Investing in Women’s Entrepreneurship: Inclusive and Sustainable Economic Growth

Abstract

Listen

Translate article

An important part of capitalizing on human potential lies in fostering entrepreneurship, which is essential to economic growth and employment creation. A Global Entrepreneurship Monitor study of 18 economies from 2002 to 2010 suggests that women’s entrepreneurial activity is lower than that of their male counterparts at different stages of development. Although, women’s entrepreneurship is large, diverse, and of great economic significance to achieve sustainable development, women-owned businesses comprise between one-quarter and/or one-third of businesses worldwide. It is almost certainly understated because available data do not always distinguish by gender, and women are more likely to run businesses in the informal economy where data are hard or impossible to capture. Societal attitudes and norms inhibit some women from even considering starting a business, while systemic barriers mean that many women entrepreneurs stay confined to very small businesses often operating in the informal economy. Exclusion of land rights and other gender-specific patterns of the property make it difficult for women to acquire physical assets for chain activities. Further, gender differences in literacy and education reduce their ability to communicate with buyers and suppliers and thus limit their bargaining power. Women experience greater constraints on their economic actions relative to men. This means that women tend to different needs than men regarding entrepreneurship due to the different roles and responsibilities of women which are assigned by society. However, governmental policies and programs must address the various constraints acting on the abilities of women to succeed. International networks are very important concerning capacity and business development of women entrepreneurs through the development of gender-sensitive public policies, supply chain, and marketing practices besides the promotion of women’s entrepreneurship. Through networks, the information should be attractive to women and should advertise programs matching the assistance they need. Otherwise, it could be harder to recruit women into entrepreneurship in cases when women do not believe they are able to take on the challenge. The purpose of this paper is to examine women’s entrepreneurship support programs which are critical to strengthen the weakest links in the chain and assure inclusive upgrading of quality and growths. This paper also addresses how women’s entrepreneurship can be supported through international networks.