Women Entrepreneurs(?)
Published by Bob Foster
Where are all the women entrepreneurs? There is a scarcity of women entrepreneurs, and frankly, I don’t understand why. The rate of men entrepreneurs creating new businesses has increased from 370 per 100,000 population in 1996, to 420 per 100,000 population in 2008.
At the same time, the number of women entrepreneurs creating new businesses has actually decreased…from 260 per 100,000 population in 1996, to 240 per 100,000 in 2008—which is up from 200 per 100,000 population in 2007. Let’s hope the upward jump in new business creations by women entrepreneurs in 2008 will continue through 2009, and beyond.
For me, one of the most inspirational entrepreneurs in the world is the late Dame Anita Roddick, founder and creator of The Body Shop. When she first wrote Body and Soul, I would buy several copies at a time and give then out to clients and friends who were struggling to make their business succeed. I, and many others, believe Anita was one of the greatest entrepreneurs of modern times…so where are the women that should be following in her footsteps?
In 2007, twice as many men entrepreneurs started new businesses as women entrepreneurs. That is sad news indeed. Capability is certainly not the issue; nor is education; nor is opportunity…I’m at a loss.
However, it does lead me to think that perhaps not as many women want to start a business. However, this is just a guess on my part. That is why I would like to hear the thoughts and opinions of others, as to why there are not more women entrepreneurs. Please let me know your thoughts, and I will incorporate them into a later post on this subject.
NOTE: All data is taken from the Kauffman Index of Entrepreneurial Activity, prepared annually by Robert W. Fairlie, Professor of Economics at the University of California, Santa Cruz.
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7 Responses to “Women Entrepreneurs(?)”
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Bob – Men and women often have distinct roles in their families and communities (schools, places of worship, neigbhorhoods.) Perhaps it’s the role as mother and wife that has brought on the decrease in women entrepreneurs. Being an entrepreneur alone is indeed difficult. I, for one, can’t imagine being an entrepreneur and having the responsibility of a family. I suppose that women in such roles adjust, as with anything.
I commend all of women entrepreneurs who are married and have children. Married men who are entrepreneurs are typically not rearing the children and growing their business simultaneously. It would be interesting to have a breakdown of age groups and women entrepreneurs. I would also be interested in finding out the ratio of small business loans given to men and women.
Thanks for the mention of Dame Anita Roddick’s book. I have not read it and will purchase it.
Judith Ellis´s last blog ..Being Bo Obama
Judith – I am sure the roles of women in families and community have a major impact on the differential between women entrepreneurs and men entrepreneurs, but I wonder if that is the reason there are fewer women starting businesses today than there were 10 years ago. I find that a disturbing statistic.
We won’t find out anything from government statistics, because reliable data from that source is non-existent. But, Anita Roddick does have an interesting anecdote in her book, about trying to get a bank loan. That scenario may be playing out regularly all around the world.
Thanks for the comment Judith.
Bob Foster´s last blog ..China Overtakes U.S. Car Market
“I wonder if that is the reason there are fewer women starting businesses today than there were 10 years ago. I find that a disturbing statistic.”
Bob – I tend to look at these things broadly. What is going on in the culture? I also really think that access to funding probably still plays a large role.
Judith Ellis´s last blog ..Being Bo Obama
Judith – I agree that access to funding is a big problem, but of course it is a problem for all entrepreneurs right now. Unfortunately, most investors and bankers are men who belong to the “good ol’ boys club.”
I think that is the big question. Is our culture blocking the entrance of women entrepreneurs, or does our culture just not stimulate the desire of women to become entrepreneurs? I know I’m in way over my head on this esoteric subject, but our country is falling behind the rest of the world so fast, we need all the fresh thinking we can possible get, and I would like to see more women get involved–we need their perspective.
Bob – I wouldn’t think that the culture is blocking women from becoming entrepreneurs, but if they are not fostered considering the history of discriminatory practices, there will be a drop off or shortage without support. Some things are ingrained in the culture and it takes a direct awareness to move beyond it. I think people generally do not set out to exclude. Sometimes we are not even aware why we do this or that; its habit or a part of the accepted norm. There are also things that we all have to do no matter the gender to make things happen for ourselves–without which there are no entrepreneurs.
This is just a fact: Being an entrepreneur is not easy. It’s hard work. But we can probably assume that if lending is harder for the general population it is much harder for women. And, yes, the “good ol’ boys club” still exists–all over the place. It is encouraging, however, that young people seem to view the world and each other more fairly. This is good. I agree with you about the need for the perspective of women entrepreneurs.
By the way, I think that we often do not look at policy enough when it comes to small business whereas such often favors big business even when small business fuels the economy. You have made the latter point here many times. I have always thought that it is an interesting fact that big business seem to have an antagonistic relationship with government when, in fact, government often enables their success by the policies enacted. The SBA sometimes seems to be acting counter to small business and aligned with big business.
Judith Ellis´s last blog ..Being Bo Obama
Judith – Thank you for your insight on this subject—I think you are absolutely right. Maybe I am too impatient and it will just take more time for things to even out. It will be interesting to see if the sharp increase in women entrepreneurs in 2008 held pace for 2009. That information will be available sometime next April, and I will be sure to post the results then.
[...] wrote about the dearth of women entrepreneurs previously, but they too have not matched their peak startup year of [...]