Women Entrepreneurs and the Characteristics of Their Firms The characteristics of firms of women entrepreneurs and the firms of men entrepreneurs are different. This is true whether the women are owners (sole or joint) or top managers. Firm characteristics vary by sector, number of employees, and domestic or foreign ownership.
Women Owners in the Formal Sector
Small, medium, and large firms in the region show approximately the same level of participation of women in ownership. On average in the region, women’s participation in ownership ranges from 36 to 39 percent in firms by size (though with variation across countries) (figure 3.4); this is comparable with the results in Latin America and the Caribbean. However, there are large variations among female participation rates; the greatest variation across firms occurs among large firms, where the participation rates range from 4 percent in Montenegro to 64 percent in the former Yugoslav Republic of Macedonia. Within countries, women’s participation rates by firm size are closely correlated, that is, if women show a high participation in large firms, they are also likely to show a high participation in medium and small firms. This rela-
Figure 3.4
tively balanced participation across firms by size appears to indicate that women are not being excluded from either small or large firms. However, among sole proprietorships and familyowned firms, woman-owned firms have fewer employees. In the region, about 65 percent of all registered enterprises owned by women employ fewer than 10 permanent employees, in contrast with 56 percent among enterprises owned by men (figure 3.5). By their nature, the ownership in these types of firms is not diluted. Thus, women owners are much more likely to play an important decision-making role in these firms than in general. However, the predominance of women in smaller firms is difficult to ascertain. This may be caused by many factors, ranging from the particular sector of activity of women’s firms to the ability of women to gain financing to expand their businesses and even women’s business preferences. However, this characteristic of woman-owned firms is not unique; it is also evident in developed countries.71
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This finding is based on data for 2005 from the Business Environment and Enterprise Performance Survey, European Bank for Reconstruction and Development and World Bank, London, http://www.ebrd.com/ pages/research/analysis/surveys/beeps.shtml; see also Sabarwal and Terrell (2008).
Women’s Ownership of Firms by Firm Characteristics, 2008
a. Women’s ownership, management by firm size % of all firms
b. By sector and firm type % of all firms
40 35 30 25 20 15 10 5 0
60 50 40 30 20 10 Small Owner
Medium Sole Prop.
Large Top Manager
0
Plastics Electronics All
IT
Construction Retail
Garments
Female
Source: Business Environment and Enterprise Performance Survey, European Bank for Reconstruction and Development and World Bank, London, http://www.ebrd.com/pages/research/analysis/surveys/beeps.shtml. Note: IT = information technology. Sole Prop. = sole proprietorship.
Women in Entrepreneurship
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