Last week, we had a keynote meeting in Cardiff between leading academics and policymakers from across the UK. This reported on the different aspects of data generated from the Global Entrepreneurship Monitor (GEM) and whether it could provide a way forward for research in the field of enterprise and small business.
After considerable discussion of the results from the project, one of the areas highlighted for further development was improving the access to the different research and policy initiatives being undertaken within the various countries participating in the GEM project. Indeed, one of the strengths of this worldwide project is the ability to undertake large comparative studies across nations.
For example, there have been various reports written on informal investment, high growth entrepreneurship and innovation and earlier this month, another ground breaking study was published by the GEM Consortium which may have serious implications for policy in a range of countries.
The GEM 2007 Report on Women and Entrepreneurship, which interviewed nearly 76,000 women in 40 countries on different aspects of enterprise development, showed that a significant and systematic gender gap exists in both the creation of new firms and the management of existing businesses. Men were almost twice as likely to be early-stage or established business owners, a situation reflected in the GEM data for Wales where a similar gender gap has been reported.
The study also indicated which women are more likely to start a firm in the near future, namely those who are aged between the ages of 25-44, are better educated and have the highest incomes are the most likely to be involved in early-stage entrepreneurial activity.
In addition, those women who are employed and have built a social network of entrepreneurs are more likely to become entrepreneurs. For women, the likelihood of being involved in entrepreneurial activity is three to four times higher for those who are in employment (whether full or part time) as compared to women who are not working, are retired, or are students. This suggests that employment not only provides a stable position from which to explore opportunities but also provides access to resources, social capital, and ideas from which an entrepreneurial venture can be established.
Therefore, growing the numbers of female entrepreneurs may be dependent on increasing the awareness of entrepreneurship amongst those already in work, as they seem to be those who are most inclined to consider starting a new firm.
Women entrepreneurs have less fear of failure than women who are not involved in entrepreneurial activity, they nevertheless express a greater fear of business failure than men starting businesses. This is perplexing, given that the actual results of entrepreneurial activity show that there is actually no gender difference in the survival rate of women’s businesses versus those of men.
Women tend to be less optimistic and self-confident than men about starting a business, which indicates that a long term programme of awareness raising is needed to trigger them into starting a business.
Most significant is the fact that women’s confidence builds once they are involved in entrepreneurial activity and they are more likely to know other entrepreneurs, and exploit viable opportunities just like their male counterparts. Utilising such role models of successful female entrepreneurs in training courses may therefore be a possible solution to encouraging greater enterprise amongst women.
So what are the main implications of this groundbreaking report for policymakers both here in Wales?
The results of the study shows that women entrepreneurs can be found under most circumstances, and are an increasingly important part of the economic profile of any country, although there remains a gap in the entrepreneurial involvement and business ownership of men compared to women.
This therefore suggests that there is a need to focus on how to effectively change the business environment and social institutions to support women through employment, access to social and financial capital, and by raising self-confidence.
At the moment, the Welsh Assembly Government has rejected any targeted support for women entrepreneurs, even though the vast body of research studies in this area suggest otherwise.
If policymakers are as serious as they say about utilising evidence-based research to influence their programmes, then they would advised to read this report and examine if any of the broad programmes to support enterprise should be customised for women across Wales and whether, as a result, more women can be encouraged into entrepreneurial activity.
After considerable discussion of the results from the project, one of the areas highlighted for further development was improving the access to the different research and policy initiatives being undertaken within the various countries participating in the GEM project. Indeed, one of the strengths of this worldwide project is the ability to undertake large comparative studies across nations.
For example, there have been various reports written on informal investment, high growth entrepreneurship and innovation and earlier this month, another ground breaking study was published by the GEM Consortium which may have serious implications for policy in a range of countries.
The GEM 2007 Report on Women and Entrepreneurship, which interviewed nearly 76,000 women in 40 countries on different aspects of enterprise development, showed that a significant and systematic gender gap exists in both the creation of new firms and the management of existing businesses. Men were almost twice as likely to be early-stage or established business owners, a situation reflected in the GEM data for Wales where a similar gender gap has been reported.
The study also indicated which women are more likely to start a firm in the near future, namely those who are aged between the ages of 25-44, are better educated and have the highest incomes are the most likely to be involved in early-stage entrepreneurial activity.
In addition, those women who are employed and have built a social network of entrepreneurs are more likely to become entrepreneurs. For women, the likelihood of being involved in entrepreneurial activity is three to four times higher for those who are in employment (whether full or part time) as compared to women who are not working, are retired, or are students. This suggests that employment not only provides a stable position from which to explore opportunities but also provides access to resources, social capital, and ideas from which an entrepreneurial venture can be established.
Therefore, growing the numbers of female entrepreneurs may be dependent on increasing the awareness of entrepreneurship amongst those already in work, as they seem to be those who are most inclined to consider starting a new firm.
Women entrepreneurs have less fear of failure than women who are not involved in entrepreneurial activity, they nevertheless express a greater fear of business failure than men starting businesses. This is perplexing, given that the actual results of entrepreneurial activity show that there is actually no gender difference in the survival rate of women’s businesses versus those of men.
Women tend to be less optimistic and self-confident than men about starting a business, which indicates that a long term programme of awareness raising is needed to trigger them into starting a business.
Most significant is the fact that women’s confidence builds once they are involved in entrepreneurial activity and they are more likely to know other entrepreneurs, and exploit viable opportunities just like their male counterparts. Utilising such role models of successful female entrepreneurs in training courses may therefore be a possible solution to encouraging greater enterprise amongst women.
So what are the main implications of this groundbreaking report for policymakers both here in Wales?
The results of the study shows that women entrepreneurs can be found under most circumstances, and are an increasingly important part of the economic profile of any country, although there remains a gap in the entrepreneurial involvement and business ownership of men compared to women.
This therefore suggests that there is a need to focus on how to effectively change the business environment and social institutions to support women through employment, access to social and financial capital, and by raising self-confidence.
At the moment, the Welsh Assembly Government has rejected any targeted support for women entrepreneurs, even though the vast body of research studies in this area suggest otherwise.
If policymakers are as serious as they say about utilising evidence-based research to influence their programmes, then they would advised to read this report and examine if any of the broad programmes to support enterprise should be customised for women across Wales and whether, as a result, more women can be encouraged into entrepreneurial activity.
Comments
But do you know no one in Wales is listening. Just what do we have to do or talk to to get the support we as women need, and as experienced entrepreuers we can give to other women.
I was told women will get the same as men in support and delivery It's all being mainstreamed, well its being malestreamed for sure. But folks that aint gonna work.
I have copied your post and added some on my blog.
I think this was a wonderful article, thanks for posting! I think women in business is on the rise because the tides are shifting in the business world. Women are no longer relegated to the obligatory receptionish/admin assistant position, and are now taking high power positions in which men used to dominate.
Now, I'm an official Microsoft ambassador and right now we're really trying to scale up our connections with influential bloggers like yourself. I'd love to share with you some of the stuff we've been doing in the last couple months to help women entrepreneurs; we're really committed to providing all the necessary resources to help women start, grow and expand their business.
We just wrapped up a women's entrepreneurial tour across the US called “Vision To Venture;” the response and turn-out was great!
I'd really love your take on these offerings we have right now; I would have contacted you via email but I didn't know which was the best way to reach you.
Thank you so much, I hope I didn't overstep my bounds by directly contacting you. Definitely get back to me if I’ve piqued your interest-- I’d love to share more info with you.
Best,
Tanya M.
Official Microsoft Ambassador
t-middleton@live.com
I'm an ambassador for Microsoft and right now we're trying to reach out and connect with influential bloggers, like you, and try and offer some help to those women trying to get their business started! I'd love to share some information with you on how we can do that!
We just wrapped up a women's entrepreneurial tour across the US called “Vision To Venture;” the response and turn-out was great!
I'd really love your take on these offerings we have right now; I would have contacted you via email but I didn't know which was the best way to reach you.
Thank you so much, I hope I didn't overstep my bounds by directly contacting you. Get back to me if I’ve caught your interest-- I’d love to share more info with you.
Best,
Bianca Russo
Official Microsoft Ambassador
bianca.russo@live.com