Women’s Entrepreneurship Around the World

Donna Kelley

Babson College

Entrepreneurial Dynamics

Conference

Warsaw, Poland

December 17, 2011

GEM Measures Individual Participation in Entrepreneurship Activity

Potential Entrepreneurs with Intentions to Start

Nascent Entrepreneur: Involved in Setting Up a Business

Owner-Manager of a New Business (up to 3.5 years old)

Owner-Manager of an Established Business (more than 3.5 years old)

Total Early-Stage Entrepreneurial Activity (TEA)

Discontinuation of Business

PLUS Impact: Growth – Innovation - Internationalization

Societal Attitudes

Factor-Driven Economies

Innovation-Driven Economies

Increased industrialization and economies of scale. Large firms dominate.

Basic Requirements

Efficiency Enhancers

Entrepreneurship Conditions

Subsistence agriculture to extraction of natural resources.

R&D, knowledge intensity, and expanding service sector.

Efficiency-Driven Economies

Across Phases of Economic Development

104 million early-stage women entrepreneurs

+ 83 million established women business owners

= 187 million women starting and running businesses

This is nearly equal to the population of Brazil, the fifth largest economy in the world.

The 2010 GEM Women’s Report shows that

In 59 economies around the world…

But Fewer Women on Average

• About 6 women for every 10 men participate in entrepreneurship around the World (GEM 2011)

• Both high and low ratios at each development level

– As well as some geographic regions

Women’s Participation in Entrepreneurship: GEM 2011

0%

5%

10%

15%

20%

25%

30%

Pakis

tan

Ba

ng

lad

esh

Iran

Alg

eri

aJa

maic

aV

en

ezu

ela

Gu

ate

ma

laM

ala

ysia

Ru

ss

iaH

un

gary

Cro

ati

aP

ola

nd

Bo

sn

ia a

nd

Herz

eg

ovin

aS

ou

th A

fric

aT

urk

ey

Lit

hu

an

iaR

om

an

iaS

lovak

iaL

atv

iaM

exic

oB

arb

ad

os

Uru

gu

ay

Bra

zil

Co

lom

bia

Arg

en

tin

aT

rin

idad

& T

ob

ag

oP

eru

Pan

am

aT

hail

an

dC

hile

Ch

ina

Slo

ven

iaD

en

mark

Fra

nce

Ja

pan

Re

pu

bli

c o

f K

ore

aIr

ela

nd

No

rwa

yC

zec

h R

ep

ub

lic

Fin

lan

dU

nit

ed

Ara

b E

mir

ate

sG

erm

an

yS

we

den

Be

lgiu

mS

pain

Po

rtu

gal

Un

ited

Kin

gd

om

Taiw

an

Gre

ece

Ne

the

rlan

ds

Sw

itzerl

an

dS

ing

ap

ore

Au

str

alia

Un

ited

Sta

tes

Factor-DrivenEconomies

Efficiency-Driven Economies Innovation-Driven Economies

Pe

rce

nta

ge

of

Ma

le / F

em

ale

Po

pu

lati

on

18

-64

ye

ars

Male Female

Profile of Women Entrepreneurs

• More likely to run consumer oriented businesses –Men show more balance among

consumer, transforming, and business services

• More often necessity-driven

• Face challenges sustaining businesses

Women’s Beliefs Differ • Less likely to perceive opportunities for

entrepreneurship

• More inhibited by fear of failure

• Less confident about their capabilities

• Less likely to know an entrepreneur

• Smaller and less diverse networks

– More reliant on family; men have more business affiliations

Male Youth Dividend in the U.S. (GEM 2011)

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

18 - 24Youth

25 - 34 EarlyCareer

35-44 MidCareer

45-54 MidCareer

55-64 LateCareer

65+ Seniors

Male Female

More young males see opportunities in the U.S. (GEM 2011)

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

18 - 24 Youth 25 - 34 EarlyCareer

35-44 MidCareer

45-54 MidCareer

55-64 LateCareer

65+ Seniors

Male

Female

Male youth have lower fear of failure (GEM U.S. 2011)

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

18 - 24Youth

25 - 34Early

Career

35-44 MidCareer

45-54 MidCareer

55-64 LateCareer

65+ Seniors

Male

Female

Women’s capabilities are slow to build and consistently lower than men (GEM U.S. 2011)

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

18 - 24Youth

25 - 34Early Career

35-44 MidCareer

45-54 MidCareer

55-64 LateCareer

65+ Seniors

Male Female

Implications

• Research the structural, policy, cultural and other socioeconomic factors that can explain these gaps

• Enact cultural change and understanding about the value of inclusiveness

• Build affiliations for women entrepreneurs: role models, mentors and networking (esp. business)

• Broaden industry access and interest

Changing the way the Iranian society views women’s entrepreneurship

- Training: seminars, forums, and workshops - Visibility: award ceremonies

Rewarding the Accomplishments of Women Entrepreneurs in Brazil

The Sebrae Business Women’s Award: awards, publicity, advice, and training.

Inspiring and fostering women entrepreneurs in Malaysia

The HSBC-NAWEM Capacity and Capability Building Program: training and mentoring women from financially challenged low-income groups.

Encouraging and supporting the

growth ambitions of women

entrepreneurs in the Republic of Ireland

Going for Growth Initiative: practice-oriented monthly roundtables led by women who have built and grown successful businesses.

Goldman Sachs 10,000 Women

Providing underserved female entrepreneurs around the world with a business and management education through certificate programs, mentoring and post-graduate support.

Conclusions Objective: Enhance women’s attitudes and skills for entrepreneurship • Education • Role Models • Networks

But also their environment

• Societal attitudes

• Equalize access to resources

Thank You