The role of women entrepreneurs on economic development: The case of Bingol and Diyarbakir

Abstract

One of the main reasons why Turkey cannot get the desired results in economic growth in the Eastern and Southeastern regions of country is that female entrepreneurs are not active enough in economic life. In Bingol and Diyarbakir provinces, surveys and face-to-face interviews were conducted with female entrepreneurs to determine the obstacles or positive supports for female entrepreneurs benefiting from Small and Medium-Sized Enterprises Development and Support Administration (KOSGEB) and other state incentive institutions in the last 5 years. In this study, it is aimed to reveal the effects of factors such as female entrepreneurs’ education, family structure, cultural actors, religious factors and number of children on female entrepreneurship. The micro-financing system will allow potential female entrepreneurs needing small-scale businesses to enter the economic system more easily. Since most of the women in the Eastern Region of Turkey are not active in the working life, the effects of them on the labor market are weak. Thanks to small-scale financing, women take the first steps in entrepreneurship leading them into business life and proving themselves through economic entrepreneurship and economic development. Statistical methods: Frequencies, averages, and ANOVA test are used in this research. Approximately 103 surveys (48 in Bingol ve 55 in Diyarbakir) in 2016 were carried out in two neighboring provinces having socio-cultural similarities. In Diyarbakir and Bingol provinces, the main reasons for women being entrepreneurs are to obtain economic independence and to establish social relations. The main capital used for establishing a business is the family grandmothers or members. Difficulties in finding capital structure, not being recognized in the market, high rents, tax payments and employee related problems are the main problems encountered in entrepreneurship. Tax incentives, increased training opportunities, technical support and credit facilitation are the most necessary elements for increasing female entrepreneurship in the region. In addition, the average monthly income of these women is 2,471 TL. And according to ANOVA test, there is no significant difference between Bingol and Diyarbakir cities with 95% reliability according to being an entrepreneur except salary.