marketing University of Oradea 1, Universitatii Str., 410087 Oradea ROMANIA [email protected] http://steconomice.uoradea.ro
Abstract: The goal of this paper is to evaluate the women’s business potential from the western part of Romania. The elements that have been considered are the business plans elaborated by the 576 graduates of the Entrepreneurial Business School at a Local Level organized under the project AntrES and the data collected through questionnaire administered at the start and end of the courses relieves: the self confidance of women compose the two target groups in their chances to start a business; the reasons for women to begin a business; the opinions related to the main abilities necessary for a business women. The study regards a limited area determined by the following counties: Bihor, Timi , Arad, Maramure , Cara Severin, Satu Mare.
Key Words: women’s business potential, business plan, self confidance, abilities
1 General Considerations and Study It is noticed that in practice women’s wage in Romania Framework records, in media, 82% from men’s wage, even though it was not noticed by the labour inspectors gender The idea of a woman who has her own business is not so discriminations in setting the salaries in any economical popular in Romania, but there are real chances this will activity. The reason is represented by the fact that happen. Our opinion formed itself by knowing and women work in sectors of economy with low wages. working with women, from the Western part of Romania Despite the promotional efforts towards equal payment in particular, in the most direct way via AntrES Project for equal labour, a man earns an euro for the work a Entrepreneurship and Equal Opportunities. An woman does for 85 cents. Salary differences between interregional model of entrepreneurial school for men and women can reach 15 %, according to the women, run by the Faculty of Economics, University of European Comission Annual Report on equal chances Oradea in partnership with five universities, namely: between men and women – 2007. Almost 40% of West University of Timi oara, University "Aurel Vlaicu" women work in the health sector, education and public of Arad, North University of Baia Mare, University administration, in comparison with men who represent "Eftimie Murgu" Re iŃa, "Commercial Academy" only 20%. In addition, women work in general as Fundation Satu Mare. administrative assistants, as sales women or low Tradition and stereotypes influence, for example, the qualified workers, these jobs representing almost half of choice of educational way, the evaluation and the female labour. [2] classification of jobs, but also the involvement on the On the other hand, in the EU organisations, only a third labour market, women being more open to obtaining a of the personnel are women. In the last decade part time job. modifications were registered in the ratio between men Focused on how work flexibility affects individuals and and women’s salaries, on sectors of activity, some with their particularly ability to combine family and work life, increasing trends, like the financial sector – banks and the study realized by Cousins Ch. and Tang N. (2003) insurance, in which women are predominant, some with reveals that Romanian society is still strong on decreasing trends, for example the public administration traditional domestic division of labour, which suggests sector. Despite the measures undertaken at the European that for working women there is a heavy double burden level for eliminating discrimination, there are many of paid and unpaid work. In conclusion Romanian things yet to be done. Two thirds of the Europeans women take the overwhelming responsibility for believe that the minorities and women are discriminated childcare and domestic task, so the conservative gender and that the number of women is preponderently in the ideology persisted.[1] area of low salaries. [2]
ISSN: 1792-5983 597 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
What makes a woman self sufficient? In our view, developing a business plan is a first step Is it money, education, a sense that she knows where towards success in business because in its development, she’s going in life? Is it her ability to stand on her own in the entrepreneur will have to find answers to many any situation and appear calm no matter what? Or is it different questions that will allow better understanding her power to start with nothing and still build a life? of the business. Focused effort towards this goal changes Perhaps it is her ability to face any challenge that comes the entrepreneur who is able to avoid some mistakes her way and not ignore the opportunity which arises in because she has already anticipated them in her mind, the way. Or ... the result of decisions based on what she acquire skills in business planning and long term believes is right rather than what is popular. Whatever thinking, gain confidence in their managerial capacity to the answer, we think we can agree that an independent initiate and conduct effective business, develop skills in and confident woman projects power and energy, order to be persuasive in presenting ideas on which the motivated by its example, bring calm to chaos, business is based. This business plan becomes a perspectives on problems, solutions to crises. resource, a materialized intention. But how can we keep IRSOP Market Research & Consulting Report 2005, this up and convert it into concrete action, namely based on a quantitative survey conducted in June 2005, starting a business. [7,8] reveals for Romanians the following values: friendly, The business plans, in number of 576 have been affectionate, value themselves high, insensitive to others, developed during January June 2010, by the 576 behaving like followers rather than leaders, intelligent, graduates of the Entrepreneurship Local Business active, being rather disorganized, superficial and School: 144 women managers who formed Target group conservative, talkative, diligent and bold. Also resulted I (ages 20 66, monthly income – 2611 lei); and 472 that older people are more likely to support leader and be women who wish to start a business Target group II more conservative of family roles. [3] These values (ages 19 58, monthly income – 1197 lei), held at the 24 could explain the behavior at work places or local centers (LC) small cities in 6counties, as follows: entrepreneur behaviors. But Romanian women are very Bihor LC Ale d, LC Beiu , LC Marghita, LC Salonta; lucid. The special feature is the capability to make a Timi LC Lugoj, LC Reca , LC Buzia , LC Jimbolia; realistic evaluation of their situation and to see all the Arad LC Ineu, LC Lipova, LC Pecica, LC Chi ineu time the positive part in this. This facilitates a free spirit Cri ; Maramure – LC Baia Sprie, LC Sighetu open to creativity, a main ingredient of business MarmaŃiei, LC Târgu Lăpu , LC Seini; Cara Severin potential. LC Caransebe , LC Băile Herculane, LC Boc a, LC Research regarding entrepreneurial intentions of women Moldova Nou; Satu Mare LC Tă nad, LC Ardud, LC from the west part of Romania is based on psychosocial Negre ti Oa , LC Carei. models which show that any behaviour can be expected In the six months that were conducted business school considering the behaviour at a time. [4,5,6] courses, the 576 women graduates developed, based on This framework is useful for understanding women’s the business idea identified and developed gradually business potential simply defined by entrepreneurial over the six issues, a business plan for starting a business intentions developed in the business plans developed by or for business development for those who had it the 576 graduates of the Entrepreneurial Business School already. Developed business plans include information at a Local Level organized under the project AntrES and on: business, products and services, marketing, sales the self confidance of women compose the two target strategy, customers, competitors, location, management, groups in their chances to start a business. personnel, financial issues. The general objectives of the AntrES Pproject aim on The research based on theoretical documentation, one hand, developing entrepreneurial and managerial analysis of documents prepared in the six territorial skills of women in counties located along the western centers: Bihor, Timi , Arad, Maramure , Cara Severin, border of Romania (Maramure , Satu Mare, Bihor, Satu Mare and on collecting data from participants Arad, Timi , Cara Severin), in order to improve current through questionnaire administered at the start and end performance and their training, to develop the spirit of of the courses has allowed the achievement of research entrepreneurship and to generate an increasing number objectives. Each woman that follows the courses was of businesses, both rural and urban, and on the other asked to fill out a short questionnaire with 13 structured hand, the promotion of equal opportunities in questions. In order to achieve our objectives we selected entrepreneurship by encouraging women's involvement the data reveals: the opportunity levels for a woman to in general, rural women in particular, the initiation and open a business in the current circumstances of the development of its business in the context of sustainable country; reasons why a women is willing to start a development of communities in the counties located business; opinions of graduates towards the main along the western border of Romania. qualities of a women who needs to open a business.
ISSN: 1792-5983 598 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
3 Results and conclusions From the 144 business plans developed by female 2 Research objectives managers in the six counties located on the western 2.1. Theoretical objectives border of Romania, 113 business plans, or 78.47% have a) to give an outline in understanding women business a business idea based on the services sector. By counties, potential from a systemic perspective; the order is: Arad (83,33%); Cara Severin (83,33%); b) to highlight relevant aspects of the women business Satu Mare (83,33%); Timi (79,16%); Maramure potential and their role in the articulation of a business. (70,83%); Bihor (70,83%). 2.2. Practical objectives The same trend is also found for composing the Target a) to analyze the business plans elaborated in order to group II women who want to start a business. identify the business potential; Specifically, they developed a business plan in services b) to evaluate the self confidance of women who in the following percentages: Bihor (88,88%); Timi compose the two target groups in their chances to start a (86,11%); Satu Mare (86,11%); Cara Severin business; (77,77%); Maramure (72,22%); Arad (69,44%). c) to identify the main motives of women to begin a It is noted the absence of business plans on the business; constructions domain, possibly based on the current d) to know the opinions related to the mains abilities crisis. necessary for a business women. Table 1. Business Plans distribution of women manager by major sectorial activities – Western Part of Romania Business Business Business Business Business Business Business Plans Plans Plans Plans Plans Plans Plans SECTOR OF developed developed developed developed developed developed developed ACTIVITY BIHOR TIMI ARAD MARA CARA SATU in the 6 MURE SEVERIN MARE counties Total % Total % Total % Total % Total % Total % Total % Agriculture, 5 20,8 3 12,5 2 8,33 2 8,33 1 4,16 1 4,16 14 9,72 forestry, fishing 3
Industry, 2 8,33 2 8,33 2 8,33 5 20,8 3 12,5 3 12,5 17 11,8 Energy 3 0 Construction Services 17 70,8 19 79,1 20 83,3 17 70,8 20 83,3 20 83,3 113 78,4 3 6 3 3 3 3 7 TOTAL 24 100 24 100 24 100 24 100 24 100 24 100 144 100 Source: author’s calculations based on data provided by parteners: Bihor, Timi , Arad, Maramure , Cara Severin, Satu Mare
Table 2. Business Plans distribution of women potential entrepreneurs by major sectorial activities – Western Part of Romania Business Business Business Business Business Business Business Plans Plans Plans Plans Plans Plans Plans SECTOR OF developed developed developed developed developed developed developed ACTIVITY BIHOR TIMI ARAD MARA CARA SATU in the 6 MURE SEVERIN MARE counties Total % Total % Total % Total Total % Total % Total % Agriculture, 6 8,33 4 5,55 10 13,8 13 18,0 6 8,33 6 8,33 45 10,4 forestry, fishing 8 5 1
Industry, 2 2,77 6 8,33 12 16.6 7 9,72 10 13,8 4 5,55 41 9,49 energy 6 8
ISSN: 1792-5983 599 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
Construction Services 64 88,8 62 86,1 50 69,4 52 72,2 56 77,7 62 86,1 346 80,0 8 1 4 2 7 1 9 TOTAL 72 100 72 100 72 100 72 100 72 100 72 100 432 100 Source: author’s calculations based on data provided by parteners: Bihor, Timi , Arad, Maramure , Cara Severin, Satu Mare
The services sector generally dominates the economy, women who needs to open a business. This data were the economy in western Romania in particular, as colected from the questionnaire administrated to demonstrated by the number of viable SMEs in the potential candidates in January 2010 (test) and to sector and the share of employed population in services, graduates and reserves in May 2010 (re test). This which represents “a guarantee” for the 144 women situation determines some limits of our study generated manager, respectively 432 women who want to start a by the different number of respondents women potential business, and have pursued rationally and intuitively to entrepreneurs (700 in January and 466 in May). reduce the risk of failure. Women’s business potential from the west part of Romania can be better evaluated analizing the data reliefs to: the opportunity levels for a woman to open a business in the current circumstances of the country; reasons why a women is willing to start a business; opinions of graduates towards the main qualities of a
Table 3. The opportunity levels for a woman to open a business in the current circumstances of the country Opportunity High Medium Low Missing Total levels % Target Group (TG) Women 14,67 56,67 28,00 0,67 100,00 manager (TG I) – test Women 25,00 53,00 20,00 1 100,00 manager (TG I) – re test Women 10,75 67,30 21,39 0,54 100,00 potential entrepreneurs (TG II) – test Women 11,00 61,00 26,00 1,00 100,00 potential entrepreneurs (TG II) – re test The overall plan registered a hight level of confidence in Increased optimism can be attributed to participants' the ability of women to succeed as a business. The subjective belief that with the participation rate, they women manager and the women potential entrepreneurs accumulated knowledge and developed skills to manage a from: Bihor, Timi , Arad, Maramure , Cara Severin, business in difficult times. Satu Mare, considered în percentage over 72% like high There is a growing skepticism amid subjects composed and medium the opportunity levels for a woman to open a TG II, probably based on a more acute perception of the business in the current circumstances of the country. phenomenon of crisis. The percentage of women The percentage of subjects composed TG I Women potential entrepreneurs who appreciate the chances of manager, which accredited medium and high level opening a successful business are low, but register an chances for a woman to open a business in the new increase from 21% to 26%, the difference appeared as a conjuncture of crisis that Romania passes through, shift of options from medium chances to low chances. increased from 71.34% to 78% after attending the course.
ISSN: 1792-5983 600 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
Table no. 4 reveals that there is a slight shift towards a choice of internal motivations. Self development desire as motivation for starting a business represents choice no. 1 for the both target groups, higher in the case of women manager. Associated with desire to have a higher social and professional status, could be a central point of a efficient and efficiency communication strategy. The need to earn more is the second choice of the women from western part of Romania, decreasing from women manager and increasing for women potential entrepreneurs.
Table 4. Reasons why a women is willing to start a business Reasons Choice 1 Choice 2 Choice 3 Choice 4 Choice 5 Self Need to earn Desire to Market Passion development more have a higher opportunities desire social and Target professional Group (TG) status Women 50,5 % 36,8 % 9,4 % 2,9 % 0,4 % manager (TG I) – test Women 52 % 33 % 10 % 3 % 2 % manager (TG I) – re test Women 50,49 % 36,75 % 9,43 % 2,91 % 0,42 % potential entrepreneurs (TG II) – test Women 46 % 39 % 9 % 3 % 3 % potential entrepreneurs (TG II) – re test
Table 5. Opinions of female managers towards the main qualities of a women who needs to open a business Quality/Feature Frequencies Rank Frequencies Rank test test re test re test Confidence, courage, optimism 38 1 36 1 Professional skills, knowledge and 18 2 18 2 experience Intelligence, intellectual resources 16 3 17 3 Will and ambition 15 4 16 4 Working power, tenacity, perseverance 13 5 10 6 Managerial skills, leadership qualities 11 6 12 5 Motivation, determination, desire to 11 6 10 6 succeed Creativity, imagination, initiative 8 7 8 7 Responsibility, reliability, consistency 5 8 6 8 Capacity of socialization, communication 4 9 3 9 skills, flexibility, adaptability Financial potential, access to resources 3 10 2 10 Fairness, character, honour, honesty, 2 I1 6 8 integrity
ISSN: 1792-5983 601 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
Regarding opinions of the main qualities of a woman the case of Choice 2 “Professional skills, knowledge and who needs to open a business, (table no. 5, 6) the subjects experience”, the frequency choice in Class IX show a relative constancy of options. The first 4 choices, “Managerial skills, leadership qualities” increases can be identic for the both target groups, are in order: 1. interpreted as a greater awareness of the need for Confidence, courage, optimism; 2. Professional skills, personal effort and continued commitment to investment. knowledge and experience; 3. Will and ambition; 4. Business success is probably perceived directly related to Intelligence, intellectual resources. We can observe a a positive self image and good motivation ability in terms higher constancy on women manager’opinions than of external pressure. Overcoming the difficulties of the women who want to start a business. crisis is, according to subjective perceptions, an effort of Relating the meaning of the factor “working power, will and this is reinforced by the accumulations made tenacity, perseverance” can be observed an increase. In during the course.
Table 6. Opinions of women who want to start a business towards the main qualities of a women who needs to open a business Quality/Feature Frequencies Rank Frequencies Rank test test re test re test Confidence, courage, optimism 170 1 106 1 Professional skills, knowledge and 103 2 67 2 experience Will and ambition 98 3 57 3 Intelligence, intellectual resources 86 4 39 4 Working power, tenacity, perseverance 55 5 31 6 Motivation, determination, desire to 50 6 36 5 succeed Responsibility, reliability, consistency 36 7 36 5 Creativity, imagination, initiative 34 8 25 8 Managerial skills, leadership qualities 23 9 30 7 Financial potential, access to resources 20 10 18 9 Capacity of socialization, communication 13 11 5 11 skills, flexibility, adaptability Fairness, character, honour, honesty, 12 12 16 10 integrity
In conclusion due to this results we consider that 3) the strong internal motives of women to begin a women’s business potential from the west part of business; Romania is high releaved by: 4) the opinions’s hierarchy related to the mains abilities 1) the business plans elaborated; necessary for a business women. 2) the self confidance of women compose the two target groups in their chances to start a business;
[4] Ajzen, I., The Theory of Planned Behavior, References: Organizational Behavior and Human Decision [1] Cousins, Ch., Tang N., Working time, gender and Process, 1991, pp.179 211; family in west and central Europe, 2003 retrieved from [5] Shapero A., Sokol L., The social dimension http://perseus.herts.ac.uk./uhinfo/library/b17108_3.pdf; of entrepreneurship. In: The Encyclopedia of [2] The Life of Women and Men in Europe. A Statistical Entrepreneurship, Prentice Hall, 1982, pp.72 90; Portrait, Eurostat, 2008; [6] Krueger, N.F., The impact of prior [3] IRSOP Market Research & Consulting Report, entrepreneurial exposure on perceptions of new Romanian and European values and beliefs: are they venture feasibility and desirability, different or not?, June 2005 retrieved from Entrepreneurship theory and Practice, 1993, pp. http://www.infoeuropa.ro/ieweb/imgupload/IRSOP_Rom 91 102; ania_values_European_values_00001.pdf; [7] Harrington H.J., Harrington J.S., Management total, Editura Teora, Bucure ti, 2001;
ISSN: 1792-5983 602 ISBN: 978-960-474-241-7 Proceedings of the 5th WSEAS International Conference on Economy and Management Transformation (Volume II)
[8] Jahan, R., The Elusive Agenda: Mainstreaming Women in Development, Zed Books: London, 1995.
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