female entrepreneurs that dream big
DESCRIPTION
In this paper, we address the need to further conceptualize high impact (HI) female entrepreneurship exploring the existing literature and adapting the 2012 World Development Report framework and index model to create a basis for internationally comparative quantitative analysis. We incorporate a review of the existing literature on female entrepreneurship identifying the issues that seem to affect HI female entrepreneurship and identify the National Systems of Entrepreneurship approach as important for HI female entrepreneurship development . In addition, we compare and contrast the existing indices that measure entrepreneurship development in general and female entrepreneurship in particular. Finally, we propose the most suitable approach for developing a comprehensive quantitative model for studying HI female entrepreneurship.TRANSCRIPT
1
Female Entrepreneurs that Dream Big:
Conceptualizing High Impact Female Entrepreneurship for Internationally Comparative Quantitative Analysis
Ruta Aidis, Center for Entrepreneurship and Public Policy
(CEPP)George Mason University
R. Aidis - ICSB - Wash DC - 2012
Center for Entrepreneurship and Public Policy (CEPP)
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Objectives
1. Characteristics of High Impact (HI) Female Entrepreneurship – Should we pick winners?
2. Present the 2012 WDR Framework – is it useful for studying HI female entrepreneurship?
3. Discuss HI female entrepreneurship - what has been done, what needs to be done so far
4. Propose a strategy to move forward
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Are female entrepreneurs really different from male entrepreneurs?
It Depends….• Concentrated in service sector• Necessity based• Use less capital• Traditional female roles may undermine self-
efficacy• Marriage and children increase female rate of
self-employment
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High Impact Entrepreneurship• 4% of small firms generated 60% of all new jobs in the US
economy from 1988 – 1992
• From 1994 – 2006, firms with <20 employees represented 93.8% of the high-impact firms and 33.5% of job growth
In sum, HI entrepreneurs are important for economic growth!!
Source: (Acs & Mueller 2008)
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Less HI female entrepreneurship = global economic loss
Misallocating women’s skills and talents comes at a large (and rising) economic cost (WB WDR 2012)
However Economic Growth does not necessarily increase Gender Equality
• Economic growth can– Perpetuate gender stereotypes– Reinforce occupational segregation– Maintain unequal access to endowments
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Comparative studies on HI female entrepreneurship
Estrin & Mickiewicz (2011) – GEM Data – 55 countries (2001-2006)• High aspiration female entrepreneurs impediments: large state
sector size • Where female freedom of movement is restricted• Childcare seems less of an issue
Kelley et al (2010) – GEM Data, 18 countries (2008 – 2010)• Highest level of high aspiration female entrepreneurs in efficiency-
driven countries• Female growth aspirations (20+) highest in Saudi Arabia• In Israel, female entrepreneurs growth aspirations 1/3 less than
male entrepreneurs
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Defining HI entrepreneurshipAccording to Growth Aspirations (GEM)• 5+ employees in the next 5 years• 20+ employees in the next 5 years
According to Employment & Sales (Acs 2008) • Employment Growth Qualifier (EGQ): absolute & percentage change• Sales doubled in 4 years
A broader definition used by the Global Entrepreneurship and Development Index (Acs & Szerb 2012):
• Growth-oriented, market expanding, export-inclined and innovative businesses
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2012 World Development Report Framework
InformalInstitutions
Formal Institutions
Markets
Household
Economic Opportunit
ies
EndowmentsAgency
R. Aidis - ICSB - Wash DC - 2012 9
2012 World Development Report Framework
InformalInstitutions
Formal Institutions
Markets
Household
Economic Opportunit
ies
EndowmentsAgency
ECONOMIC GROWTH
GENDER EQUALITY
Policies
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The Household Unit: dreams and decision making
Household
DREAMDR
EAM
DREAM
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But what about single childless women?
In 2003, a U.S. Census study found that a record 19% of U.S.women age 40–44 did not have children
Doubt
External
Stereotypes
R. Aidis - ICSB - Wash DC - 2012 12
National Systems of Entrepreneurship
• The importance of cultivating female entrepreneurial eco-systems as a strategy for fostering HI female entrepreneurship
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What are potentially important issues affecting HI female entrepreneurs globally
• Access to resources: land, credit, inheritance, financing
• The importance of role models/media image• Access to education • Access to networks• Time Use & Care responsibilities: Childcare –
necessary but not sufficient• Labor force segregation
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Some data sets that include high-impact female entrepreneurship
Comparative Data• Global
Entrepreneurship Monitor (GEM)
Limited coverage• GenderClir (USAID)• GOWE (ILO)
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4) Proposed framework : Adapting the Global Entrepreneurship and Development Index (GEDI) Approach which:
– Combines both individual-level and institutional-level data;
– Includes the novel Penalty for Bottleneck methodology;
– Indentifies a country’s strengths and weaknesses;– Ranks countries according to their relative scores;– Indicates which improvements would have the
biggest effect on increasing a country’s entrepreneurial performance.
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GEDI’s structure3 sub-indices/ 14 pillars/ 28 variables
P14: Product Innovation•NEWP•TECHTRANSFER
P13: Process Innovation•NEWT•GERD
P12: High Growth•GAZELLE•BUSS STRATEGY
P 11: Internationalization•EXPORT•GLOB
Pillar 10: Risk Capital•INFINV•VENTCAP
Sub-index 2:Entrepreneurial Activity
Sub-index 1:Entrepreneurial Attitudes
Sub-index 3:Entrepreneurial Aspiration
Pillar 1: Cultural Support•CARSTAT•CORRUPTION
P2: Networking•KNOWENT•INTERNETUSAGE
P8: Technology Sector•TECHSET•TECHABSORP
P7: Quality of Human Resources•HIGHEDUC•STAFFTRAIN
Pillar 6: Competition•COMPET•MARKDOM
P5: Opportunity Perception•OPPORTUNITY•MARKETAGGLOM
P4: Start up Skills•SKILL•EDUCPOSTSEC
P3: Non Fear of Failure•NONFEAR•BUSINESS RISK
P9: Opportunity Start up•TEAOPPORT•FREEDOM
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Global Entrepreneurship and Development Index (GEDI) coverage
• 2011: 71 countries• 2012: 79 countries• 2013 (forthcoming): 118 countries
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GEDI: Identifies a country’s relative strengths and weaknesses for productive entrepreneurship development
OPORTUNITY_PERCEPTIONSTARTUP_SKILLS
NONFEAR_OF_FAILURE
NETWORKING
CULTURAL_SUPPORT
OPPORTUNITY_STARTUP
TECH_SECTORQUALITY_OF_HUMAN_RESOURCE
COMPETITION
NEW_PRODUCT
NEW_TECHNOLOGY
HIGH_GROWTH
INTERNATIONALIZATION
RISK_CAPITAL
.0000
.5000
OPORTUNITY_PERCEPTIONSTARTUP_SKILLS
NONFEAR_OF_FAILURE
NETWORKING
CULTURAL_SUPPORT
OPPORTUNITY_STARTUP
TECH_SECTORQUALITY_OF_HUMAN_RESOURCE
COMPETITION
NEW_PRODUCT
NEW_TECHNOLOGY
HIGH_GROWTH
INTERNATIONALIZATION
RISK_CAPITAL
.0000
.5000
1.0000
OPORTUNITY_PERCEPTIONSTARTUP_SKILLS
NONFEAR_OF_FAILURE
NETWORKING
CULTURAL_SUPPORT
OPPORTUNITY_STARTUP
TECH_SECTORQUALITY_OF_HUMAN_RESOURCE
COMPETITION
NEW_PRODUCT
NEW_TECHNOLOGY
HIGH_GROWTH
INTERNATIONALIZATION
RISK_CAPITAL
.0000
.5000
1.0000
OPORTUNITY_PERCEPTIONSTARTUP_SKILLS
NONFEAR_OF_FAILURE
NETWORKING
CULTURAL_SUPPORT
OPPORTUNITY_STARTUP
TECH_SECTORQUALITY_OF_HUMAN_RESOURCE
COMPETITION
NEW_PRODUCT
NEW_TECHNOLOGY
HIGH_GROWTH
INTERNATIONALIZATION
RISK_CAPITAL
.0000
.5000
1.0000
R. Aidis - ICSB - Wash DC - 2012 19
Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score1 United States $47,184 0.67 25 Estonia $20,033 0.41 49 Bulgaria $13,780 0.31 73 Moldova $3,087 0.22 97 Honduras $3,890 0.152 Sweden $38,947 0.63 26 Cyprus $25,299 0.40 50 Romania $14,287 0.30 74 Morocco $4,668 0.22 98 Kenya $1,635 0.153 Denmark $39,558 0.63 27 Spain $32,070 0.39 51 Barbados $19,252 0.30 75 Jamaica $7,839 0.21 99 Cameroon $2,264 0.144 Australia $39,407 0.62 28 Bahrain $25,799 0.38 52 Peru $9,470 0.29 76 Indonesia $4,293 0.21 100 Angola $6,035 0.145 Canada $38,915 0.59 29 Saudi Arabia $22,545 0.38 53 South Africa $10,486 0.29 77 Kazakhstan $12,050 0.21 101 Guatemala $4,740 0.146 Netherlands $42,475 0.58 30 Oman $26,554 0.37 54 Lebanon $13,948 0.28 78 Nigeria $2,363 0.21 102 Benin $1,576 0.147 Iceland $34,949 0.57 31 Lithuania $18,184 0.37 55 Tunisia $8,524 0.27 79 Ukraine $6,658 0.21 103 Rwanda $1,155 0.148 Switzerland $46,215 0.56 32 Poland $19,747 0.37 56 Malaysia $14,591 0.27 80 Serbia $11,488 0.20 104 Pakistan $2,674 0.149 Taiwan $37,931 0.55 33 Slovakia $23,897 0.36 57 Macedonia $11,072 0.27 81 Syria $5,248 0.20 105 Gambia $1,400 0.13
10 Norway $56,894 0.55 34 Hungary $20,307 0.35 58 Argentina $15,893 0.26 82 Paraguay $5,152 0.19 106 Tanzania $1,423 0.1311 France $33,820 0.53 35 Japan $33,994 0.35 59 China $7,536 0.26 83 Egypt $6,281 0.19 107 Uganda $1,263 0.1212 Belgium $37,448 0.53 36 Latvia $16,312 0.35 60 Panama $13,877 0.26 84 Bolivia $4,816 0.19 108 Madagascar $961 0.1213 Singapore $57,505 0.53 37 Italy $31,555 0.34 61 Botswana $13,786 0.26 85 Ecuador $8,105 0.18 109 Mali $1,057 0.1214 United Kingdom $35,860 0.52 38 Hong Kong $46,157 0.34 62 Mexico $14,566 0.26 86 Iran $11,467 0.18 110 Côte d’Ivoire $1,885 0.1215 Germany $37,591 0.51 39 Uruguay $14,277 0.34 63 Brunei $49,494 0.26 87 Venezuela $11,956 0.18 111 Malawi $876 0.1116 Finland $36,660 0.50 40 Portugal $25,573 0.34 64 Thailand $8,490 0.24 88 Bosnia and Herzegovina $8,750 0.18 112 Belize $6,566 0.1117 Ireland $39,727 0.50 41 Croatia $19,516 0.34 65 Jordan $5,706 0.24 89 India $3,586 0.18 113 Burkina Faso $1,247 0.1118 Puerto Rico $16,300 0.49 42 Czech $30,728 0.34 66 Costa Rica $11,351 0.23 90 Algeria $8,322 0.18 114 Ethiopia $1,033 0.1019 Austria $39,698 0.49 43 Korea $29,004 0.34 67 Namibia $6,426 0.23 91 Philippines $3,940 0.17 115 Mauritania $1,930 0.1020 Israel $28,546 0.47 44 Kuwait $52,657 0.33 68 Dominican Republic $9,280 0.23 92 El Salvador $6,692 0.17 116 Bangladesh $1,643 0.0921 Chile $15,044 0.45 45 Turkey $15,340 0.32 69 Russia $19,840 0.23 93 Ghana $1,625 0.16 117 Burundi $405 0.0822 Qatar $80,229 0.45 46 Montenegro $12,676 0.32 70 Trinidad and Tobago $25,539 0.22 94 Swaziland $5,033 0.16 118 Chad $1,360 0.0723 Slovenia $27,556 0.43 47 Greece $28,154 0.31 71 Albania $8,817 0.22 95 Senegal $1,917 0.1624 UAE $38,089 0.42 48 Colombia $9,392 0.31 72 Brazil $11,127 0.22 96 Zambia $1,550 0.15
GEDI 2013 Index country rankings
GEDI provides clear country and regional rankings
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Concluding remarks• In order to cultivate female HI firms, a healthy, female
entrepreneurship eco-system is a necessary condition.• Economic growth is not enough to increase gender equality
which allows for a healthy female entrepreneurship eco-system to develop
• A household focus incorporates the complexities of the decision making process for HI female entrepreneurs
• There is a need for an understanding of HI female entrepreneurship levels that incorporates individual and institutional level data
• More and better data are needed; Cross country comparative data is critical !!
• The Global Entrepreneurship and Development Index (GEDI) provides an excellent framework for the development of an index measuring HI female entrepreneurship on a worldwide scale