Publication:
Female Entrepreneurship in Turkey: Patterns, Characteristics, and Trends

Loading...
Thumbnail Image
Files in English
English PDF (1.16 MB)
1,110 downloads
English Text (77.3 KB)
33 downloads
Published
2015-12
ISSN
Date
2016-11-22
Editor(s)
Abstract
Over a century ago, Schumpeter (1911) described the entrepreneur as a creative, driven individual who finds new combinations of (factors) of production to develop a new product, corner a new market, or design a new technology and he famously attributed endogenous development to the creative acts associated with entrepreneurial activity. This paper contributes to the understanding of female entrepreneurship in Turkey by analyzing the patterns and characteristics of female entrepreneurs and examining time trends in entrepreneurial activity. The data on entrepreneurs comes from data on employers and own account workers available in nationally representative Turkish household labor force surveys of 2004-2012. In Turkey, share of self-employed was 38 percent of total employment in 2012, much higher than the European Union (EU) - 27 average of 15 percent. However, the composition of self-employed in Turkey is markedly different than in EU-27. Only 13 percent of self-employed in Turkey are employers in contrast to 28 percent of self-employed in EU-27. This study is the first analyzing the effects of socio-demographic characteristics such as education, marital status, number of children, and urban or rural location on gender gap in entrepreneurship in Turkey. A multinomial logistic model was used where the odds of being an employer or own account worker over being inactive and unemployed was analyzed. It is found that higher education reduces the gender gap while marriage and number of children increases the gender gap in entrepreneurship. Perhaps surprisingly, living in an urban area also increases the gender gap as it increases the odds of becoming an employer for males and decreases the odds for females. The first section gives introduction. The section section deals with a brief literature survey on gender gap in entrepreneurial activity and entrepreneur characteristics. In section three, the entrepreneurship setting for women in Turkey is described. Section four describes the data and methodology. Section five presents results.
Link to Data Set
Citation
Okten, Cagla. 2015. Female Entrepreneurship in Turkey: Patterns, Characteristics, and Trends. © World Bank. http://hdl.handle.net/10986/25410 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    An Analysis of Public Programs Related to Women’s Entrepreneurship and Access to Labor Markets
    (World Bank, Washington, DC, 2015-12) Goksen, Fatos; Olcay, Ozlem Altan; Alniacik, Ayse; Deniz, G. Ceren
    In the recent years, economic performance in Turkey has been praised due to its sustainedgrowth trends, stability and capacity to weather the global financial crisis. However, a number of issues related to the labor market and unemployment trends continue to be the economic and political underbelly to these positive trends. The conspicuously low labor forceparticipation among women over the years deserves special attention among these problems. The objective of this report is to provide an institutional analysis of public policies and programstargeting women’s access to labor markets and entrepreneurial activities. The report seeks to provide a comprehensive inventory of public programs, targeting women’s employment and entrepreneurship and evaluate the strengths and weaknesses of these programs with respect to their sustainability, institutional commitment, and their ability to address barriers to women’s labor force participation. In Turkey, women’s participation in the labor force has historically been low. While 34 percentof the women were in the labor force in 1990, the rate declined to 26 percent over the courseof the following decade and recovered up to 29 percent by 2012. Cross-country comparisons show that women in Turkey participate in the labor force at a much smaller rate compared to countries in all income groups. This is the case even in comparison with the lower-middle income countries, where women’s labor participation rate is 40 percent. A final focus in this study has been on the initiatives that aim to encourage women’s entrepreneurship. Given that the percentages of women among entrepreneurs in Turkey are even lower than that of women in the labor force, if the barriers to women’s entrepreneurial activities are removed, it appears that there is substantial room for improvement. This report sets its goal as interrogating in a holistic manner, programs’ objectives, contents,and ability to address problems standing in the way of women’s labor force participation. The aim of the report is not to conduct an impact analysis of these public programs, but to provide an extensive inventory of institutions and the specific departments and the programs that are directly responsible to carry out the public policies on the issue of women’s employment and entrepreneurship. Programs evaluated in this report were chosen on the basis of their scope both in terms of their targets and funding schemes. Local programs with very narrow scopes were not taken into the inventory. Only the programs, which target to create new employment and entrepreneurship opportunities for women with a wide sphere of influence, were inc luded. The public programs covered in this report can be also assessed based on the sectors ofeconomic activity in which women’s employment and entrepreneurship is promoted: Our report shows that the programs carry the danger of repeating existing gendered divisions of labor and the ensuing capacity to access the labor market. For long-term positive results inchanging existing horizontal and vertical segregations in the market, there should be more focus on how to change gendered assumptions about divisions of labor within the programs’design.
  • Publication
    Qualitative Assessment of Economic Mobility and Labor Markets in Turkey
    (World Bank, Washington, DC, 2015-12) World Bank
    Turkey has recently experienced significant population growth, gross domestic product (GDP) growth, and modernization. The economic structure in Turkey has been changing rapidly due to privatization and global growth. This report examines men and women’s perception of factors that are perceived to shape their economic mobility, access to labor markets, and entrepreneurship opportunities across multiple community contexts in Turkey. Relevant literature and data was first reviewed to inform the hypotheses and survey analysis. Based on the review of the relevant literature, it is expected that in terms of the middle class overall, men and women will report a lack of education and appropriate skills as barriers to both employment and entrepreneurship opportunities. Economic mobility, supported by a thriving and open labor market, targeted policies, and an enabling environment for entrepreneurs, is a key requisite for improving living standards, wellbeing, and the reduction of unemployment and poverty. The first section gives introduction. The second section discusses research approach and defines hypotheses, which are later addressed using the qualitative survey information. The third section presents the results and findings derived from the analyzed information and data. The fourth section summarizes the main conclusions and provides recommendations for policy makers. Finally, the annex covers an overview of the country context with special emphasis on the labor market in Turkey, women’s roles in society and economy, and labor policy reforms in Turkey.
  • Publication
    Gender and Rural Non-farm Entrepreneurship
    (World Bank, Washington, DC, 2012-05) Costa, Rita; Rijkers, Bob
    Despite their increasing prominence in policy debates, little is known about gender inequities in non-agricultural labor market outcomes in rural areas. Using matched household-enterprise-community data sets from Bangladesh, Ethiopia, Indonesia and Sri Lanka, this paper documents and analyzes gender differences in the individual portfolio choice and productivity of non-farm entrepreneurship. Except for Ethiopia, women are less likely than men to become nonfarm entrepreneurs. Women's nonfarm entrepreneurship isn't strongly correlated with household composition or educational attainment, but is especially prevalent amongst women who are the head of their household. Female-led firms are much smaller and less productive on average, though gender differences in productivity vary dramatically across countries. Mean differences in log output per worker suggest that male firms are roughly 10 times as productive as female firms in Bangladesh, three times as those in Ethiopia and twice as those in Sri Lanka. By contrast, no significant differences in labor productivity were detected in Indonesia. Differences in output per worker are overwhelmingly accounted for by sorting by sector and size. They can't be explained by differences in capital intensity, human capital or the local investment climate, nor by increasing returns to scale.
  • Publication
    Entrepreneurship in Post-Conflict Transition : The Role of Informality and Access to Finance
    (2009-05-01) Klapper, Leora F.; Demirgüç-Kunt, Asli; Panos, Georgios A.
    The authors examine the factors affecting the transition to self-employment in Bosnia and Herzegovina, using the World Bank Living Standard Measurement Survey panel household survey for the years 2001-2004. In the beginning of the sample, the country changed its legal framework, with the primary aim to promote labor market flexibility and to encourage entrepreneurial activity. The analysis identifies individuals that switched to self-employment (employers and own account) during the sample period and the viability of this transition, in terms of business survival for more than one year. The results suggest an important role for financing constraints. Specifically, wealthier households are more likely to become entrepreneurs and survive in self-employment. After controlling for household wealth, having an existing bank relationship increases the likelihood of starting a business with hired employees and increases the chances of survival for the new entrepreneur. By contrast, overseas - and in some cases domestic - remittances decrease the likelihood of becoming an entrepreneur.
  • Publication
    Garanti Bank SA : Combining SME Banking Excellence with a Proposition for Women Entrepreneurs in Turkey
    (World Bank Group, Washington, DC, 2014-03) McCartney, Andrew; Tilyayev, Ulugbek
    Garanti Bankasi (Garanti) is a regional pioneer in offering products and services specifically targeted towards women entrepreneurs as a specific market segment. In 2006, Garanti created a women's entrepreneur support package specifically designed to help Turkey s women entrepreneurs to establish and grow their businesses. This was followed up with the creation of Women Entrepreneur Gatherings, in 2007, which provided additional training and educational tools and new networking opportunities. And in 2013, Garanti began collaborating with Bogazici University, a top university in Turkey, to offer an intensive mini-MBA training program for women entrepreneurs. Garanti also launched Turkey s first Woman Entrepreneur of the Year award, an initiative that showcases women who have successfully grown their business, encouraging more women entrepreneurship in the country. This case study (the study ) explores how Garanti leaders decided to focus on women entrepreneurs. It also documents and analyzes the bank s efforts to build a profitable and sustainable women in business franchise, through its three-pillar approach, including financial support, client education, and the encouragement of entrepreneurship. The case study also provides insights into how Garanti tapped into, and integrated with its highly innovative, market leading Small and Medium Enterprise, or SME banking franchise to more effectively target women in business. The study concludes with an objective assessment of the results of the program to date, offering suggestions from IFC specialists on how Garanti may further scale up its women in business initiative in the next phase of development.

Users also downloaded

Showing related downloaded files

  • Publication
    Women, Business and the Law 2024
    (Washington, DC: World Bank, 2024-03-04) World Bank
    Women, Business and the Law 2024 is the 10th in a series of annual studies measuring the enabling conditions that affect women’s economic opportunity in 190 economies. To present a more complete picture of the global environment that enables women’s socioeconomic participation, this year Women, Business and the Law introduces two new indicators—Safety and Childcare—and presents findings on the implementation gap between laws (de jure) and how they function in practice (de facto). This study presents three indexes: (1) legal frameworks, (2) supportive frameworks (policies, institutions, services, data, budget, and access to justice), and (3) expert opinions on women’s rights in practice in the areas measured. The study’s 10 indicators—Safety, Mobility, Workplace, Pay, Marriage, Parenthood, Childcare, Entrepreneurship, Assets, and Pension—are structured around the different stages of a woman’s working life. Findings from this new research can inform policy discussions to ensure women’s full and equal participation in the economy. The indicators build evidence of the critical relationship between legal gender equality and women’s employment and entrepreneurship. Data in Women, Business and the Law 2024 are current as of October 1, 2023.
  • Publication
    World Development Report 2024
    (Washington, DC: World Bank, 2024-08-01) World Bank
    Middle-income countries are in a race against time. Many of them have done well since the 1990s to escape low-income levels and eradicate extreme poverty, leading to the perception that the last three decades have been great for development. But the ambition of the more than 100 economies with incomes per capita between US$1,100 and US$14,000 is to reach high-income status within the next generation. When assessed against this goal, their record is discouraging. Since the 1970s, income per capita in the median middle-income country has stagnated at less than a tenth of the US level. With aging populations, growing protectionism, and escalating pressures to speed up the energy transition, today’s middle-income economies face ever more daunting odds. To become advanced economies despite the growing headwinds, they will have to make miracles. Drawing on the development experience and advances in economic analysis since the 1950s, World Development Report 2024 identifies pathways for developing economies to avoid the “middle-income trap.” It points to the need for not one but two transitions for those at the middle-income level: the first from investment to infusion and the second from infusion to innovation. Governments in lower-middle-income countries must drop the habit of repeating the same investment-driven strategies and work instead to infuse modern technologies and successful business processes from around the world into their economies. This requires reshaping large swaths of those economies into globally competitive suppliers of goods and services. Upper-middle-income countries that have mastered infusion can accelerate the shift to innovation—not just borrowing ideas from the global frontiers of technology but also beginning to push the frontiers outward. This requires restructuring enterprise, work, and energy use once again, with an even greater emphasis on economic freedom, social mobility, and political contestability. Neither transition is automatic. The handful of economies that made speedy transitions from middle- to high-income status have encouraged enterprise by disciplining powerful incumbents, developed talent by rewarding merit, and capitalized on crises to alter policies and institutions that no longer suit the purposes they were once designed to serve. Today’s middle-income countries will have to do the same.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Global Economic Prospects, June 2025
    (Washington, DC: World Bank, 2025-06-10) World Bank
    The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.