3.0 Characteristics of men’s and women’s enterprises: Gender Entrepreneurship and Competitiveness in Africa, 2007
3.0 Characteristics of men’s and women’s enterprises: Gender Entrepreneurship and Competitiveness in Africa, 2007
of a business, such as the sector in which it
operates, the size of the enterprise, the number of years
it has been in operation, whether it is an individual or
family enterprise, and, in many cases, the sex of the
business owner.5 This chapter examines some of these
characteristics differentiated by the sex of the business
owner.
Entrepreneurs, whether they are men or women,
are a small, select sample of the population. Since the
Enterprise Surveys necessarily focus on entrepreneurs
operating businesses, it is important to bear in mind that
these entrepreneurs have already overcome whatever
barriers exist to entry into business, including any
gender-based barriers.
It is likely that gender differences
in access to entrepreneurship may well exist, but such
barriers cannot be analyzed in these datasets. Moreover,
and related to the previous point about selection,
women and men entrepreneurs are likely to differ not
only with respect to observable characteristics but also
with respect to unobservable characteristics that make a
good entrepreneur, such as motivation, innate ability,
persistence, and intuition.
The Enterprise Survey data confirm that women
entrepreneurs are a minority compared with their male
counterparts.6 However, there is large variation across
countries. Including only manufacturing enterprises
with at least 10 employees, women own fewer than 10
percent of firms in Kenya, Morocco, Nigeria, Senegal,
and Tanzania, but up to 40 percent or more in Botswana,
Cameroon, Cape Verde, and Mozambique (Figure 1).7
These percentages are very similar if one looks at a subsample
of enterprises run by a stakeholder with more han 50 percent of the firm’s shares—the percentage of
female-owned enterprises decreases in Cameroon and
Egypt, and particularly in Mozambique and Cape Verde,
but remains very similar in all the other countries. If it is
reasonable to assume that a majority stakeholder also
runs the business, these percentages can be interpreted as
approximately reflecting the share of female owners
who manage their own enterprise.
Research conducted in other regions indicates that
women are less likely than their male counterparts to
own businesses.8 In the 40 countries included in this
study, the percentage of women entrepreneurs ranges
from a low of 1.9 percent of adult women in Belgium
to 49.9 percent in the Philippines.While overall entrepreneurship
rates for both men and women are higher
in low/middle-income countries than in high-income
countries, in all of the countries studied entrepreneurship
rates for men are higher than those for women.
The data for African countries also distinguish
between individual and family enterprises.The percentage
of entrepreneurs in family enterprises (as distinct from
individual enterprises) is higher—sometimes much
higher—for female-owned enterprises than for maleowned
enterprises in almost all countries. As shown in
Figure 2, only in Kenya and Lesotho are men entrepreneurs
more likely than women entrepreneurs to be in a
family enterprise.
Overall, women are more likely than
men to own (and possibly manage) their enterprise
together with other family members, rather than on
their own.The predominance of women in family
enterprises is also significant in two other respects.
First,
it may be that family enterprises are a way for women
to combine their business activities with their domestic
or household tasks, which are disproportionately
women’s responsibility.
Second, other factors affecting
family members—such as their legal status and their
marital and property rights—are likely to affect the type
of constraints that the firm may face and the performance
of the business as well.
Unfortunately, the Enterprise Survey data do not
include much information on the personal characteristics
of the entrepreneur.To build a profile of men and
women entrepreneurs, we have therefore analyzed
household survey data9 that allow us to distinguish
between several categories of workers, including
“employers” (defined as self-employed people who hire
employees), whom we believe to be a reasonable proxy
for the category of “entrepreneurs” in the Enterprise
Surveys.
The analysis of household survey data indicates
that women entrepreneurs tend to be younger than men
(by two to six years), an encouraging sign that access
into entrepreneurship may be easier for younger cohorts
of women. In almost all countries, a much lower share
of female than male entrepreneurs is married.This is a
particularly significant finding in that it suggests that
women may not find it easy to combine both family
and enterprise responsibilities. Case studies confirm this
finding, as it is rare to find women entrepreneurs whose
husbands support their enterprises.10
Finally, these data
confirm that women entrepreneurs are much more likely than men to live in a household with other
entrepreneurs—suggesting that women are more likely
to own and manage the enterprise together with family
members rather than independently (for example, they
may be likely to work in the enterprise of their family
of origin).This reinforces the findings of the Enterprise
Survey data presented above.
Table 1 summarizes key characteristics of male- and
female-owned enterprises in Africa.These include the
sector, the size, and the number of years in business.
Female-owned enterprises are more likely found in
some sectors than in others, although the sector with
more women entrepreneurs varies depending on the
country. For example, women are more likely found in
the textile sector in the Democratic Republic of Congo
(DRC), Madagascar, Mauritius, and South Africa; in
agro-food in Angola, Malawi, and Mali; and in services
in The Gambia, Mauritania, Namibia, and Uganda. As
the table shows, there is no unambiguous pattern, either
in terms of sector or business size, that differentiates
male-owned from female-owned enterprises.
Contrary to a priori expectations, female-owned
enterprises in the formal manufacturing sector are not
disproportionately small and medium-sized enterprises
(SMEs).Women are as likely to own large firms as they
are to own small ones. In fact, in five of seven countries
for which data are available, the percentage of femaleowned
enterprises is higher among large firms than
among small firms.11
Although the Enterprise Survey
data do not tell us how long the woman herself has
owned the enterprise, there is information about the
age of the enterprise.Table 1 shows that women are not
systematically more likely than men to own new firms.
While in some countries (Benin, DRC, Eritrea, Lesotho,
Mali, and South Africa) the average age of the enterprises
owned by women is lower than those owned by men, in
other countries (Kenya, Mauritius, Mozambique, Nigeria,
and Tanzania) the opposite is the case.With few exceptions,
countries where businesses are on average younger
(older) for both men and women tend to have a higher
(lower) share of female-owned enterprises.This may
indicate that a higher level of female entrepreneurship
exists where it is easier altogether to start a business
(that is, where obstacles at entry are lower) and there is a
higher level of entrepreneurial activity.
The multivariate analysis confirms the patterns
highlighted in Table 1. In several countries (DRC,
Madagascar, Mauritius, Morocco, Namibia, Niger, South
Africa, and Uganda), enterprises in the textiles sector are
disproportionately more likely to be owned by women
than enterprises in other sectors. In other countries
(Angola, Cape Verde,The Gambia, Madagascar, Mali,
Mauritania, Senegal,Tanzania, and Uganda), manufacturing
enterprises are less likely to be owned by women
than enterprises in other sectors.
After controlling for
sector, size is not correlated in any significant way with
female ownership except in South Africa (where big
firms are less likely to be owned by women) and in
Angola (where medium-sized enterprises are more
likely to be female-owned). Even after controlling for other characteristics, family enterprises are still two to
seven times more likely to be owned by women than
individual enterprises.This is the case in Egypt, Ethiopia,
Madagascar, Malawi, Mauritius, Zambia, and especially
in South Africa.
30 Characteristics of mens and womens enterprises Gender Entrepreneurship and Competitiveness in Africa 2007 - To learn more about this author, visit World Economic Forum's Website.
Like this article? Share it with your friends
Enterprise Surveys allow us to identify certain characteristics
of a business, such as the sector in which it
operates, the size of the enterprise, the number of years
it has been in operation, whether it is an individual or
family enterprise, and, in many cases, the sex of the
business owner.5 This chapter examines some of these
characteristics differentiated by the sex of the business
owner.
Entrepreneurs, whether they are men or women,
are a small, select sample of the population. Since the
Enterprise Surveys necessarily focus on entrepreneurs
operating businesses, it is important to bear in mind that
these entrepreneurs have already overcome whatever
barriers exist to entry into business, including any
gender-based barriers.
It is likely that gender differences
in access to entrepreneurship may well exist, but such
barriers cannot be analyzed in these datasets. Moreover,
and related to the previous point about selection,
women and men entrepreneurs are likely to differ not
only with respect to observable characteristics but also
with respect to unobservable characteristics that make a
good entrepreneur, such as motivation, innate ability,
persistence, and intuition.
The Enterprise Survey data confirm that women
entrepreneurs are a minority compared with their male
counterparts.6 However, there is large variation across
countries. Including only manufacturing enterprises
with at least 10 employees, women own fewer than 10
percent of firms in Kenya, Morocco, Nigeria, Senegal,
and Tanzania, but up to 40 percent or more in Botswana,
Cameroon, Cape Verde, and Mozambique (Figure 1).7
These percentages are very similar if one looks at a subsample
of enterprises run by a stakeholder with more han 50 percent of the firm’s shares—the percentage of
female-owned enterprises decreases in Cameroon and
Egypt, and particularly in Mozambique and Cape Verde,
but remains very similar in all the other countries. If it is
reasonable to assume that a majority stakeholder also
runs the business, these percentages can be interpreted as
approximately reflecting the share of female owners
who manage their own enterprise.
Research conducted in other regions indicates that
women are less likely than their male counterparts to
own businesses.8 In the 40 countries included in this
study, the percentage of women entrepreneurs ranges
from a low of 1.9 percent of adult women in Belgium
to 49.9 percent in the Philippines.While overall entrepreneurship
rates for both men and women are higher
in low/middle-income countries than in high-income
countries, in all of the countries studied entrepreneurship
rates for men are higher than those for women.
The data for African countries also distinguish
between individual and family enterprises.The percentage
of entrepreneurs in family enterprises (as distinct from
individual enterprises) is higher—sometimes much
higher—for female-owned enterprises than for maleowned
enterprises in almost all countries. As shown in
Figure 2, only in Kenya and Lesotho are men entrepreneurs
more likely than women entrepreneurs to be in a
family enterprise.
Overall, women are more likely than
men to own (and possibly manage) their enterprise
together with other family members, rather than on
their own.The predominance of women in family
enterprises is also significant in two other respects.
First,
it may be that family enterprises are a way for women
to combine their business activities with their domestic
or household tasks, which are disproportionately
women’s responsibility.
Second, other factors affecting
family members—such as their legal status and their
marital and property rights—are likely to affect the type
of constraints that the firm may face and the performance
of the business as well.
Unfortunately, the Enterprise Survey data do not
include much information on the personal characteristics
of the entrepreneur.To build a profile of men and
women entrepreneurs, we have therefore analyzed
household survey data9 that allow us to distinguish
between several categories of workers, including
“employers” (defined as self-employed people who hire
employees), whom we believe to be a reasonable proxy
for the category of “entrepreneurs” in the Enterprise
Surveys.
The analysis of household survey data indicates
that women entrepreneurs tend to be younger than men
(by two to six years), an encouraging sign that access
into entrepreneurship may be easier for younger cohorts
of women. In almost all countries, a much lower share
of female than male entrepreneurs is married.This is a
particularly significant finding in that it suggests that
women may not find it easy to combine both family
and enterprise responsibilities. Case studies confirm this
finding, as it is rare to find women entrepreneurs whose
husbands support their enterprises.10
Finally, these data
confirm that women entrepreneurs are much more likely than men to live in a household with other
entrepreneurs—suggesting that women are more likely
to own and manage the enterprise together with family
members rather than independently (for example, they
may be likely to work in the enterprise of their family
of origin).This reinforces the findings of the Enterprise
Survey data presented above.
Table 1 summarizes key characteristics of male- and
female-owned enterprises in Africa.These include the
sector, the size, and the number of years in business.
Female-owned enterprises are more likely found in
some sectors than in others, although the sector with
more women entrepreneurs varies depending on the
country. For example, women are more likely found in
the textile sector in the Democratic Republic of Congo
(DRC), Madagascar, Mauritius, and South Africa; in
agro-food in Angola, Malawi, and Mali; and in services
in The Gambia, Mauritania, Namibia, and Uganda. As
the table shows, there is no unambiguous pattern, either
in terms of sector or business size, that differentiates
male-owned from female-owned enterprises.
Contrary to a priori expectations, female-owned
enterprises in the formal manufacturing sector are not
disproportionately small and medium-sized enterprises
(SMEs).Women are as likely to own large firms as they
are to own small ones. In fact, in five of seven countries
for which data are available, the percentage of femaleowned
enterprises is higher among large firms than
among small firms.11
Although the Enterprise Survey
data do not tell us how long the woman herself has
owned the enterprise, there is information about the
age of the enterprise.Table 1 shows that women are not
systematically more likely than men to own new firms.
While in some countries (Benin, DRC, Eritrea, Lesotho,
Mali, and South Africa) the average age of the enterprises
owned by women is lower than those owned by men, in
other countries (Kenya, Mauritius, Mozambique, Nigeria,
and Tanzania) the opposite is the case.With few exceptions,
countries where businesses are on average younger
(older) for both men and women tend to have a higher
(lower) share of female-owned enterprises.This may
indicate that a higher level of female entrepreneurship
exists where it is easier altogether to start a business
(that is, where obstacles at entry are lower) and there is a
higher level of entrepreneurial activity.
The multivariate analysis confirms the patterns
highlighted in Table 1. In several countries (DRC,
Madagascar, Mauritius, Morocco, Namibia, Niger, South
Africa, and Uganda), enterprises in the textiles sector are
disproportionately more likely to be owned by women
than enterprises in other sectors. In other countries
(Angola, Cape Verde,The Gambia, Madagascar, Mali,
Mauritania, Senegal,Tanzania, and Uganda), manufacturing
enterprises are less likely to be owned by women
than enterprises in other sectors.
After controlling for
sector, size is not correlated in any significant way with
female ownership except in South Africa (where big
firms are less likely to be owned by women) and in
Angola (where medium-sized enterprises are more
likely to be female-owned). Even after controlling for other characteristics, family enterprises are still two to
seven times more likely to be owned by women than
individual enterprises.This is the case in Egypt, Ethiopia,
Madagascar, Malawi, Mauritius, Zambia, and especially
in South Africa.
30 Characteristics of mens and womens enterprises Gender Entrepreneurship and Competitiveness in Africa 2007 - To learn more about this author, visit World Economic Forum's Website.
Like this article? Share it with your friends
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