Mastercard Index of Women Entrepreneurs 2019
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Mastercard Index of Women Entrepreneurs 2019 1 | Page Mastercard Index of Women Entrepreneurs 2019 TABLE OF CONTENTS 1.0 INTRODUCTION 1.1 Mastercard Index of Women Entrepreneurs 2019 Summary 1.2 Description of Indicator and Sources 1.3 Key Changes to Sub‐Indicators 2.0 OVERVIEW OF KEY FINDINGS 2.1 Benchmark: Women Business Owners 2.2 Results of The Mastercard Index of Women Entrepreneurs (2019) 2.3 Component A: Women’s Advancement Outcomes 2.4 Component B: Knowledge Assets & Financial Access 2.5 Component C: Supporting Entrepreneurial Conditions 3.0 EXPECTATIONS OF WOMEN’S PROGRESS AS BUSINESS OWNERS 4.0 CONCLUSION 5.0 CASE STUDIES OF SELECTED MARKETS 5.1 The United States 5.2 Canada 5.3 Ireland 5.4 New Zealand 5.5 Switzerland 5.6 Singapore 5.7 The United Kingdom 5.8 Sweden 5.9 France 5.10 United Arab Emirates 2 | Page Mastercard Index of Women Entrepreneurs 2019 1. INTRODUCTION 1.1. Mastercard Index of Women Entrepreneurs 2019 Summary Now in its third year, the annual Mastercard Index of Women in Entrepreneurs (MIWE) continues to provide invaluable insights into the progress and achievements of women in business. Despite many challenges, female entrepreneurs are opening successful businesses faster than ever before, and MIWE brings to the forefront the broad set of variables propelling this dynamism, globally. This year’s report is a tale of two halves. At one end, it reaffirms the idea of opportunity‐driven entrepreneurial activity; where high‐income, advanced economies, with open and vibrant markets that support SMEs and ease of doing business, such as the US, New Zealand, Canada, Australia, Ireland, Switzerland and Singapore provide highly conducive and enabling conditions that helps fuel women as business owners. And at the other end of the spectrum, MIWE challenges some perceptions, and lays bare the necessity‐driven entrepreneurial activities which has led to a surge in female entrepreneurs in markets such as Uganda, Ghana and Botswana. Today, these markets have more women in business as a percentage of all business owners than any developed market. Except for 7 markets, the report confirms that gender inequality is ubiquitous but manifests across markets in differing ways. It also reveals that even markets with high overall index scores, still have other gender disparities to contend with, such as the income gap between women and men business owners. Spanning 58 markets and representing nearly 80 percent of the world’s female labor force, MIWE deploys three components to examine these economies ‐ (i) Women’s Advancement Outcomes, (ii) Knowledge Assets & Financial Access, (iii) and Supporting Entrepreneurial Conditions ‐ made up of several indicators. As well as key economic factors, MIWE explores social and cultural barriers to entry. It interrogates factors such as fear of failure, how society perceives entrepreneurial failure and risk taking, gender discrimination, lack of confidence, poor mentorship and networking support, affecting women in otherwise highly favourable and supportive entrepreneurial markets. In a deep‐dive of 10 markets, MIWE showcases how each of these economies are performing, the strengthen and enablers, constraints and the way ahead. And while each market requires a nuanced approach, these findings provides fresh thinking for how all governments, policymakers, stakeholders, businesses, individuals and anyone with vested interest in designing a better world for women can create limitless possibilities for all. 3 | Page Mastercard Index of Women Entrepreneurs 2019 1.2. Description of Indicator and Sources The Mastercard Index of Women Entrepreneurs (MIWE) 2019 is the 3rd report profiling the progress and achievement of women entrepreneurs/business owners across 58 societies around the world. With Angola as the newest market added to the Middle East & Africa region, the Index expands its attempt to track the factors that underpin the gender gap among business owners. Representing nearly 80% of the world’s female labor force, we highlight how the 58 markets differ at 3 levels: (i) Women’s Advancement Outcomes, (ii) Knowledge Assets & Financial Access, and (iii) Supporting Entrepreneurial Factors. The results also shed light on which factors and conditions are the most conducive in helping to narrow the gender gap among female entrepreneurs/business owners, or the most inhibitive and disabling, thereby weighing on women’s ability to thrive in business. 1.3. Key Changes to Sub‐Indicators Women Business Owners (as % of Total Business Owners)1 is the benchmark indicator of the MIWE, which is derived from the 3 components, 12 indicators and 25 sub‐indicators. It should be noted that due to major changes in estimations by data sources as well as the replacements of 11 sub‐indicators that have been discontinued or no longer regularly updated, the MIWE scores in this 2019 publication should not be compared to those of previous publications. Mastercard Index of Women Benchmarked Women Business Owners Entrepreneurs against (F%T) Supporting Knowledge Assets & Women’s Advancement Entrepreneurial Financial Access Outcomes Conditions (30%, 4 Indicators, (40%, 4 Indicators) (30%, 4 Indicators, 10 sub‐indicators) 15 sub‐indicators) B1. Women Borrowing or A1. Women Business C1. Ease of Doing Saving for Business (F/M) Leaders (F%T) Business (2 sub‐indicators) B2. Women Financial C2. Cultural Perceptions A2. Women Professionals Inclusion (F/M) of Women Entrepreneurs & Technical Workers (F%T) (3 sub‐indicators) (5 sub‐indicators) A3. Women C3. Quality of B3. Support for SMEs Entrepreneurial Activity Governance (5 sub‐indicators) Rate (F/M) (5 sub‐indicators) B4. Women Tertiary C4. Entrepreneurial A4. Women Labor Force Education Gross Supporting Factors Participation (F/M) Enrollment Rate (F/M) (5 sub‐indicators) 1 Sourced from International Labor Organization, 2018 4 | Page Mastercard Index of Women Entrepreneurs 2019 The table below lists the 58 markets spanning five geographic (Asia Pacific, Europe, North America, Latin America, Middle East & Africa) regions covered by the index. 1 2 Market Code Income Level Stage of Development Asia Pacific (15) Australia AUS High income Innovation Driven Hong Kong SAR HKG High income Innovation Driven Japan JPN High income Innovation Driven Korea KOR High income Innovation Driven New Zealand NZL High income Innovation Driven Singapore SGP High income Innovation Driven Taiwan (China) TWN High income Innovation Driven Mainland China CHN Upper middle income Efficiency Driven Malaysia MYS Upper middle income Efficiency Driven Thailand THA Upper middle income Efficiency Driven Bangladesh BGD Lower middle income Factor Driven India IND Lower middle income Factor Driven Indonesia IDN Lower middle income Factor/Efficiency Driven Philippines PHL Lower middle income Factor Driven Vietnam VNM Lower middle income Factor Driven Europe (18) Belgium BEL High income Innovation Driven Czech Republic CZE High income Innovation Driven Denmark DNK High income Innovation Driven France FRA High income Innovation Driven Germany DEU High income Innovation Driven Hungary HUN High income Efficiency/Innovation Driven Ireland IRL High income Innovation Driven Italy ITA High income Innovation Driven Poland POL High income Efficiency/Innovation Driven Portugal PRT High income Innovation Driven Spain ESP High income Innovation Driven Sweden SWE High income Innovation Driven Switzerland CHE High income Innovation Driven United Kingdom GBR High income Innovation Driven Israel ISR High income Innovation Driven Romania ROU Upper middle income Efficiency/Innovation Driven Russia RUS Upper middle income Efficiency/Innovation Driven Turkey TUR Upper middle income Efficiency/Innovation Driven North America (2) Canada CAN High income Innovation Driven United States USA High income Innovation Driven Latin America (9) Chile CHL High income Efficiency/Innovation Driven Uruguay URY High income Efficiency/Innovation Driven Argentina ARG Upper middle income Efficiency Driven Brazil BRA Upper middle income Efficiency Driven Colombia COL Upper middle income Efficiency Driven Costa Rica CRI Upper middle income Efficiency Driven Ecuador ECU Upper middle income Efficiency Driven Mexico MEX Upper middle income Efficiency/Innovation Driven Peru PER Upper middle income Efficiency Driven Middle East & Africa (13) Saudi Arabia SAU High income Factor/Efficiency Driven United Arab Emirates ARE High income Innovation Driven Algeria DZA Upper middle income Factor/Efficiency Driven *Angola AGO Upper middle income Efficiency Driven Botswana BWA Upper middle income Factor/Efficiency Driven Islamic Republic of Iran IRN Upper middle income Efficiency Driven South Africa ZAF Upper middle income Efficiency Driven Egypt EGY Lower middle income Factor/Efficiency Driven Ghana GHA Lower middle income Factor Driven Nigeria NGA Lower middle income Factor Driven Tunisia TUN Lower middle income Efficiency Driven Ethiopia ETH Low income Factor Driven Malawi MWI Low income Factor Driven Uganda UGA Low income Factor Driven Notes: * Angola is the newest market added to the MEA region in the 2019 MIWE publication. 1 World Bank GNI Per Capita Income Classifiers. 2 World Economic Forum Stage of Development Classifiers 5 | Page Mastercard Index of Women Entrepreneurs 2019 BENCHMARK Description Indicator (Source, Period) ‐Women Business Owners as a % of Total Business Owners ‐Measures the bias against women compared to men as business owners defined as owners who employ at least one Women Business Owners (F%T) employee other than themselves (International