Global Entrepreneurship Monitor (GEM) is recognised as the most authoritative longitudinal study of entrepreneurship in the world. In September 2017 they presented the GEM Women’s report, which offers an in-depth view of women who start and run businesses around the world.
Here are some interesting findings from their study:
- Total Entrepreneurial Activity (TEA): The TEA represents the percentage of the adult workingage population (18-64 years old) who are either nascent or new entrepreneurs. In the 74 economies examined, the women’s TEA rates range from 3 % in Germany, Jordan, Italy and France to 37 % in Senegal. The gender gap (ratio of women to men participating in entrepreneurship) is greatest in Jordan, where female entrepreneurship rates are about one forth the male level.
- Entrepreneurial intentions: Compared to the previous report from 2014, across the 63 economies participating in both reports, entrepreneurial intention increased among women by 16 %. This suggests that women’s intentions are closer to those of men compared to TEA. While all intentions do not translate into action, the implication is that more women than men may drop off in the transition between phases.
- Established Business Ownership: Across the 63 economies participating in this and the previous report, established business rates increased by 8 % on average and the gender ratio improved by 9 %.
- Business Discontinuance: The female discontinuance rate exceeds that of males at the first three levels of economic development, although only by about 10 %. Women are less likely than men to start businesses, which means that, despite a smaller pool of businesses, there are more exits for women.
- Age: The highest participation in entrepreneurship among women can be seen in 2534 and 35-44 years old.
- Education: The proportion of entrepreneurs with a college level of education or higher increases. North America shows the highest education rates among women entrepreneurs, with 84 % having earned a postsecondary education or more. Europe has on average 22 % more highly educated women than men entrepreneurs.
- SelfEmployment: Across the entire sample, 10 % of women entrepreneurs operated businesses alone with no intention to add employees in the next five years. In more than threefourths of the sample economies, women were as likely as, or more likely than, men to have self-employment businesses. Europe shows the highest frequency of one-person female business activity, whereas North America, with two advanced economies, has the lowest. In the Netherlands, half of women entrepreneurs were operating alone, nearly two and a half times the frequency of men in this country.
- Capability Perceptions: At the factordriven stage, 67 % believe they have capabilities for starting businesses.
- Personal Affiliation with Entrepreneurs: Entrepreneurs are highly visible in the United States, but only 27 % of women know one. Europe reports a similar percentage. More than half the women in subSaharan Africa personally know an entrepreneur. What appears to stimulate personal connections is simply the presence of entrepreneurs in a community.
If you want to learn more about the GEM’s study, we invite you to read the complete GEM Women’s report.