Publication: Supporting Growth-Oriented Women Entrepreneurs: A Review of the Evidence and Key Challenges
Loading...
Published
2014-09
ISSN
Date
2016-01-14
Author(s)
Qasim, Qursum
Editor(s)
Abstract
In recent years, support programs for women entrepreneurs have gained traction and prominence as a means to create jobs and boost productivity at the national and regional levels. However, disparities in initial resource endowments of male and female-led firms, sector sorting into low productivity activities, social norms, and institutional arrangements, constrain the growth of female-led enterprises. This note reviews the outcomes of programs supporting female growth entrepreneurs and draws lessons from available evidence to inform the design of more effective programs. The review shows that most programs are primarily geared toward microenterprises, making it difficult to draw conclusions about program design for growth-oriented entrepreneurs, but some early findings point the way forward. Management practices appear to improve as a result of business education, but there is little robust evidence to prove that support programs lead to significant improvements in business performance outcomes. Furthermore, in programs with both male and female participants, firm performance improves in some cases for male-led firms only, not for female-led firms. The note concludes by suggesting the need for more experimentation in the design and delivery of services and a new focus on strengthening the engendering of support programs to more specifically address gender-specific constraints such as social norms, entrepreneurial preferences, and institutional arrangements, changing public discourse, and paying more attention to factors that induce female entrepreneurs to diversify into higher value-added activities. Offering mentoring, networking, and other consulting services, in addition to education on basic business practices and strengthening critical areas such as gender-specific content, can potentially increase the effectiveness of these programs.
Link to Data Set
Citation
“Qasim, Qursum; Cirera, Xavier. 2014. Supporting Growth-Oriented Women Entrepreneurs: A Review of the Evidence and Key Challenges. Innovation, technology and entrepreneurship
policy note;no. 5. © World Bank. http://hdl.handle.net/10986/23654 License: CC BY 3.0 IGO.”
Digital Object Identifier
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Economic Opportunities for Women in the East Asia and Pacific region(World Bank, 2010)East Asia and the Pacific is a region of dynamic growth. Women have contributed significantly to this growth and have benefited from it through active participation in the labor market. However, women are still disproportionately represented in the informal sector and in low paid work. Efforts to identify barriers to women's business and entrepreneurial activities in the region are critical not only to facilitate inclusive growth in a national context but also to counter the increasing trend of female migratory flows in the region. This report highlights' both the challenges and the economic opportunities for businesswomen in the region offers some useful potential pointers for reform.Publication Breaking the Metal Ceiling(World Bank, Washington, DC, 2015-12)A range of reasons is cited to explain gender differences in business performance in Africa. Within those, the sector of operations is consistently identified as a major issue. This paper uses a mixed methods approach to assess how women entrepreneurs in Uganda start (and strive) operating firms in male-dominated sectors, and what hinders other women from doing so. The study finds that women who cross over into male-dominated sectors make as much as men, and three times more than women who stay in female-dominated sectors. The paper examines a set of factors to explain the differences in sector choices, and finds that there is a problem of information about opportunities in male-dominated industries. The analysis also concludes that psychosocial factors, particularly the influence of male role models and exposure to the sector from family and friends, are critical in helping women circumvent or overcome the norms that undergird occupational segregation.Publication Ready for Growth : Solutions to Increase Access to Finance for Women-Owned Businesses in the Middle East and North Africa(Washington, DC, 2013-05)The Middle East and North Africa (MENA) region is at one of the most critical turning points in its modern history. The Arab spring was driven by the desire for economic opportunity and justice in the face of poverty and unemployment. The development of strong economies that enable both women and men to enhance their livelihoods is crucial for the future of the region. The growth and success of women-owned businesses is one of the most profound changes in the business world today. There is no doubt that women are an emerging market force. However, many businesswomen are not accessing commercial credit, an essential driver of business success. Lack of access to finance and financial services is repeatedly identified as the major constraint for women business owners. This report 'ready for growth: solutions to increase access to finance for women-owned business in the Middle East and North Africa', is designed to shed a light on those barriers. It is the result of a unique International Finance Corporation (IFC) partnership with vital voices and the Middle East and North Africa Businesswomen's Network (MENA BWN). Its purpose is to fill a critical gap in our knowledge of what women-owned businesses need in terms of financial products and services. Building on our knowledge of how commercial banks currently reach the women's market, this survey data can provide banks in MENA with information to better serve women business owners.Publication Striving for Business Success : Voices of Liberian Women Entrepreneurs(Washington, DC, 2014-04-01)Women in post-conflict economies face a number of challenges. Often their businesses stay at embryonic stages only, due to three key limitations relating to: knowledge of business vision and management; access to finance and markets; and access to role models and networks. Added to the complexity is the risk of having to start all over again due to their countriesapos; political instability and the limited infrastructure to make their businesses proper and become more efficient over time. This report presents findings on the situation of women entrepreneurs in Liberia. It discusses the challenges that female entrepreneurs face as well as enabling factors that they encounter when operating their businesses in Liberiaapos;s post-conflict environment. Through the voices and experiences of women - as in the IFC series quot;Voices of Women Entrepreneursquot; that inspires it - this report sheds some light on the specificities of women doing business in fragile and conflict-affected situations (FCS), such as those in Liberia. It identifies operational lessons and proposes recommendations on how to support women entrepreneurs and contribute to their economic empowerment in the transition from post-conflict to reconstruction and development. The women interviewed for this report highlighted how obstacles, such as limited financial infrastructure, restricted access to markets, and most importantly, insufficient networks to support women entrepreneurs, stifle efforts to create sustainable solutions for women entrepreneurs. The report offers operational lessons and recommendations on how to address these challenges and support womenapos;s economic participation and empowerment.Publication Gender and Economic Growth in Kenya : Unleashing the Power of Women(Washington, DC: World Bank, 2007)This report examines the legal, administrative, and regulatory barriers that are preventing women in Kenya from contributing fully to the Kenyan economy. Building on the 2004 Foreign Investment and Advisory Service (FIAS) report, "Improving the Commercial Legal Framework and Removing Administrative and Regulatory Barriers to Investment," this study looks at the bureaucratic barriers facing women in Kenya through a gender lens. The report makes specific recommendations to address gender-related barriers in the context of ongoing government and donor initiatives to encourage private sector development as the key driver of poverty reduction and economic growth, in line with Kenya's Economic Recovery Strategy for Wealth and Employment Creation 2003-2007 (ERS). Addressing these constraints will not only allow women to make a full contribution to the economy but also improve their livelihoods and those of their families and help create a more enabling environment for all businesses in Kenya.
Users also downloaded
Showing related downloaded files
Publication Building Women's Skills for Economic Inclusion and Resilience(Washington, DC: World Bank, 2024-11-22)Can skills-based programs promote women’s economic inclusion This study randomizes access to a program teaching entrepreneurship skills in rural Uganda. The program covers record-keeping, identifying business opportunities, raising capital, and soft skills like perseverance and confidence, but it provides no access to cash or capital. Treated women are 17 percent more likely to generate income from their own businesses 18 months post-program. They heavily re-invest in their businesses. High-frequency data show that treated women also fare significantly better during the COVID-19 lockdown than women in the control group. Exploiting social network data, this paper detects positive network-based spillovers to the control group and provides novel tools to adjust estimates accordingly. Although the program is not transformative, the results indicate an important role for skills-based programming in efforts for economic inclusion among rural, low-income women.Publication Unlocking the Potential of Women Entrepreneurs in Uganda(World Bank, Washington, DC, 2021-08-26)Private sector development is an integral channel through which countries can better leverage the productive potential of the youth bulge, support job creation, and maintain social stability. Entrepreneurship already plays an important role in Sub-Saharan Africa, where forty-two percent of the nonagricultural labor force is self-employed or is an employer, the highest rate in the world. Women business owners in Uganda face several gender-specific barriers to their enterprise performance, including lower levels of innovation, lower use of capital and labor, and segregation into lower-value sectors. This brief focuses on the policy interventions that can help empower women entrepreneurs across Uganda.Publication Breaking the Metal Ceiling(World Bank, Washington, DC, 2015-12)A range of reasons is cited to explain gender differences in business performance in Africa. Within those, the sector of operations is consistently identified as a major issue. This paper uses a mixed methods approach to assess how women entrepreneurs in Uganda start (and strive) operating firms in male-dominated sectors, and what hinders other women from doing so. The study finds that women who cross over into male-dominated sectors make as much as men, and three times more than women who stay in female-dominated sectors. The paper examines a set of factors to explain the differences in sector choices, and finds that there is a problem of information about opportunities in male-dominated industries. The analysis also concludes that psychosocial factors, particularly the influence of male role models and exposure to the sector from family and friends, are critical in helping women circumvent or overcome the norms that undergird occupational segregation.Publication Digital Africa(Washington, DC: World Bank, 2023-03-13)All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.Publication Increasing Female Labor Force Participation(World Bank, Washington, DC, 2023-01)Gender gaps in labor force participation persist worldwide. Closing this gap can lead to sizeable gains for economies—a 20 percent increase in GDP per capita, on average. Female labor force participation (FLFP) remains low due to lack of skills, assets and networks, time-based constraints, limited mobility, gender discrimination in hiring and promotion, and restrictive gender norms. Effective evidence-backed policy options can increase FLFP. They include providing childcare services, disseminating information on work opportunities and returns to employment, training in socio-emotional skills, addressing norms by engaging partners and family members, and targeting women via social protection, safety net, and public-works programs. The World Bank Group actively supports countries in boosting FLFP through development policy lending, advisory and analytical work, and supporting reforms to address constraining contextual factors, including legal barriers, social norms, and gender-based violence. This note sheds light on an array of policy options that are effective or show promise in improving FLFP.