Abstract
This chapter begins with a brief exploration of the importance of entrepreneurial activity as a driver of global economic growth. The importance of entrepreneurship in developing economies is examined as are the traits, motivations, and drivers of entrepreneurs and the economic, social, cultural, legislative, and regulatory circumstances that encourage and in some cases discourage entrepreneurial activity. The impact of entrepreneurship training and education on encouraging women entrepreneurs is examined, the relative importance of women entrepreneurs is examined, and emphasis is placed on the relatively greater difficulties that are faced by women entrepreneurs particularly in regards to obtaining funding for starting new ventures. Opportunities are identified that may useful for policy makers, investors, and those that may seek to promote social entrepreneurship and economic growth in developing economies.
TopIntroduction
The importance of entrepreneurial activity in economic growth is well researched and documented as is the more specific importance of entrepreneurial activity in developing economies. There is a sentiment that increased emphasis should be placed on researching entrepreneurship in developing markets as expressed by Smallbone et al. (2014), who stated that “most of the conceptual development in the field of entrepreneurship has occurred in, or assumed mature market conditions.” Moreover, who then went on to explain the need to study within other contexts such as emerging and developing markets. Laizans and Lace (2007) among others found the reason to assert that while entrepreneurial activity is an essential part of economic development worldwide, it is of particular importance in the developing economies (Anton & Onofrei, 2016; Baručić & Umihanić, 2016; Huggins & Thompson, 2014; Ozioma-Eleodinmuo, 2015).
Likewise, the role of women as entrepreneurs is relatively well researched, specifically women entrepreneurs in developing economies is a research topic that has received ample attention in recent years. However, much of that research is of a precise nature and only when considered as part of a much larger body of research can it be used as a basis for generalizable findings. This chapter seeks to advance the understanding of the role of women entrepreneurs, to identify opportunities for women entrepreneurs, investors as well as NGOs and governmental agencies that are involved in promoting economic growth through the support and encouragement of entrepreneurial activity.
The exploration of women as entrepreneurs begins with a brief reaffirmation of the emphasis and importance of entrepreneurship as an economic driver, specifically in developing economies, motivational factors of entrepreneurs, patterns in the characteristics and traits of entrepreneurs, concludes with identifying challenges and opportunities for those who may be interested in encouraging women entrepreneurs and entrepreneurship driven economic development.
The findings indicate that while women entrepreneurs tend to be motivated by different factors than their male counterparts (Kirkwood, 2009; Laure-Humbert & Drew, 2010; Orhan & Scott, 2001). Also, while women tend to favor different types of ventures, their odds of success are similar to those of men (Hechavarría, 2016; Lee & Marvel, 2014). Much of the literature indicates that women are less likely to have access to investment or start-up capital, one of the key ingredients necessary for new ventures and that women may find it more challenging to obtain investment based funding (Aidis & Schillo, 2017; Blake, 2006). It also seems that women entrepreneurs tend to require smaller initial investment than male-driven ventures (Blake, 2006; Carter, Brush, Greene, Gatewood, & Hart, 2003). The opportunity for inventors and those in both private and public sector who are engaging in promoting entrepreneurial based growth may be to consider gender in the opportunity assessment phase because new ventures that are driven by women entrepreneurs may offer different and possibly more advantageous investment opportunities than their male counterparts individually when it comes to diversification of venture investments, and return on investment.
Key Terms in this Chapter
Micro-Enterprises (ME): Generally defined as a small business employing nine people or fewer, and have a balance sheet or turnover of less than 2 million USD, although this amount changes from country to country.
Social Entrepreneurs: Those who engage in entrepreneurial activity with the goal to provide some direct benefit the society rather than the accumulation of wealth.
Small Scale Individual Entrepreneurs (SIEs): Often an individual that owns and operates a small business. In a developing economy typically operates in a small market area, although it may include an on-line operation. Limited to a minimal number of workers and does not have a high volume of business.
Small to Medium-Sized Enterprises (SMEs): Typically the category of micro, small and medium-sized enterprises made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and an annual balance sheet totals not exceeding 43 million euro.
Social Entrepreneurship: The practice of entrepreneurship with the aim to provide some benefit to society, most typically in areas of ecological conservation, poverty alleviation, employment creation or other similarly beneficial business activity.
Entrepreneurship Education (EE): Specialized training that seeks to provide students with the knowledge, skills, and motivation to encourage entrepreneurial activity and success in a variety of settings. Entrepreneurship education can be offered at all levels of schooling from primary or secondary schools through graduate university programs.