AUTHORS SPECIAL REPORT DONNA KELLEY CANDIDA BRUSH PATRICIA GREENE Women’s MIKE HERRINGTON ABDUL ALI Entrepreneurship PENNY KEW GEM WOMEN’S SPECIAL REPORT
SPECIAL REPORT
Women’s Entrepreneurship 2015
ACKNOWLEDGEMENTS
The authors express our gratitude to all participating GEM 2013 and 2014 national teams: Algeria, Angola, Argentina, Australia, Austria, Barbados, Belgium, Belize, Bolivia, Bosnia & Herzegovina, Botswana, Brazil, Burkina Faso, Cameroon, Canada, Chile, China, Colombia, Costa Rica, Croatia, Czech Republic, Denmark, Ecuador, El Salvador, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Guatemala, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Republic of Korea, Kosovo, Kuwait, Latvia, Libya, Lithuania, Luxembourg, Macedonia, Malawi, Malaysia, Mexico, Netherlands, Nigeria, Norway, Panama, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar, Romania, Russia, Singapore, Slovakia, Slovenia, South Africa, Spain, Suriname, Sweden, Switzerland, Taiwan, Thailand, Trinidad and Tobago, Turkey, Uganda, United Kingdom, United States, Uruguay, Vietnam, Zambia.
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ABOUT THE AUTHORS
DONNA KELLEY entrepreneurship, sharing her views on how to change the way the world does business with anyone who will listen. Her latest entrepreneurial endeavor is as a co-owner of Donna Kelley is a Professor of Entrepreneurship at Artworks, a specialty store in Gettysburg, PA. Babson College, and holds the Frederic C. Hamilton Chair of Free Enterprise. Prof. Kelley is a board member of the Global Entrepreneurship Research Association (GERA), MIKE HERRINGTON the oversight board of GEM, and leader of the GEM U.S. team. She has co-authored GEM reports on global entrepreneurship, ambitious and innovative entrepreneurs, Mike Herrington is the Executive Director of GEM and women’s entrepreneurship, entrepreneurship education formerly Director of the UCT Centre for Innovation and and training, and entrepreneurship in the U.S., Korea, Entrepreneurship (CIE) at the UCT Graduate School of and Africa. She has presented GEM at the United Nations, Business. He is a recognised entrepreneur, having started the U.S. State Department, the World Bank, and for four businesses – one in New Zealand and three in South many other organizations. Besides teaching a variety of Africa. He was responsible for starting the CIE and has entrepreneurship courses at Babson College, Prof. Kelley taught entrepreneurship at all levels both at the business has taught seminars and courses at top universities in China school and within the University of Cape Town more and Korea, and worked in Bandung, Indonesia as a Fulbright broadly for more than a decade. His leading activities Specialist. She received her Ph.D. in Management from are in the areas of entrepreneurship, business planning, Rensselaer Polytechnic Institute. Her early career involved internationalisation of business and venture capital. work as a chemist and in entrepreneurial ventures in the health/fitness, computer hardware and education fields ABDUL ALI
CANDIDA BRUSH Dr Abdul Ali’s research, teaching, and consulting focus on entrepreneurial marketing, new product Dr Candida Brush is Franklin W. Olin Distinguished management, marketing analytics, marketing strategy Chair in Entrepreneurship at Babson College and serves and marketing high-tech products. His work has appeared as Vice Provost of Global Entrepreneurial Leadership. in numerous journals. He has been a member of the Professor Brush is well known for her pioneering research US Global Entrepreneurship Monitor (GEM) team since in women’s entrepreneurship, and is a co-founder of 2008 and has also written chapters on Innovation and the Diana Project an international research consortium Entrepreneurship in the United States GEM Executive investigating women’s access to growth capital Reports. He was an Area Editor of Marketing and internationally. She was named the 2007 recipient of the Entrepreneurship for the Journal of Asia Business Studies FSF - Swedish Research Foundation International Award from Fall, 2006 to Spring 2014. for Outstanding Research Contributions in the Field of Entrepreneurship. Her research investigates resource acquisition, strategy and financing of new ventures. PENNY KEW
PATRICIA GREENE Penny Kew is a qualified veterinarian as well as holding an MSc in Tropical Veterinary Medicine from Edinburgh University. As a Rhodes Scholar, she obtained a Patricia G. Greene is the Paul T. Babson Chair in first-class Honours degree in English Language and Entrepreneurial Studies at Babson College where she Literature, as well as an MSc in Comparative and formerly served first as Dean of the Undergraduate International Education, from Oxford University. She School and later as Provost. Greene’s current assignment has been involved in the area of education and training at Babson is to serve as the academic director for the since 1997. Penny has been involved in a number of the Goldman Sachs 10,000 Small Businesses and 10,000 South African GEM reports: she was principal researcher Women programs. Dr. Greene is a founding member of and author on the 2008, 2009 and 2010 reports and the Diana Project, a research group dedicated to studying since then has been involved on a consultancy as well women business owners and their businesses. Her as editing basis. She has co-authored a number of latest co-authored book is Teaching Entrepreneurship, special reports on entrepreneurship - most recently on a Practice Based Approach. She loves to talk about the ASEAN region, and on youth entrepreneurship.
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CHAPTER 3: Societal attitudes and the CONTENTS influence on women’s entrepreneurial behavior
39 3.1 Knowing an entrepreneur 4 LIST OF FIGURES AND TABLES 41 3.2 Opportunity perceptions 8 EXECUTIVE SUMMARY 43 3.3 Capabilities perceptions 10 INTRODUCTION 43 3.4 Changes in opportunity and capabilities perceptions from 2012 CHAPTER 1: Women’s participation in entrepreneurship across multiple 45 3.5 Fear of failure phases of activity 45 3.6 A comparative overview of 14 1.1 Participation in entrepreneurship female entrepreneurial attitudes across multiple phases of activity ENTREPRENEURS’ STORIES 15 1.1.1.Entrepreneurial intention 49 ANJA STAEGE-THYLMANN (GERMANY): STYLE CATS 17 1.1.2.Early-stage entrepreneurial activity 50 VERONICA MOLINA (ECUADOR): ECLIPSOFT 19 1.1.3.Changes in TEA rates from 2012
20 1.1.4.Established business activity CHAPTER 4: Women’s entrepreneurship impact 22 1.1.5.Business closure 51 4.1 Industry sector 23 1.2. A comparative overview of female entrepreneurial activity 53 4.2 Job creation
ENTREPRENEURS’ STORIES 56 4.3 Innovation
25 VALRIE GRANT (JAMAICA): 57 4.4 Changes in job expectations and GEOTECHVISION ENTERPRISES LTD innovation from 2012
27 GEORGIA BEATTIE (MELBOURNE, AUSTRALIA): 57 4.5 International sales LUPE WINES AND SINGLE SERVICE PACKAGING 58 4.6 A comparative overview of female entrepreneurial impact CHAPTER 2: Characteristics of women entrepreneurs 60 4.7 The relationship between GEM and WEF gender gap indicators 29 2.1 Age ENTREPRENEUR’S STORY 30 2 2. Education level 63 AMEERA SAFTER (SOUTH AFRICA): 30 3 2. Motivation KO KREATIV PROJECTS
35 4 2. Teams 65 CONCLUSIONS ENTREPRENEUR’S STORY 69 APPENDIX A: 37 NINH THI TY (VIETNAM): Entrepreneurship profiles of economies HO GUOM GARMENTS AND covered in the report, by region CHIEN THANG GARMENTS
152 APPENDIX B: The GEM model and methodology
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LIST OF FIGURES AND TABLES
LIST OF FIGURES Figure 17 - Regional Patterns in Relationship between TEA Rates and Opportunity-Motivation Figure 1 - Percentage of Adults Intending To Start a Business in Factor- and Efficiency-Driven Economies, by Region and Figure 18 - Percentage of Entrepreneurs Starting in Teams Gender of Three or More for Factor -and Efficiency-Driven Countries, by Region and Gender Figure 2 - Percentage of Adults Intending To Start a Business in Innovation-Driven Economies, by Region and Gender Figure 19 - Percentage of Entrepreneurs Starting in Teams of Three or More for Innovation-Driven Countries, by Region Figure 3 - TEA Rates for Factor- and Efficiency-Driven and Gender Economies, by Region and Gender Figure 20- Relationship Between Team Size and Job Figure 4 - TEA Rates for Innovation-Driven Economies, by Aspirations Region and Gender Figure 21 - Percentage of Adults Who Personally Know an Figure 5 -Established Business Ownership in Factor- and Entrepreneur in Factor- and Efficiency-Driven Economies, by Efficiency-Driven Economies, by Region and Gender Region and Gender
Figure 6 - Established Business Ownership in Innovation- Figure 22 - Percentage of Adults Who Personally Know an Driven Economies, by Region and Gender Entrepreneur in Innovation-Driven Economies, by Region and Gender Figure 7 - Business Closure in Factor- and Efficiency-Driven Economies, by Region and Gender Figure 23 - Relationship between Knowing an Entrepreneur and Female TEA Rates Figure 8 - Business Closure in Innovation-Driven Economies, by Region and Gender Figure 24 - Percentage of Adults Who Perceive Opportunities in Factor- and Efficiency-Driven Economies, by Region and Figure 9 - Multiphase Analysis of Activity, by Development Gender Level Figure 25 - Percentage of Adults Who Perceive Opportunities Figure 10 - Multiphase Analysis of Activity, for Factor- and in Innovation-Driven Economies, by Region and Gender Efficiency-Driven Regions Figure 26 - Relationship Between Female Opportunity Figure 11 - Multiphase Analysis of Activity, for Innovation- Perception and TEA Rates Driven Regions Figure 27 - Percentage of Adults who Perceive They Have Figure 12 - Female TEA Rates, by Age Cohort and Region Capabities to Start a Business In Factor- and Efficiency- Driven Economies, by Region and Gender Figure 13 - Proportion of Entrepreneurs with Post-Secondary Degree of Higher Level of Education for Factor and Figure 28 - Percentage of Adults Who Perceive They Efficiency-Driven Economies, by Region and Gender Have Capabities to Start a Business In Innovation-Driven Economies, by Region and Gender Figure 14 - Proportion of Female Entrepreneurs with Post-Secondary Degree of Higher Level of Education for Figure 29 - Relationship Between Female Capabilities Innovation-Driven Economies, by Region and Gender Perception and TEA Rates
Figure 15 - Percentage of Entrepreneurs with Opportunity Figure 30 - Fear of failure Rates Among Those Seeing Motive for Factor- and Efficiency-Driven Economies, by Opportunities in Factor- and Efficiency-Driven Economies, by Region and Gender Region and Gender
Figure 16 - Percentage of Entrepreneurs with Opportunity Figure 31 - Fear of Failure Rates Among Those Seeing Motive for Innovation-Driven Economies, by Region and Opportunities in Innovation-Driven Economies, by Region Gender and Gender
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Figure 32 - Analysis of Entrepreneurial Attitudes, by Figure 48: Conventional Model of National Economic Development Level Growth
Figure 33 - Analysis of Entrepreneurial Attitudes for Factor Figure 49: Model of Entrepreneurship Processes Affecting and Efficiency-Driven Economies National Economic Growth
Figure 34 - Analysis of Entrepreneurial Attitudes for Figure 50: The GEM Conceptual Framework used in GEM Innovation-Driven Economies Surveys up to 2014
Figure 35 - Early-Stage Entrepreneurial Activity, by Industry Figure 51: The GEM Conceptual Framework Sector and Gender Figure 52: The Entrepreneurship Process and GEM Figure 36 - Female Early-Stage Entrepreneurial Activity across Operational Definitions Industry Sectors in Factor- and Efficiency-Driven Regions
Figure 37 - Female Early-Stage Entrepreneurial Activity across LIST OF TABLES Industry Sectors in Innovation-Driven Regions Table 1 - GEM Economies by Geographic Region and Figure 38 - Percentage of Entrepreneurs with 6+ Job Economic Development Level Projections in Factor- and Efficiency-Driven Economies, by Region and Gender Table 2 - Entrepreneurial Intentions (Average) by Region and Gender Figure 39 - Percentage of Entrepreneurs with 6+ Job Projections an Innovation-Driven Economies, by Region and Table 3 - TEA Rates (Average) By Region and Gender Gender (Percentage of Adult Population for Each Gender Involved In TEA) Figure 40 - Percentage of Entrepreneurs with Innovative Products/Services in Factor- and Efficiency-Driven Economies, Table 4 - Percentage Change in Female TEA Rates and By Region and Gender Female/Male TEA Ratio From 2012
Figure 41 - Percentage of Entrepreneurs with Innovative Table 5 – Average Rates for Opportunity Motivated TEA, by Products/Services in Innovation-Driven Economies, by Region Region and Gender and Gender Table 6 – Percentage Change in Female Rates and Female/ Figure 42 - Percentage of Entrepreneurs with Strong Male Ratio from 2012 for Societal Perceptions About International Orientation in Factor- and Efficiency-Driven Opportunities and Capabilities Economies, by Region and Gender Table 7 – Percentage Change in Female Rates and Female/ Figure 43 - Percentage of Entrepreneurs with Strong Male Ratio from 2012 for Job Expectations and Innovation International Orientation in Innovation-Driven Economies, by Region and Gender Table 8 – Cluster Members (grouping of 75 economies)
Figure 44 - Analysis of Entrepreneurial Impact, by Table 9 – Hierarchical Cluster Analysis Development Level
Figure 45 - Analysis of Entrepreneurial Impact, for Factor- and Efficiency-Driven Economies
Figure 46 - Analysis of Entrepreneurial Impact, For Innovation- Driven Economies
Figure 47 - Diagram of Clusters Based on GEM Entrepreneurship Indicators
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EXECUTIVE SUMMARY
ver the past decade and around the world, comprehensive overview of women’s entrepreneurship, women have made substantial progress in drawing on current and longitudinal data captured health and education, as well as in political and through the work of the GlobalAUTHORS Entrepreneurship Monitor economicSPECIAL arenas. This broad span of genderREPORT research consortium. This reportDONNA covers KELLEY 83 economies: equityO progress is most encouraging. It is occurring at a time 73 economies that participated in the 2014 GEM cycle, CANDIDA BRUSH when entrepreneurship is recognized as critical to economic and 10 economies included in the survey of 2013 but development and sustainability worldwide. Given the global not of 2014. Therefore, this PATRICIAreport covers GREENE all economies challenge of employment, it is imperative to enableWomen’s women, participating in GEM since theMIKE last report,HERRINGTON which was who comprise half the global population, to participate based on the 2012 cycle. constructively in the economic activities of their countries or ABDUL ALI regions. EntrepreneurshipEntrepreneurship development is a key element in The GEM Special Report: Women’sPENNY Entrepreneurship KEW strategies that allow economies to benefit from the talents, offers an in-depth view of women who start and run energy and ideas – the productive potential – that women businesses around the world. It provides a broadly bring to the labor market. global and comprehensively detailed foundation to guide future research, policy decision-making and the design In order to continue to inform the global discussion of initiatives and programs to enhance awareness on the scale, scope, practice and impact of women’s and participation in women’s entrepreneurship. entrepreneurship, this special report presents a The report facilitates understanding of women’s
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entrepreneurship by researchers, policy-makers, gap is greatest in Turkey, where there are three female educators and practitioners. The ultimate aim is to entrepreneurs for every 10 male entrepreneurs. foster an environment that: encourages women to see entrepreneurship as a viable career option; equips them Africa’s high female TEA rates are fuelled by a high with the tools to create the type and quality of business proportion of women who intend to start a business in the each wishes to build; and creates awareness among near future. In a number of regions, women are approaching stakeholders who will support their efforts. gender equity in entrepreneurial intentions, notably Latin America and the Caribbean, Africa, the Middle East, and The report provides information on female entrepreneurship Asia and Oceania (factor- and efficiency-driven). The Middle rates and gender gaps in the following key areas: East however, despite high intentions, exhibits among the ■■ Participation at multiple phases of activity lowest regional averages for TEA and among the largest ■■ Characteristics and motivations of women regional gender gaps. entrepreneurs ■■ Societal attitudes about entrepreneurship The difference between TEA and established business ■■ Impact indicators among entrepreneurs rates is minimal for innovation-driven economies, while factor- and efficiency-driven economies show half the Unique features of this report include: assessments level of established business activity relative to TEA. of the percentage change in rates and gender gap for This suggests greater demand for entrepreneurship in key indicators among 61 economies featured in reports developing economies than in developed economies, for 2012 and 2014; and analyses of the relationship with comparatively fewer enterprises making it to the between gender gap indicators, measured by the mature stage. Innovation-driven economies exhibit less World Economic Forum, and GEM entrepreneurship demand for entrepreneurship, but those who start are rates. The report also highlights comparisons across more likely to start sustainable businesses, and/or the economic development levels and regional groups for environment enables this sustainability. multiple indicators on activity, attitudes, and impact. Additionally, the appendix offers an in-depth look at the ENTREPRENEUR CHARACTERISTICS entrepreneurship profile of each economy the report covers. The factor- and efficiency-driven regions tend toward younger entrepreneurs, with the 25-34 age groups having the highest rates. This is also the case in North America, while the remaining innovation-driven regions show the KEY FINDINGS highest entrepreneurship rates among 35-44 year-olds.
ENTREPRENEURSHIP ACTIVITY The education level of entrepreneurs is approaching gender parity; 33% of women entrepreneurs in the Among 61 economies (out of 83) featured in this report economies studied have a secondary degree or higher and also in the previous report based on 2012 data, level of education, versus 36% of men entrepreneurs. overall Total Early-Stage Entrepreneurship Activity Among entrepreneurs in most economies of efficiency- (TEA) rates have increased by 7% since 2012, and the driven Europe and innovation-driven regions, women are gender gap (ratio of women to men participating in more likely than men to have this level of education. entrepreneurship) has narrowed by 6%. TEA rates and gender gap ratios saw positive upward movement in three The gender gap in the percentage of entrepreneurs with regions: factor- and efficiency-driven Asia, Latin America opportunity motivations is relatively low in every region. and the Caribbean and innovation-driven Europe. In the innovation-driven Middle East economies, women are proportionately more likely to have opportunity The 83 economies examined in this report show motives, but the TEA gender gap suggests that few start substantial differences in women’s TEA rates, ranging relative to men and rarely out of necessity. from a high of 41% in Nigeria and Zambia to a low of 2% in Suriname and Japan. In 10 economies, women This report adds evidence to research emphasizing the are as likely as men, or more likely than men, to be value of starting in teams. The GEM findings suggest entrepreneurs. These economies come from three that economies with a higher percentage of women regions: El Salvador and Brazil in Latin America and entrepreneurs starting in teams of three or more also have the Caribbean; Vietnam, Indonesia, Malaysia and the a greater proportion of those with job creation ambitions. Philippines in Southeast Asia; and Zambia, Nigeria, The highest prevalence of women entrepreneurs operating Uganda and Ghana in Africa. In contrast, women in in teams was in the innovation-driven Middle East (27%) and many efficiency-driven European and innovation-driven innovation-driven Asia and Oceania (24%) regions. Teams Asian economies exhibit TEA rates less than half those were especially rare among women entrepreneurs in factor- of men. These low female participation rates contribute and efficiency-driven Asia (7%), Africa (11%), and Latin to low overall TEA rates in these regions. The gender America and the Caribbean (11%).
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ATTITUDES a comparatively balanced distribution of sectors among women entrepreneurs. Among innovation-driven economies, High female TEA rates in an economy are associated with North America and Europe exhibit a high prevalence (over the likelihood that women in society know an entrepreneur. one-fourth) of women entrepreneurs in the knowledge- It may be the case that where more entrepreneurs are intensive business services sector. present in an economy, women will commonly know one. However, affiliations with entrepreneurs can offer role Job creation aspirations among women are high in models, advice, contacts and support, which may explain efficiency-driven Europe, a region of relatively low TEA rates. why economies with many women who know entrepreneurs This suggests that this region has fewer entrepreneurs who are also likely to have high female startup rates. Many are, on average, more likely to grow and employ others. European economies exhibit an interesting finding, reporting Although innovation-driven economies typically show low female entrepreneurship rates, but many women in a higher proportion of entrepreneurs with job creation society who know entrepreneurs. aspirations, this report shows that women in factor- and efficiency-driven economies report less difference from Female TEA rates are also high where women hold strong innovation-driven economies on this measure, compared to perceptions about the presence of opportunities for starting other impact indicators. a business. The gender difference for this indicator is relatively narrow (40% for women versus 45% for men), Women entrepreneurs in nearly half of the economies in and in a number of factor- and efficiency-driven economies, the GEM sample report equal or higher innovation levels women are slightly more likely than men to perceive good than men entrepreneurs. In almost three-quarters of the business opportunities. Among the 61 economies featured economies in efficiency-driven Europe, female entrepreneurs in both this report and the 2012 report, Europe, Israel report higher levels of innovation than male entrepreneurs; and the United States saw increased female opportunity this may, in part, be attributed to the fact that there perceptions, but with less change to the gender ratio. are proportionately more educated women (than men) In Asia, opportunity perceptions were noticeably lower, entrepreneurs in this region. In Chile and India, more than especially among innovation-driven economies. half of women entrepreneurs believe they offer innovative products or services. This report shows a strong positive association between capability perceptions and TEA rates among women. Since the 2012 report, the proportion of female The findings also reveal a noticeable gender gap in this entrepreneurs with 6+ job aspirations and innovative indicator (46% for women versus 59% for men). Opportunity offerings has declined among 61 economies (by 9% from perceptions are reflective of the external environment; 2012 for job aspirations and 6% from 2012 for innovation). these often shift with changing conditions in an economy. However, this decline was also seen in male entrepreneurs; Capability perceptions, on the other hand, are more as a result there was little or no change in the gender reflective of one’s self-perceptions, which are more stable ratios overall for these indicators. In factor- and efficiency- or slowly changing. Evidence of this can be seen in the driven Asia, and in efficiency-driven Europe and Israel, both comparison of 61 economies that showed little change in the rates and the gender ratio around job expectations capability perceptions from that reported in 2012. have declined. However, the rates and the gender ratio around innovation have improved, suggesting a focus Fear of failure among women is lowest in African economies, towards innovation, but lower expectations for job creation. which, along with many Asian economies, shows fear of Innovation-driven Asia saw declines in both job aspirations failure rates among women are often equal to or lower than and innovation, while the United States showed positive that of men. Wider gender gaps appear in the majority of improvements in both indicators. economies of efficiency-driven Europe and Latin America and the Caribbean. Fear of failure may be influenced by such Factor- and efficiency-driven Asia, and also Africa, report factors as the perceived risks associated with the typical low international orientation among women entrepreneurs business one may start, or the extent to which women in most economies. In contrast, women entrepreneurs believe there will be negative consequences, or few other across Europe display particularly high levels of choices for income, if their businesses don’t work out. internationalization.
IMPACT Analyses of TEA rates with gender gap indicators measured by WEF, show that the rate of female entrepreneurship More than two-thirds of women entrepreneurs operate in activity increases significantly with greater parity in the consumer-oriented sector, with around three-fourths economic participation, but decreases significantly with of women entrepreneurs competing in these types of greater educational attainment. This indicates that the more businesses in Africa, in factor- and efficiency-driven Asia, women participate in the economy relative to men, the more and in Latin America and the Caribbean. By comparison, likely they are to be entrepreneurs. However, where women 45% of men entrepreneurs compete in this sector. Distinct achieve a higher level of education than men, they start results can be seen in efficiency-driven Europe, which shows businesses less frequently.
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IMPLICATIONS
1. Women matter to economic development – they invest Women entrepreneurs in in their communities, educate their children, and pay back the benefits they receive by helping others. This report nearly half of the economies in has revealed improvements in female entrepreneurship rates and gender gaps in 61 economies in no more than the GEM sample report equal two years. Other results show gender equity in many regions and in indicators such as education and innovation or higher innovation levels levels. Greater awareness of the importance and nature of women’s entrepreneurship and programs addressing than men entrepreneurs. these efforts may have already contributed to progress in this activity. Continued efforts are essential everywhere, while regional variations imply distinct needs and levels of emphasis in different parts of the world. fear of failure. Capabilities are rooted in both education and in social support. Economies with initiatives that increase 2. Environmental conditions and constraints weigh visibility and access to role models are likely to encourage differently on the sexes. This continues to be the biggest women entrepreneurs to start and grow businesses. challenge women face worldwide. Subtle biases exist in Programs that enhance skills and competencies for women many societies that suggest women have lower ambitions or entrepreneurs, and other initiatives such as mentoring and are less capable, or that running businesses is inappropriate advising, should include developing and assessing women’s for them. This can, for example, inhibit their ability to gain confidence to take advantage of opportunities and building access to growth capital.1 These biases need to be identified their capacity for managing risk. and eliminated so women entrepreneurs have the same opportunities as men to grow their businesses. 7. Access to financing at all stages of business development for women entrepreneurs is essential, but 3. Higher TEA rates are often found in less developed should also recognize progress in a business, and in society, economies, where women are highly likely to participate that shift financing needs. For example, a challenge for in the workforce. Many women in these economies pursue women in moving from micro businesses to small and entrepreneurial endeavors to provide for their families, medium-sized businesses requires a change from financing generally through basic types of consumer-focused sources such as micro-finance to normal banking conditions businesses – both products and services. As such, they can where there is often bias in the lending process.2 be considered the basic engine of their local economies. However, they still face constraints in sustaining their 8. Women entrepreneurs participate heavily in the businesses. Entrepreneurship is a multiphase endeavor consumer-oriented sector, which is considered easier to that implies a need not only for facilitating women to start enter, but more difficult to sustain because of low entry ventures, but also helping them maintain them into maturity. barriers and high competitiveness. But increasingly, businesses in foods, textiles and other areas are becoming 4. Improvements in education provide quality career more important, especially given the rise of challenges choices for women, whether it is work as an employee, around food, clothing and other basic needs, as well as or the launch of high impact entrepreneurial ventures. movements to buy local. To the extent women are starting Education programs that equip women with the ability to businesses in sectors where greater social problems might start and grow businesses provide career options they can exist, they are well positioned to grow and have impact. consider at any point in their lives. 9. Women in factor- and efficiency-driven economies 5. The advantage of teams may depend on the type report less difference from innovation-driven economies of business started, cultural/social norms and other on job aspirations, compared to other impact indicators. conditions. However, given that women who start in teams This could reveal the growth opportunities existing in are more likely to have higher impact with their businesses, still-developing markets, which suggest the need to it is imperative to provide opportunities for women support high-impact female businesses in regions where entrepreneurs to start with co-founders. environmental constraints may weigh heavily. At the same time, this finding might suggest that more traditional 6. While women are nearly equally likely as men to bureaucratic societies limit entrepreneurial aspirations recognize the presence of opportunities around them, in the developed world, implying a particular need to gender gaps are apparent in capability perceptions and address these constraints.
1 http://www.goldmansachs.com/citizenship/10000women/news-and- 2 http://www.goldmansachs.com/citizenship/10000women/news-and- events/10kwprogressreport.html. events/10kwprogressreport.html.
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INTRODUCTION
ver the past decade and around the world, Globally, women play a major role in driving the world women have made substantial progress in economy, controlling about $20 trillion in annual health and education, as well as in political consumer spending, a number expected to rise to and economic arenas. The Global Gender nearly $28 trillion in the next five years.3 Women now GapO Report 2014 by the World Economic Forum shows make up 40% of the global workforce. They are earning that 35 countries have closed the gender gap in health professional degrees in record numbers, and companies and survival, while other countries have closed the gap have implemented programs to remove organization- in education.1 Similarly, 37 countries have closed the structure biases in order to support women’s full political empowerment gender gap, including many in participation in leadership.4 In the United States, women the Middle East, North Africa and Asia Pacific.2
1 http://reports.weforum.org/global-gender-gap-report-2014/part-1/the-global- 3 https://hbr.org/2009/09/the-female-economy. gender-gap-index-results-in-2014/. 4 http://www.catalystwomen.org, Carter & Silva, 2010, HBRF. 2 Ibid.
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hold almost 52% of all professional level jobs.5 In 2014, ■■ Gender gaps in labor-force participation indicate the number of women CEOs in Fortune 500 companies substantial loss in income and economic development. reached an all-time high, with 24 women leading some of Countries and regions with the largest gaps incur America’s top companies, up from 20 the previous year, income losses of up to 30% of GDP per capita.8 and greater than at any time since Fortune magazine started compiling executive gender numbers in 1998, Strong evidence demonstrates that women’s when only one woman led a Fortune 500 company.6 entrepreneurship matters greatly for societal development and prosperity. The World Bank shows This progress toward gender equity is most encouraging. that female entrepreneurs contribute substantially to It is occurring at a time when entrepreneurship economic growth and poverty reduction around the is recognized worldwide as critical to economic world. Despite obstacles such as lack of capital and development and sustainability. Entrepreneurs create strict social constraints, women continue to launch and jobs for themselves and enrich stakeholders, including grow businesses.9 employees, investors, suppliers, and organizations they work with. They benefit their societies by creating A recent analysis from the Goldman Sachs 10,000 solutions to social problems, introducing innovations Women initiative shows that women entrepreneurs that help people live better lives, and launching new participating in the program from 43 developing industries and reviving mature ones. countries dramatically expanded their businesses. The businesses grew employment an average of 50% within Given the global challenge of employment, it is six months after program completion, and revenues imperative to enable women, who comprise half the increased by 480% within 18 months post-program. global population, to participate constructively in Eighty-seven percent of participants mentored other the economic activities of their countries or regions. women entrepreneurs in their communities.10 Entrepreneurship development is a key element in strategies that allow economies to benefit from the Other studies support the Goldman Sachs approach talents, energy and ideas – the productive potential – to creating economic and social value by investing in that women bring to the labor market. women entrepreneurs. A recent study found that women are likely to invest 90 cents of every dollar they earn According to the World Employment and Social Outlook: in human resources, meaning their family’s education, Trends 2015 report (the WESO report) by the ILO, health and nutrition, compared to 30 or 40 cents for gender gaps persist in the labor market. Overall, women men.11 Women entrepreneurs are likely to contribute to compared to men continue to suffer from higher rates of family education and invest in their communities using unemployment, are less likely to participate in the labor profits from their businesses.12 force for economic and cultural reasons, and face higher risks of vulnerable employment, with conditions such This report presents a comprehensive overview of as inadequate earnings, difficult work circumstances women’s entrepreneurship, drawing on current and and lack of consideration for workers’ rights. The WESO longitudinal data captured through the work of the report highlights specific economic benefits of increased Global Entrepreneurship Monitor research consortium. female participation in the labor force.7 It continues the purpose embedded in prior GEM women’s reports to inform the global discussion on ■■ Economies with high female labor-force participation the scale, scope, practice and impact of women’s rates are more resilient and experience slowdowns of entrepreneurship. economic growth less often.
■■ Female labor-force participation is a powerful anti- poverty device: where household income derives from 8 Global Employment Trends 2014: Risk of a jobless recovery? International the paid work of more than one household member; Labour Organization, Geneva, Switzerland, 2014. particularly when these members work in different sectors or occupations, the risk for a household to lose all income 9 http://web.worldbank org WBSITE/EXTERNAL/TOPICS/EXTGENDER/0,,con- due to an adverse macroeconomic event is lessened. tentMDK:23392638~pagePK:210058~piPK:210062~theSitePK:336868,00.html.
10 Investing in the Power of Women; Progress Report on the Goldman Sachs 5 Warner, J. 2014. The Women’s Leadership Gap, Center for American Progress. 10,000 Women Initiative, Developed by Babson College, Wellesley, MA, 2014.
6 http://fortune.com/2014/06/03/number-of-fortune-500-women-ceos- 11 Vanderbrug, J., The Global Rise of Women Entrepreneurs. Capital Acumen, reaches-historic-high/. Issue 25.
7 World Employment and Social Outlook: Trends 2015, International Labour 12 http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTGENDER/0,,con- Organization, Geneva, Switzerland, 2015. tentMDK:23392638~pagePK:210058~piPK:210062~theSitePK:336868,00.html.
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THE GLOBAL ENTREPRENEURSHIP MONITOR AND OBJECTIVES OF THIS REPORT
ince its first survey in 1999, the Global This GEM Special Report: Women’s Entrepreneurship Entrepreneurship Monitor (GEM) has gained continues a biannual assessment of women’s widespread recognition as the most informative entrepreneurship by GEM researchers. The report covers and authoritative longitudinal study of 83 economies: 73 economies that participated in the Sentrepreneurship in the world. In the 16 years since its 2014 GEM cycle and 10 economies included in the inception, GEM has measured entrepreneurship in over survey of 2013 but not of 2014. Therefore, the report 100 economies, covering all geographic regions and covers all economies participating in GEM since the economic development levels. The 2014 survey alone last report, which was based on the 2012 cycle. A list assessed entrepreneurship across an estimated 72% of of these economies grouped by region and economic the world’s population and 90% of the world’s GDP. development level appears in Table 1.
GEM provides a comprehensive view of entrepreneurship GEM research recognizes that geography and culture, around the globe by measuring the attitudes of a as well as level of economic development, may explain population, and also the motivations, characteristics, patterns in the rate and nature of entrepreneurship, and ambitions of individuals involved in various as well as societal attitudes regarding this activity. phases and types of entrepreneurial activity. Data The report groups economies by geographic location harmonization allows comparison of different economies and economic development level, addressing culture and helps guide the formulation of effective and throughout the discussion. With regard to the stages targeted policies aimed at stimulating entrepreneurship. of economic development, GEM classifies economies Appendix B contains further information about the GEM as factor-driven, efficiency-driven or innovation- Consortium and its methodology. driven, categories used by the World Economic Forum
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in its annual Global Competitiveness Report. This Data in this report, collected in annual surveys administered classification is based on the level of GDP per capita by GEM National Teams, were analyzed with a focus on and the share of exports of primary goods to total women’s involvement in entrepreneurship. The report exports (Schwab and Salari-Martin, 2014).1 provides information on female rates and gender gaps in the following key areas: ■■ Participation at multiple phases of activity ■■ Characteristics and motivations of women 1 Factor-driven economies are countries in the early stages of economic entrepreneurs development, typically with a large agricultural sector. The majority of the population ■■ Societal attitudes about entrepreneurship tends to live in rural areas. Industrial activity often depends on extraction of ■■ Impact indicators among entrepreneurs natural resources. Migration from rural to peri-industrial areas may feed necessity- based entrepreneurship, as surplus workers are forced into self-employment to Unique features of the report include assessments of make a living. In efficiency-driven economies, as the industrial sector develops, the percentage change in rates and gender gap for key higher productivity is achieved through economies of scale and development of indicators among 61 economies featured in this report and financial institutions. Increasing productivity, combined with the opening up of the 2012 report; and analyses of the relationship between an independent supply of financial capital from the emerging banking sector, gender gap indicators, measured by the World Economic expands opportunities for the development of small-scale and medium-sized Forum, and GEM entrepreneurship rates. The report manufacturing sectors. Innovation-driven economies are mature, characterized by compares indicators of activity, attitudes and impact across a gradual shift to an expanding service sector catering to needs of an increasingly economic development levels and regional groups. Appendix affluent population. The industrial sector evolves and experiences improvements in A profiles entrepreneurship in each economy covered. variety and sophistication. This is typically associated with increasing research and Implications of the GEM data may help policy-makers development, knowledge intensity and innovation. produce more informed decisions about how to increase venture development among entrepreneurs.
Table 1: GEM Economies by Geographic Region and Economic Development Level
Algeria*, Angola, Botswana, Burkina Faso, Cameroon, Ghana*, Libya*, Africa Malawi*, Nigeria*, South Africa, Uganda, Zambia*
Middle East: (Innovation- Israel*, Kuwait, Qatar Driven)
Argentina, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Latin America & Ecuador, El Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Puerto Caribbean Rico, Suriname, Trinidad & Tobago, Uruguay
Asia & Oceania: (Factor- and China, India, Indonesia, Iran, Kazakhstan, Malaysia, Philippines, Thailand, Efficiency- Vietnam Driven)
Asia & Oceania: (Innovation- Australia, Japan, Republic of Korea*, Singapore, Taiwan Driven)
Europe: Bosnia & Herzegovina, Croatia, Estonia, Georgia, Hungary, Kosovo, Latvia, (Efficiency- Lithuania, Macedonia*, Poland, Romania, Russia, Turkey Driven)
*Participated in GEM 2013 Europe: Austria, Belgium, Czech Republic*, Denmark, Finland, France, Germany, (Innovation- Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, But Not in GEM 2014 Cycle Driven) Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
KEY: North America Canada, United States Factor-Driven Economies Efficiency-Driven Economies Innovation-Driven Economies
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CHAPTER 1
Women’s participation in entrepreneurship across multiple phases of activity
1.1 PHASES OF ENTREPRENEURSHIP Potential entrepreneurs need to identify opportunities for starting a business and, to varying degrees, believe GEM examines entrepreneurial activity as a continuous that they have the necessary skills, knowledge and process rather than a single event. The Adult Population experience to do so. However, perceiving an opportunity Survey (APS) is designed to allow measurement and having the skills to pursue it does not necessarily and assessment of individual participation across a lead to intentions to start a business. Individuals will range of phases comprising entrepreneurial activity: assess the opportunity costs, risks and rewards of entrepreneurial intentions, nascent and new business starting a business versus the availability of employment activity, established business ownership, and business preferences and options. GEM therefore acknowledges discontinuance. that entrepreneurs may be motivated by either necessity
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(a lack of better job choices) or opportunity (choosing to pursue an entrepreneurial opportunity). GEM defines entrepreneurial In addition, potential entrepreneurs will also consider the degree to which the environment for entrepreneurship intentions as the percentage is sufficiently enabling and supportive. In this manner, population-level attitudes signal not only the presence of of the adult population potential entrepreneurs, but also the extent to which society will support their efforts. Chapter 3 assesses societal between 18-64 years who attitudes and their link to entrepreneurial activity. intend to start a business 1.1.1 ENTREPRENEURIAL INTENTIONS within the next three years. GEM defines entrepreneurial intentions as the percentage of the adult population between 18-64 years (excluding individuals already engaged in any stage of entrepreneurial activity) who intend to start a business within the next three years. GEM consistently shows a close relationship between Female intentions are highest overall in African, Latin entrepreneurial intentions and actual startups. Therefore, American and Middle Eastern economies (Table 1.2). if policy-makers and service providers are to stimulate and These three regions, as well as Asia and Oceania (factor- support new generations of women entrepreneurs, they will and efficiency-driven), are the strongest performers in need to foster entrepreneurial intentions in their regions and gender equity. Efficiency-driven European economies identify and reduce factors that inhibit this phase of the cycle. show the lowest female-to-male ratios.
Table 2: Entrepreneurial Intentions (Average) by Region and Gender
Entrepreneurial Intentions Entrepreneurial Intentions Region Ratio Female/Male (Female) (Male)
Latin America & Caribbean 30 33 0.91
Africa 47 52 0.90
Asia & Oceania (Factor- 22 26 0.85 and Efficiency-Driven)
Europe (Efficiency-Driven) 15 24 0.62
Middle East (Innovation- 41 46 0.89 Driven)
Asia & Oceania 12 16 0.75 (Innovation-Driven)
Europe (Innovation-Driven) 10 15 0.67
North America 13 20 0.65
GEM Average 22 29 0.76
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0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60%
South Africa Algeria Japan
Ghana Australia Nigeria Republic of Korea Angola ASIA/OCEANIA Singapore
Burkina Faso INNOVATION-DRIVEN Taiwan AFRICA Zambia Cameroon Norway Libya Ireland Uganda Denmark Botswana United Kingdom Malawi Sweden India Finland Malaysia China Belgium Thailand Germany
Kazakhstan Switzerland Vietnam Spain EFFICIENCY-DRIVEN Iran EUROPE OVATION-DRIVEN ASIA/OCEANIA FACTOR AND Austria Indonesia INN Philippines Netherlands Russia Greece Estonia Slovenia Kosovo Italy Georgia Czech Republic Poland
Hungary Portugal
EUROPE Lithuania France FFICIENCY-DRIVEN
E Bosnia & Herzegovina Luxembourg Croatia Slovakia
Turkey Israel Latvia
OVATION- Kuwait Romania DRIVEN INN Macedonia MIDDLE EAST Qatar Suriname Canada Belize ICA United States NORTH Barbados AMER Puerto Rico 0% 10% 20% 30% 40% 50% 60% Brazil Mexico El Salvador Uruguay Figure 2: Percentage of Adults Intending to Start a Business in Innovation-Driven Panama Economies, by Region and Gender Argentina Costa Rica LATIN AMERICA/CARIBBEAN Jamaica Intentions Female Trinidad & Tobago Guatemala Intentions Male Chile Ecuador Within regions, individual economies vary considerably in Colombia female entrepreneurial intentions (Figures 1 and 2). Bolivia Peru Africa shows generally high intentions among women across the region, with the exception of South Africa. 0% 10% 20% 30% 40% 50% 60% 70% Latin America and the Caribbean show sizeable differences in female intentions among the economies. In Suriname, Barbados and Kuwait, women exhibit higher Figure 1: Percentage of Adults Intending to Start a Business in Factor- and rates of entrepreneurial intention than men. In Turkey and Efficiency-Driven Economies, by Region and Gender Belgium, on the other hand, women are less than half as likely as men to express entrepreneurial intentions; *With two exceptions: Puerto Rico and Trinidad and Tobago are Innovation- in Norway and Japan, women are one-third as likely as Driven (this holds for all other charts). men to intend to start a business. Given the importance of having a healthy supply of ready entrepreneurs in a Intentions Female society, these findings raise questions about the type of support and encouragement women need in order to Intentions Male develop entrepreneurial intentions.
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1.1.2 EARLY-STAGE Innovation-driven economies have greater availability of ENTREPRENEURSHIP ACTIVITY resources and more affluent markets, which may stimulate an increase in opportunity motivated entrepreneurship. A central indicator of GEM is the Total Early-stage At the same time, more jobs are available with existing Entrepreneurship Activity (TEA) rate, which measures the organizations; and many people will prefer jobs as percentage of the adult population (18 to 64 years) in employees. Employment benefits such as health care, family the process of starting a business and those who have leave, pensions, and job protection reduce preferences for recently started one. This indicator measures individuals entrepreneurship. at two phases of the entrepreneurship process: nascent entrepreneurs who have not paid salaries or wages for more Another factor influencing TEA rates is the level of than three months, and new business owners who have unemployment. Necessity-based entrepreneurship moved beyond the nascent stage and paid salaries and activity rises with higher levels of unemployment, as wages for more than three but fewer than 42 months. established companies and the formal economy are unable to meet demand for jobs. Opportunity-based TEA rates for women are highest in factor-driven economies entrepreneurship, on the other hand, often declines in where GDP per capita is low. Differences exist within times of high unemployment, as those with jobs hesitate this development phase however; for example, factor- to start businesses in an uncertain environment when driven African economies show both high rates of female conditions such as contractions in financial markets and entrepreneurship and high female-to-male ratios, while reduced consumer spending pose additional risks. Four those in northern Africa exhibit low female rates and low southern European economies offer an example where female-to-male ratios. stalled recovery from recession affected jobs. Italy shows low female TEA rates compared to the regional Rates decrease in efficiency-driven economies as average; and Spain, Portugal and Greece exhibit higher GDP per capita increases. This could be attributed to TEA levels, but a low proportion due to opportunity. expanding industrialization. Large established firms play Chapter 2 provides additional discussion on opportunity- an increasingly important role in the economy, providing based entrepreneurship. stable employment for a growing number of people as a viable alternative to self-employment, thus displacing The ratio of female-to-male participation in early-stage potential entrepreneurial activity. Contrasting results entrepreneurial activity reflects differences in culture and appear at this level of development between Latin customs regarding women’s participation in the economy. It America, which shows higher female rates and gender also signals other factors such as the extent to which women parity, and efficiency-driven Europe, which exhibits lower need to generate income for their families, the availability rates and wider gender gaps. of good job alternatives for women, and policies and
Table 3: TEA Rates (Average) by Region and Gender (Percentage of Adult Population for Each Gender Involved in TEA)
Region Female TEA Rate Male TEA Rate Ratio Female/Male
Africa 25 26 0.96
Asia & Oceania (Factor- and 14 15 0.93 Efficiency-Driven)
Latin America & Caribbean 15 19 0.79
Europe (Efficiency-Driven) 6 13 0.46
North America 11 16 0.69
Middle East (Innovation- 8 14 0.57 Driven)
Europe (Innovation-Driven) 5 9 0.55
Asia & Oceania (Innovation- 6 11 0.54 Driven)
GEM Average 11 16 0.69
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practices that affect genders differently. Culturally, family 0% 5% 10% 15% 20% 25% 30% 35% 40% roles and responsibilities may encourage or discourage Algeria women. Worldwide, women are expected to have primary South Africa Libya responsibility for child care, two to 10 times more than men, Burkina Faso and for elder care as well. Similarly, women devote one to Angola 1 three hours more per day to housework than do men. Malawi AFRICA Ghana Among factor- and efficiency-driven economies (Table 3 Botswana and Figure 3), Africa and Southeast Asia show the highest Cameroon gender equality in TEA. Both regions have a number of Uganda economies where women are more likely to be involved in Nigeria early-stage entrepreneurial activity than men. In Africa, high Zambia gender parity in TEA contributes to high overall TEA rates India Malaysia
in the region. Zambia, Nigeria, Uganda and Ghana exhibit Iran higher TEA rates among females than males. Kazakhstan China Southeast Asia is remarkable for its high level of gender Indonesia equity, although it has lower overall TEA rates than Africa. Vietnam EFFICIENCY-DRIVEN
In four of the five Southeast Asian economies (Malaysia, ASIA/OCEANIA FACTOR AND Philippines Indonesia, Philippines and Vietnam), women are more Thailand likely than men to engage in early-stage entrepreneurial Kosovo activity. In Thailand, women are almost as likely as men to Russia be entrepreneurs. At the other end of the scale, in almost Macedonia two-thirds of efficiency-driven European countries, women Bosnia & Herzegovina have TEA rates less than half those of men. Low female Croatia Hungary participation rates contribute to low overall TEA rates. Poland
EUROPE Georgia
Innovation-driven economies display low gender parity for FFICIENCY-DRIVEN E Romania TEA, possibly resulting from factors such as availability of Lithuania jobs and women’s preference for work as employees, higher Estonia family incomes that allow some to stay out of the workforce, Turkey or unequal access to resources. And, as in other economic Latvia development phases, women bear responsibility for most Suriname dependent care of young and old. On the other hand, higher Belize family incomes and availability of employment options Puerto Rico may also suggest that women who start businesses are Costa Rica motivated by opportunity. Argentina Barbados Trinidad & Tobago In stark contrast to factor- and efficiency-driven Asia and Uruguay Oceania, innovation-driven Asian economies show markedly Colombia low rates of female participation. In three of the five Asian Panama economies, women have TEA rates less than half those of Guatemala men. In Japan, women are less than one-fourth as likely as Jamaica men to be entrepreneurs. Brazil Mexico LATIN AMERICA/CARIBBEAN Low female TEA rates and female-to-male ratios in El Salvador innovation-driven Europe are consistent with many of the Chile efficiency-driven European countries. This suggests that Bolivia regional characteristics, rather than economic development Peru Ecuador level, are important factors contributing to the low level of entrepreneurial activity. A notable outlier in Europe is 0% 5% 10% 15% 20% 25% 30% 35% 40% Switzerland, where women are slightly more likely than men to engage in entrepreneurship activity. In Israel, lower female than male participation reduces overall rates. Figure 3: TEA Rates for Factor- and Efficiency-Driven Economies, by Region and Gender
Female TEA (% of Adult Female Population) 1 Facts and Figures: Economic Empowerment. http://www.unwomen.org/en/ what-we-do/economic-empowerment/facts-and-figures. Male TEA (% of Adult Male Population)
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0% 5% 10% 15% 20% 1.1.3 CHANGES IN TEA RATES FROM 2012
Japan Sixty-one economies featured in this report were also Republic of Korea covered in the previous GEM 2012 Women’s Report.2
For several key indicators, an analysis was made of the Taiwan percentage change from 2012 in rates and in female-to-
Singapore male ratios. On average, female TEA rates increased 7% ASIA/OCEANIA
INNOVATION-DRIVEN over 2012 for these economies. In addition, the ratio of Australia female-to-male TEA rates improved 6%. Impressive gains may be seen in the Asia in factor- and efficiency-driven Belgium region. TEA rates also moved up in innovation-driven Italy Europe, as did the ratio of female-to-male TEA. Notably, many developed European countries have created Sweden initiatives and programs to stimulate startup activity among women, and researchers are publishing studies Denmark on women’s entrepreneurship in this region; both Germany appear to be reflected in the positive changes noted. In contrast, innovation-driven Asia shows a decline in both Norway female TEA rates and the gender ratio for TEA. This is of concern because this region already exhibits low female France TEA rates and low gender equality. Czech Republic
Ireland 2 Kelley, D., Brush, C., Greene, P., and Litovsky, Y. (2013). Global
EUROPE EUROPE Entrepreneurship Monitor (GEM) 2012 Women’s Report. London: Global Slovenia OVATION-DRIVEN Entrepreneurship Research Association. See list of countries below. INN Spain Algeria,* Angola, Botswana, Ghana,* Finland Africa Malawi,* Nigeria,* South Africa,
Luxembourg Uganda, Zambia* Middle East Israel* Greece Argentina, Barbados, Belize, Bolivia, Austria Brazil, Chile, Colombia, Costa Rica,
Switzerland Latin America & Ecuador, El Salvador, Guatemala, Caribbean Jamaica, Mexico, Panama, Peru, Puerto Netherlands Rico, Suriname, Trinidad & Tobago, Uruguay Slovakia Asia & Oceania: China, Iran, Malaysia, Thailand United Kingdom Japan, Republic of Korea,* Singapore, Asia & Oceania: Portugal Taiwan
Israel Bosnia and Herzegovina, Croatia,
Kuwait Estonia, Hungary, Latvia, Lithuania, OVATION-DRIVEN MIDDLE EAST Europe:
INN Macedonia,* Poland, Romania, Qatar Russia, Turkey
Canada Austria, Belgium, Denmark, ICA Finland, France, Germany, Greece, NORTH AMER United States Ireland, Italy, Netherlands, Norway, Europe: 0% 5% 10% 15% 20% Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom
Figure 4: TEA Rates for Innovation-Driven Economies, by Region and Gender North America United States
Female TEA (% of Adult Female Population) *This Report uses 2013 Data for These Economies; Difference Measured is Male TEA (% of Adult Male Population) Therefore One Year
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Table 4: Percentage Change in Female TEA Rates and Female/Male TEA Ratio 0% 5% 10% 15% 20% 25% 30% 35% from 2012 Libya South Africa Female TEA Ratio Botswana Region TEA F/M Algeria Angola Cameroon
AFRICA Malawi Burkina Faso Africa -5% 10% Zambia Nigeria Ghana Uganda Asia & Oceania (Factor- India 23% 14% and Efficiency-Driven) Iran Malaysia Kazakhstan Philippines China EFFICIENCY-DRIVEN Europe (Efficiency-Driven) 5% 0% Indonesia ASIA/OCEANIA FACTOR AND Vietnam Thailand Kosovo Croatia Latin America & Caribbean 16% 4% Russia Bosnia & Herzegovina Turkey Lithuania
Asia & Oceania Estonia
-5% -10% EUROPE (Innovation-Driven) Poland
FFICIENCY-DRIVEN Macedonia E Hungary Romania Georgia Europe (Innovation-Driven) 13% 13% Latvia Puerto Rico Suriname Panama Costa Rica Israel* 20% -33% Belize Colombia Mexico Uruguay Argentina United States 7% -1% Guatemala Trinidad & Tobago Peru Barbados LATIN AMERICA/CARIBBEAN Bolivia Overall Average: All 61 7% 6% Chile Economies El Salvador Jamaica Ecuador Brazil 1.1.4 ESTABLISHED BUSINESS ACTIVITY 0% 5% 10% 15% 20% 25% 30% 35%
The level of established business ownership indicates the sustainability of entrepreneurship efforts in an economy. Figure 5: Established Business Ownership in Factor- and Efficiency-Driven Established businesses have moved beyond the nascent Economies, by Region and Gender and new phases, and they contribute to a country’s economy through ongoing introduction of new products *With Two Exceptions: Puerto Rico and Trinidad and Tobago and processes and a stable employment base. The GEM are Innovation-Driven 2010 Global Report argues that advances in economic development require business activities exhibiting both Established Business Female dynamism and stability, i.e., nascent/new and established businesses. Dynamism ensures continuing renewal Established Business Male
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0% 2% 4% 6% 8% 10% 12% 14% 16% of ideas in a society, while stability allows enterprises
Singapore with the most promise to survive and grow. Thus, while early-stage entrepreneurship is important for creating
Japan dynamism in economic activity, established businesses
Republic of Korea are important for preserving stability. ASIA/OCEANIA INNOVATION-DRIVEN Australia The level of established business activity in factor- and efficiency-driven economies (Figure 5) is similar to TEA Taiwan level, with Africa showing the highest rates and highest
France gender equality. This is in line with research by Bardasi et al. (2007), whose analysis of enterprise survey data Belgium in Africa found that businesses already operating show Denmark no significant difference in performance and productivity under male or female entrepreneurs. Bardasi et al. Slovenia suggest that Africa has “considerable hidden growth potential in its women, and tapping into that potential … Italy can make a substantial difference for Africa’s growth 3 Luxembourg and poverty reduction.”
Germany Thailand has the highest rate of established business
Czech Republic activity in Asia for both women and men. Both genders show established business rates higher than TEA rates, Norway an indication of business sustainability. In Vietnam, where TEA rates are the same for both genders, the rate Slovakia of established women entrepreneurs is 1.2 times higher
EUROPE EUROPE Finland than for men. OVATION-DRIVEN INN United Kingdom In efficiency-driven Europe, established business rates
Sweden among women are low, and women in almost two-thirds of economies have established business rates less than Portugal half those of men. Libya, Botswana, Panama, Costa Rica and Puerto Rico have low female established business Spain rates and low female TEA rates. In economies where
Ireland TEA rates are higher than established business rates, women may face substantial challenges to sustain their Austria businesses. On the other hand, this could indicate that
Netherlands startup activity has recently increased, whether from need or opportunity (which will show up in future years Greece as increased established business activity).
Switzerland Among innovation-driven economies in Asia and Europe,
Qatar low established business rates among women reflect
low startup rates. Low TEA levels signal fewer nascent Kuwait and new businesses to feed mature business activity in OVATION-DRIVEN MIDDLE EAST these economies. Of concern, however, in innovation- INN Israel driven Europe, is that the gender gap for established United States business activity is substantially wider than for TEA
ICA activity. In more than half the economies in this region, NORTH AMER Canada female established business rates are less than half those for males. In terms of TEA, the same holds true 0% 2% 4% 6% 8% 10% 12% 14% 16% for only one-fifth of economies in the region. Among Middle Eastern economies, Qatar’s established business rate for women is much lower than female TEA (1.4% Figure 6: Established Business Ownership in Innovation-Driven compared to TEA of around 10%). Economies, by Region and Gender
Established Business Female 3 Bardasi, E., Blackden, M., and Guzman, J.C. “Gender, Entrepreneurship and Competitiveness in Africa,” Africa Competitiveness Report 2007, World Economic Established Business Male Forum, Geneva Switzerland.
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1.1.5 BUSINESS CLOSURE 0% 5% 10% 15% 20% 25% 30% Algeria The rate of business closure may serve as another Libya indicator of entrepreneurship sustainability in South Africa Nigeria an economy. Reasons for business closure vary, Angola
including lack of profitability, problems accessing AFRICA Ghana finance, running out of working capital, and change Burkina Faso of mind or lifestyle by an owner on how she is Zambia earning income or spending time. Thus, closure may Botswana not necessarily equate to failure. Cameroon Uganda Malawi In most African economies, women report higher India rates of business closure than men (Figure 7). Many China African countries have strong cultural practices Vietnam that traditionally impose restrictions on women and Malaysia Kazakhstan
their behavior. Gender stereotyping places higher EFFICIENCY-DRIVEN Thailand ASIA/OCEANIA FACTOR AND domestic burdens on women (household chores and Iran family responsibilities), which may contribute to the Indonesia higher rate of business closure among women in this Philippines region. Malawi has particularly high business closure Poland rates for both genders — more women have closed a Latvia Russia business in the last year than are starting or running Estonia a new business. Other economies such as Uganda, Georgia Cameroon and the Philippines also have relatively Macedonia
high business closure rates, which in turn reflect Lithuania
their high startup rates. EUROPE Hungary
FFICIENCY-DRIVEN Bosnia & Herzegovina E Croatia Entrepreneurship is inherently risky, and a certain Romania level of business closure is inevitable when there Kosovo are numerous startups. However, an excessively Turkey high business closure rate could mean that few Suriname entrepreneurs are starting viable businesses, or Trinidad & Tobago that they are unable or do not intend to sustain Puerto Rico Barbados these businesses. In addition, the entrepreneurship Brazil environment may not be sufficiently supportive Costa Rica or enabling. This is a particular concern in areas Colombia where there is high necessity. Necessity-based Belize businesses are generally highly liquid, requiring low Guatemala amounts of capital to start and being relatively easy Argentina Uruguay to close. In regions characterized by high poverty Panama and chronic underemployment, it is not unusual Mexico to find a self-employed person supporting a large LATIN AMERICA/CARIBBEAN Chile family and enabling those around her/him to have Jamaica a better life. The liquidity of the business supports Bolivia Peru that pathway. This could be a positive factor to the Ecuador extent that women can easily get started or shift to El Salvador better opportunities, but problematic to the extent that women are constrained in these efforts. 0% 5% 10% 15% 20% 25% 30%
For innovation-driven economies, low business closure rates may reflect a lack of dynamism Figure 7: Business Closure in Factor- and Efficiency-Driven Economies, by Region and Gender — there are few closures because there have been few startups (Figure 8). In such economies, fewer women than men are closing businesses, *With Two Exceptions: Puerto Rico and Trinidad and Tobago consistent with gender gaps in TEA. Kuwait are Innovation-Driven has particularly high business closure rates for both genders; more entrepreneurs have closed Business Closure Female a business in the last year than are starting or running a new business. Business Closure Male
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0% 2% 4% 6% 8% 10%
Japan Entrepreneurship is
Singapore inherently risky, and a Republic of Korea
ASIA/OCEANIA Australia certain level of business INNOVATION-DRIVEN Taiwan closure is inevitable Ireland when there are Slovenia
Norway numerous startups.
United Kingdom
France 1.2 A COMPARATIVE OVERVIEW OF Finland FEMALE ENTREPRENEURIAL ACTIVITY Belgium The spider diagrams below provide a multiphase Switzerland analysis of women’s entrepreneurial activity, by development level and region. Germany
EUROPE EUROPE Luxembourg
OVATION-DRIVEN Female entrepreneurship activity is lower, on average,
INN Denmark for innovation-driven economies. The greatest difference appears in earliest stages of the entrepreneurship Spain process, and the difference between rates for TEA Austria and established business is minimal: TEA 6% versus established business 5%. For factor- and efficiency- Netherlands driven economies, TEA at 15% is nearly twice the Czech Republic established business rate of 8%. This suggests greater demand for entrepreneurship in developing economies, Sweden with comparatively fewer enterprises having made it to Portugal a mature stage. Innovation-driven economies see less demand for entrepreneurship, but are more likely to Greece start sustainable businesses, and/or the environment Italy enables sustainability.
Slovakia Overall Average: Factor and Efficiency-Driven Regions (unweighted)
Qatar Overall Average: Innovation-Driven Regions (unweighted)
Israel Intentions female MIDDLE EAST OVATION- DRIVENOVATION-
INN Kuwait 30%
25%
Canada ICA 20% NORTH AMER United States 15% 10%
5% Business Closure Female TEA 8% 10% 0% 0% 2% 4% 6% Female (% of Adult Female Population)
Figure 8: Business Closure in Innovation-Driven Economies, by Region and Gender
*With Two Exceptions: Puerto Rico and Trinidad and Tobago are Innovation-Driven Established Business Female
Business Closure Female
Business Closure Male Figure 9: Multiphase Analysis of Activity, by Development Level
23 GEM WOMEN’S SPECIAL REPORT
Africa Asia/Oceania FD/ED Overall Asia/Oceania ID Europe ID Overall Europe ED Latin Am./Carib. Middle East ID North America
Intentions Female Intentions Female 50% 40% 40% 30% 30% 20% 20% 10% Female TEA Business 10% Female TEA Business 0% (% of Adult Closure Female 0% (% of Adult Closure Female Female Population) Female Population)
Established Established Business Female Business Female
Figure 10: Multiphase Analysis of Activity, for Factor- and Efficiency-Driven Regions Figure 11: Multiphase Analysis of Activity, for Innovation-Driven Regions
Among innovation-driven regions, Asia and Europe show results close to the overall development-level The average TEA rate for average. Intentions, however, are especially low in Europe, which indicates a small base of potential efficiency-driven Europe lies women entrepreneurs. North America is also close to the averages for innovation-driven economies, except for around 40% of the average higher than average TEA rates. The Middle East shows a very high level of intentions among women, suggesting for the factor and efficiency a large base of potential future entrepreneurs. Startup activity among women in this region is slightly higher development levels. than average, but there is a low rate of established business activity and high levels of business closure. High current startup activity may not have translated to an increase in mature business ownership. Some initial Africa reports higher overall female activity compared efforts may not work out, so there will be more closures to other factor- and efficiency-driven regions. In than typical. particular, entrepreneurial intentions are much higher than for other economies at this development level. It must be noted that Africa differs from the other three regions in that it consists of predominantly factor-driven economies (South Africa is the only efficiency-driven economy in the region). Other regions are all or nearly all efficiency-driven.
Activity rates for women in Latin America are close to the overall average for less-developed economies. Asia/Oceania also exhibits results close to the overall average, except for lower intentions. This could imply either or both of the following: that few women want or need to start, relative to actual entrepreneurial activity; or that for every women who has intended to start a business, there is a high likelihood this has translated to action. Efficiency-driven Europe has low TEA rates, particularly compared to the average for economies at this development level. The average TEA rate for efficiency-driven Europe lies around 40% of the average for the factor and efficiency development levels.
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ENTREPRENEURS’ STORIES
Valrie Grant (Jamaica): GeoTechVision Enterprises Ltd
alrie Grant has a Bachelor’s Degree in Geology, Based in Jamaica, the company opened an additional a Master of Science Degree in GIS and office in Guyana in January 2012. The company Environment, and over 15 years’ experience also provides services through partner relationships in the geospatial sciences. She has also established across the Caribbean, Canada and Israel. Vpursued studies in entrepreneurship. In late 2008, The GeoTechVision team is a cadre of qualified and Valrie established GeoTechVision, the only female-owned experienced professionals providing clients with high-end and operated geographic information systems (GIS) IT and geospatial consultancy services, solutions and company in the Caribbean region. “I had worked for products. These include consulting and advisory services, more eight years as a geospatial analyst, government GIS and ICT technical services, and human capital training employee and spatial technologies consultant for a and development. “GeoTechVision focuses on delivering wide range of public and private organisations in the value through innovative solutions!” says Valrie. “Our deep Caribbean when I realised that spatial intelligence knowledge of the business market and the technologies, can offer tremendous benefits to governments and combined with unparalleled professional expertise, allows businesses alike, but was not being fully utilised,” she GeoTechVision to offer reliable, affordable and customised says. Geospatial intelligence is the science of visually services and solutions.” displaying geographic data that can provide substantial benefits to Caribbean businesses, agencies and Valrie’s mother was self-employed and her father was a government ministries by helping them to plan better businessman, providing her with a strong foundation for and make more informed decisions. Solutions to the her entrepreneurial journey. “I was strongly influenced growing challenges of economic development, resource by my mother when deciding to go the entrepreneurship management, climate change and disaster management route,” she notes. “I try to model elements of my life can all be enhanced with geospatial information. after the spirit of my mother. The contributions of
25 GEM WOMEN’S SPECIAL REPORT
Caribbean GIS champions like Jacqueline da Costa, being important, because although we were the smallest Cecille Blake, Nadine Brown, Earl Edwards and Silburn company involved in the project, we executed and Clarke have also inspired me.” delivered months ahead of all the other companies.”
Valrie has faced numerous challenges during her Valrie and her business have been recipients of several entrepreneurial journey. “As female business owners, recognition awards. These include the University of we have the disadvantage that many in the business West Indies (UWI) Première Leadership Award (2000), community look at tradition and cultural norms. Men are the Jamaica GIS Entrepreneur Award (2012), and the seen as business leaders, bigger risk takers than women, NCB Nation Builder Award for the Woman in Business and so sometimes there is hesitation to give females Category (2013). The latter is presented to an innovative equal opportunities,” she notes. She has had to work female business owner with a track record of leadership harder and put in extra effort to ensure that she is able to and social responsibility. GeoTechVision also received offer an edge in order to stand out, especially in her male- the NCB Nation Builder Award for Region 1 in the dominated field. The competition is tough for a woman in category of Innovation (2013). GeoTechVision won her industry. She believes that overcoming these hurdles the Technology Innovation Centre Client of the Year in has strengthened her character. “Through persistence, 2013 and 2014 and also copped the Top Client Award you can get your foot in the door and thereafter the work for 2014. Valrie was awarded the Business Excellence recommends itself,” she says. However, sometimes being Forum (BEF) Americas 2014 Female Entrepreneur of the a woman works to your advantage, she believes, as there Year and GeoTechVision won the Caribbean Exporter of are now more networking programmes for women, people the Year Special Award for Excellence in Services Export promoting women in business, workshops targeting 2014. She was also the Jamaica Chamber of Commerce women and more recognition programmes. These help to (JCC) Young Entrepreneur of the Year in 2014. level the playing field. As an entrepreneur, Valrie believes in helping other entrepreneurs. Having been selected as a business enabler for the Infodev World Bank Business Incubator There are now more Clinic, she is currently forming a non-profit organisation that will provide business incubator services in Guyana. networking programmes for Valrie is also an accredited facilitator with the World Bank’s Infodev Women Innovators in the Caribbean women, people promoting Network (WINC), empowered to deliver the accelerator programme in the Caribbean. She is the current president women in business, workshops of the Women Entrepreneurs Network Caribbean (WENC) Guyana Chapter. She is also the Women’s targeting women and more Entrepreneurship Day Ambassador for Guyana 2015.
recognition programmes. Valrie is not one to rest on her laurels and a number of plans for the future are already in the pipeline. The company is in the process of expanding. In the short term, this includes more geospatial applications for everyday use, She has also faced a significant personal challenge exploring innovative uses of Unmanned Aerial Vehicles in during her startup. Just four months after starting the Caribbean, providing more engineering-type service GeoTechVision, with no staff and operating from a offerings and establishing new strategic partnerships, while virtual office, she underwent a major medical procedure. at the same time augmenting their own internal governance Her business was on hold for six months. Funds models to better manage their growth. Longer term plans earmarked for her business had to be diverted to her include obtaining financing for further expansion, entering medical expenses. She spent her recovery time writing new markets, introducing new delivery channels (such as proposals, building relationships and forming alliances online training) and diversifying their offerings, including and was back in the Caribbean building GeoTechVision potential ventures in renewable energy and agro-industry. by September 2009. Valrie’s advice for potential entrepreneurs: “Having “Our major business success to date was probably the right educational background and experience is expanding GeoTechVision in the Caribbean despite the sometimes not enough. Female business owners have to harsh economic climate by establishing GeoTechVision offer an edge to stand out. Competition builds strength Guyana Inc. as an external company registered in of character as you recognise that with persistence, you Guyana in January 2012,” she says. “Another success can get your foot in the door. Never believe you can do it was being selected as one of four companies to provide alone, though. It is important to collaborate to innovate!” tablets and services in the eLearning Jamaica Tablet in Schools Project. This particular project stands out as www.geotechvision.com
26 GEM WOMEN’S SPECIAL REPORT
ENTREPRENEURS’ STORIES
Georgia Beattie (Melbourne, Australia): Lupe Wines and Single Service Packaging
Professor Michael Caslin taught the Babson Social Enterprise course and it was here that she learned that starting a business is so much more than just making money. “The businesses we create will shape the next generation,” she notes. “We have an obligation to be contributing to our city, country and ultimately create a better world.”
Her affluent female peers from high school have gone on to be lawyers, doctors and bankers. These are conservative and respected/ paid professions. However, she feels that it is very difficult to have a voice in a large company and rarely does this career path lead to ©2015 Business Essentials Media Productions Pty Ltd extraordinary things.
eorgia’s entrepreneurial journey started in 2008 while she was on a one-year exchange from RMIT Australia to Babson College, USA. Georgia’s business idea came to her while she was One morning, in her first week of classes, standing in a drink queue for 30 minutes at a music theG stock market crashed. “I was wondering why there festival in Australia. When she finally got to the front of weren’t any students in class,” she says. “It turned the line, she was frustrated when she was told that she out that most of my classmates were already running could not order a wine because of glass safety laws. So businesses and were far more commercially advanced they legally couldn’t serve wine because it had not yet than my peers in Australia. It was here that I realised been innovated. She realized that the rest of the alcohol that I could make an impact and change the world. I industry had done a great job keeping up with consumer could achieve anything if I put my mind to it and created trends and demands. Beer, which also started out in a plan.” 750ml bottles, is now packaged in single-serving sized
27 GEM WOMEN’S SPECIAL REPORT
cans and bottles. Bars and liquor stores are filled with this,” she says. “Sexism doesn’t exist in our family – if a hundreds of varieties of ready-to-drink premixed spirits male doesn’t want to do business with me, it’s because in both cans and bottles. Why not wine? of my product, not my gender. However equality doesn’t matter if females aren’t participating. When women Her business produces single serve wine in a plastic aren’t sitting at the table there is an imbalance. A ‘glass’. They have offices in Japan, Korea and Taiwan masculine and feminine approach to any industry is and service sports stadiums, many hotel minibars and different and complimentary. Chinese philosophers airlines in Australia. “In the stadium scenario, we reduce describe it as yin and yang.” the carbon footprint for these events by removing the glass bottle from the equation. It is a legal requirement Her affluent female peers from high school have gone that beverages are served in plastic recepticles for on to be lawyers, doctors and bankers. These are safety so we are fast-tracking that. It’s my way of conservative and respected/paid professions. However, contributing to a better future,” she adds. she feels that it is very difficult to have a voice in a large company and rarely does this career path lead Early next year (2016), her company will be launching a to extraordinary things. “I believe that if you have world first – a single-serving sparkling wine glass. They come from the luxury of a good education, it is your have partnered with packaging companies in Australia, responsibility to go out and use this platform to create a Argentina, the USA, Europe and Japan in order to have a better world,” she asserts. “We need to convince women global wine offering. that entrepreneurship is not only a worthy career, but a place that desperately needs female participation to She believes that she is fortunate to have had an foster growth and innovation.” education and upbringing where equality is expected from the world. “My hard-working mother taught me www.beattiewines.com
28 GEM WOMEN’S SPECIAL REPORT
CHAPTER 2
Characteristics of women entrepreneurs
EM’s focus on individual-level participation 2.1 AGE enables the examination of a range of demographic and other characteristics Age-related patterns of entrepreneurship activity are about entrepreneurs. With this information, relatively consistent around the world for both genders. itG is possible to assess the level of inclusiveness in an The prevalence of early-stage entrepreneurship tends economy — in other words, the extent to which various to be relatively low in the 18-24 year-old cohort. It groups (for example, those categorized by age, gender peaks among 25-34 year-olds, and then declines as age or education) engage in entrepreneurial activity. With increases. Figure 12 indicates that this pattern holds true regard to the focus of this report, assessment of such on average for female entrepreneurs in all factor- and characteristics may enhance knowledge and identify efficiency-driven regions, as well as in North America. gaps in women’s entrepreneurship. This information can The remaining innovation-driven regions do not show help policy-makers target effective interventions this marked upward spike in the 25-34 year-old age to increase women’s participation and productivity in group. In innovation-driven Asia and Oceania, the highest the economy. prevalence of female TEA is among the 35-44 year-olds.
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35% Africa
30% Asia/Oceania Factor and Efficiency-Driven
25% Europe Efficiency-Driven
Latin America/Caribbean 20%
Asia/Oceania Innovation-Driven 15% Europe Innovation-Driven 10% Middle Eastern Innovation-Driven 5% North America 0%
Female TEA Female TEA Female TEA Female TEA Female TEA (18-24) (25-34) (35-44) (45-54) (55-64)
Figure 12: Female TEA Rates, by Age Cohort and Region
Age is particularly interesting to consider within the consistently show that entrepreneurs have higher levels context of other societal attributes, such as youth of education than non-entrepreneurs. This is consistent unemployment and cultural mores surrounding working with findings from the Goldman Sachs 10,000 Women’s mothers and provision of income for elders. The lowest project, which shows that training and education female youth TEA rates can be seen in four innovation- do make a difference for women in less developed driven economies: Japan and Korea in Asia, and Norway economies. Education and training are likely to result and Finland in Europe. These countries report TEA rates in business growth in sales and employees, as well as of less than 1% among 18-24 year-olds. This could be due stronger self-confidence and leadership skills.4 to high rates of women in college at this age. However, many European countries show higher female youth rates Across the sample as a whole, there is encouraging relative to average TEA rates across all age groups. In gender parity in terms of the proportion of Slovakia and Greece, for example, the female youth TEA entrepreneurs with a post-secondary or higher level of rate is more than 70% higher than the average TEA rate. education. A third of female and male entrepreneurs (33% and 36% respectively) fall into this category. In Senior entrepreneurship may be reduced by factors many developing economies, particularly efficiency- that include retirement, poor health or cultural driven Europe, there are proportionately more educated expectations such as caring for grandchildren. On the women entrepreneurs than men. This is even more so other hand, a lack of work options or pensions and a for innovation-driven economies, where the majority need for income could spur entrepreneurship among the show higher proportions of female entrepreneurs with older population, as well as enterprising seniors with post-secondary or higher levels of education than males. experience, resources and networks that enable them Some economies with high levels of education among to launch viable businesses. In two innovation-driven female entrepreneurs also have low TEA rates, for European countries, Portugal and Belgium, older women example Libya, Malaysia, Russia and Puerto Rico. This entrepreneurs (55-64 years old) are rare — less than 1% suggests that in some economies, entrepreneurship of the female population. The Philippines, on the other is undertaken by the educated, but is less available or hand, has a high senior entrepreneurship rate among attractive to those with lower education levels. women — 30% versus an overall TEA rate of 21%. 2.3 MOTIVATION 2.2 EDUCATION LEVEL The relative prevalence of opportunity motivated versus An educated workforce, appropriately skilled and necessity-motivated entrepreneurship activity provides with the capacity for innovation, is vital to an useful insights into why women enter entrepreneurship. economy’s competitiveness, productivity and growth. Necessity-based, early-stage entrepreneurship activity It is reasonable to believe that education will have a is defined as the percentage of those driven by having positive influence on individual self-efficacy and self- no better choice for work. Opportunity-based early-stage confidence, thereby increasing the chances these individuals will not only start businesses, but also have the ability to navigate competitive and changing 4 Investing in the Power of Women; Progress Report on the Goldman Sachs business environments. Of course, not all education is 10,000 Women Initiative, Babson College, Wellesley, MA, 2014. directly relevant to entrepreneurship, but GEM reports
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Burkina Faso Republic of Korea Malawi Uganda Japan Ghana Singapore South Africa Cameroon Taiwan
AFRICA Zambia Angola ASIA / OCEANIA INNOVATION-DRIVEN Australia Botswana Nigeria Italy Algeria Libya Netherlands Indonesia
Czech Republic India China Austria Thailand
Vietnam Norway Philippines EFFICIECY-DRIVEN Iran Slovakia
ASIA / OCEANIA FACTOR- AND Kazakhstan Malaysia Switzerland Kosovo Portugal Romania Croatia Finland Bosnia & Herzegovina Macedonia Germany Turkey Estonia Spain Georgia
Latvia EUROPE INNOVATION-DRIVEN United Kingdom EUROPE EFFICIENCY-DRIVEN Hungary Luxembourg Poland
Lithuania Greece Russia Guatemala Sweden Brazil Mexico Slovenia El Salvador Denmark Costa Rica Jamaica France Colombia
Suriname Belgium Ecuador Bolivia Ireland Peru Panama Kuwait LATIN AMERICA / CARIBBEAN Uruguay Qatar Belize
Trinidad & Tobago MIDDLE EASTERN INNOVATION-DRIVEN Israel Argentina Chile United States Barbados Puerto Rico Canada NORTH AMERICA
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 13: Proportion of Entrepreneurs with Post-Secondary Degree or Higher Level Figure 14: Proportion of Female Entrepreneurs with Post-Secondary Degree or of Education for Factor- and Efficiency-Driven Economies, by Region and Gender Higher Level of Education for Factor- and Efficiency-Driven Economies, by Region and Gender Female Female Male Male
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Table 5: Average Rates for Opportunity Motivated TEA, by Region and Gender entrepreneurship activity describes the percentage of those who are motivated to pursue opportunity. This Female Male includes taking advantage of a business opportunity or Ratio Opportunity Opportunity having a job, but seeking a better opportunity. Although Region Female/ Motivated Motivated necessity entrepreneurship is important in enabling Male TEA (%) TEA (%) women to create income-generating businesses when needed, opportunity-driven entrepreneurs are important to an economy for their greater potential impact on dimensions such as job creation aspirations. Africa 69 73 0.95 In general, opportunity motivations among female entrepreneurs are encouragingly high in all regions except efficiency-driven Europe. In this region, the Asia & opportunity motivated proportion of female TEA is more Oceania than 10 percentage points below the overall average (Factor- and 69 73 0.95 for the sample. Although female entrepreneurs in the Efficiency- GEM sample are less likely than male entrepreneurs to Driven) be motivated by opportunity, the gender differential is small across all regions (Table 5). In the Middle East, women are more likely than men to be motivated by Latin opportunity, while in innovation-driven Asia, women are America & 70 78 0.90 as likely as men to be engaged in opportunity motivated Caribbean entrepreneurship. Generally, economies in these regions have low gender parity in TEA. Combined with the high rate of opportunity-based entrepreneurship, this suggests that women have a low likelihood of starting Europe businesses compared to men; and when they do, it’s (Efficiency- 57 63 0.90 because they choose to pursue an opportunity, rather Driven) than being pushed into it out of need.
Within the regions, individual economies show variation in Middle East the proportion of opportunity motivations among women (Innovation- 83 77 1.08 entrepreneurs (Figures 15 and 16). Among factor- and Driven) efficiency-driven economies, Nigeria and Uganda have high female opportunity motivations combined with high female TEA rates (higher than male rates), showing that women are highly motivated to act on opportunities. In Asia & Libya, although there are high proportions of opportunity Oceania 77 78 0.99 motivations among women entrepreneurs, women start at (Innovation- less than half the rate for men. Driven) A contrast may be seen in low opportunity motives among women entrepreneurs in Bosnia and Europe Herzegovina, Macedonia and Kosovo. These economies (Innovation- 73 78 0.94 exhibit low female TEA rates, suggesting that women Driven) rarely engage in startups, and when they do, it is generally out of necessity. The Philippines, on the other hand, shows high levels of female entrepreneurship activity, over 30% higher than that of males. However, North there is a considerable gender gap in motivation. 74 82 0.90 America Women entrepreneurs in this country are over one-fourth less likely than men to be motivated by opportunity. The Philippines is a factor-driven country with one of the highest unemployment rates in Southeast Asia. High competition for low level job GEM opportunities in the formal sector means that women, 68 73 0.93 Average especially in poorer communities, are often forced into necessity-based entrepreneurship because they lack options for sustainable livelihoods.
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Malawi Cameroon Republic of Korea Zambia Ghana Japan Botswana Australia Burkina Faso
AFRICA Angola Singapore South Africa Algeria* ASIA / OCEANIA INNOVATION-DRIVEN Taiwan Nigeria Uganda Greece Libya Philippines Belgium China Iran Ireland India Spain Kazakhstan Vietnam Slovenia EFFICIENCY-DRIVEN Indonesia ASIA / OCEANIA FACTOR- AND Malaysia Slovakia Thailand Macedonia Portugal Bosnia & Herzegovina Georgia Switzerland Croatia Kosovo Czech Republic Russia Germany Hungary Poland France Turkey EUROPE EFFICIENCY-DRIVEN Romania Finland EUROPE INNOVATION-DRIVEN Lithuania Estonia Sweden Latvia Guatemala Austria Argentina Netherlands Colombia Jamaica Norway Suriname
Brazil Italy El Salvador Ecuador United Kingdom Panama Bolivia Luxembourg Chile Barbados Denmark
LATIN AMERICA / CARIBBEAN Mexico Israel Costa Rica Uruguay Qatar Puerto Rico
Peru MIDDLE EASTERN Kuwait INNOVATION-DRIVEN Belize Trinidad & Tobago Canada
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% United States NORTH AMERICA
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Figure 15: Percentage of Entrepreneurs with Opportunity Motive for Factor- and Efficiency-Driven Economies, by Region and Gender Figure 16: Percentage of Entrepreneurs with Opportunity Motive for Innovation- *With Two Exceptions: Puerto Rico and Trinidad and Tobago are Innovation- Driven Economies, by Region and Gender Driven Female TEA Opportunity (% TEA Females) Female TEA Opportunity (% TEA Females)
Male TEA Opportunity (% TEA Males) Male TEA Opportunity (% TEA Males)
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0% 5% 10% 15% 20% 25% 30% 35% 40%
Across the GEM sample, about Malawi Ghana Uganda two-thirds of entrepreneurs Nigeria
AFRICA Burkina Faso own one-person businesses. South Africa Zambia Women entrepreneurs are Algeria Botswana slightly more likely, overall, Cameroon Angola Libya to display single-person China Malaysia ownership (68%, compared to Vietnam India 62% for men). Philippines Indonesia
EFFICIENCY-DRIVEN Kazakhstan
ASIA / OCEANIA FACTOR- AND Thailand Iran Among innovation-driven economies, gender differences Macedonia in opportunity motivation are generally low. Greece is Poland an exception – only half of women entrepreneurs in Russia this economy are opportunity motivated, compared to Hungary two-thirds of male entrepreneurs, and women are less Romania likely than men to start businesses than men. Similarly, Lithuania Belgium reports low opportunity motivation (55%) Estonia Latvia among women entrepreneurs, and also has the lowest Georgia female TEA rates among the innovation-driven European EUROPE EFFICIENCY-DRIVEN Turkey economies. This suggests that women in both Greece Kosovo and Belgium are only apt to start a business when they Croatia need income and have few other options. On the other Bosnia & Herzegovina hand, the three Middle East economies all report female Suriname opportunity-motivation rates higher than those of their Brazil male counterparts. Jamaica Puerto Rico El Salvador Figure 17 shows distinct regional patterns in the Trinidad & Tobago relationship between TEA rates and opportunity motives Ecuador among women. Low TEA rates may be seen in several Costa Rica European economies, with economic development Peru level dividing them based on opportunity motives. High Panama opportunity drives high TEA rates in Thailand, while Guatemala necessity drives high rates in Malawi. Mexico
LATIN AMERICA / CARIBBEAN Barbados Belize Low TEA High TEA Bolivia Chile Argentina High Italy, Sweden, Thailand Colombia Opportunity Denmark, Uruguay Norway 0% 5% 10% 15% 20% 25% 30% 35% 40% Low Opportunity Macedonia, Malawi Bosnia & Herzegovina, Figure 18: Percentage of Entrepreneurs Starting in Teams of Three or More for Croatia Factor- and Efficiency-Driven Countries, by Region and Gender
3+ Founders Female Figure 17: Regional Patterns in Relationship Between TEA Rates and Opportunity-Motivation 3+ Founders Male
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0% 10% 20% 30% 40% 50% 60% 2.4 TEAMS
Australia Most businesses start with one owner. Across the GEM
Republic of Korea sample, about two-thirds of entrepreneurs own one- person businesses. Women entrepreneurs are slightly Japan more likely, overall, to display single-person ownership (68%, compared to 62% for men). Although there is no Taiwan gender discrepancy in the percentage for two owners,
ASIA / OCEANIA INNOVATION-DRIVEN Singapore women are over 20% less likely than men to have businesses with three or more founders. Germany
Sweden
Switzerland
Slovakia Africa and factor- and
Slovenia efficiency-driven Asia have Denmark the highest percentage Austria of female single-owner Ireland
France entrepreneurs (three-
Netherlands quarters), as well as the Czech Republic highest gender disparity in Greece EUROPE INNOVATION-DRIVEN this respect. Norway
United Kingdom
Finland
Portugal Ownership characteristics vary considerably across regions. In efficiency-driven Europe, women exhibit Italy characteristics similar to those of men in the percentage of entrepreneurs having one, two, three or more owners. Spain In many of the remaining regions, however, women are Luxembourg more likely to be running single-founder businesses, indicating a tendency to operate on their own. Africa Belgium and factor- and efficiency-driven Asia have the highest
Israel percentage of female single-owner entrepreneurs (three- quarters), as well as the highest gender disparity in this Qatar respect. In the Middle East, just under half (49%) of female entrepreneurs have single-owner businesses.
MIDDLE EASTERN Kuwait INNOVATION-DRIVEN
United States The highest average prevalence of teams of three or more women entrepreneurs was in the Middle East Canada
NORTH AMERICA (27%) and innovation-driven Asia (24%), double the overall average. High levels of teamwork among women 0% 10% 20% 30% 40% 50% 60% (as well as high levels relative to men) are seen in a number of economies (Figures 18 and 19): Libya, Iran, Kosovo, Croatia and Bosnia and Herzegovina among Figure 19: Percentage of Entrepreneurs Starting in Teams of Three or More for factor- and efficiency-driven economies; and Singapore, Innovation-Driven Countries, by Region and Gender Luxembourg and Belgium among innovation-driven economies. On the other hand, teams of three or more 3+ Founders Female were rare among women entrepreneurs in factor- and efficiency-driven Asia (7%), as well as in Africa and Latin 3+ Founders Male America and the Caribbean (11%).
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0,8
0,7
0,6 y = 1,0469x + 0,0936 R² = 0,3733 0,5
0,4
0,3
% TEA Female: Expects 6+ Jobs 0,2
0,1
0 0 0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45 % TEA with 3+ Founders
Figure 20: Relationship Between Team Size and Job Aspirations
Figure 20 suggests a positive relationship between team size and job creation, highlighting the value of businesses with three or more owners. This is consistent with evidence from entrepreneurship literature indicating that businesses with teams of three to five owners are more likely to grow and succeed than businesses with only one or two owners.5
5 Beckman, C.M., Burton, M.D. and O’Reilly, C., 2007. “Early Teams: The Impact of Team Demography on VC Financing and Going Public,” Journal of Business Venturing, 22:2, 147-173.
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ENTREPRENEURS’ STORIES
Ninh Thi Ty (Vietnam): Ho Guom Garments and Chien Thang Garments
rs Ninh Thi Ty, president of two This situation improved when she officially became companies, is recognised as a highly director of the enterprise. With a combination of successful business woman in the enormous effort, as well as her skill and abilities, she garment field in Vietnam. She started brought a new vitality to the factory. By the time Ho herM career with the Ho Guom Garment Joint Stock Guom Company was equitised in 2000, the situation had Company. The company was established in 1992 and changed markedly. By then, Ho Guom Co had a total of Mrs Ty initially had only a small and old workshop with 10 factories located in different provinces in the north around 220 employees and 120 machines. “Working of Vietnam. The area of these factories currently ranges time was divided into two shifts, since the area of the from 30,000m2 to 60,000m2 and Mrs Ty manages nearly workshop was only 400m2. The workshop was always 6 000 people (of which 80% are women). “Over the past unprofitable and sometimes the workers were not paid 10 years, Ho Guom Garment Company has been regarded their salaries on time,” she recalls. by government and other organisations as a big and
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fast-growing company in the garment field,” she notes. Her success was crowned when she was awarded the highest medal by the Vietnamese National President – I believe that the secret of the only woman in the garment industry to receive such an honour. success as an entrepreneur
Under the leadership of Mrs Ty, Ho Guom Company is to always keep trying achieved a consistently high growth rate each year. As a result VINATEX (The Vietnam National Textile and and not to drop out. Garment Corporation) requested that she take over Chien Thang Garment Joint Stock Company in 2006. Especially, don’t be afraid Chien Thang Company was a garment company with a 40-year history and had been one of the strongest to face up to difficulties. factories belonging to VINATEX. However, the company had fallen into dire straits, burdened by a large loan. At least four strong directors from VINATEX had been sent to take over the company, but the situation had not building named ‘Ho Guom Plaza’ – which includes improved, and the company faced imminent bankruptcy. offices, apartments and a shopping centre – has already been completed. “There were many difficulties that that I faced when taking on this new mission,” says Mrs Ty. But armed “I believe that the secret of success as an entrepreneur with her innate determination, she step-by-step began is to always keep trying and not to drop out. Especially, to resolve the situation. After three years, the Chien don’t be afraid to face up to difficulties,” she says. Mrs Ty Thang Company was able to repay a substantial loan always encourages and provides opportunities for young to the bank and had started to register a small profit. people to help them develop their abilities. “I’ve always Currently, under her management, the company’s trained and employed a lot of young people and many production is stable and they continue to expand their of them are now in key positions in my companies,” she number of factories. says. “Some have moved on to other companies, but may have opened their own successful businesses.” In addition to her involvement in the garment industry, Mrs Ty is starting to invest in real estate. A 29-floor www.mayhoguom.com.vn and www.chigamex.com.vn
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CHAPTER 3
Societal attitudes and their influence on women’s entrepreneurship behavior
he GEM model recognizes entrepreneurial seeing opportunities feel constrained to start by fear attitudes, activity and aspiration as dynamic, of failure, and the extent to which their social networks interactive components of national entrepreneurial include entrepreneurs. environments. Entrepreneurship activity does not Ttake place in a vacuum, and entrepreneurial attitudes “The entrepreneurship process is a complex endeavor and perceptions play an important part in creating an carried out by people living in specific cultural and social entrepreneurial culture. People with positive attitudes conditions. For this reason, the positive or negative may become future entrepreneurs. Existing entrepreneurs perceptions that society has about entrepreneurship rely on encouragement and support from people in their can strongly influence the motivations of people to societies who regard their efforts positively, and who will enter entrepreneurship. If the economy in general has participate in making their activities successful. a positive attitude toward entrepreneurship, this can generate cultural and social support, financial and GEM measures individuals’ perceptions of their business assistance, and networking benefits that entrepreneurial ability, whether they believe there are will encourage and facilitate potential and existing many startup opportunities around them, whether those entrepreneurs.” (GEM 2012 Global Report, page 18)
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0% 10% 20% 30% 40% 50% 60% 70% 70% 0% 10% 20% 30% 40% 50%
Libya South Africa Japan Botswana Singapore
Algeria Cameroon Republic of Korea Ghana ASIA/OCEANIA AFRICA Burkina Faso Australia INNOVATION-DRIVEN Uganda Angola Taiwan Zambia Belgium Malawi
Nigeria Germany India
Iran Czech Republic Thailand Philippines Italy Malaysia Greece Vietnam EFFICIENCY-DRIVEN China Switzerland ASIA/OCEANIA FACTOR AND Kazakhstan Indonesia Portugal Turkey Norway Georgia Croatia United Kingdom Bosnia & Herzegovina Romania
EUROPE EUROPE Ireland
Macedonia OVATION-DRIVEN INN Hungary Netherlands Lithuania Denmark
EUROPE Latvia
FFICIENCY-DRIVEN Poland E Luxembourg Russia Estonia Spain Kosovo Puerto Rico Austria Colombia France Guatemala
Argentina Sweden Uruguay Brazil Slovenia Ecuador Suriname Slovakia Panama Finland Costa Rica
El Salvador Qatar Trinidad & Tobago Jamaica Israel OVATION-DRIVEN MIDDLE EAST
Barbados INN LATIN AMERICA/CARIBBEAN Kuwait Bolivia Chile United States
Mexico ICA NORTH
Peru AMER Canada Belize
0% 10% 20% 30% 40% 50% 60% 70% 70% 0% 10% 20% 30% 40% 50%
Figure 21: Percentage of Adults Who Personally Know an Entrepreneur in Factor- Figure 22: Percentage of Adults Who Personally Know an Entrepreneur in and Efficiency-Driven Economies, by Region and Gender Innovation-Driven Economies, by Region and Gender
Know a Female Entrepreneur Know a Female Entrepreneur
Know a Male Entrepreneur Know a Male Entrepreneur
40 GEM WOMEN’S SPECIAL REPORT
Although the rise of interest in female entrepreneurship is a recognized trend around the world, the rate of participation in entrepreneurship by women still varies Contact with entrepreneurs considerably among economies and geographic regions. According to the OECD (2004), women have lower can also provide people with participation rates in entrepreneurship as they face more social and cultural constraints than men. These obstacles motivation, advice, contacts include higher levels of domestic responsibility, lower levels of education (particularly in developing countries), and other benefits, leading to lack of female role models in the business sector, fewer business-oriented networks in their communities, lack higher interest and success in of capital and assets, lower status in society and a culturally-induced lack of assertiveness and confidence entrepreneurship. in their ability to succeed in business. These factors may prevent women from perceiving, as well as acting on, entrepreneurial opportunities. In economies with high TEA rates, more individuals 3.1 KNOWING AN ENTREPRENEUR know an entrepreneur, as Figure 23 shows. In these cases, where there are more entrepreneurs, it is likely In many African and Asia and Oceania (factor and that individuals will have personal contact with one. But efficiency-driven) economies, more than half the women contact with entrepreneurs can also provide people with in these societies know an entrepreneur personally motivation, advice, contacts and other benefits, leading (Figure 21). In the Philippines and Zambia, women are to higher interest and success in entrepreneurship. slightly more likely to know an entrepreneur compared Women’s lower rates of knowing an entrepreneur mean to men, while in Vietnam, Nigeria and Belize women are that they are potentially disadvantaged from the start of almost as likely as men to know an entrepreneur. Japan the entrepreneurship process, having fewer inspirational (12%) and Belgium (15%) have the lowest prevalence role models (which could affect their willingness to of women knowing an entrepreneur (Figure 22). These engage in entrepreneurship activity), as well as limited two economies also have the lowest female TEA rates in access to relevant networks, mentorship opportunities their respective regions (Figure 4). and advice.
0,8
0,7
0,6 y = 1,0469x + 0,0936 R² = 0,3733 0,5
0,4
0,3
% TEA Female: Expects 6+ Jobs 0,2
0,1
0 0 0,05 0,1 0,15 0,2 0,25 0,3 0,35 0,4 0,45
% TEA with 3+ Founders
Figure 23: Relationship Between Knowing an Entrepreneur and Female TEA Rates
41 GEM WOMEN’S SPECIAL REPORT
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
South Africa Libya In a number of factor- Botswana Algeria Burkina Faso and efficiency-driven Cameroon
AFRICA Angola economies, women are Ghana Uganda slightly more likely to Malawi Zambia perceive good business Nigeria Iran opportunities in their area.
Kazakhstan China India
Vietnam 0% 10% 30% 40% 60% 80% 90% 90% Malaysia EFFICIENCY-DRIVEN Thailand Japan ASIA/OCEANIA FACTOR AND
Indonesia Republic of Korea
Philippines Singapore Croatia Taiwan Bosnia & Herzegovina ASIA/OCEANIA INNOVATION-DRIVEN Australia Hungary Slovenia Russia Lithuania Greece Romania Spain
Poland Portugal Georgia Slovakia
EUROPE Turkey Czech Republic
FFICIENCY-DRIVEN Latvia E Macedonia Italy Estonia France
Kosovo Ireland
Puerto Rico Belgium EUROPE EUROPE
Argentina OVATION-DRIVEN Germany Suriname INN Luxembourg Barbados Costa Rica United Kingdom Uruguay Netherlands Guatemala Switzerland
Panama Austria El Salvador Finland Mexico Denmark Belize Jamaica Norway Trinidad & Tobago Sweden
Brazil Kuwait LATIN AMERICA/CARIBBEAN Bolivia Israel OVATION-DRIVEN Ecuador MIDDLE EAST Qatar Peru INN
United States
Chile ICA Canada NORTH
Colombia AMER 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 30% 40% 60% 80% 90% 90%
Figure 24: Percentage of Adults Who Perceive Opportunities in Factor- and Figure 25: Percentage of Adults Who Perceive Opportunities in Innovation-Driven Efficiency-Driven Economies, by Region and Gender Economies, by Region and Gender
Opportunity Perceptions Female Opportunity Perceptions Female
Opportunity Perceptions Male Opportunity Perceptions Male
42 GEM WOMEN’S SPECIAL REPORT
0,45
0,4
0,35 y = 0,4323x - 0,0351 R² = 0,4457 0,3
0,25
0,2
0,15
0,1 Female TEA (% of Adult Female Population) 0,05
0 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9
Knowing an Entrepreneur (% Female Adult Population)
Figure 26: Relationship Between Female Opportunity Perception and TEA Rates
opportunity perceptions may be seen in Denmark (57%), Norway (58%) and Sweden (68%); these results are at Beliefs about capabilities odds with their low female TEA rates (a mere 4%, as shown in Figure 4). are more reflective of The scatterplot (Figure 26) shows the relationship self-perceptions. They between opportunity perceptions in society and TEA rates among women. The positive relationship between indicate individuals’ these indicators highlights the importance of postive attitudes in stimulating entrepreneurship activity. confidence that they have 3.3 CAPABILITIES PERCEPTIONS the knowledge, skills and While opportunity perceptions demonstrate people’s experience required to views of the environment around them, beliefs about capabilities are more reflective of self-perceptions. start a new business. They indicate individuals’ confidence that they have the knowledge, skills and experience required to start a new business. As Figure 27 shows, over half of women in nearly every economy in Africa and Latin America believe they have the ability to start a business. 3.2 OPPORTUNITY PERCEPTION In general, capabilities perceptions show a greater In general, there is little difference between the genders gender difference than opportunity perceptions. In in the rate of perceived opportunities (the average for the GEM sample as a whole, 46% of women believe females is 40%, compared to 45% for males: Figures they have the required skills and knowledge to start 24 and 25). In a number of factor- and efficiency-driven a business, compared to 59% of men. At the regional economies, women are slightly more likely to perceive level, the results show marked divergence (Figures 27 good business opportunities in their area: Zambia, the and 28). Among factor- and efficiency-driven regions, Philippines, Latvia, Kosovo, Panama, El Salvador and many economies show female capability rates that are Peru. Among the innovation-driven economies, Kuwait equal or nearly equal to those of men: in particular, shows higher rates of perceived opportunity among Nigeria and Ghana. A number of Latin American and women compared to men. Notably high rates of female Caribbean economies also show low gender differentials
43 GEM WOMEN’S SPECIAL REPORT
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 10% 20% 30% 40% 50% 60% 70% South Africa Japan Libya Singapore Algeria Republic of Korea Angola Taiwan Botswana ASIA/OCEANIA Burkina Faso INNOVATION-DRIVEN Australia
AFRICA Cameroon Belgium Zambia Norway Uganda France Ghana Denmark Nigeria Sweden Malawi China Italy
India Germany Malaysia Finland
Thailand Luxembourg Kazakhstan Switzerland Iran EUROPE OVATION-DRIVEN
EFFICIENCY-DRIVEN Czech Republic
Indonesia INN ASIA/OCEANIA FACTOR AND Netherlands Vietnam Philippines Ireland Lithuania United Kingdom Russia Slovenia Georgia Portugal Hungary Greece Estonia Austria Croatia Slovakia Bosnia & Herzegovina Romania Spain
EUROPE Poland Israel
FFICIENCY-DRIVEN Macedonia E Qatar Latvia MIDDLE EAST OVATION-DRIVEM Kuwait
Turkey INN
Canada
Kosovo ICA United States NORTH Puerto Rico AMER Brazil 0% 10% 20% 30% 40% 50% 60% 70% Colombia Mexico Costa Rica Argentina Figure 28: Percentage of a Adults Who Perceive They Have Capabities to Start a Panama Business in Innovation-Driven Economies, by Region and Gender Guatemala Chile Capability Perceptions Female Uruguay Barbados Capability Perceptions Male Peru Belize (most notably, Belize and El Salvador) as well as the Ecuador
LATIN AMERICA/CARIBBEAN Philippines, Vietnam and Indonesia in Southeast Asia. El Salvador Suriname Bolivia Gender gaps appear across the innovation-driven Trinidad & Tobago economies. Japan has low capabilities perceptions Jamaica among women, scarcely more than a quarter of the level of men, while women in Korea, France, and Israel 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% have just over half the level of capabilities perceptions compared to men.
Figure 27: Percentage of Adults Who Perceive They Have Capabities to Start a The scatterplot (Figure 29) shows the strong relationship Business in Factor- and Efficiency-Driven Economies, by Region and Gender between capabilities perceptions and TEA. This relationship is even stronger than for opportunity Opportunity Perceptions Female perceptions and TEA. This re-enforces the importance of assessing capabilities, particularly in light of the gender Opportunity Perceptions Male gap revealed in many economies.
44 GEM WOMEN’S SPECIAL REPORT
0,45
0,4
0,35 y = 0,4021x - 0,0681 R² = 0,5981 0,3
0,25
0,2 Female TEA 0,15
0,1
0,05
0 0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 Capabilities Perceptions (% Female Adult Population)
Figure 29: Relationship Between Female Capabilities Perception and TEA Rates
3.4 CHANGES IN OPPORTUNITY AND CAPABILITIES PERCEPTIONS FROM 2012 Women are more risk- Across the 61 economies featured in this report and the 2012 report, perceptions about opportunities and averse than men in terms capabilities changed little overall from 2012 (Table 6). Europe, Israel and the United States saw increased of entrepreneurial behavior. female opportunity perceptions, but with less change to the gender ratio. In Asia, opportunity perceptions were In the GEM sample as a noticeably lower, especially among innovation-driven economies in this region. whole, 41% of women who
For the most part, capability perceptions changed perceive opportunities little at the regional level. To some extent, capability perceptions are more reflective of one’s belief about would be prevented from one’s self, and this may change little over time. On the other hand, whether some see opportunities around starting a business due to them may depend more on the environment, with shifts over time that can vary among regions. fear of failure, compared to 3.5 FEAR OF FAILURE 34% of men.
Fear of failure can be influenced by intrinsic personality traits, as well as by societal norms and regulations. For the risk-averse person, the downside risk of In general, women are more risk-averse than men in failure can outweigh the most promising opportunities terms of entrepreneurial behavior. In the GEM sample or expectations, even if potential returns are as a whole, 41% of women who perceive opportunities considerably higher than the next best alternative. In would be prevented from starting a business due to some economies, the legal and social ramifications fear of failure, compared to 34% of men. Women’s of business failure may act as a strong deterrent, generally lower confidence in their own abilities is likely increasing fear of failure and reducing the pool of to contribute to their higher rates of fear of failure in a potential entrepreneurs. business context.
45 GEM WOMEN’S SPECIAL REPORT
Table 6: Percentage Change in Female Rates and Female/Male Ratio from 2012 for Societal Perceptions About Opportunities and Capabilities Opportunity Capability Female Opportunity Female Capability Region Perceptions Ratio Perceptions Tatio Perceptions Perceptions F/M F/M Africa 0% -1% -2% 1%
Asia/Oceania (Factor- and -2% -2% 1% -10% Efficiency-Driven)
Europe (Efficiency- 16% 1% 3% 1% Driven)
Latin America/ -1% 5% 4% 6% Caribbean
Asia/Oceania -17% -10% -1% -6% (Innovation-Driven)
Europe (Innovation- 10% 0% 0% 2% Driven)
Israel* 50% -2% 19% -7%
United States 21% 6% -2% 4%
Overall Average: All 4% 0% 1% 1% 61 Economies
Figure 30 shows fear of failure rates for factor- and efficiency-driven economies. In many Asian and African economies, women show a high degree of risk- In efficiency-driven willingness; fear of failure rates in these economies are often equal to or lower than for men. South Africa is an Europe, and Latin America exception in the region with female fear of failure rates over a third higher than for males. In efficiency-driven and the Caribbean, only Europe, and Latin America and the Caribbean, only two economies show equal fear of failure rates among two economies show women and men, Kosovo and Mexico. Otherwise, gender gaps exist in most economies throughout these regions. equal fear of failure rates In Lithuania and Panama, women display up to 50% greater fear of failure levels. Coupled with low rates of among women and men, perceived capabilities among women, the relatively high fear of failure rates among women in efficiency-driven Kosovo and Mexico. Europe are cause for concern and likely contribute to the low female TEA rates in the region.
Among innovation-driven economies (Figure 31), Asia reports few gender gaps in fear of failure. Greater gaps are apparent in Europe, particularly Switzerland, Austria and Germany, countries with close borders. This may, in part, be attributable to the fact that fear of failure tends to be more common in developed economies, where the greater prevalence of alternative career options may create the impression that people have more to lose by forgoing these other opportunities.
46 GEM WOMEN’S SPECIAL REPORT
0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% 70% Uganda Singapore
Nigeria Japan Malawi Taiwan Zambia Republic of Korea ASIA/OCEANIA
Botswana INNOVATION-DRIVEN Australia Burkina Faso Norway United Kingdom AFRICA Ghana Switzerland Cameroon Netherlands South Africa Slovenia Algeria Sweden Angola France Libya Denmark
Malaysia Czech Republic China Ireland Iran EUROPE OVATION-DRIVEN Finland
India INN Spain Kazakhstan Austria Philippines Portugal EFFICIENCY-DRIVEN Indonesia Luxembourg ASIA/OCEANIA FACTOR AND Thailand Belgium Vietnam Slovakia Kosovo Germany Georgia Italy Greece Turkey Bosnia & Herzegovina Qatar
OVATION- Kuwait Macedonia DRIVEN INN MIDDLE EAST Israel Russia
United States Latvia ICA
Canada NORTH
Croatia AMER 0% 10% 20% 30% 40% 50% 60% 70% EUROPE Hungary
FFICIENCY-DRIVEN Romania E Estonia Lithuania Figure 31: Fear of Failure Rates Among Those Seeing Opportunities in Innovation- Poland Suriname Driven Economies, by Region and Gender Panama Trinidad & Tobago Fear of Failure Female Barbados Peru Fear of Failure Male Mexico Jamaica Uruguay Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Chile Overall Average: Innovation-Driven Regions (unweighted) Argentina Puerto Rico Belize Opportunity Colombia Perceptions Female Guatemala 60% LATIN AMERICA/CARIBBEAN Ecuador 50% Costa Rica 40% Bolivia 30% 20% Brazil 10% El Salvador Know an 0% Capability Entrepreneur Perceptions 0% 10% 20% 30% 40% 50% 60% Female Female
Figure 30: Fear of Failure Rates Among Those Seeing Opportunities in Factor- and Efficiency-Driven Economies, by Region and Gender Fear of Failure Female
Fear of Failure Female
Fear of Failure Male Figure 32: Analysis of Entrepreneurial Attitudes, by Development Level
47 GEM WOMEN’S SPECIAL REPORT
Africa Asia/Oceania FD/ED Asia/Oceania ID Europe ID Overall Europe ED Latin Am./Carib. Middle East ID North America
Opportunity Perceptions Female Opportunity Perceptions Female
70% 60%
60% 50%
50% 40%
40% 30% 30% 20% 20% 10% Know an 10% Capability Know an Capability Entrepreneur 0% Perceptions Entrepreneur 0% Perceptions Female Female Female Female
Fear of Failure Female Fear of Failure Female
Figure 33: Analysis of Entrepreneurial Attitudes for Factor- and Figure 34: Analysis of Entrepreneurial Attitudes for Innovation-Driven Economies Efficiency-Driven Economies
3.6 A COMPARATIVE OVERVIEW OF for Asia and average for Europe. Fear of failure varies FEMALE ENTREPRENEURIAL ATTITUDES little among the regions, with the possible exception of low fear of failure in North America. Knowing an The spider diagrams above provide an analysis of women’s entrepreneur also shows relatively low variation, entrepreneurial attitudes, by development level and region. with slightly fewer women than average knowing an entrepreneur in Asia and slightly more reporting this in Similar to the analysis of entrepreneurship activity, women the Middle East. in many less-developed economies have the most positive levels of perceived entrepreneurship capabilities, suggesting a higher level of confidence among women in less-developed regions. However, individuals in economies at different stages of development are likely to have different kinds of businesses in mind. This would suggest that the perception of what is considered an opportunity and the capabilities required to create and manage this entrepreneurial opportunity in factor- or efficiency-driven economies could differ substantially from these perceptions in innovation- driven economies. This is reinforced by the finding that the average innovation-driven entrepreneur registers higher potential impact, which would generally require a higher level of capabilities.
Across the four attitude measures (Figure 33), Africa and efficiency-driven Europe are on opposite sides of the overall average, with the former registering high perceptions and the latter showing low perceptions among women. Latin America is closest to the average, except for having slightly higher female capability perceptions. Asia is close to average on knowing an entrepreneur and fear of failure, but is low on opportunity and capability perceptions among women.
North America and the Middle East have higher than average opportunity and capability perceptions, indicating positive views of entrepreneurship among women. On the other hand, these indicators are low
48 GEM WOMEN’S SPECIAL REPORT
ENTREPRENEURS’ STORIES
Anja Staege-Thylmann (Germany): stylecats
the focus on regional partners for production proved most favourable. Right in the middle of this process she gave birth to her son, who is now three years old. “Being an online retailer is a huge advantage in this regard.” She notes. “I can work and make decisions flexibly and I am not bound to a rigid working-hours model. In theory, I could operate from anywhere in the world. This knowledge gives me a sense of freedom.”
As an entrepreneur, she takes her business responsibilities seriously. “The service concept takes top priority for stylecats®,” she asserts. “I address my customers individually and in a professional manner, dealing with enquires and accommodating their desires. To me this is a matter of course – however, nowadays it is worth mentioning.”
Anja is satisfied if her customers – and, of course, this also includes the cats – are satisfied, because then she knows ne thing had always been clear to Anja: at some that she has a good product on her hands. Her complaint point, she would own a cat. Then the time came. rate, amounting to a mere 0.02 %, speaks for itself.” The Whilst visiting an animal shelter on a sudden clear design language of our furniture, as well as the impulse, she became a cat owner. “Fortunately,” interchangeability of the materials used, is appealing as well sheO says, “otherwise I would probably not have had the idea as useful and practical,” she says. A clear indication of the to create a new collection of furniture and accessories for success of the concept is that the number of orders from cats and humans – with stylecats®.” abroad – especially from Switzerland, Austria and Belgium – is constantly rising. Exclusive home and living magazines The germ of the concept was born when she was looking for have also featured articles on her company. “I would like a scratching post and was shocked by what she describes thank hannoverimpuls GmbH for their support,” she adds. as monstrosities among our modern furniture. “I started developing my own ideas,” she says. “Maybe a combination What makes her particularly proud? At the end of last of furniture and function? Straightforward and high-quality? year, stylecats® received the Plus X Award 2015 in the Could this be a business idea that would appeal to other pet category High Quality and Design for their first collection, owners, too?” as well as for the category Bestes Produkt 2015/2016 (Best Product 2015/2016). “My first reaction was that She outlined drafts, had prototypes produced, and this was a contradiction in terms – a scratching post spent time looking for strategic partners. Careful market cannot win a design award! Yet it is possible – with analyses followed. In the five years since then, several stylecats®,” she recalls. collections of cat furniture and modern accessories have been created – featuring an innovative, modest design, “It was about time a new face was put on cat furniture,” ready for serial production and offered online. she concludes. “The merger of interior design for cats and humans had proved to be successful.” She feels that Although today stylecats® is a successful developer, her dream of becoming the Europe-wide number one manufacturer and distributor, the business started company for modern cat furniture is drawing closer. “After off slowly and without any external capital. Sales grew 20 years, I quit my job in a large corporation. And what consistently and increased by over 100% year by year. will next year bring?” The careful development, the examination of adequate, certified materials (all made in Germany), and, moreover, www.stylecats.de
49 GEM WOMEN’S SPECIAL REPORT
ENTREPRENEURS’ STORIES
Veronica Molina (Ecuador): Eclipsoft
eronica Molina, an IT system engineer Veronica. “We offered an innovative platform that would with an MBA, is the owner of ECLIPSOFT. allow them to regain the lost confidence. It was the best She worked for seven years for MACOSA, time to get into the market.” an Ecuadorian company developer and Vexporter of banking software for several Latin Today, Eclipsoft has offices in Guayaquil and Quito, and American countries. Veronica returned to Ecuador in 20 employees, of which 60% are women, mostly young 2001 with a new business idea: to develop an SMS professionals in management and finance. The remaining service platform as a new communications channel employees are young professionals in ICT. Eclipsoft for the banking industry. This was shortly after the serves mostly the domestic market: 56% corporate, 16% Ecuadorian banking crisis, but in spite of this, in 2002 banking, and 28% education, in terms of the number of Veronica founded Eclipsoft, a company focused on customers. The three cellular operators in the country mobile banking solutions, in the city of Guayaquil. Her (America Movil, Movistar and CNT) are among their partners in the new venture were her husband and a strategic partners. They are starting internationalisation former classmate. efforts, through building alliances with companies in Panama to explore the SMS platform market there.
“We are growing. Eclipsoft is not only a place to earn a We offered an innovative salary, but a place to grow together,” she enthuses.
platform that would Eclipsoft combines passion defending new ideas, timing in developing them, but mostly seeing opportunities allow them to regain the where others see barriers. Veronica believes that being a woman was an advantage, helping the company to lost confidence. It was develop better empathy with its clients. “Success as an entrepreneur lies in having the right balance between the best time to get into professional and family roles, relying on your family and, above all, trusting your intuition,” she says. the market.
The beginning was not easy; there were no similar platforms in Latin America and with the ’99 banking crisis still fresh in people’s minds, it was impossible to get any type of funding. “It was very difficult to ask people to believe in something that didn’t exist yet, and only our faith that this might work kept us moving forward,” she says. The initial investment of US$15,000 came from the partners’ own savings. That was enough to set up a computer centre, hire staff and survive for a year while they continued developing the platform.
“Some people thought we were crazy. Many had their bank accounts frozen or tried to get their money out of the country. For us, it was an opportunity. The financial sector was so depressed that banks needed to find solutions that would allow them to reactivate their business,” says
50 GEM WOMEN’S SPECIAL REPORT
CHAPTER 4
WOMEN’S ENTREPRENEURSHIP IMPACT
EM recognizes that entrepreneurs have on natural resources and includes agriculture, differing impacts on their societies. Key to forestry, fishing and mining; the transforming sector economic development and growth are the involves the manufacturing of goods and is generally mix of industries, job creation potential, capital-intensive, but it may also be labor-intensive, levelG of innovation and international competitiveness. including construction, manufacturing, transportation, This section focuses on these factors with respect to communication, utilities and wholesale distribution; women entrepreneurs. business services target the business customer and generally rely on greater knowledge intensity, which 4.1 INDUSTRY SECTOR includes finance, insurance and real estate; and the consumer sector serves customers directly through Figure 35 shows the distribution of early-stage products and services that include retail, motor vehicles, entrepreneurship activity according to industry lodging and restaurants, personal services, education sector and gender. The extractive sector is based and recreational services.
51 GEM WOMEN’S SPECIAL REPORT
INDUSTRY PARTICIPATION FEMALE TEA % INDUSTRY PARTICIPATION MALE TEA %
6% 9% 16%
45% 29% 10% 68%
17%
Extractive Transforming Business Consumers, Culture Sector Sector Services Sector and Society Sector
Figure 35: Early-Stage Entrepreneurship Activity, by Industry Sector and Gender
A substantial majority (more than two-thirds) of early- stage entrepreneurship activity by women is in the consumer services sector. Reasons for this range Efficiency-driven Europe shows from differences in laws that restrict the types of jobs that women are permitted to engage in, to the a markedly different pattern fact that women have limited access to owning land or being able to engage in agricultural activities. In of industry sector participation. addition, women have less access to startup funding, which is a hindrance to launching an asset-based or Although women in this manufacturing-based businesses.1 Proportionately, women entrepreneurs are about half as likely as men region report low TEA rates, entrepreneurs to be involved in the transforming sector and over 40% less likely to be active in the business they demonstrate a more services sector. balanced profile with regard Barriers to entry into the consumer sector, including skills and capital required, tend to be lower. As a result, to industry sector. this is often an over-traded sector populated by low- profit-margin businesses; high levels of competition for limited markets can threaten the sustainability of these businesses. Additionally, the consumer sector may be Latin America show a similar pattern. In these regions, a particularly vulnerable in periods of economic slowdown. considerable majority (around three-quarters) of women The fact that a high proportion of women-owned TEA entrepreneurs are in the consumer-oriented services entities are concentrated in such a vulnerable sector is sector, with the transforming sector showing moderate likely to be a contributory factor in the generally lower participation. Women in Africa are most likely to report rates of female established business ownership. involvement in the extractive sector (at 9%, three times that of women in the other two regions). The distribution of women’s early-stage entrepreneurship activity according to industry sector varies considerably Efficiency-driven Europe shows a markedly different when disaggregated by geographic region and phase of pattern of industry sector participation. Although women economic development (Figures 36 and 37). Among factor- in this region report low TEA rates, they demonstrate a and efficiency-driven regions, Africa, Asia and Oceania, and more balanced profile with regard to industry sector. Less than half of women entrepreneurs in this region are in the consumer services sector, while a quarter are active in 1 Facts and Figures: Economic Empowerment. http://www.unwomen.org/en/ the transforming sector. In line with their access to more what-we-do/economic-empowerment/facts-and-figures. sophisticated markets, women in efficiency-driven Europe
52 GEM WOMEN’S SPECIAL REPORT
AFRICA AVERAGE (UNWEIGHTED) EUROPE EFFICIENCY-DRIVEN AVERAGE (UNWEIGHTED)
9% 14% 13%
5% 44% 23% 73%
19%
ASIA/OCEANIA FACTOR- AND EFFICIENCY-DRIVEN AVERAGE (UNWEIGHTED) LATIN AMERICA/CARIBBEAN AVERAGE (UNWEIGHTED)
3% 3% 16% 14%
7% 7%
74% 76%
Extractive Transforming Business Consumers, Culture Sector Sector Services Sector and Society Sector
Figure 36: Female Early-Stage Entrepreneurship Activity Across Industry Sectors in Factor- and Efficiency-Driven Regions show the highest rate of involvement in the business of female entrepreneurs), while few participate in this services sector by a substantial margin (around three sector in innovation-driven Asia and Oceania. Greece times that of other factor- and efficiency driven regions). stands out for having many transforming entrepreneurs Conversely, two African economies (Malawi and Ghana) (over a third of female entrepreneurs). and two Latin American and Caribbean economies (El Salvador and Jamaica) report less than 1% of female 4.2 JOB ASPIRATIONS entrepreneurs competing in the business services sector. A key focus in the development strategies of most Among the innovation-driven regions, Europe and North countries is to facilitate growth that is sustainable and America show a similar pattern, exhibiting diversity in inclusive for the purposes of generating widespread sector participation by women entrepreneurs. These employment and reducing poverty. The job creation two regions have the highest prevalence of women- potential of entrepreneurs is thus a crucial factor. owned enterprises (more than a quarter) in the This report measures the proportion of early-stage business services sector, as well as representation in entrepreneurs who expect to have six or more employees the transforming sector. Northern European economies in the next five years. While many entrepreneurs may (Norway, Denmark and Sweden) and Germany report not achieve their expressed growth potential, several high participation in business services (around a third studies have found an association between these
53 GEM WOMEN’S SPECIAL REPORT
ASIA/OCEANIA INNOVATION-DRIVEN AVERAGE (UNWEIGHTED) EUROPE INNOVATION-DRIVEN AVERAGE (UNWEIGHTED)
1% 5% 18% 16%
13% 53% 68% 26%
MIDDLE EAST INNOVATION-DRIVEN AVERAGE (UNWEIGHTED) NORTH AMERICA AVERAGE (UNWEIGHTED)
1% 5% 15% 14%
21% 63% 54% 27%
Extractive Transforming Business Consumers, Culture Sector Sector Services Sector and Society Sector
Figure 37: Female Early-Stage Entrepreneurship Activity Across Industry Sectors in Innovation-Driven Regions
projections and actual venture growth.2 It should also be employment level in Suriname to 60% indicating this level noted that entrepreneurs who do not aspire to grow their in Colombia. Although efficiency-driven Europe has among businesses are less likely to do so successfully. Figures the lowest TEA rates in the sample, this region in general 38 and 39 indicate the percentage of entrepreneurs, reports higher proportions of female entrepreneurs with disaggregated by gender, with these growth aspirations 6+ job aspirations. This suggests that entrepreneurship within the designated regions. in this region is more selective, with fewer women starting businesses, but having a more positive outlook and Economies in Latin America and the Caribbean show greater ambition to grow their businesses. considerable variation in female growth aspirations, ranging from no women entrepreneurs anticipating this The innovation-driven economies also show considerable variation in job creation aspirations. In Finland, women entrepreneurs are as likely as men to have growth 2 Baum, J.R., Locke, E.A., & Smith, K.G. (2001). “A multidimensional model of aspirations. In addition, there are several innovation- venture growth,” Academy of Management Journal, 44(2), 292-303. driven countries where female entrepreneurs are more Wiklund, J., and Shepherd, D. (2003). “Aspiring for, and achieving growth: The likely than male entrepreneurs to project creating six or moderating role of resources and opportunities,” Journal of Management Studies, more jobs: Belgium (1.5 times), Kuwait (1.4 times) and 40(8), 1919-1941. Luxembourg (1.25 times). For Belgium and Luxembourg, Stam, E., and Wennberg, K. (2009). “The roles of R&D in new firm growth,” Small however, there are fewer women entrepreneurs relative Business Economics, 33, 77-89. to men, leading to a lower percentage of growth-oriented entrepreneurs relative to the overall population.
54 GEM WOMEN’S SPECIAL REPORT
0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Malawi Japan Algeria Republic of Korea Zambia
Uganda Australia Ghana Singapore Burkina Faso
AFRICA Cameroon Taiwan ASIA / OCEANIA INNOVATION-DRIVEN South Africa Italy Nigeria Botswana Denmark Libya Netherlands Angola Philippines Austria
Thailand Greece Indonesia Switzerland Malaysia Vietnam Norway India
EFFICIENCY-DRIVEN Finland China ASIA / OCEANIA FACTOR- AND Iran Spain Kazakhstan United Kingdom Bosnia & Herzegovina Estonia France
Poland Belgium Lithuania EUROPE INNOVATION-DRIVEN Sweden Hungary
Georgia Portugal Macedonia Ireland Russia Latvia Germany EUROPE EFFICIENCY-DRIVEN Kosovo Czech Republic Romania Turkey Slovakia Croatia Slovenia Suriname El Salvador Luxembourg
Peru Israel Puerto Rico Qatar Guatemala
Panama MIDDLE EASTERN Kuwait INNOVATION-DRIVEN Brazil Canada Ecuador United States Jamaica NORTH AMERICA Costa Rica 0% 10% 20% 30% 40% 50% 60% 70% 80% Bolivia Barbados Mexico
LATIN AMERICA / CARIBBEAN Belize Figure 39: Percentage of Entrepreneurs With 6+ Job Projections in Innovation- Argentina Driven Economies, by Region and Gender Trinidad & Tobago Uruguay In Kuwait there is more gender parity, so women Chile entrepreneurs are likely to have a higher number who Colombia are growth-oriented. However, the potential job-creation impact of these entrepreneurs must be evaluated in 0% 10% 20% 30% 40% 50% 60% 70% terms of Kuwait’s particularly high business closure rates for both genders (Figure 8) – more entrepreneurs in Kuwait have closed a business in the last year than Figure 38: Percentage of Entrepreneurs With 6+ Job Projections in Factor- and are starting or running a new business, suggesting a Efficiency-Driven Economies, by Region and Gender prevalence of high potential, but also of high risk.
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4.3 INNOVATION 0% 10% 20% 30% 40% 50% 60% Algeria Innovation and entrepreneurship are closely connected Uganda concepts. Highly innovative entrepreneurs disrupt Zambia market equilibrium by introducing new product-market Ghana combinations that create new needs among customers Cameroon and drive out less productive firms as their innovations Burkina Faso
advance the production frontier. Furthermore, innovation AFRICA Nigeria goes beyond merely creating novel products and Angola services. To commercialize innovation, entrepreneurs Botswana need to identify new market niches and develop creative Libya ways to offer, deliver and promote their products. All of South Africa this requires awareness of competitive offerings, as well Malawi as the ability to incorporate this knowledge into distinct Iran
products and services. Innovation capabilities are Vietnam thus important to the ability of an economy to become Indonesia competitive, particularly in higher-productivity sectors. Malaysia China Kazakhstan
EFFICIENCY-DRIVEN Thailand They report higher levels ASIA / OCEANIA FACTOR- AND Philippines India of innovation than male Bosnia & Herzegovina Russia entrepreneurs in almost Romania Croatia three-quarters of the Georgia Macedonia economies in this region. Lithuania Hungary Estonia EUROPE EFFICIENCY-DRIVEN Poland GEM assesses innovation among entrepreneurs by Kosovo combining two main variables with respect to the Latvia entrepreneur’s products or services: the degree of Turkey newness they represent to customers, and the extent to Suriname which competitors are not offering the same products El Salvador or services. The high level of gender parity revealed Jamaica in the results on innovation is encouraging. Women Peru entrepreneurs in nearly half of the economies in the GEM Panama sample report equal or higher innovation levels than men Brazil entrepreneurs. Chile and India have the highest levels of Trinidad & Tobago female innovation – in both of these economies, more Ecuador than half the women entrepreneurs believe they offer Mexico innovative products or services. In India, low female TEA Belize rates are to some extent offset by this high proportion Argentina of innovation. Chile, however, has both high female Costa Rica TEA rates and also the highest proportion of innovation Barbados among women entrepreneurs (58%). Guatemala LATIN AMERICA / CARIBBEAN Bolivia From a regional perspective, women entrepreneurs Uruguay in efficiency-driven Europe are particularly innovative Colombia (Figure 40). They report higher levels of innovation than Puerto Rico male entrepreneurs in almost three-quarters of the Chile economies in this region. These high innovation rates 0% 10% 20% 30% 40% 50% 60% may, in part, be attributed to the fact that there are proportionately more educated women entrepreneurs in efficiency-driven European economies, compared to men Figure 40: Percentage of Entrepreneurs with Innovative Products and Services in entrepreneurs (as shown in Figure 13). Factor- and Efficiency-Driven Economies, by Region and Gender
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4.4 CHANGES IN JOB EXPECTATIONS AND INNOVATION FROM 2012 Innovation-driven Asia, which With regard to changes from 2012 for 61 economies, also experienced a decline Table 7 shows that the proportion of female entrepreneurs with 6+ job aspirations and innovative in TEA rate and gender ratio, offerings has declined (by 9% for the former and 6% for the latter). However, this decline was also seen in exhibited declines in rates male entrepreneurs; as a result there was little or no change in the overall gender ratios for these indicators. and gender ratios for both job Factor- and efficiency-driven Asia, and also efficiency- driven Europe and Israel, show an interesting pattern expectations and innovation. where female rates and the gender ratio around job expectations have declined, but female rates and the gender ratio around innovation have improved. This suggests a shift toward innovation, but a diminishing 0% 10% 20% 30% 40% 50% 60% emphasis on job creation. Japan -
Republic of Korea Innovation-driven Asia, which also experienced a decline in TEA rate and gender ratio, exhibited declines in rates and Singapore gender ratios for both job expectations and innovation. The TION-DRIVEN Taiwan United States generally showed the opposite result, with ASIA / OCEANIA INNOVA Australia positive improvements on both indicators. Italy
Portugal 4.5 INTERNATIONAL SALES
Germany For many entrepreneurs, internationalization is a Netherlands means to access larger and more diverse markets. In Finland economies with large and relatively affluent internal
United Kingdom markets, there may be less incentive for early-stage entrepreneurs to reach out to international markets. The Norway ability to sell internationally is influenced by a range of Greece factors: for example, the ability to conduct supply and Sweden distribution activities through the Internet, particularly to Spain the extent that this facilitates international trade. Schott et al. (2015) found that only 35% of young women used Switzerland the Internet to sell products and services, compared to Czech Republic 48% of young men.3 Slovenia EUROPE INNOVATION-DRIVEN Slovakia GEM regards entrepreneurs who aim to have more than
Belgium 25% of customers from international markets as having a strong international orientation (Figures 42 and 43). The Austria Latin American and Caribbean region shows high variation France in this indicator among its economies. Very few female Luxembourg entrepreneurs in Brazil are internationally oriented, while
Denmark nearly half in Suriname are. This, of course, reflects size differences among these countries, with Brazil having a Ireland much larger internal market than Suriname. Israel Qatar Less variation is exhibited in factor- and efficiency-driven
MIDDLE EASTERN Asia, where international orientation is low across the
INNOVATION-DRIVEN Kuwait
Canada region for both genders. Africa also reports fairly low levels of international orientation, with the exception of United States NORTH AMERICA
0% 10% 20% 30% 40% 50% 60% 3 Schott, T., Kew, P., and Cheraghi, M. (2015). Future Potential: a GEM Perspective on Youth Entrepreneurship 2015. London: Global Entrepreneurship Figure 41: Percentage of Entrepreneurs with Innovative Products/Services in Research Organisation. Innovation-Driven Economies, by Region and Gender
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Table 7: Percentage Change in Female Rates and Female/Male Ratio From 2012 for Job Expectations and Innovation
Percent female 6+ Job Expectation Percent Female TEA TEA with 6+ Job Innovation Ratio F/M Region Ratio F/M With Innovations Expectations
Africa -12% 34% -17% 4%
Asia & Oceania (Factor- and -13% -6% 29% 17% Efficiency-Driven)
Europe (Efficiency- -18% -15% 2% 13% Driven)
Latin America & 4% -2% -10% 8% Caribbean
Asia & Oceania -8% -12% -27% -40% (Innovation-Driven)
Europe (Innovation- -3% 5% -8% -2% Driven)
Israel* -38% -28% 24% 12%
United States 21% 0% 12% 8%
Overall Average: All -9% 0% -6% 2% 61 Economies
South Africa. South African women entrepreneurs not efficiency-driven economies. There are large differences only have high internationalization levels, but also are in terms of industry sector participation: 23% of women 30% more likely than men entrepreneurs to display strong entrepreneurs in innovation-driven economies are international orientation. active in the business services sector, compared to 9% for factor- and efficiency-driven economies. Women in Across the European region, women display particularly innovation-driven economies are also more likely to be high levels of internationalization – most notably innovative and international. However, the factor- and Kosovo, Luxembourg, Belgium and Hungary. Surprisingly, efficiency-driven economies report job creation aspirations there are few internationally oriented female nearly equal to that of the innovation-driven economies, entrepreneurs relative to male entrepreneurs in the which could reveal the growth opportunities existing in United Kingdom – female entrepreneurs are only one- markets that are still developing. At the same time, formal fifth as likely as male entrepreneurs to display strong bureaucratic practices in developing economies may limit international orientation. entrepreneurial aspirations.
4.6 A COMPARATIVE OVERVIEW OF In efficiency-driven Europe, despite fewer women IMPACT CHARACTERISTICS AMONG WOMEN entrepreneurs, these economies have entrepreneurs ENTREPRENEURS with higher potential impact, particularly in terms of job creation aspirations. Conversely, Africa reveals high The spider diagrams on the following pages provide an female entrepreneurship activity, but scores lower than analysis of four impact characteristics among women the overall average on all impact indicators. Other regions entrepreneurs, by development level and region. have strengths in certain impact variables. Asia shows a high level of innovation, but less international focus. Latin Although there are fewer female entrepreneurs in the America is close to the average for international focus and innovation-driven economies, they exhibit, on average, innovation, but shows lower business services involvement greater impact than do female entrepreneurs in factor- and and job expectations.
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0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% Japan Burkina Faso Australia Uganda Malawi Taiwan Cameroon Republic of Korea ASIA / OCEANIA Ghana INNOVATION-DRIVEN Singapore Botswana United Kingdom
AFRICA Libya Slovakia Nigeria Denmark Zambia Finland Angola Netherlands Algeria Norway South Africa Italy Philippines Spain
Vietnam Czech Republic Thailand Slovenia Iran Portugal Malaysia France India
EUROPE INNOVATION-DRIVEN Greece EFFICIENCY-DRIVEN China
ASIA / OCEANIA FACTOR- AND Ireland Indonesia Germany Kazakhstan Austria Russia Sweden Poland Bosnia & Herzegovina Switzerland Turkey Belgium Estonia Luxembourg Lithuania Israel Georgia Qatar DRIVEN
Macedonia INNOVATION- Kuwait MIDDLE EASTERN Hungary United States EUROPE EFFICIENCY-DRIVEN Romania Canada NORTH AMERICA Latvia 0% 10% 20% 30% 40% 50% 60% Croatia Kosovo Brazil Figure 43: Percentage of Entrepreneurs With Strong International Orientation in Ecuador Innovation-Driven Economies, by Region and Gender Guatemala Trinidad & Tobago El Salvador Overall Average: Factor and Efficiency-Driven Regions (Unweighted) Argentina Overall Average: Innovation-Driven Regions (Unweighted) Bolivia Costa Rica Jamaica Female TEA, % Business Services Sector Mexico 0.3 Peru 0.25
Colombia 0.2
Puerto Rico 0.15 Panama 0.1
LATIN AMERICA / CARIBBEAN Chile % TEA International 0.05 % TEA Female: 0 Uruguay Female Expects 6+ Jobs Belize Barbados Suriname
0% 10% 20% 30% 40% 50% 60%
Innovation Female
Figure 42: Percentage of Entrepreneurs with Strong International Orientation in Factor- and Efficiency-Driven Economies, by Region and Gender Figure 44: Analysis of Entrepreneurial Impact by Development Level
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Africa Asia/Oceania FD/ED Overall Asia/Oceania ID Europe ID Overall Europe Ed Latin Am./Carib. Middle East ID North America
Female TEA, % Business Services Sector Female TEA, % Business Services Sector
40% 50% 35% 30% 40% 25% 30% 20% 15% 20% % TEA International 10% % TEA Female: Expects % TEA International % TEA Female: Expects 10% Female 5% 6+ Jobs Female 6+ Jobs 0% 0%
Innovation Female Innovation Female
Figure 45: Analysis of Entrepreneurial Impact for Factor- and Efficiency- Figure 46: Analysis of Entrepreneurial Impact for Driven Economies Innovation-Driven Economies
Among the innovation-driven regions, North America economies that were measured by both organizations. shows high levels on all impact indicators except for In order to facilitate a deeper understanding of how internationalization, which is slightly lower than the entrepreneurship is related to the four measures in the overall average for this development level. Middle WEF Gender Gap Report, a hierarchical cluster analysis East economies have high internationalization levels, method was used to identify groups of economies that combined with very high job aspirations – twice the level share similar entrepreneurship characteristics in the in Europe. Asia and Oceania shows low participation female population. The economies were grouped into among women entrepreneurs in the business services homogenous segments based on several dimensions sector, as well as low innovation levels. of entrepreneurship – entrepreneurial intentions, total entrepreneurship activity rate, established business 4.7 THE RELATIONSHIP BETWEEN rate, opportunity-driven entrepreneurship activity, GEM AND WEF GENDER GAP INDICATORS entrepreneurship activity in the business services sector, hiring aspirations, international orientation, and Institutions and macro-economic factors exert important innovation. The resultant clusters were then compared influence on entrepreneurship rates for both women across the four empowerment variables assessed in the and men. This section examines the gender gap relative WEF reports. to social, economic and political factors and women’s participation in entrepreneurship. Since 2006, the World The cluster analysis suggests four groupings among the 75 Economic Forum (WEF) Global Gender Gap Report has economies (see Figure 47 and Table 8): assessed the magnitude of gender-based disparities across four categories: economic participation and 1. Innovative. Low entrepreneurial intention economies opportunity, educational attainment, health and survival, with a high level of innovation and new ventures in the and political empowerment. The report examines the business service sector; gap in these outcome variables between men and women, rating economies according to gender equality. 2. High activity. High rates of early-stage activity, and The highest score is 1 (equality), and the lowest possible lower levels of job creation aspirations and innovation; score is 0 (inequality). As a rating approaches a value of 1, it means that parity has been achieved between 3. High aspiration. High job aspirations with women and men with respect to that variable. predominantly average ratings on all other metrics; and
GEM data were analyzed with data from the WEF 4. High impact. High international orientation, job creation 2013 and 2014 Global Gender Gap Reports for 75 aspirations and innovation with lower early-stage activity.
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Table 8: Cluster members (grouping of 75 economies)
Cluster 1 Cluster 2 Cluster 3 Cluster 4
Algeria Bolivia Angola Barbados
Australia Botswana Argentina Belize
Austria Brazil Chile Croatia
Belgium Burkina Faso China Georgia
Canada Ecuador Columbia Greece
Czech Republic El Salvador Costa Rica Hungary
Denmark Ghana Iran Latvia
Estonia Guatemala Kazakhstan Luxembourg
Finland Indonesia Mexico Macedonia
France Jamaica Panama Qatar
Germany Malawi Trinidad & Tobago Romania
India Nigeria Uruguay Singapore
Ireland Peru South Africa
Israel Philippines Suriname
Italy Thailand
Japan Uganda
Republic of Korea Vietnam
Lithuania Zambia
Malaysia
Netherlands
Norway
Poland
Portugal
Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
United Kingdom
United States
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Cluster 1 Cluster 2 but higher economic participation, especially compared Cluster 3 Cluster 4 to cluster #2. This result suggests high participation in the economy, which includes entrepreneurship; but it also suggests some constraints that limit the ability for the Entrepreneurial Intentions average business to have high impact on society.
0.45 TEA: Innovation 0.4 TEA Rate The high aspiration cluster exhibits a significantly lower score 0.35 0.3 on economic participation. Where overall participation in 0.25 0.2 the workforce is not common, entrepreneurship may provide 0.15 0.1 an attractive alternative, and one generally expected to be 0.05 Established worthwhile in offering growth opportunities and a chance to 0 TEA: International Business Activity commercialize innovative solutions. The high impact cluster shows an even greater tendency toward selectivity, with its low rates, but high impact; here, women rarely participate in the political structure of their economies. TEA: Opportunity TEA: Expects 6+ Jobs The relationship between gender gaps and entrepreneurship activity was further explored across the 75 economies TEA: Business using regression analysis. The results suggest that female Services Sector entrepreneurship activity rate increases significantly with greater parity in economic participation, but at the same time decreases significantly with greater educational attainment. This indicates that the more women participate Figure 47: Diagram of Clusters Based on GEM Entrepreneurship Indicators in the economy relative to men, the more likely they are to be entrepreneurs. However, where women achieve greater Table 9 shows averages by cluster on the WEF variables. parity in education, they start businesses less frequently. Little difference can be seen among the clusters on This suggests that as women become more educated, they educational attainment and health and survival, with high will have greater access to jobs, and likely in industries that results overall on both. The innovative cluster #1 scores were not previously available to them at lower education higher than others on political empowerment and, with levels. Women in these economies therefore do not have to cluster #4, has a slightly higher educational attainment be entrepreneurs; they can be more selective and engage in score. The high-activity cluster #2 indicates high rates of higher impact activities when they choose this path. In other entrepreneurship that, on average, has less impact than words, as economic participation improves, the quality of entrepreneurship in the other clusters; this cluster shows entrepreneurship activity among women improves, while the slightly lower educational attainment and health scores, quantity decreases.
Table 9: Hierarchical Cluster Analysis
Discriminant Variables (Means of Each Discriminant Variable for Each Segment)
Discriminant Overall Cluster 1 Cluster 2 Cluster 3 Cluster 4 Variable/Cluster
Economic 0.682 0.694 0.698 0.626 0.686 Participation
Educational 0.974 0.989 0.94 0.969 0.989 Attainment
Health and 0.973 0.973 0.972 0.975 0.974 Survival
Political 0.209 0.266 0.17 0.193 0.146 Empowerment
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ENTREPRENEURS’ STORIES
Ameera Safter (South Africa): Ko Kreativ Projects
tarting a business is like “loading a gun with entrepreneurial flair from her and decided that starting a passion bullet” says Raymond Ackerman and running my own business is what I want to do with Academy graduate and director of KO my life,” she says. Ktreativ Projects, Ameera Safter. S Initially, from the age of 20, she worked on her Ameera Safter (26 years old) describes herself as a businesses on a part-time basis. “I wanted to start a passionate, vibrant, creative female entrepreneur. She business and at the time the only skill I had was in owns and manages a furniture manufacturing business beauty therapy. I started hosting pamper parties for that specialises in custom-built free-standing and fitted various events, as well as on my own, on a part-time furniture, a furniture transportation business and a basis. While working for my dad, I started developing a workroom that makes up curtains and covers. different skillset and grew more interested in furniture manufacturing. I started exploring my own avenues “In my mother’s businesses and through her through making and selling children’s furniture,” inspirational life lessons as a single mother, I learned she says. However, she soon realised that in order to so much. An amazing lady with so much energy and make a success of either one, she needed to focus passion for life, she unknowingly nurtured me into and this meant having to choose between beauty and becoming an entrepreneur. I definitely picked up my manufacturing.
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Ameera acknowledges that being a woman in the manufacturing sector has its challenges. “There are There are not many young not many young female entrepreneurs going into the furniture manufacturing sector,” she says. “There is a female entrepreneurs huge gap for young female, creative furniture designers and artisans – I wanted to take the opportunity to fill this going into the furniture gap and do something different. When I graduated from the Raymond Ackerman Academy, I wanted to change my manufacturing sector. There business model. I believed that my husband has a real skill and talent, and that instead of developing and growing is a huge gap for young someone else’s business, he could be growing his own. We partnered up and started at the very bottom. I became his female, creative furniture cabinet-making assistant – not such a good title to have as a female in my social culture. designers and artisans It wasn’t easy for people to accept seeing me using – I wanted to take the carpenters’ power tools and dressed in an overall, as I was expected to be a professional with a good job, or a stay-at- opportunity to fill this gap home wife with a husband in a solid profession. I overcome this prejudice by showing people that I can and will do what and do something different. I want to do without gender limitations, and that alone is powerful enough to gain respect and inspire other women, especially the younger generation.”
When she heard a radio insert advertising the They have re-branded the company, now called Ko Kreativ entrepreneurial short course hosted by the Raymond Projects, to develop a professional platform on which Ackerman Academy (RAA) in Cape Town, she decided it furniture manufacturers can collaborate in an effort to was what she needed to help her redirect her business strategically provide their services directly to the domestic, and take it to another level. Ameera says that the corporate and hospitality sectors. “As manufacturers, we programme taught her valuable lessons, including how are standing up and showcasing our creative talent, design to “fine-tune loose ends” to make a business profitable and craftsman skill to a broader market, by conceptualising, and uphold social responsibilities at the same time. designing and crafting unique furniture pieces for creative “After all, doing good is good business,” she says. interior projects through client and staff collaboration,” she adds. They have also grown the business to two other After completing the programme, she and her husband divisions, TNA Furniture Transport as well as The Workroom Tauriq moved to Johannesburg. Here a joint venture, of Curtain and Covers. Decorize Interiors, was born. “Tauriq is an artisan and there was no one better than him to come on board She makes a heartfelt plea to aspiring entrepreneurs, with me as my business partner and teach me what advising them to “believe in themselves and their abilities” I needed to know about making quality furniture out and “just work smart”. of solid exotic woods,” she says.” There is a demand for custom-made versatile and functional furniture made “Dream. Be brave. Never be afraid of failure and rejection. to high quality standards and we were able to meet that Never stop learning and developing yourself and your demand. We did well in Johannesburg but creative Cape character. Take that risk. Starting a business is like loading Town was calling us back,” she adds. a gun with a passion bullet: you aim, you shoot, you don’t know if you are going to hit your target, but taking the It was while they were in Gauteng that Ameera and chance is well worth it! You won’t know unless you give it Tauriq approached the Furniture Technology Centre Trust your best shot,” she says. (Furntech), which is an established national business incubator and furniture training centre that offers www.kokreativprojects.co.za innovative business incubation within South Africa in a bid to assist in job creation in SA’s furniture and wood products sector. Furntech accepted their application and provided the husband and wife team with access to precision machinery, technical mentorship and a workspace in a Paarden Island workshop back in Cape Town. In the two years since their return to the Mother City, their business has grown at a good pace.
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CONCLUSIONS
KEY FINDINGS entrepreneurs. These economies come from three regions: El Salvador and Brazil in Latin America and ENTREPRENEURSHIP ACTIVITY the Caribbean; Vietnam, Indonesia, Malaysia and the Philippines in Southeast Asia; and Zambia, Nigeria, Among 61 economies (out of 83) featured in this report Uganda and Ghana in Africa. In contrast, women in and also in the previous report based on 2012 data, many efficiency-driven European and innovation-driven overall TEA rates have increased by 7% since 2012, and Asian economies exhibit TEA rates less than half those the gender gap (ratio of women to men participating in of men. These low female participation rates contribute entrepreneurship) has narrowed by 6%. TEA rates and to low overall TEA rates in these regions. The gender gender gap ratios saw positive upward movement in three gap is greatest in Turkey, where there are three female regions: factor- and efficiency-driven Asia, Latin America entrepreneurs for every 10 male entrepreneurs. and the Caribbean and innovation-driven Europe. Africa’s high female TEA rates are fuelled by a high The 83 economies examined in this report show proportion of women who intend to start businesses in the substantial differences in women’s TEA rates, ranging near future. In a number of regions, women are approaching from a high of 41% in Nigeria and Zambia to a low of gender equity in entrepreneurial intentions, notably Latin 2% in Suriname and Japan. In 10 economies, women America and the Caribbean, Africa, the Middle East, and are as likely as men, or more likely than men, to be Asia and Oceania (factor- and efficiency-driven).
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The Middle East however, despite high intentions, exhibits driven Europe and innovation-driven regions, women are among the lowest regional averages for TEA and among the more likely than men to have this level of education. largest regional gender gaps. The gender gap in the percentage of entrepreneurs with The difference between TEA and established business opportunity motivations is relatively low in every region. rates is minimal for innovation-driven economies, while In the innovation-driven Middle East economies, women factor- and efficiency-driven economies show half the are proportionately more likely to have opportunity level of established business activity relative to TEA. motives, but the TEA gender gap suggests that few start This suggests greater demand for entrepreneurship in relative to men and rarely out of necessity. developing economies than in developed economies, with comparatively fewer enterprises making it to the This report adds evidence to research emphasizing mature stage. Innovation-driven economies exhibit less the value of starting in teams. The GEM findings demand for entrepreneurship, but those who start are suggest that economies with a higher percentage of more likely to start sustainable businesses, and/or the women entrepreneurs starting in teams of three or environment enables this sustainability. more also have a greater proportion of those with job creation ambitions. The highest prevalence of women ENTREPRENEUR CHARACTERISTICS entrepreneurs operating in teams was in the innovation- driven Middle East (27%) and innovation-driven Asia The factor- and efficiency-driven regions tend toward and Oceania (24%) regions. Teams were especially rare younger entrepreneurs, with the 25-34 age groups having among women entrepreneurs in factor- and efficiency- the highest rates. This is also the case in North America, driven Asia (7%), Africa (11%), and Latin America and while the remaining innovation-driven regions show the the Caribbean (11%). highest entrepreneurship rates among 35-44 year-olds. ATTITUDES The education level of entrepreneurs is approaching gender parity; 33% of women entrepreneurs in the High female TEA rates in an economy are associated economies studied have a secondary degree or higher with the likelihood that women in society know an level of education versus 36% of men entrepreneurs. entrepreneur. It may be the case that where more Among entrepreneurs in most economies of efficiency- entrepreneurs are present in an economy, women
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will commonly know one. However, affiliations with Among innovation-driven economies, North America entrepreneurs can offer role models, advice, contacts, and Europe exhibit a high prevalence (over one-fourth) and support, which may explain why economies with of women entrepreneurs in the knowledge-intensive many women who know entrepreneurs are also likely business services sector. to have high female startup rates. Many European economies exhibit an interesting finding, reporting low Job creation aspirations among women are high in female entrepreneurship rates, but many women in efficiency-driven Europe, a region of relatively low society who know entrepreneurs. TEA rates. This suggests that this region has fewer entrepreneurs who are, on average, more likely to grow Female TEA rates are also high where women hold and employ others. Although innovation-driven economies strong perceptions about the presence of opportunities typically show a higher proportion of entrepreneurs with for starting a business. The gender difference for this job creation aspirations, this report shows that women indicator is relatively narrow (40% for women versus in factor- and efficiency-driven economies report less 45% for men), and in a number of factor- and efficiency- difference from innovation-driven economies on this driven economies, women are slightly more likely than measure, compared to other impact indicators. men to perceive good business opportunities. Among the 61 economies featured in both this report and the Women entrepreneurs in nearly half of the economies 2012 report, Europe, Israel and the United States saw in the GEM sample report equal or higher innovation increased female opportunity perceptions, but with levels than men entrepreneurs. In almost three-quarters less change to the gender ratio. In Asia, opportunity of the economies in efficiency-driven Europe, female perceptions were noticeably lower, especially among entrepreneurs report higher levels of innovation than innovation-driven economies. male entrepreneurs; this may, in part, be attributed to the fact that there are proportionately more educated This report shows a strong positive association between women (than men) entrepreneurs in this region. In Chile capability perceptions and TEA rates among women. and India, more than half of women entrepreneurs The findings also reveal a noticeable gender gap in believe they offer innovative products or services. this indicator (46% for women versus 59% for men). Opportunity perceptions are reflective of the external Since the 2012 report, the proportion of female environment; these often shift with changing conditions entrepreneurs with 6+ job aspirations and innovative in an economy. Capabilities perceptions, on the other offerings has declined among 61 economies (by 9% hand, are more reflective of one’s self-perceptions, from 2012 for job aspirations and 6% from 2012 for which are more stable or slowly changing. Evidence of innovation). However, this decline was also seen in this can be seen in the comparison of 61 economies male entrepreneurs; as a result there was little or no that showed little change in capabilities perceptions change in the gender ratios overall for these indicators. from that reported in 2012. In factor- and efficiency-driven Asia, and in efficiency- driven Europe and Israel, both the rates and the gender Fear of failure among women is lowest in African ratio around job expectations have declined. However, economies, which, along with many Asian economies, the rates and the gender ratio around innovation have shows fear of failure rates among women that are improved, suggesting a focus toward innovation, but often equal to or lower than for men. Wider gender lower expectations for job creation. Innovation-driven gaps appear in the majority of economies of efficiency- Asia saw declines in both job aspirations and innovation, driven Europe, and Latin America and the Caribbean. while the United States showed positive improvements Fear of failure may be influenced by such factors as the in both indicators. perceived risks associated with the typical business one may start, or the extent women believe there will be Factor- and efficiency-driven Asia, and also Africa, negative consequences, or few other choices for income, report low international orientation among women if their businesses don’t work out. entrepreneurs in most economies. In contrast, women entrepreneurs across Europe display particularly high IMPACT levels of internationalization.
More than two-thirds of women entrepreneurs operate Analyses of TEA rates with gender gap indicators measured in the consumer-oriented sector, with around three- by WEF, shows that the rate of female entrepreneurship fourths of women entrepreneurs competing in these activity increases significantly with greater parity in types of businesses in Africa, in factor- and efficiency- economic participation, but decreases significantly with driven Asia, and in Latin America and the Caribbean. greater educational attainment. This indicates that the By comparison, 45% of men entrepreneurs compete in more women participate in the economy relative to men, this sector. Distinct results can be seen in efficiency- the more likely they are to be entrepreneurs. However, driven Europe, which shows a comparatively balanced where women achieve a higher level of education than distribution of sectors among women entrepreneurs. men, they start businesses less frequently.
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IMPLICATIONS 6. While women are nearly equally likely as men are to recognize the presence of opportunities around them, 1. Women matter to economic development – they gender gaps are apparent in capability perceptions and invest in their communities, educate their children, fear of failure. Capabilities are rooted in both education and pay back the benefits they receive by helping and in social support. Economies with initiatives others. This report has revealed improvements in that increase visibility and access to role models are female entrepreneurship rates and gender gaps in 61 likely to encourage women entrepreneurs to start and economies in no more than two years. Other results grow businesses. Programs that enhance skills and show gender equity in many regions and in indicators competencies for women entrepreneurs, and other such as education and innovation levels. Greater initiatives such as mentoring and advising, should awareness of the importance and nature of women’s include developing and assessing women’s confidence entrepreneurship and programs addressing these to take advantage of opportunities and building their efforts may have already contributed to progress in this capacity for managing risk. activity. Continued efforts are essential everywhere, while regional variations imply distinct needs and levels 7. Access to financing at all stages of business of emphasis in different parts of the world. development for women entrepreneurs is essential, but should also recognize progress in a business, and 2. Environmental conditions and constraints weigh in society, that shift financing needs. For example, a differently on the sexes. This continues to be the challenge for women in moving from micro businesses to biggest challenge women face worldwide. Subtle small and medium-sized businesses requires a change biases exist in many societies that suggest women from financing sources such as micro-finance to normal have lower ambitions or are less capable, or that banking conditions, where there is often bias in the running businesses is inappropriate for them. This lending process.2 can, for example, inhibit their ability to gain access to growth capital.1 These biases need to be identified and 8. Women entrepreneurs participate heavily in the eliminated so women entrepreneurs have the same consumer-oriented sector, which is considered easier to opportunities as men do to grow their businesses. enter, but more difficult to sustain because of low entry barriers and high competitiveness. But increasingly, 3. Higher TEA rates are often found in less developed businesses in foods, textiles and other areas are economies, where women are highly likely to participate becoming more important, especially given the rise of in the workforce. Many women in these economies challenges around food, clothing and other basic needs, pursue entrepreneurial endeavors to provide for their as well as movements to buy local. To the extent women families, generally through basic types of consumer- are starting businesses in sectors where greater social focused businesses – both products and services. As problems might exist, they are well positioned to grow such, they can be considered the basic engine of their and have impact. local economies. However, they still face constraints in sustaining their businesses. Entrepreneurship is a 9. Women in factor and efficiency-driven economies multiphase endeavor that implies a need for not only report less difference from innovation-driven economies facilitating women to start ventures, but also helping on job aspirations, compared to other impact indicators. them maintain them into maturity. This could reveal the growth opportunities existing in still-developing markets, which suggest the need 4. Improvements in education provide quality career to support high impact female businesses in regions choices for women, whether it is work as an employee, where environmental constraints may weigh heavily. or the launch of high impact entrepreneurial ventures. At the same time, this finding might suggest that more Education programs that equip women with the ability to traditional bureaucratic societies limit entrepreneurial start and grow businesses provide career options they aspirations in the developed world, implying a particular can consider at any point in their lives. need to address these constraints.
5. The advantage of teams may depend on the type of business started, cultural/social norms and other conditions. However, given that women who start in teams are more likely to have higher impact with their businesses, it is imperative to provide opportunities for women entrepreneurs to start with co-founders.
1 http://www.goldmansachs.com/citizenship/10000women/news-and- 2 http://www.goldmansachs.com/citizenship/10000women/news-and- events/10kwprogressreport.html. events/10kwprogressreport.html.
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APPENDIX A: Entrepreneurship profiles of economies covered in the report, by region
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Africa
ALGERIA Algeria Africa Average (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Algerian women shows a high level of intention that is characteristic of African economies and reflective of high Intentions Female opportunity perceptions exhibited in its society. However, this country exhibits low female startup and mature 50% 40% business activity. Perhaps some explanation lies in lower capability perceptions and higher fear of failure compared 30% to the average for women in the Africa region. Women 20% entrepreneurs are not likely to be major job creators nor 10% Business Female TEA innovators. Yet a high percentage compete in the business Closure 0% (% of Adult Female Female Population) services sector and sell internationally.
Established Business Female
Algeria Africa Average (unweighted) Algeria Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Opportunity Services Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 20% 5% % Female TEA % Female TEA Know an Capability International Entrepreneur 0% Perceptions Sales 0% Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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ANGOLA
Angola exhibits slightly lower female activity levels than Angola Africa Average (unweighted) the Africa group average, and this is consistent with Overall Average: Factor- and Efficiency-Driven Regions (unweighted) somewhat lower capability perceptions and higher fear of failure. However, women entrepreneurs are highly likely to Intentions Female have job ambitions, although few compete in the business services sector. Close to three fourths of the female 50% population know an entrepreneur personally. 40% 30%
20%
10%
Business 0% Female TEA Closure (% of Adult Female Female Population)
Established Business Female
Angola Africa Average (unweighted) Angola Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Opportunity Services Sector Perceptions Female
50% 80%
40% 60% 30% 40% 20% 20% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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BOTSWANA
Botswana shows a high level of intentions and startup Botswana Africa Average (unweighted) activity among women, but low established business Overall Average: Factor- and Efficiency-Driven Regions (unweighted) activity and high closure relative to the average for Africa. This suggests a high need or opportunity to get Intentions Female started, but with few sustaining their businesses into 80% maturity. Women in Botswana have lower opportunity and capability perceptions, and they are less likely to know 60%
an entrepreneur personally, compared to the average 40%
for this region. At the same time, they exhibit low fear of 20% failure. Women entrepreneurs in Botswana, however, show Business Female TEA higher impact relative to their African peers with a higher Closure 0% (% of Adult Female Female Population) level of participation in the business services sector and higher innovation. Job creation ambitions are especially high compared to the African average, with over 2/3 more female entrepreneurs projecting 6+ jobs.
Established Business Female
Botswana Africa Average (unweighted) Botswana Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Opportunity Services Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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BURKINA FASO
Burkina Faso tracks fairly closely to the Africa average Burkina Faso Africa Average (unweighted) on activity, with slightly lower TEA rates but slightly Overall Average: Factor- and Efficiency-Driven Regions (unweighted) higher established business rates, and just lower than average for the region on business closure. This suggests Intentions Female that many women have sustained their businesses into maturity. Similarly, societal attitudes among women are 50% consistent with the average for Africa. The results indicate 40% that women entrepreneurs serve only domestic markets 30% and have a low likelihood of growing their businesses. 20% Business service activity is low but characteristic of the 10% Business Female TEA African region. Innovation levels are also similiar to the Closure 0% (% of Adult Female Female Population) regional average.
Established Business Female
Burkina Faso Africa Average (unweighted) Burkina Faso Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Opportunity Services Sector Perceptions Female
80% 25% 60% 20% 15% 40% 10% 5% 20% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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CAMEROON
Cameroon shows the greatest difference from the Africa Cameroon Africa Average (unweighted) average in its higher TEA rate. Intentions are somewhat Overall Average: Factor- and Efficiency-Driven Regions (unweighted) higher. The slightly higher business closure rate may reflect the higher startup activity. Female attitudes are Intentions Female
close to the Africa average. Although growth orientation 60% and international markets are less prevalent, innovation 50% levels and business services sector activity are on par 40% with the Africa average. 30% 20% 10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Cameroon Africa Average (unweighted) Cameroon Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 70% 60% 20% 50% 15% 40% 10% 30% 20% 5% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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GHANA
Female entrepreneurship activity is slightly higher than Ghana Africa Average (unweighted) the regional average, but what is most distinct relative to Overall Average: Factor- and Efficiency-Driven Regions (unweighted) activity in Ghana is the high rate of established business ownership: over twice that of the Africa average. Business Intentions Female
closure rate is just below the average. Overall this 60% indicates a high level of activity and sustainability. These results are supported by positive attitudes, especially 40% capabilities perceptions, which are ¼ higher than average, while the other attitudes are similar to the average. All 20% of the impact factors, however, are low, particularly job Business Female TEA Closure 0% (% of Adult expectations. Female Female Population)
Established Business Female
Ghana Africa Average (unweighted) Ghana Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 100% 20% 80% 15% 60% 10% 40% 5% % Female TEA Know an 20% Capability International 0% % Female TEA Entrepreneur Perceptions Sales Expects 6+ Jobs Female 0% Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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LIBYA
Women in Libya have high intentions to start businesses, Libya Africa Average (unweighted) but show little activity beyond this early phase. Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Attitudes are less positive compared to Africa averages; particularly low is the percentage of women who know Intentions Female an entrepreneur personally. Those starting businesses show high impact in greater levels of innovation and 60% 50% job creation, and business services participation and 40% internationalization are on par with the Africa average. 30% 20% 10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Libya Africa Average (unweighted) Libya Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 80%
40% 60% 30% 40% 20% 20% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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MALAWI
Women in Malawi have high intentions to start Malawi Africa Average (unweighted) businesses, and TEA rates are just above the high average Overall Average: Factor- and Efficiency-Driven Regions (unweighted) for Africa. However, closure rates are very high, almost three times the Africa average. High intentions and startup Intentions Female activity are likely fueled by positive attitudes that outshine 80% Africa’s averages. Women entrepreneurs are not likely to compete in business services nor do they anticipate 60%
creating jobs. They serve local markets, but at the same 40% time believe they have innovative offerings. 20% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Malawi Africa Average (unweighted) Malawi Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
100% 40% 80% 30% 60% 20% 40% 10% 20% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA Fear of Failure Female with Innovative Products/Services
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NIGERIA
Nigerian women exhibit high startup and mature business Nigeria Africa Average (unweighted) rates with low closure rates, and highly positive attitudes. Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Impact indicators are average for an African country, with the exception of job expectations, which are over 60% Intentions Female higher than the Africa average. 50%
40%
30%
20%
Business 10% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Nigeria Africa Average (unweighted) Nigeria Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 100% 80% 30% 60% 20% 40% 10% 20% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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SOUTH AFRICA
South Africa has few women participating in South Africa Africa Average (unweighted) entrepreneurship across all phases of activity, with low Overall Average: Factor- and Efficiency-Driven Regions (unweighted) results on attitudes. Women entrepreneurs register just above the Africa average on business services activity and Intentions Female job expectations. But more notably, innovation is ¾ higher than average, and international sales levels are more than 50% three times the regional average. 40% 30%
20%
Business 10% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
South Africa Africa Average (unweighted) South Africa Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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UGANDA
Women in Uganda participate in entrepreneurship at Uganda Africa Average (unweighted) all phases, at a higher level than the Africa average. Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Particularly notable is the high rate of established business ownership, at over 1/3 the female population. Intentions Female These results are consistent with attitudes that are 60% more positive than the Africa average. Impact indicators, however, reveal low levels on all those indicators. 40%
20% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Uganda Africa Average (unweighted) Uganda Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 100% 20% 80% 15% 60% 10% 40% 5% 20% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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ZAMBIA
Female TEA rate is ¾ higher than the Africa average Zambia Africa Average (unweighted) and the other activity indicators are just above average. Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Attitudes are highly positive compared to the average. Impact indicators are low except for internationalization, Intentions Female
which is about average. 60% 50% 40% 30% 20% Business 10% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Zambia Africa Average (unweighted) Zambia Africa Average (unweighted)
Overall Average: Factor- and Efficiency-Driven Regions (unweighted) Overall Average: Factor- and Efficiency-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 20% 5% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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Asia/Oceania Factor- and Efficiency-Driven
CHINA China Asia/Oceania FD and ED Average (unweighted) Overall Average : FD and ED Regions (unweighted) Female activity in China is close to the average for the Asia/Oceania Factor and Efficiency-Driven region. Women Intentions Female in China are highly likely to know an entrepreneur and they 30% are less likely than the regional average to be constrained 25% by fear of failure. However, their capability perceptions 20% are noticeably low and they are slightly less likely than 15% average to see opportunities for starting a business. Few 10% women entrepreneurs compete in business services or Business 5% Female TEA Closure 0% (% of Adult sell internationally; slightly less than average state they Female Female Population) are innovative, but a little more than average project job expectations.
Established Business Female
China Asia/Oceania FD and ED Average (unweighted) China Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 60% 20% 40% 15% 10% 20% 5% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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INDIA
Women in India register low activity across all phases, India Asia/Oceania FD and ED Average (unweighted) despite average opportunity perceptions and fear of Overall Average : FD and ED Regions (unweighted) failure. Few women know an entrepreneur personally compared to the regional average (less than ½) and Intentions Female capability perceptions are 1/3 lower than average. 30% Participation in the business services sector is low, as 25% is international sales, with job expectations just below 20% average. However, there are many innovative women 15% entrepreneurs: more than twice the average. 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
India Asia/Oceania FD and ED Average (unweighted) India Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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INDONESIA
Intentions, TEA and established business activity are Indonesia Asia/Oceania FD and ED Average (unweighted) slightly above average among Indonesian women. While Overall Average : FD and ED Regions (unweighted) fear of failure is slightly higher than the Asia/Oceania average, Indonesian women are confident about starting Intentions Female businesses, with 25% more than average perceiving they have the needed capabilities. Opportunity perceptions 30% are 50% higher than average for the region. Two thirds of 25% 20% women know an entrepreneur personally. International 15% sales among female entrepreneurs are low, but typical 10% for the region. Business services activity is just above 5% Female TEA Business (% of Adult average, while innovation is below average. The biggest Closure 0% Female Female difference, from the regional average, however, lies in low Population) job creation projections.
Established Business Female
Indonesia Asia/Oceania FD and ED Average (unweighted) Indonesia Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
70% 25% 60% 20% 50% 15% 40% 30% 10% 20% 5% % Female TEA Know an 10% Capability % Female TEA Entrepreneur Perceptions International 0% 0% Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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IRAN
Iran’s TEA rate among women is slightly lower than Iran Asia/Oceania FD and ED Average (unweighted) average for the region, with established business activity Overall Average : FD and ED Regions (unweighted) registering less than half of the average. While Iranian women are less likely to see opportunities or to know Intentions Female an entrepreneur than is typical for Asia/Oceania, they are more confident about their capabilities and have a 30% 25% slightly lower fear of failure rate. International rates are 20% low, but typical for the region, while innovation rates are 15% a little more than 1/3 the average level for this region. 10% Women entrepreneurs show a higher than average level of Business 5% Female TEA participation in business services, and reveal an over 55% Closure 0% (% of Adult Female Female Population) higher level of job creation potential.
Established Business Female
Iran Asia/Oceania FD and ED Average (unweighted) Iran Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
30% 60% 25% 50% 40% 20% 30% 15% 10% 20% 5% Know an 10% Capability % Female TEA % Female TEA Expects International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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KAZAKHSTAN
Female activity rates are close to the regional average in Kazakhstan Asia/Oceania FD and ED Average (unweighted) Kazakhstan. Capabilities perceptions and fear of failure Overall Average : FD and ED Regions (unweighted) are about average, while opportunity perceptions are low, suggesting a readiness for entrepreneurship that is not Intentions Female matched with what is being observed in the environment. Over 60% of women know an entrepreneur. Those 30% starting businesses show average levels of innovation 25% 20% and business services activity. Internationalization is 15% 2 ½ times the typical low level for the region, while job 10% expectations are 1 ½ times the average. Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Kazakhstan Asia/Oceania FD and ED Average (unweighted) Kazakhstan Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
80% 50% 40% 60% 30% 40% 20% 20% 10% % Female TEA % Female TEA Expects Know an Capability International Entrepreneur 0% Perceptions Sales 0% 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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MALAYSIA
Malaysian women show low levels of activity, with about Malaysia Asia/Oceania FD and ED Average (unweighted) half the average level of intentions and TEA. Opportunity Overall Average : FD and ED Regions (unweighted) perceptions among the female population are above average and fear of failure is below average, yet fewer Intentions Female than average (20% less) think they have the capabilities to get started. Women entrepreneurs sell locally, as is typical 30% for the region, and they show lower levels of innovation. 25% 20% A contrast can be seen in low job creation potential but 15% relatively high participation in business services. 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Malaysia Asia/Oceania FD and ED Average (unweighted) Malaysia Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 25% 50% 20% 40% 15% 30% 10% 20% 5% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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PHILIPPINES
Intentions and TEA activity are high among women in Philippines Asia/Oceania FD and ED Average (unweighted) the Philippines, but this is accompanied by high levels of Overall Average : FD and ED Regions (unweighted) business closure and slightly lower established business activity. Opportunity perceptions are high, and capabilities Intentions Female perceptions even more so. Fear of failure is slightly above average and fewer women than average know 50% an entrepreneur personally. Few female entrepreneurs 40% compete in the business services sector and international 30% sales is nearly nonexistent. Growth expectations are less 20% than 1/3 the regional average, but innovations levels are a 10% Business Female TEA little higher than average. Closure 0% (% of Adult Female Female Population)
Established Business Female
Philippines Asia/Oceania FD and ED Average (unweighted) Philippines Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
30% 70% 25% 60% 50% 20% 40% 15% 30% 10% 20% 5% Know an 10% % Female TEA % Female TEA Expects Entrepreneur Capability International 0% 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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THAILAND
Thailand shows a high level of TEA and a very high level Thailand Asia/Oceania FD and ED Average (unweighted) of established business activity (over 3 times the regional Overall Average : FD and ED Regions (unweighted) average) among women. This is consistent with higher than average opportunity perceptions, although capability Intentions Female perceptions are slightly below the regional average and 30% fewer women know entrepreneurs. Additionally, fear of 25% failure among women is over 1/3 higher than average. 20% While innovation levels are average, job expectations, 15% international sales and participation in the business 10% services sector are low. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Thailand Asia/Oceania FD and ED Average (unweighted) Thailand Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 60%
20% 50% 40% 15% 30% 10% 20% 5% Know an 10% % Female TEA % Female TEA Entrepreneur Capability International 0% 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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VIETNAM
Activity levels are average except for established business Vietnam Asia/Oceania FD and ED Average (unweighted) ownership, which is over 2 ½ times the regional average. Overall Average : FD and ED Regions (unweighted) While opportunity perceptions are average for the region, there is a contrast between high capability perceptions Intentions Female and high fear failure, suggesting women are confident about their abilities to start but fear consequences (real 30% or imagined) if these efforts don’t work out. All impact 25% 20% factors are lower than average. 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Vietnam Asia/Oceania FD and ED Average (unweighted) Vietnam Asia/Oceania FD and ED Average (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 60% 50% 20% 40% 15% 30% 10% 20% 5% 10% % Female TEA % Female TEA Know an Capability International Entrepreneur 0% Perceptions Sales 0% Expects 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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Europe Efficiency-Driven
BOSNIA AND HERZEGOVINA Bosnia and Herzegovina Europe ED Average (unweighted) Europe Innovation-Driven Average (unweighted) Activity in Bosnia and Herzegovina is low across all phases, but in line with averages for the Europe Efficiency- Intentions Female Driven region. Although women in this country exhibit an
average level of capability perceptions and lower fear 30% of failure compared to the region overall, they have low opportunity perceptions. Proportionately, Efficiency-Driven 20% European entrepreneurs tend to exhibit high impact; 10% however, Bosnia and Herzegovina shows low levels on all Business Female TEA of these indicators. Closure 0% (% of Adult Female Female Population)
Established Business Female
Bosnia and Herzegovina Europe ED Average (unweighted) Bosnia and Herzegovina Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 40% 50% 30% 40%
20% 30% 20% 10% % Female TEA % Female TEA Know an 10% Capability International 0% Expects 6+ Entrepreneur Perceptions Sales Jobs Female 0% Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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CROATIA
Croatia has low TEA and established business activity Croatia Europe ED Average (unweighted) among women, but not much lower than the average Overall Average: ID Regions (unweighted) for the region. Low opportunity perceptions may explain this — at little more than half the regional average. Intentions Female Where Croatian women entrepreneurs shine, however, is in their potential impact. While they are less likely to 30% be innovative, they are internationally oriented and have 20% high job expectations. Many compete in the business services sector. 10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Croatia Europe ED Average (unweighted) Croatia Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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ESTONIA
Women in Estonia mostly show activity levels typical Estonia Europe ED Average (unweighted) for the region, but intentions are only half the regional Europe Innovation-Driven Average (unweighted) average, suggesting a low base of potential entrepreneurs. This is perhaps reflective of high fear of failure among Intentions Female women in this economy despite having high opportunity perceptions. Female entrepreneurs in Estonia are highly 30% innovative and often compete in business services. 25% Job expectations, however, are about half the regional 20% 15% average. 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Estonia Europe ED Average (unweighted) Estonia Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 40% 50%
30% 40%
20% 30% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability International Entrepreneur 0% Perceptions Sales 0% 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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GEORGIA
Activity among women in Georgia closely follows the Georgia Europe ED Average (unweighted) regional average, with intentions slightly lower than Overall Average: ID Regions (unweighted) average. Opportunity perceptions are on par with the Intentions Female region, and fear of failure is relatively low, although capabilities perceptions are slightly lower than average. 30% Few women entrepreneurs compete in the business 25% services sector and they have lower job expectations. 20% However, internationalization and innovation are close to 15% the regional average. 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Georgia Europe ED Average (unweighted) Georgia Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 60% 40% 50%
30% 40%
20% 30% 20% 10% % Female TEA Know an 10% Capability International % Female TEA Expects Entrepreneur Perceptions Sales 0% 6+ Jobs Female 0% Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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HUNGARY
In Hungary, female activity is similar to the regional Hungary Europe ED Average (unweighted) averages. However, capability perceptions, and Europe Innovation-Driven Average (unweighted) opportunity perceptions in particular, are low and fear of failure is high. Job expectations are somewhat lower than Intentions Female average, while international sales are high. 30% 25% 20% 15% 10% 5% Female TEA Business (% of Adult Closure 0% Female Female Population)
Established Business Female
Hungary Europe ED Average (unweighted) Hungary Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 60% 40% 50%
30% 40% 30% 20% 20% 10% 10% % Female TEA Know an Capability International % Female TEA Entrepreneur 0% Perceptions Sales 0% Expects 6+ Female Female Jobs
% Female TEA with Fear of Failure Female Innovative Products/ Services
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KOSOVO
Activity rates among women in Kosovo are low, including Kosovo Europe ED Average (unweighted) intentions, TEA and established business activity. This Overall Average: ID Regions (unweighted) is despite opportunity perceptions registering twice the regional average, capability perceptions being 50% Intentions Female higher than average, and low fear of failure. Female entrepreneurs show low participation in business services, 30% but job expectation, innovation, and international sales 25% levels are among the highest in the factor and efficiency- 20% driven group. 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Kosovo Europe ED Average (unweighted) Kosovo Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 80%
40% 60%
30% 40% 20% 20% 10% % Female TEA % Female TEA Expects Know an Capability International Entrepreneur 0% Perceptions Sales 0% 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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LATVIA
Female activity rates in Latvia are higher than average Latvia Europe ED Average (unweighted) (intentions, TEA, established businesses), even though Europe Innovation-Driven Average (unweighted) the attitude measures track close to the regional average. Impact factors are all higher than average. Intentions Female
30% 25% 20% 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Latvia Europe ED Average (unweighted) Latvia Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 50% 50% 40% 40% 30% 30% 20% 20% 10% % Female TEA Know an 10% Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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LITHUANIA
Female activity rates in Lithuania are nearly identical Lithuania Europe ED Average (unweighted) to the region’s average, but women in this society have Overall Average: ID Regions (unweighted) low capability perceptions and high fear of failure. While Intentions Female somewhat more women entrepreneurs are engaged in the business services sector compared to the average for the region, job expectations are lower. 30% 25% 20% 15% 10% Business 5% Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Lithuania Europe ED Average (unweighted) Lithuania Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 40% 50% 30% 40% 30% 20% 20% 10% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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MACEDONIA
Female entrepreneurship in Macedonia tracks closely with Macedonia Europe ED Average (unweighted) regional averages on all indicators except for intentions, Europe Innovation-Driven Average (unweighted) which are high, particularly relative to low TEA. Intentions Female
30% 25% 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Macedonia Europe ED Average (unweighted) Macedonia Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 40% 50% 30% 40%
20% 30% 20% 10% % Female TEA % Female TEA Expects Know an 10% Capability International 0% Entrepreneur Perceptions Sales 6+ Jobs Female 0% Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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POLAND
Activity rates among women in Poland are close to Poland Europe ED Average (unweighted) regional averages. Fear of failure, however, is nearly Overall Average: ID Regions (unweighted) one-third higher than typical for the region. Female Intentions Female entrepreneurs have lower than average job expectations and internationalization is less than half the regional 30% average. But they are innovative and participate frequently 25% in the business services sector. 20% 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Poland Europe ED Average (unweighted) Poland Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
80% 40%
60% 30%
20% 40%
10% 20% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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ROMANIA
Intentions to start are high among women in Romania, Romania Europe ED Average (unweighted) while other activity rates hover around the regional Europe Innovation-Driven Average (unweighted) average. Fear of failure is high. A higher than average level Intentions Female of female entrepreneurs participate in business services,
and although they are less innovative compared to what is 30% typical for the region, they are 40% more likely to project 25% job expectations of 6 or more employees. International 20% sales are higher than average. 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Romania Europe ED Average (unweighted) Romania Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 60% 50% 50% 40% 40% 30% 30% 20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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RUSSIA
Russia shows low female intentions and startup activity. Russia Europe ED Average (unweighted) Opportunity and capability perceptions are low among Overall Average: ID Regions (unweighted) women, although they more often know entrepreneurs Intentions Female compared to the regional average. Women entrepreneurs are comparatively less likely to be innovative or 30% international, but their participation in business services 25% 20% and growth orientation are nearly at the level of the 15% regional average. 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Russia Europe ED Average (unweighted) Russia Europe ED Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 60% 40% 50%
30% 40% 30% 20% 20% 10% % Female TEA % Female TEA Know an 10% Capability International 0% Expects 6+ Entrepreneur 0% Perceptions Sales Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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TURKEY
Turkey Europe ED Average (unweighted) Intentions and TEA levels are above the regional average for women in Turkey. Women have higher Europe Innovation-Driven Average (unweighted) than average capability perceptions and lower than average fear of failure. Innovation levels are high Intentions Female 30% among women entrepreneurs and job expectations 25% are 50% higher than average. 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Turkey Europe ED Average (unweighted) Turkey Europe ED Average (unweighted)
Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% % Female TEA 10% % Female TEA Know an 10% Capability International 0% Expects 6+ Entrepreneur Perceptions Sales Jobs Female 0% Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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Latin America/Caribbean
ARGENTINA Argentina Latin/ Am./Carib. Avg (unweighted) Overall Average : FD and ED Regions (unweighted) Argentina shows average activity levels for the Latin America/Caribbean region, with the exception of Intentions Female
somewhat lower TEA rates. Opportunity perceptions are 30% just 2/3 the average level, and capability perceptions are 25% below average. Although few sell internationally, women 20% in Argentina show a higher level of business services 15% businesses and have relatively high growth ambitions. 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Argentina Latin/ Am./Carib. Avg (unweighted) Argentina Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
30% 80% 25% 60% 20% 15% 40% 10% 20% % Female TEA 5% Know an Capability International 0% % Female TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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BARBADOS
Startup activity is lower than the regional average in Barbados Latin/ Am./Carib. Avg (unweighted) Barbados, and intentions are half the regional average. Overall Average : FD and ED Regions (unweighted) Perhaps consistent with these levels is the lower opportunity motivations, despite capability perceptions Intentions Female coming in about average and fear of failure being low. Impact factors are close to average, except for sales to 30% 25% international customers, which is over twice the level 20% reported for the region overall. 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Barbados Latin/ Am./Carib. Avg (unweighted) Barbados Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity
Sector Perceptions Female 30% 80%
25% 60% 20% 15% 40% 10% 20% 5% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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BELIZE
In Belize, intentions and TEA are a little more than 1/3 the Belize Latin/ Am./Carib. Avg (unweighted) regional average, while established business rates are Overall Average : FD and ED Regions (unweighted) half of the average. Capabilities perceptions, however, are higher than average among the female population. Women entrepreneurs are over twice as likely to compete in Intentions Female
business services and sell to international customers than 30% is typical for the region, and job expectations are slightly 25% higher than average. 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Belize Latin/ Am./Carib. Avg (unweighted) Belize Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80% 20% 60% 15% 40% 10%
5% 20% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Services Fear of Failure Female
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BOLIVIA
Women in Bolivia exhibit intentions and TEA rates at about Bolivia Latin/ Am./Carib. Avg (unweighted) 50% higher levels than the regional average. Opportunity Overall Average : FD and ED Regions (unweighted) and capability perceptions are higher than average, yet fear of failure is higher than typical for the region. Female entrepreneurs are not likely to sell internationally but they Intentions Female
are more likely than average to say they sell innovative 50% products or services. 40% 30% 20%
10% Female TEA Business Clo- 0% (% of Adult sure Female Female Population)
Established Business Female
Bolivia Latin/ Am./Carib. Avg (unweighted) Bolivia Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
80% 30% 25% 60% 20% 40% 15% 10% 20% % Female TEA 5% Know an Capability International % Female TEA Entrepreneur 0% Perceptions Sales 0% Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Services Fear of Failure Female
107 GEM WOMEN’S SPECIAL REPORT GEM WOMEN’S SPECIAL REPORT
BRAZIL
Brazil exhibits average TEA rates despite lower than Brazil Latin/ Am./Carib. Avg (unweighted) average intentions. However, established business rates Overall Average : FD and ED Regions (unweighted) are higher than typical. Opportunity perceptions are higher than average, but capability perceptions are 1/3 lower Intentions Female
than the region overall and fear of failure is higher than 30% average. Female entrepreneurs exhibit low levels on all the 25% impact indicators. 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Brazil Latin/ Am./Carib. Avg (unweighted) Brazil Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 5% 20% % Female TEA % Female TEA Know an Capability International 0% Expects 6+ Entrepreneur 0% Perceptions Sales Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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CHILE
Chile shows high levels of female activity; both intentions Chile Latin/ Am./Carib. Avg (unweighted) and TEA are 50% higher than the regional average. This Overall Average : FD and ED Regions (unweighted) activity is reinforced by high perceptions of opportunity in the environment, even with average levels on the other Intentions Female
attitude indicators. Business services participation and 50% job expectations are twice the regional average and 40% innovation levels are over 2 ½ times the average. 30% 20%
10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
30% Chile Latin/ Am./Carib. Avg (unweighted) Chile Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 80% 50% 60% 40% 30% 40% 20% 20% 10% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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COLOMBIA
Female intentions in Colombia are more than 50% higher Colombia Latin/ Am./Carib. Avg (unweighted) than the regional average, although TEA is around average Overall Average : FD and ED Regions (unweighted) and established business activity is half the typical level for the region. Opportunity perceptions are high, Intentions Female
yet capabilities perceptions are lower than average and 50% fear of failure is higher than average. Few women report 40% knowing an entrepreneur. International sales are typical 30% for the region, but the other impact indicators are higher 20% than average, particularly job expectations, which are over 10% Business Female TEA three times the regional average. Closure 0% (% of Adult Female Female Population)
Established Business Female
Colombia Latin/ Am./Carib. Avg (unweighted) Colombia Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
80% 80%
60% 60%
40% 40%
20% 20% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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COSTA RICA
TEA activity is lower than average among women in Costa Rica Latin/ Am./Carib. Avg (unweighted) Costa Rica, and established business rates are one third Overall Average : FD and ED Regions (unweighted) the typical level for the region. This is consistent with relatively low opportunity and capability perceptions and Intentions Female high fear of failure. Business services participation and 30% job expectations are just below average, while innovation 25% levels are average. 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Costa Rica Latin/ Am./Carib. Avg (unweighted) Costa Rica Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 5% 20% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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ECUADOR
Activity levels are high among women in Ecuador. Ecuador Latin/ Am./Carib. Avg (unweighted) Intentions are over 50% higher than average, and both Overall Average : FD and ED Regions (unweighted) TEA and established business rates are at least twice the regional average. Closure rates are above average Intentions Female
but perhaps in line with high activity. This high activity 50% is also consistent with high opportunity and capability 40% perceptions, although fear of failure is above average. Few 30% women sell internationally and job expectation are half 20%
the average level, while innovation and business service 10% Business Female TEA activity fall around the average. Closure 0% (% of Adult Female Female Population)
Established Business Female
Ecuador Latin/ Am./Carib. Avg (unweighted) Ecuador Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 5% 20% Know an % Female TEA 0% 0% International % Female TEA Entrepreneur Capability Sales Expects 6+ Jobs Female Perceptions Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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EL SALVADOR
El Salvador Despite lower than average intentions, women in El Latin/ Am./Carib. Avg (unweighted) Salvador show higher than average TEA rates and twice Overall Average : FD and ED Regions (unweighted) the average level of established business activity. Business closure rates, however, are over twice the Intentions Female
average. Opportunity perceptions are average and 30% capability perceptions are above average; however, 25% fear of failure is over 1/3 higher than is typical for the 20% region. All impact indicators are very low among women 15% 10% entrepreneurs. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
El Salvador Latin/ Am./Carib. Avg (unweighted) El Salvador Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 20% 5% % Female TEA Know an 0% Capability International 0% % Female TEA Entrepreneur Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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GUATEMALA
Women in Guatemala show average activity rates, with Guatemala Latin/ Am./Carib. Avg (unweighted) intentions higher than the regional average. Opportunity Overall Average : FD and ED Regions (unweighted) and capability perceptions fall around the regional Intentions Female average, although fear of failure is above average and fewer women know entrepreneurs. Internationalization 40% and job expectations are below average, but women show higher than average innovation levels. 30% 20%
10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Guatemala Latin/ Am./Carib. Avg (unweighted) Guatemala Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80% 20% 60% 15% 40% 10% 5% 20% % Female TEA Know an Capability International 0% % Female TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Services Fear of Failure Female
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JAMAICA
Jamaica In Jamaica, women exhibit average intentions and TEA Latin/ Am./Carib. Avg (unweighted) rates, while established business rates are over twice the Overall Average : FD and ED Regions (unweighted) average. Attitudes are around average, with the exception Intentions Female of capability perceptions, which are 30% higher than the region overall. Impact indicators are below average. 40%
30%
20%
10%
Business 0% Female TEA Closure (% of Adult Female Female Population)
Established Business Female
Jamaica Latin/ Am./Carib. Avg (unweighted) Jamaica Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80% 20% 60% 15% 40% 10%
5% 20% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Services Fear of Failure Female
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MEXICO
Although intentions among Mexican women are lower than Mexico Latin/ Am./Carib. Avg (unweighted) the regional average, activity rates beyond this phase are Overall Average : FD and ED Regions (unweighted) close to the regional averages. Capability perceptions are lower than typical for the region. Fewer women Intentions Female
entrepreneurs compete in business services but slightly 30% more than average have job expectations and innovation 25% levels are typical for the region. 20% 15% 10%
Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Mexico Latin/ Am./Carib. Avg (unweighted) Mexico Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 5% 20% % Female TEA Know an Capability International 0% % Female TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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PANAMA Overall Average : FD and ED Regions (unweighted)
Intentions and TEA rates are average for women in Latin/ Am./Carib. Avg (unweighted)
Panama, but established business activity is low. Although Mexico women do not appear to be impacted by fear of failure, they also show lower than average confidence in their Intentions Female
capabilities. Job expectations and innovation levels are 30% below average; however, women in this country are slightly 25% less likely to sell internationally compared to the regional 20% average. 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Panama Latin/ Am./Carib. Avg (unweighted) Panama Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 5% 20% % Female TEA Know an Capability International 0% % Female TEA Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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PERU
Intentions and TEA rates are high among women in Peru— Peru Latin/ Am./Carib. Avg (unweighted) at least ¾ higher than the region overall. Accompanying Overall Average : FD and ED Regions (unweighted) this result is higher than average closure rates. Attitudes are highly positive among women. Women entrepreneurs show low job expectations and lower than average Intentions Female innovation rates. 60% 50% 40% 30% 20% 10% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Peru Latin/ Am./Carib. Avg (unweighted) Peru Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
25% 80%
20% 60% 15% 40% 10% 20% 5% % Female TEA Know an 0% International 0% % Female TEA Expects Entrepreneur Capability Sales 6+ Jobs Female Perceptions Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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PUERTO RICO
Intentions and TEA rates among women in Puerto Rico are Puerto Rico Latin/ Am./Carib. Avg (unweighted) just above half the level for the Latin America/Caribbean Overall Average : FD and ED Regions (unweighted) region. Few women are running established businesses. Opportunity and capability perceptions are at low levels, while few women know entrepreneurs. Job expectations Intentions Female hover around 1/3 the regional level, but innovation levels 30% are 75% higher than the average for the region. 25% 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Puerto Rico Latin/ Am./Carib. Avg (unweighted) Puerto Rico Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA Know an 0% Capability International 0% % Female TEA Entrepreneur Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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SURINAME
Female activity is very low across all phases in Suriname, Suriname Latin/ Am./Carib. Avg (unweighted) even though women are confident in their abilities to start Overall Average : FD and ED Regions (unweighted) and have low fear of failure. However, consistent with this low activity are low opportunity perceptions. Impact indicators are very low except for high international sales. Intentions Female
30% 25% 20% 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Suriname Latin/ Am./Carib. Avg (unweighted) Suriname Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 80%
40% 60% 30% 40% 20% 20% 10% % Female TEA Know an International 0% % Female TEA Expects Entrepreneur 0% Capability Sales 6+ Jobs Female Perceptions Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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TRINIDAD AND TOBAGO
Female activity is generally close to the regional average Trinidad and Tobago Latin/ Am./Carib. Avg (unweighted) in Trinidad and Tobago, while the female population Overall Average : FD and ED Regions (unweighted) expresses positive attitudes about entrepreneurship. Although female entrepreneurs show low innovation and internationalization, growth expectations are higher than Intentions Female
average. 35% 30% 25% 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Trinidad and Tobago Latin/ Am./Carib. Avg (unweighted) Trinidad and Tobago Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
30% 80% 25% 60% 20% 15% 40% 10% 20% % Female TEA 5% Know an Capability % Female TEA 0% International 0% Entrepreneur Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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URUGUAY
Female activity levels are somewhat below the regional Uruguay Latin/ Am./Carib. Avg (unweighted) average in Uruguay, likely reflected in lower than average Overall Average : FD and ED Regions (unweighted) opportunity perceptions, despite average capability
perceptions and fear of failure. All impact indicators, Intentions Female however, are higher than average, particularly job 30% expectations, which are more than twice as high as 25% typically reported in Latin America/Caribbean. 20% 15% 10% 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Uruguay Latin/ Am./Carib. Avg (unweighted) Uruguay Latin/ Am./Carib. Avg (unweighted)
Overall Average : FD and ED Regions (unweighted) Overall Average : FD and ED Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA Know an Capability International 0% % Female TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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Asia/Oceania Innovation-Driven
AUSTRALIA Australia Asia/Oceania ID Average (unweighted) Overall Average : Innovation-Driven Regions (unweighted) Australia shows higher levels of TEA and established
business activity than is typical for the Asia/Oceania Intentions Female innovation-driven region. Opportunity and capability perceptions are twice the regional average, while fear 14% 12% of failure is somewhat higher. Women entrepreneurs 10% are over twice as likely to compete in business services 8% 6% compared to the average for the region and they exhibit 4% high innovation levels. Business 2% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Australia Asia/Oceania ID Average (unweighted) Australia Asia/Oceania ID Average (unweighted)
Overall Average : Innovation-Driven Regions (unweighted) Overall Average : Innovation-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
30% 50% 25% 40% 20% 30% 15% 20% 10% 5% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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JAPAN
Few women are starting or intending to start businesses in Japan Asia/Oceania ID Average (unweighted) Japan currently, but established business ownership levels Overall Average : Innovation-Driven Regions (unweighted) are close to the regional average and few women report having closed a business in the past year. Opportunity Intentions Female and capability perceptions are low, although fear of failure
levels are about normal for Asia/Oceania. Impact factors 14% are all lower than average. 12% 10% 8% 6% 4% Business 2% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Japan Asia/Oceania ID Average (unweighted) Japan Asia/Oceania ID Average (unweighted)
Overall Average : Innovation-Driven Regions (unweighted) Overall Average : Innovation-Driven Regions (unweighted)
% Female TEA in Opportunity Business Services Perceptions Female Sector
30% 50% 25% 40% 20% 15% 30% 10% 20% 5% % Female TEA % Female TEA Know an 10% Capability International 0% Expects 6+ Entrepreneur Perceptions Sales Jobs Female 0% Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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REPUBLIC OF KOREA
Korea shows slightly lower than average female TEA rates, Republic of Korea Asia/Oceania ID Average (unweighted) consistent with opportunity perceptions that are less than Overall Average : Innovation-Driven Regions (unweighted) half the regional average. Women entrepreneurs exhibit low levels on the impact factors, with the exception of an Intentions Female average level of internationalization.
14% 12% 10% 8% 6% 4% 2% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Republic of Korea Asia/Oceania ID Average (unweighted) Republic of Korea Asia/Oceania ID Average (unweighted)
Overall Average : Innovation-Driven Regions (unweighted) Overall Average : Innovation-Driven Regions (unweighted)
% Female TEA in Opportunity Business Services Perceptions Female Sector
30% 50% 25% 40% 20% 15% 30% 10% 20% 5% 10% % Female TEA 0% % Female TEA Expects Know an Capability International Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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SINGAPORE
Singapore exhibits average levels of TEA and intentions, Singapore Asia/Oceania ID Average (unweighted) although established business activity is low. Opportunity Overall Average : Innovation-Driven Regions (unweighted) and capability perceptions are lower than the regional Intentions Female average. Job expectations among women entrepreneurs are somewhat higher than average for the region. Not surprising, given the small economy, internationalization 14% 12% rates are twice the average for innovation-driven Asia/ 10% Oceania. 8% 6% 4% Business 2% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Singapore Asia/Oceania ID Average (unweighted) Singapore Asia/Oceania ID Average (unweighted)
Overall Average : Innovation-Driven Regions (unweighted) Overall Average : Innovation-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 40% 40% 30% 30% 20% 20%
10% 10% % Female TEA Know an 0% Capability 0% % Female TEA International Expects 6+ Entrepreneur Perceptions Sales Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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TAIWAN
Activity levels among women in Taiwan are average or Taiwan Asia/Oceania ID Average (unweighted) above average for the Asia/Oceania region. Opportunity Overall Average : Innovation-Driven Regions (unweighted) perceptions are more than 50% higher than average. Intentions Female Innovation levels among women entrepreneurs are higher than average, but more impactful is the job expectations indicator, which is nearly 2/3 greater than 30% the regional average. 25% 20% 15% 10% Business 5% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Taiwan Asia/Oceania ID Average (unweighted) Taiwan Asia/Oceania ID Average (unweighted)
Overall Average : Innovation-Driven Regions (unweighted) Overall Average : Innovation-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 50%
40% 40% 30% 30% 20% 20%
10% 10% % Female TEA Know an Capability 0% % Female International TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
127 GEM WOMEN’S SPECIAL REPORT GEM WOMEN’S SPECIAL REPORT
Europe Innovation-Driven
AUSTRIA Austria Europe Innovation-Driven Average (unweighted) Europe Innovation-Driven Average (unweighted) Female TEA and established business rates are slightly above average in Austria, and opportunity and capability Intentions Female perceptions are above average for an innovation-driven
European economy. While job expectations are little 15% more than half the level of a typical economy in this region, innovation and internationalization are higher 10% than average. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Austria Europe Innovation-Driven Average (unweighted) Austria Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50% 30% 40%
20% 30% 20%
10% 10% % Female TEA % Female TEA Know an Capability International Entrepreneur 0% Perceptions Sales 0% Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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BELGIUM
Female activity rates are below average in Belgium, and Belgium Europe Innovation-Driven Average (unweighted) this is reflective of less positive attitudes—particularly Overall Average: ID Regions (unweighted) capabilities perceptions, which are 2/3 the average level for the region. In addition, little more than half the Intentions Female proportion of women know an entrepreneur compared to the regional average. Impact indicators among 15% women entrepreneurship are high, however, particularly internationalization, which is more than twice the average 10% level for innovation-driven Europe. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Belgium Europe Innovation-Driven Average (unweighted) Belgium Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 60% 50% 30% 40% 20% 30% 20% 10% % Female TEA % Female TEA Know an 10% Capability International Expects 6+ Entrepreneur Perceptions Sales 0% Jobs Female 0% Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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CZECH REPUBLIC
Female activity levels are close to average in the Czech Czech Republic Europe Innovation-Driven Average (unweighted) Republic, although fewer than average women see Europe Innovation-Driven Average (unweighted) opportunities or know entrepreneurs. Although women entrepreneurs are less international than their European Intentions Female peers, they are nearly 50% more likely to have job 15% expectations of 6 or more employees in the next five
years. 10%
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Czech Republic Europe Innovation-Driven Average (unweighted) Czech Republic Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50%
40% 30% 30% 20% 20%
10% 10% % Female TEA Know an Capability % Female TEA 0% International 0% Entrepreneur Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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DENMARK
Denmark shows female activity rates that nearly reach Denmark Europe Innovation-Driven Average (unweighted) the regional average. Women in this country are 2/3 Overall Average: ID Regions (unweighted) more likely to see opportunities for starting a business, but are less likely to perceive they have the capabilities Intentions Female to do so, compared to the typical innovation-driven European economy. Although both job expectations 15% and internationalization are less than half the regional 10% average, women are more likely than average to
participate in business services and nearly 50% more 5% likely to have innovative products or services. Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Denmark Europe Innovation-Driven Average (unweighted) Denmark Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 60% 50% 40% 40% 30% 30% 20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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FINLAND
Female activity rates are close to average in Finland. Finland Europe Innovation-Driven Average (unweighted) Women are more likely than the average innovation-driven Europe Innovation-Driven Average (unweighted) European economy to know an entrepreneur and to see opportunities for starting a business. Impact factors, Intentions Female however, are somewhat lower than the region average, 15% particular internationalization, which is less than half the average level. 10%
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Finland Europe Innovation-Driven Average (unweighted) Finland Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50% 40% 30% 30% 20% 20%
10% 10% % Female TEA Know an Capability International 0% % Female TEA Expects Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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FRANCE
Female activity rates are slightly lower than average in France Europe Innovation-Driven Average (unweighted) France, and this is consistent with lower opportunity Overall Average: ID Regions (unweighted) and capability perceptions than is typical for the region. Innovation levels among women entrepreneurs, however, Intentions Female
are more than 1/3 higher than the innovation-driven 15% Europe average. 10%
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
France Europe Innovation-Driven Average (unweighted) France Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 50% 50% 40% 40% 30% 30% 20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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GERMANY
Female activity levels in Germany nearly reach the regional Germany Europe Innovation-Driven Average (unweighted) average. Capabilities perceptions among women are Europe Innovation-Driven Average (unweighted) slightly below average, while fear of failure is higher than average. Among women entrepreneurs, innovation levels Intentions Female are 2/3 the average for the region, but the other impact 15% indicators are above average. 10%
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Germany Europe Innovation-Driven Average (unweighted) Germany Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 60% 50% 30% 40% 20% 30% 20% 10% 10% % Female TEA % Female TEA Know an Capability Perceptions International 0% Expects 6+ Entrepreneur 0% Sales Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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GREECE
Greece exhibits average levels of female intentions and Greece Europe Innovation-Driven Average (unweighted) TEA, while established business ownership is nearly twice Overall Average: ID Regions (unweighted) the average for an innovation-driven European economy. Opportunity perceptions in the female population are little Intentions Female more than half the average level, while ¾ of women seeing 15% opportunity state they would be constrained from starting due to fear of failure—over 50% higher than average. With 10% the exception of average levels of internationalization, impact indicators are lower than average for women 5% entrepreneurs in Greece. Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Greece Europe Innovation-Driven Average (unweighted) Greece Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA Know an Capability International % Female TEA Expects Entrepreneur 0% Perceptions Sales 0% 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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IRELAND
While TEA is nearly average, established business activity Ireland Europe Innovation-Driven Average (unweighted) is slightly above average among women in Ireland. Europe Innovation-Driven Average (unweighted) Attitudes also show mixed results, with opportunity perceptions slightly lower and capability perceptions Intentions Female
slightly higher than is typical in innovation-driven Europe. 15% Job expectation among women entrepreneurs are higher than the regional average and innovation levels are 50% 10% higher than average. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Ireland Europe Innovation-Driven Average (unweighted) Ireland Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 50%
40% 40%
30% 30%
20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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ITALY
TEA and established business rates are just below Italy Europe Innovation-Driven Average (unweighted) average in Italy, likely reflecting low opportunity and Overall Average: ID Regions (unweighted) capability perceptions in the female population, as well as high fear of failure. Women entrepreneurs show lower than Intentions Female
average levels on all impact indicators, particularly job 15% expectations. 10%
5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Italy Europe Innovation-Driven Average (unweighted) Italy Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA Know an Capability % Female TEA International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
137 GEM WOMEN’S SPECIAL REPORT GEM WOMEN’S SPECIAL REPORT
LUXEMBOURG
Luxembourg shows higher than average female intentions Luxembourg Europe Innovation-Driven Average (unweighted) but average TEA and established business activity Europe Innovation-Driven Average (unweighted) just below average. Attitude measures in the female population are close to the average for an innovation- driven European economy. Women entrepreneurs are Intentions Female more than twice as likely to have job expectations of 6 or 15% more employees in five years compared to the average for the region, internationalization is over 2 ½ time the 10% average, and innovation levels are high. 5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Luxembourg Europe Innovation-Driven Average (unweighted) Luxembourg Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
50% 60% 50% 40% 40% 30% 30% 20% 20% 10% Know an % Female TEA % Female TEA Entrepreneur 10% Capability International 0% Expects 6+ Jobs Female Perceptions Sales 0% Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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NETHERLANDS
Female TEA and established business rates are Netherlands Europe Innovation-Driven Average (unweighted) above average in the Netherlands, reflective of higher Overall Average: ID Regions (unweighted) opportunity perceptions and lower fear of failure compared to the innovation-driven European average. Intentions Female Job expectations and internationalization show half the levels of the regional average, and innovation levels are 15% also comparatively lower. Women entrepreneurs are more likely than average to participate in the business 10% services sector. 5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Netherlands Europe Innovation-Driven Average (unweighted) Netherlands Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50%
30% 40% 30% 20% 20% 10% Know an 10% % Female TEA % Female Entrepreneur Capability International 0% TEA Expects 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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NORWAY
Despite low intentions, female activity rates are close Norway Europe Innovation-Driven Average (unweighted) to average in Norway. Opportunity perceptions are Europe Innovation-Driven Average (unweighted) high among women and fear of failure is low; however, fewer women perceive they have the capabilities for Intentions Female entrepreneurship compared to the average innovation- driven European economy. Job expectations, innovation 15% and internationalization are lower than the regional average among women entrepreneurs, although they 10% show higher than typical levels of business services 5% participation. Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Norway Europe Innovation-Driven Average (unweighted) Norway Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 60% 50% 30% 40% 20% 30% 20% 10% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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PORTUGAL
Women in Portugal show somewhat higher levels of Portugal Europe Innovation-Driven Average (unweighted) activity despite low opportunity perceptions, although Overall Average: ID Regions (unweighted) capabilities are higher than the regional average. Innovation rates among women entrepreneurs are less Intentions Female than 2/3 the average for the innovation-driven European economies and business services activity is lower than 15% average. Growth ambitions, however, are above the 10% average for the region.
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Portugal Europe Innovation-Driven Average (unweighted) Portugal Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 40% 50% 30% 40% 20% 30% 20% 10% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Innovative Products/ Failure Services Female
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SLOVAKIA
Female Intentions and TEA levels are above average in Slovakia Europe Innovation-Driven Average (unweighted) Slovakia while established business rates fall around Europe Innovation-Driven Average (unweighted) the average level for the innovation-driven European Intentions Female economies. While more women know entrepreneurs and believe they have the capabilities to start a business 15% compared to the regional average, opportunity perceptions are low and fear of failure is above average. Comparatively 10% few women entrepreneurs sell internationally, yet many participate in the business services sector and 50% more 5% Business Female TEA have job expectations of 6 or more employees in the next Closure (% of Adult 5 years compared to the regional average. Female 0% Female Population)
Established Business Female
Slovakia Europe Innovation-Driven Average (unweighted) Slovakia Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 60% 50% 30% 40% 20% 30% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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SLOVENIA
Female TEA and established business rates are just below Slovenia Europe Innovation-Driven Average (unweighted) the average for the innovation-driven European region. But Overall Average: ID Regions (unweighted) while a higher level than average proportion of women in this country know an entrepreneur, believe they have the Intentions Female capabilities to start a business, and are undeterred by 15% fear of failure, few believe there are good opportunities around them. Women entrepreneurs are less international 10% than their European peers. But they are 2/3 more likely to project employing 6 or more people in the next 5 years. 5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Slovenia Europe Innovation-Driven Average (unweighted) Slovenia Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50%
30% 40% 30% 20% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International Entrepreneur 0% Sales 0% 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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SPAIN
Female activity rates are about average in Spain. Spain Europe Innovation-Driven Average (unweighted) Women in this country, however, have low opportunity Europe Innovation-Driven Average (unweighted) perceptions, despite having high beliefs about their
capabilities compared to the average for innovation- Intentions Female driven Europe. Internationalization is lower than average, with levels on the other impact factors falling 15% around the average for the region. 10%
5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Spain Europe Innovation-Driven Average (unweighted) Spain Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 60% 50% 30% 40% 20% 30% 20% 10% 10% % Female TEA % Female TEA Know an Capability International 0% Entrepreneur 0% Perceptions Sales Expects 6+ Jobs Female Female
% Female TEA with Fear of Failure Female Innovative Products/ Services
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SWEDEN
In Sweden, female activity rates are close to the averages Sweden Europe Innovation-Driven Average (unweighted) for the innovation-driven European region. Opportunity Overall Average: ID Regions (unweighted) perceptions among women in this country are twice the regional average, while fear of failure is just below Intentions Female average. Capabilities perceptions, however, run somewhat lower than typical. Women entrepreneurs participate more 15% often than their European peers in the business services 10% sector, and they more often sell internationally.
5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
Sweden Europe Innovation-Driven Average (unweighted) Sweden Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 80%
30% 60%
20% 40%
10% 20% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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SWITZERLAND
Switzerland shows slightly higher female activity rates Switzerland Europe Innovation-Driven Average (unweighted) compared to the innovation-driven European average. This Europe Innovation-Driven Average (unweighted) is reflective of higher opportunity perceptions and lower
fear of failure compared to the regional average. Although Intentions Female job expectations are lower than average in this country, women entrepreneurs are comparatively likely to sell 15% internationally. 10%
5% Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Switzerland Europe Innovation-Driven Average (unweighted) Switzerland Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50% 40% 30% 30% 20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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UNITED KINGDOM
Female TEA rates in the UK are somewhat higher than United Kingdom Europe Innovation-Driven Average (unweighted) average, consistent with positive attitudes in the female Overall Average: ID Regions (unweighted) population. Few women entrepreneurs sell internationally
and innovation levels and business services participation Intentions Female are slightly below average. 15%
10%
5% Business Female TEA Closure (% of Adult Female 0% Female Population)
Established Business Female
United Kingdom Europe Innovation-Driven Average (unweighted) United Kingdom Europe Innovation-Driven Average (unweighted)
Overall Average: ID Regions (unweighted) Overall Average: ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
40% 50%
30% 40% 30% 20% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability Perceptions International 0% Entrepreneur 0% Sales 6+ Jobs Female Female
% Female TEA with Innovative Fear of Failure Female Products/Services
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Middle East Innovation-Driven
ISRAEL Israel Middle East Average (unweighted) Overall Average : ID Regions (unweighted) Israel shows average TEA and established business rates,
but low capability perceptions and high fear of failure. Intentions Female While opportunity perceptions are slightly lower than the 50% average of the three Middle Eastern economies, they are 40% still higher than the overall average for the innovation- driven economies. Job expectations are lower than Kuwait 30% in the Middle East, but on par with the innovation-driven 20% 10% economies. Internationalization, however, is low whether Business Female TEA making comparisons within the region or the broader Closure 0% (% of Adult Female Female Population) development-level group.
Established Business Female
Israel Middle East Average (unweighted) Israel Middle East Average (unweighted)
Overall Average : ID Regions (unweighted) Overall Average : ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% % Female TEA Know an 10% Capability International 0% % Female TEA Entrepreneur Perceptions Sales Expects 6+ Jobs Female 0% Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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KUWAIT
Despite the fact that half of the female population in Kuwait Middle East Average (unweighted) Kuwait intend to start a business, TEA and established Overall Average : ID Regions (unweighted) business levels are average and one out of ten women
has closed a business in the previous year. Compared Intentions Female to its Middle East and other developed peers, Kuwait shows high female capability perceptions. Over 2/3 50% women entrepreneurs have job expectations of 6 or 40% more employees in the next five years, much higher than 30% the regional and overall developed economy average. 20% 10% International sales are above average. Business Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Kuwait Middle East Average (unweighted) Kuwait Middle East Average (unweighted)
Overall Average : ID Regions (unweighted) Overall Average : ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
80% 50%
60% 40% 30% 40% 20% 20% 10% % Female TEA % Female TEA Know an Capability International 0% Expects 6+ Entrepreneur 0% Perceptions Sales Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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QATAR
Over half the female population in Qatar intend to Qatar Middle East Average (unweighted) start a business in the next three years. TEA rates are Overall Average : ID Regions (unweighted) above average, but few women are running established Intentions Female businesses. Women exhibit high opportunity and capability perceptions and low fear of failure. Job 60% expectations are lower than Kuwait, but just above the 50% overall innovation-driven group average. 40% 30% 20% Business 10% Female TEA Closure 0% (% of Adult Female Female Population)
Established Business Female
Qatar Middle East Average (unweighted) Qatar Middle East Average (unweighted)
Overall Average : ID Regions (unweighted) Overall Average : ID Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 60% 50% 50% 40% 40% 30% 30% 20% 20%
10% 10% % Female TEA % Female TEA Expects Know an Capability International Entrepreneur 0% Perceptions Sales 0% 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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North America
CANADA Canada United States Overall Average: Innovation-Driven Regions (unweighted) Canada exhibits higher female TEA and established Intentions Female business rates than the average innovation-driven
economy. Opportunity and capability perceptions are over 15% 50% higher than the innovation-driven average and fear of failure is lower. Business services activity and innovation 10% levels are somewhat higher in Canada compared to its 5% development-level peers. Business Female TEA Closure 0% (% of Adult UNITED STATES Female Female Population)
The United States shows higher female TEA rates than the innovation-driven average, and slightly higher than Canada. However, established business activity is average for an innovation-driven economy, and this level Established Business Female is lower than in Canada. Capability perceptions are more than 2/3 higher than the innovation-driven average, and slightly higher than Canada reports. However, opportunity perceptions are slightly lower than Canada, although 40% higher than the innovation-driven average. Job expectations and innovation levels among women entrepreneurs are higher in the United States than in Canada or the average innovation-driven economy.
Canada United States Canada United States
Overall Average: Innovation-Driven Regions (unweighted) Overall Average: Innovation-Driven Regions (unweighted)
% Female TEA in Business Services Opportunity Sector Perceptions Female
60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% % Female TEA % Female TEA Expects Know an Capability International 0% Entrepreneur 0% Perceptions Sales 6+ Jobs Female Female
% Female TEA with Innovative Products/ Fear of Failure Female Services
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APPENDIX B: THE GEM MODEL AND METHODOLOGY
cademics and policy makers agree that London Business School (Michael Hay) and the other from entrepreneurs, and the new businesses Babson College (Bill Bygrave) in the United States. In the they establish, play a critical role in the late 1900s there was no recognized international research development and well-being of their that focused on entrepreneurship and the word was not a Asocieties. As such, there is increased appreciation for household name as it is today. The first published reports and acknowledgement of the role played by new and came out in 1999 and involved just 10 countries, eight small businesses in an economy. GEM contributes from the OECD, Japan and the United States. Since then, to this recognition with longitudinal studies and the consortium of GEM countries has grown substantially comprehensive analyses of entrepreneurial attitudes to where over 100 economies are participating from and activity across the globe. Since its inception all levels of economic development and in almost all in 1997 by scholars at Babson College and London geographic regions. The GEM study now represents Business School, GEM has developed into one of the between 70% and 75% of the world’s population and world’s leading research consortia concerned with approximately 90% of the world’s GDP. It can now claim improving our understanding of the relationships to be truly global and to be the most authoritative and between entrepreneurship and national development. informative study on entrepreneurship in the world today. Only a few areas of the globe are not represented such as GEM is a worldwide study on entrepreneurship that was certain countries in mid/central Asia, a few countries in first conceptualized in 1997 by two academics, one from Southeast Asia and some from West and Central Africa.
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THE GEM CONCEPTUAL FRAMEWORK The starting definition for entrepreneurship still remains valid, being: Since its inception, the GEM survey was conceptualized to explore the interdependency between “any attempt at new business or new venture creation, entrepreneurship and economic development. During such as self-employment, a new business organization, the last 16 years, this conceptual framework and or the expansion of an existing business, by an the basic definitions have evolved gradually without individual, a team of individuals, or an established compromising the comparability of the collected business” (Reynolds, P. et al, 1999, p. 3). information, but bringing more clarity to assumed relationships. This process was supported by the work The three questions which originally opened the way of a number of researchers who, using GEM data, to the GEM survey (Reynolds, P. et al, 1999, p. 3) were contributed to building an entrepreneurship paradigm formulated as follows: (Alvarez et al., 2014, Bosma, 2013, Levie and Autio, ■■ Does the level of entrepreneurship activity vary 2008, Reynolds et al, 2015). between countries, and if so, to what extent? ■■ Does the level of entrepreneurship activity affect a country’s rate of economic growth and prosperity? ■■ What makes a country entrepreneurial and what The GEM survey was factors influence entrepreneurship activity?
conceptualized to explore the In order to answer these questions, GEM had to depart from the conventional approach of thinking about interdependency between national economic growth. This led to the development of a new conceptual framework, which has been through entrepreneurship and a series of adjustments since its inception in 1999.
economic development. The GEM conceptual framework, as identified in 1999 (Figure 49), in contrast to conventional model of
Major Established Firms (Primary Economy) Social, General National Cultural, National Economic Polical Framework Growth Context Conditions (GDP, Jobs) Micro, Small and Medium Firms (Secondary Economy)
Figure 48: Conventional model of national economic growth Source: Reynolds, P. D., M. Hay, S.M. Camp, Global Entrepreneurship Monitor, 1999 Executive Report, p. 9
Entrepreneurial Opportunities Social, General National Cultural, National Business Economic Polical Framework Dynamics Growth Context Conditions (GDP, Jobs) Entrepreneurial Capacity
Figure 49: Model of entrepreneurship processes affecting national economic growth Source: Reynolds, P. D., M. Hay, S.M. Camp, Global Entrepreneurship Monitor, 1999 Executive Report, p. 10 This starting framework (Figure 49) subsequently incorporated the findings and insights derived from numerous GEM surveys and years of GEM research, evolving into the GEM Conceptual Framework as presented in Figure 50.
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Basic requirements
► Institutions ► Infrastructure ► Macroeconomic stability ► Health and primary education
From other available Established firms sources Efficiency enhancers Employee Entrepreneurial ► Higher education and training Activity ► Goods market efficiency ► Labor market sophistication From GEM Adult ► Technological readiness Population ► Market size Surveys (APS)
Socio- Social Economic Cultural Development Political (Jobs, Context innovation, social value)
Innovation and Entrepreneurship profile entrepreneurship Attitudes: ► Entrepreneurial finance Perceived opportunities and ► Government policy capabilities; fear of failure; ► Government entrepreneurship status of entrepreneurship From GEM ► Entrepreneurship education From GEM Adult National Expert ► R&D transfer Activity: Population Surveys (NES) ► Internal market openness Opportunity/necessity-driven, Surveys (APS) ► Physical infrastracture for Early-stage; Inclusiveness; entrepreneurship Industry; Exits ► Commercial, legal infrastructure for Aspirations: entrepreneurship Growth, innovation ► Cultural and social norms International orientation Social value creation
Figure 50: The GEM Conceptual Framework used in GEM surveys up to 2014
national economic growth (Figure 48), depicted the This starting framework (Figure 49) subsequently basic assumption that national economic growth is incorporated the findings and insights derived from the result of the personal capabilities of individuals, numerous GEM surveys and years of GEM research, wherever they are located (regardless of the size of evolving into the GEM Conceptual Framework as businesses or if they are self-employed), to identify and presented in Figure 50. seize opportunities, and that this process takes place in interaction with the environment (social, cultural and The most recent revision of the GEM conceptual political) in which these individuals are located. framework entailed opening the “black box” entitled
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“Entrepreneurship Profile” (as presented in Figure 50). SOCIAL, CULTURAL, POLITICAL AND From the beginning of conducting GEM surveys the ECONOMIC CONTEXT implicit assumption of mutual relationships between attitudes, aspirations and activities was built into the As in the previous GEM model, this is defined according conceptual framework, but without spelling out the nature to the twelve pillars of competitiveness derived from the of these relationships. In the revised GEM conceptual World Economic Forum’s Global Competitiveness Index, framework (depicted in Figure 51) this “black box” has and the nine components of GEM’s Entrepreneurship been opened to allow for testing of the characteristics Framework Conditions (see Table 9). These will affect of the assumed relationships between social values, countries differently, depending on the stage of personal attributes and various forms of entrepreneurship economic development at which the countries are, i.e. activity. This work was carried out by members of the although all of the pillars will be important to each GEM Research and Innovation Advisory Committee (RIAC). economy, the pillars of competitiveness which are of most importance to a factor-driven economy will differ The components of the revised GEM Conceptual from those that will be most important in an efficiency- Framework are: driven economy.
Social, cultural, political, economic context Outcome (Socio-economic development) National Entrepreneurial framework framwork conditions conditions
Entrepreneurial output (new jobs, new value added)
+
_
+ + Social values towards Entrepreneurial activity Basic requirements _ entrepreneurship _ ► By phases of organisational life cycle Efficiancy enhancers ► Nascent, new, established, Individual attributes discontinuation Innovation and business + (psychological, + ► Types of activity: sophistication demographic, - High growth, _ motivation) _ - innovative, - Internationalization ► Sectors of activity: - TEA, - SEA, + - EEA
_
Figure 51: The GEM Conceptual Framework
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Table 9: Social, cultural, political and economic context and economic development phases From GEM National From other available sources Expert Surveys (NES) National Framework Conditions, based on World Economic Forum Entrepreneurship Framework Economic development phases pillars for profiling economic Conditions development phases ■■ Institutions Basic requirements – key to ■■ Infrastructure resource-driven economies ■■ Macroeconomic stability ■■ Health and primary education ■■ Higher education and training ■■ Goods market efficiency Efficiency enhancers – key to ■■ Labor market efficiency efficiency-driven economies ■■ Financial market sophistication ■■ Technological readiness ■■ Market size
■■ Entrepreneurial finance ■■ Government policy ■■ Government entrepreneurship programs ■■ R&D transfer Innovation and sophistication ■■ Business sophistication ■■ Internal market openness factors – key for innovation-driven ■■ Innovation ■■ Physical infrastructure for economies entrepreneurship ■■ Commercial and legal infrastructure for entrepreneurship ■■ Cultural and social norms
It is important to note that all components of the ENTREPRENEURSHIP ACTIVITY environment in which women and men act entrepreneurially (or cannot act proactively and innovatively) are mutually This is defined according to the phases of the life cycle dependent. This dependency demands a holistic approach of entrepreneurial ventures (nascent, new business, not only in research but also in designing appropriate established business, discontinuation); according to type of policies for building a supportive environment in which activity (high growth, innovation, internationalization); and entrepreneurial behavior can flourish. sector of activity (Total Early-stage Entrepreneurship Activity – TEA, Social Entrepreneurship Activity - SEA, Employee SOCIAL VALUES TOWARD Entrepreneurship Activity – EEA). ENTREPRENEURSHIP In all the conceptual frameworks, the basic assumption This includes aspects such as the extent to which has remained unchanged – namely, that entrepreneurship society values entrepreneurship as a good career activity is an output of the interaction of an individual’s choice; whether entrepreneurs have high societal perception of an opportunity and capacity (motivation status; and the extent to which media attention to and skills) to act upon this opportunity, AND the distinct entrepreneurship is contributing to the development of a conditions of the environment in which the individual is positive entrepreneurial culture. located. The GEM survey of entrepreneurship (based on individuals) complements other major business creation INDIVIDUAL ATTRIBUTES surveys by providing unique information on individuals (attributes, values, activities) and their interaction with the This includes different demographic factors (such environment in practicing entrepreneurship behavior (pro- as gender, age, geographic location); psychological activeness, innovativeness and responsible choices). factors (including perceived capabilities, perceived opportunities, fear of failure); and motivational It is clear, therefore, that GEM continues to focus on aspects (necessity versus opportunity based ventures, contributing to global economic development through improvement-driven ventures). surveying / researching entrepreneurship, which helps
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to improve research-based education and research- also confirmed that entrepreneurship activity, in different based formulation of public policies in the field of forms (nascent, startup, employee entrepreneurship), entrepreneurship. In order to achieve this, GEM has three is positively correlated with economic growth, but that key objectives: this relationship differs according to phases of economic ■■ to determine the extent to which entrepreneurship development (Acs and Amorós, 2008; Van Stel et al., activity influences economic growth within individual 2005; Wennekers et al., 2010). economies; ■■ to identify factors which encourage and/or hinder GEM’s role as one of the world’s leading research entrepreneurship activity (especially the relationships consortia concerned with improving the understanding between national entrepreneurship conditions, social of the relationships between entrepreneurship and values, personal attributes and entrepreneurship national development is confirmed by recent policy activity); and interventions around the world. These are focused ■■ to guide the formulation of effective and targeted on components of the GEM conceptual framework: policies aimed at enhancing entrepreneurship capacity environment (entrepreneurship framework conditions), within individual countries. individual capacity for identifying and exploiting opportunities, and society’s capacity to develop Over the years, GEM surveys have confirmed that the level an entrepreneurial culture. A recent report on of entrepreneurship activity varies among countries at entrepreneurial ambition and innovation (WEF-GEM, a fairly constant rate. A crucial point confirmed by GEM 2015) highlights the cases of Colombia and Chile, research is that it takes time and consistency in policy economies that have put in place several public and interventions in order to enhance and develop the factors private initiatives to enhance their entrepreneurship which contribute to entrepreneurship activity. Surveys ecosystems (Drexler and Amorós, 2015).
Discontinuation of business
Total Early-Stage Entrepreneurial Activity (TEA)
Potential entrepreneur: Owner- opportunities, Nascent manager knowledge and entrepreneur: Owner-manager of of an skills involved in a new business established setting up a (up to 3.5 years business business old) (up to 3.5 years old)
Conception Firm Birth Persistence
Early-stage entrepreneurship profile
Individual attributes Impact
► Gender Industry ► Business growth ► Age ►Sector ► Innovation ► Motivation ► Internationalization
Figure 1.5: The entrepreneurship process and GEM operational definitions Source: GEM Global Report 2014
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HOW GEM MEASURES ENTREPRENEURSHIP 1. ADULT POPULATION SURVEY (APS)
GEM measures individual participation across multiple The key entrepreneurship indicators are measured in phases of the entrepreneurship process, providing the Adult Population Survey (APS). Academic teams in insights into the level of engagement in each stage. This each participating economy administer and oversee is important because societies may have varying levels of this survey, which is conducted using a random participation at different points in this process; however, representative sample of at least 2 000 adults between a healthy entrepreneurial society needs people active in the ages of 18 and 64 years. The surveys are conducted all phases. For example, in order to have startups in a at the same time every year (between May and July) society, there must be potential entrepreneurs. Later in using a standardized questionnaire provided by the GEM the process, people that have started businesses must Global Data Team. The questionnaire is translated into have the ability and the support to enable them to sustain local languages, and back-translated for a validity check. their businesses into maturity. Figure 1.5 presents an overview of the entrepreneurial process and the GEM The individual countries only gain access to the data once operational definitions. the raw data has been analyzed by experts for quality assurance, checking and uniform statistical calculations. GEM’s multiphase measures of entrepreneurship are As the GEM research design harmonizes the data, it is given below: possible to conduct reliable cross national and intra country Potential entrepreneurs – those that see opportunities in comparisons over time. their environments, have the capabilities to start businesses and are undeterred by fear of failure. 2. NATIONAL EXPERTS SURVEY (NES) Intentional entrepreneurs – those who intend to start a business in the future (in the next three years). The National Expert Survey (NES) provides Nascent entrepreneurs – those who have taken steps to information on the local environment faced by startup start a new business, but have not yet paid salaries or entrepreneurs. Information is gathered about the nine wages for more than three months. Entrepreneurship Framework Conditions: financing New entrepreneurs – those who are running new for entrepreneurs, government policies, governmental businesses that have been in operation for between 3 programs, entrepreneurship education and training, months and 42 months. research and development transfer, commercial and Established business owners – those who are running a professional infrastructure, internal market openness, mature business, in operation for more than 42 months. physical and services infrastructure and social and Discontinued entrepreneurs – those who, for whatever cultural norms. reason, have exited from running a business in the past year. The GEM global data set is open source after 3 years and it can be reached at www.gemconsortium.org . GEM’s individual-level focus enables a more comprehensive account of business activity than firm- Besides the annual surveys based on collecting data level measures of formally registered businesses. In through Adult Population Survey and National Expert other words, GEM captures both informal and formal Survey instruments, GEM conducts in-depth surveys on activity. This is important because in many societies, special topics, by adding specific questions to the standard the majority of entrepreneurs operate in the informal APS questionnaire. This rich seam of GEM data has sphere. In addition, GEM’s emphasis on individuals been analyzed and presented in a number of separate provides an insight into who these entrepreneurs are: for publications (www.gemconsortium.org): example, their demographic profiles, their motivations ■■ On financing, in 2004 and 2006 for starting ventures, and the ambitions they have for ■■ On women and entrepreneurship, in 2005, 2006, their businesses. GEM also assesses broader societal 2007, 2009, 2010, 2012, 2015 attitudes about entrepreneurship, which can indicate ■■ On high expectation entrepreneurship, the extent to which people are engaged in or willing to on high-growth entrepreneurship, on high impact participate in entrepreneurship activity, and the level entrepreneurship, in 2005, 2007, 2011 of societal support for their efforts. The GEM database ■■ On innovation confidence index – EU funded project, allows for the exploration of individual or business in 2007, 2008, 2009 characteristics, as well as the causes and consequences ■■ On social entrepreneurship, in 2009 of new business creation. ■■ On education and training, in 2010 ■■ On youth, in 2013, 2015 In order to provide for reliable comparisons across ■■ On entrepreneurial employee activity, in 2013 countries, GEM data is obtained using a research design ■■ On sub-Saharan Africa, in 2013, 2014 (on youth) that is harmonized over all participating countries. The ■■ On Entrepreneurship, competitiveness and data is gathered on an annual basis from two main development, 2015 sources: ■■ On Southeast Asia, 2015
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