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Women Entrepreneurs in Europe and Central Asia. Sarosh Sattar Europe and Central Asia Region April 28, 2010. Presentation Outline. How to think about entrepreneurship? Some preliminary findings for ECA Important – and unanswered – questions .

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women entrepreneurs in europe and central asia

Women Entrepreneurs inEurope and Central Asia

Sarosh Sattar

Europe and Central Asia Region

April 28, 2010

presentation outline
Presentation Outline
  • How to think about entrepreneurship?
  • Some preliminary findings for ECA
  • Important – and unanswered – questions
why care about entrepreneurship
Why care about entrepreneurship?
  • Entrepreneurship
    • contributes to economic growth
    • leaps in human progress
    • offers potential of greater wealth and upward mobility
    • provides an alternative to wage employment
defining entrepreneurship
Defining entrepreneurship
  • Who is an entrepreneur?
    • Anyone who is working for themselves and retains profits
    • Anyone who owns an enterprise with workers
    • Anyone who owns an enterprise with workers for at least 1-3 years
    • Anyone who owns a business and is an innovator
    • Any one who has a strategic voice in an enterprise (e.g., top manager)
  • An entrepreneur
    • Out of necessity
    • A career choice
do these factors influence entry into entrepreneurship
Do these factors influence entry into entrepreneurship?
  • Education
  • Family structure
    • Presence of dependents
    • Presence of a male income earner in household
    • Availability of child care
  • Networks
    • Information, access, and role models
  • Risk perception
  • Rewards
    • Autonomy, financial success, and status
what can we surmise
What can we surmise?
  • Much greater gender inequality in entrepreneurship than wage employment in ECA
  • Significant variation in entrepreneurship rates among men and women across countries
  • Women entrepreneurs are more likely to be one-person enterprises than employers compared to men
  • Women’s employers have fewer employees than men
  • Fewer early stage women entrepreneurs
beeps data on formal established enterprises show that
BEEPS data on formal established enterprises show that…
  • Women owned firms are
    • smaller scaled operations in terms of sales revenues
    • generate more profit per unit of sales revenue
    • have higher returns to scale which means that women would gain more from increasing their firm size
  • This could be because women are
    • capital constrained
    • concentrated in industries with small firm size
some unanswered questions that may help to understand the variation in entrepreneurship rates
Some unanswered questions that may help to understand the variation in entrepreneurship rates
  • Why do women concentrate in certain sectors (services rather than manufacturing)?
  • Is the capital constraint self-imposed or does it reflect bias in the financial system?
  • Do lower entrepreneurship rates among women reflect personal choice or economic constraints?
  • What encourages women to take the step into entrepreneurship?
  • Is entrepreneurship as much about wealth creation as it is of voice?