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When Is Enterprise A Viable Option For Women Far From the Labour Market?

Dr Julia Rouse

Chair, Gender and Enterprise Network

Director, MMUBS CBS Clusters

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Projects: My Journey• Personal background• Longitudinal studies of:

– Youth enterprise programme– New Entrepreneur Scholarship programme– Entrepreneur maternity

• Recently with Oxfam and other stakeholders:– ‘Empowering British Bangladeshi Women Through

Small Enterprise’– Beginning to explore Universal Credits…..

Business Planning Under Enterprise Programmes: A New Me!

• Empowerment by writing oneself into a new opportunityRaises aspirations and confidenceProvides new statusDevelops some skillsLegitimation of new identity by authoritative figures

in enterprise programmes

And then?• Business launch – using start-up funds to ‘be’ a new

you!

• Business trading – often more tricky because markets are different to what we imagine and competitive……..

Follow-on support is rare• Enterprise programmes may not have to report outcomes…• Outcome evidence is scarce and may be unreliable

So what happens? Youth Enterprise:• Trading! but:

• Poor business ideas, poor markets• Childcare and maternity barriers• Inadequate business skills, networks and funding

• Dangers:• Debt• Mental health / family problems• Persevering in a ‘no;low hope’ business• Informal trading

Youth Enterprise: Left Holding the Baby!• Childcare invisible in business plans

– Complex private childcare plansorganising and transporting between multiple carersshift parentingpart-time trading, flexible hourstrade/care simultaneously

• Business trading: collapse of childcare strategies– Withdrawal of informal support; risky coping strategies– Business failure

Also: Pregnancy!

My motivation to research entrepreneur pregnancy

Raises questions about:Family planning RegulationsMarket behaviourCoping strategies

Individualised Nature of Business Struggle/Failure• “Must be me”

– “I am a failure”– “All I need to do is learn and start again”

• May be true in some instances, but resources are now more constrained….

• Commissioners are unaware and unaccountable• Individualised: no empowerment via collective action

New Entrepreneur Scholarship Programme• Under-capitalisation (median £5,825 v. UK £15k)

Despite £3,500 grant Low reliance on personal savings and banksHigh dependence on family/friend loans and credit

cards• Particularly for economically inactive and poorly

educated (= class?)– But no gender difference

NES: Effect on businesses

• Second wave evaluation (average 29 months old):

Median turnover £18k; median drawings £3600.

Trade without premises, partner or sub-contractors.

Are These National Patterns?

• Probably, Yes! – Class and – particularly - gender affect life course

pathways to business start-up– Entrepreneur earnings are higher if:

• There is personal and friends/family money to invest.• Long hours are possible due to freedom from housework

and childcare.

Should We Abandon ‘Enterprise Inclusion’ Policy?• Rob McDonald: yes – it is an unfair individualisation of

the problem of poverty and disguises underlying inequalities.

• Frances Greene: yes – it is bad for regional productivity.

• Me: but what if women want to try it (and have few alternatives) – shouldn’t we campaign and innovate?

Oxfam: British Bangladeshi Women

Sophie Fosker, Oxfam UK Poverty Programme

Empowering British Bangladeshi Women Through Small Enterprise?• Analysis of two small projects

• Interviews with women

• Wider ‘engaged scholarship’

• Creative analysis of ways forward….

British Bangladeshi Women• Men: 89.8% economically active

17% self-employed.

• Women: 41.8% economically active (v. 74% white women)19% unemployed (v. 14% white women)22% employed (v. half of white women)c.1-2% self-employed (v. 9% white women)

Context: Enterprise Support• Large contracts for ‘streamlined’ services• Relative disconnect from other institutions – Sure Start,

health care, FE, CABWeak pathways for accruing resources

• New Enterprise Allowance but targeted at unemployed

• Trial of Universal Credits……..Uncertain/difficult to access advice

Community Host A / Project A

• Bangladeshi women’s organisation 30yrs +

1. 12 week business programme in English– Ironing business considered but dropped

2. Sewing projects: – Designer handbags– Cheap bags and clothes for the local community

• Unprofitable; no longer trading or meeting

Community Host B / Project B

• Host supports deprived community – particularly British Bangladeshi women

• 10 week pre-enterprise programme– Inconsistent attendance– Initial business ideas

• Take-away, scarves or traditional crafts retail, henna

The Women We Interviewed• Project A (3)

– First generation migrants from rural Bangladesh resident in the UK for 19-39 years

• Project B (5)– First generation migrants from different areas of

Bangladeshi resident in the UK for 11-28 years– One second generation migrant

• Strong desire for economic activity

Remember: Entrepreneurship Is…

the mobilisation of resources in (profitable) market exchange

The Women’s Resources

• English language: varied (but often poor)• Education: limited or unrecognised for migrants• Recent work experience: scarce• Networks: highly constrained• Money: varied (if any) control; families under pressure• Skills/competing roles: housewife, mother,

carer, hostess

The Programmes: Resource Enhacing?

• Knowledge – business planning• Skills – sewing (Proj. A); not modern workplace skills,

accrediting domestic skills or business development• Networks – internal to the programme• Money – no start-up fund (Project A materials covered);

welfare assistance unclear• Other responsibilities - unchallenged

The Programme: Resource Mobilising?

• Emergent business ideas and some test trading• Attempt to share richer networks: handbag project• Limited:

– exposure to markets and networks– drawing in partners– adapting what can be done with resources at hand– challenge of unrealistic ideas

Outcomes• Engaged with community organisations• Enjoyment/confidence building; aspiration raising• Marginal skill and network development

• Low/no returns for work• Unknown effect on vital welfare entitlements• Debt? (Start-up of retail shop on £3-4k?)• ‘Island’ programme with transient effect?

Proposal: Innovation!• Investing in Integrating and Innovating Pathways to

Enterprise – Commitment from multiple institutions (linking/enhancing)– ‘Effectual’ business development support– Welfare pathway to enterprise from ‘economic inactivity’– Empowering women to campaign for the support they need

• Short-term priority– Investigating the effect of Universal Credits on the self-

employed

Workshop Discussion

1. Should business start-up be promoted to women far from the labour market?If yes: why?If no: why?

2. What innovations could improve outcomes?

3. What do you think about Julia’s policy proposals?