[ACM-W] The Rise of the Female Entrepreneur

[Bettina Bair]

"The Rise of the Female Entrepreneur"
Management Issues, March 6

According to a new study published by Babson College, women now comprise
one-third of all entrepreneurs around the world and are increasingly likely
to strike out and set up their own businesses. The so-called entrepreneurial
gender gap between men and women is narrowing, the Babson study found,
particularly in low to middle income countries such as Russia and Brazil. In
contrast to their male counterparts, however, women are much less likely to
launch their own businesses if they do not already have a part- or full-time
job. In addition to being more cautious than men, women also tend to be less
confident than men about whether they will be successful. In its study of
patterns in global entrepreneurship, the Babson researchers took into
account factors such as age, educational level, and income level.

The report examined entrepreneurial activity in 40 countries around the
world and found that low to middle-income countries such as Russia and the
Philippines tended to have the highest rates of female early-stage
entrepreneurial activity. In contrast, high-income countries such as Sweden
and Belgium reported the lowest rates of female entrepreneurial activity. In
fact, Russia was the only country where the rate of female early-stage
entrepreneurship was significantly higher than the male rate. When it came
to age, the distribution pattern was similar regardless of geographical
origin. In low and middle-income countries, women generally became
early-stage entrepreneurs between the ages of 25-34 and established
entrepreneurs between the ages of 35-44. In high-income countries, the age
groupings were slightly higher.

There are several factors, such as education and income, which influence
female entrepreneurial activity. Globally, entrepreneurial activity was
highest among women who also had access to another source of income and the
highest educational levels. By maintaining a paid source of employment,
women were better able to access the resources, social capital and ideas
that helped them in establishing their entrepreneurial ventures. In
addition, education plays a key role in the decision to start a new
business. Across all geographies, women with higher levels of education were
more likely to transform their new ventures into established businesses. In
low and middle-income countries, more than a third of early-stage women
entrepreneurs and nearly half of established women business owners had less
than a secondary degree. In high-income countries, this dropped to 25% of
early-stage women and nearly 30% of established women business owners.

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Article<http://www.management-issues.com/2007/3/6/research/the-rise-of-the-female-entrepreneur.asp>
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