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Where does ‘gender’ matter in entrepreneurship? Enabling Environment and Policy Reforms to Support Female Entrepreneurship. Mary Hallward-Driemeier Chief Economist Office, FPD. Where does ‘gender’ matter in entrepreneurship?. Where do women work? What enterprises do they run?
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Where does ‘gender’ matterin entrepreneurship?Enabling Environment and Policy Reforms to Support Female Entrepreneurship Mary Hallward-Driemeier Chief Economist Office, FPD
Where does ‘gender’ matter in entrepreneurship? • Where do women work? What enterprises do they run? • Which dimension of IC matters most for women? • Directly – as women • Indirectly – where more women work • Looking beyond levels of IC
Women’s entrepreneurship is high -- But concentrated in self-employment Women’s share in non-agricultural employment averages 38 percent – across income levels • At low levels of income, women are disproportionately in self-employment. • Greater relative participation of women in wage work as income rises • Women’s share of employers remains constant • But 10 percentage points lower than women’s share in the non-agric. labor force • Agenda is not to raise women’s entrepreneurship per se – but to help women move into higher value added activities
Definition of “female enterprise” matters • Participation in ownership • Decision maker • Of those with ‘some female ownership’ – women are a main decision maker in only half • Sole proprietors – ownership and decision maker Choice matters: Performance gaps using the first definition are not significant; they are using the second and third.
Direct impact of gender – greater IC constraints faced by women as women • Property rights: especially family law • Ethiopia – change of family law raised share of women working outside the home • Access to finance • Require male co-signature • Less access to collateral • Harassment – what is asked for is not always money; ‘sextortion’ Shares that have ‘frequently’ heard of sexual favors being raised in certain transactions
Variations are greater across sectors than by gender within a sector • But women are more likely to run informal or smaller firms. Indirect gender effects. • Addressing constraints to smaller firms can disproportionately help women. • Factors affecting entry and choice of activity / formality / size of enterprise are key to explaining outcomes.
Which dimension of the IC matters? • Most work has focused on the LEVEL of IC conditions (days or costs to get things done) • But VARIATION in the IC is also costly • Introduces uncertainty that is associated with lower investment and hiring • Opens the door to more corruption • Women’s enterprises are less likely to be ‘favored firms’ • Detrimental effects are larger on SMEs • Undermines government’s credibility • Thwarts the public interest they were supposed to serve • May undermine support for reforms by creating different interests between favored and non-favored firms.
Take away messages • Agenda -- supporting women to pursue higher value added activities, not raising entrepreneurship per se • Careful how you define ‘female enterprises’ • Bring decision making authority into account where possible • Factors affecting entry and choice of enterprise are key • Within sectors and size, gender is less important • Gender can matter directly (restrictions in (family) law) and indirectly(constraints that hit smaller firms harder) • Look at degree of variation in constraints across firms • Associated with corruption and uncertainty • Women less likely to be ‘favored firms’
