Significance of Gender in Entrepreneurship

Significance of Gender in Entrepreneurship

Introduction

The issue of gender in the business world, more so in entrepreneurship, is one of the core topics in most discussions globally. In the recent past, men were the kingpins in entrepreneurship whereas women comprised of a lesser percentage as compared to them. According to a report filed by the economist Organization for Economic Co-operation and Development (OECD) in 2016, the masculine gender was averagely 1.8 times more likely to have a self-employment than the female gender. in comparison, female-owned businesses lack the orientation of swift growth and creation of employment for others since they operate smaller businesses than men. The gender gap in entrepreneurship creates a threat in the business world; therefore, the issue needs to be addressed to create an equal and non-gender bias entrepreneurial environment for all. Generally, extensive research and study reveal that gender perception of entrepreneurship and entrepreneurial intentions are the core causes of the gender gap in entrepreneurship.

Entrepreneurship is human universal; that is, any individual ready to fill a gap in the society through entrepreneurship can actualize their idea. However, Allen & Truman (2016, pg. 2) affirm that few women entrepreneurs exist in the entrepreneurship sector despite women comprising more than 50% of the worlds’ population. On the basis of entrepreneurial skills, male entrepreneurs have fast, productive and profitable skills than women since their businesses are more profitable and record high sales than those of their female counterparts in the same industry (Bruni et al, 2014 Pg. 258). In this case study, discussions about gender in entrepreneurship are based on online surveys and already done research on the issue of gender in entrepreneurship.

Literature Review

Consequently, culture and social settings around individuals shape their role and goals in entrepreneurship; therefore, some gender roles in society may have an impact on the entrepreneurial intentions of a particular gender. Also, access to critical resources which influence entrepreneurship such as financial, human and social capital may also play a vital role. Relating to the history of entrepreneurship, Alsos & Ljunggren, agree that more females in entrepreneurship gained attention in the late ‘90s when they had noticeable social and economic strengths (2017, Pg. 583). Although the numbers of females in the industry increased rapidly since then, the number of male-oriented businesses are more than those owned by females. According to the Global Entrepreneurship Monitor (GEM), the gender issue still reigns since the ration of women entrepreneurs to men is relatively low. However, not only does GEM relate the gender issue on socio-demographic and contextual factors but also perceptual factors.

The significance of Gender on Entrepreneurship Intentions

Basically, entrepreneurship intention is the desire of becoming self-employed. Most of the learned and skillful population globally is facing unemployment not only in the third-world countries and developing countries but also in the developed countries. Perception of desirability and feasibility are significant in the generation of an entrepreneurship intention in an individual (Liñán & Fayolle, 2015, Pg. 921). Due to the fact that every individual is unique in a certain way, different entrepreneurship potentials are realized thus leading to new ventures in entrepreneurial opportunities (Entrialgo & Iglesias, 2017, Pg. 1). However, the ideology would not make any impact in entrepreneurship until a proper implementation of these opportunities is achieved.

Considerably, men have stronger entrepreneurial intentions than women. Stereotypes of gender tend to classify jobs mostly according to gender hence the notion of masculine or feminine roles. Moreover, according to (Malmström et al, 2017, Pg. 841), gender typing and gender typecasting are among the top castigators to gender barriers on entrepreneurship. Since ‘entrepreneurship gendering’ is a threat to entrepreneurship, this ideology is still venturing into the business world. According to entrepreneurship literature, such ideologies have led to the limitation of women’s abilities to access entrepreneurial resources which are necessary for them to become successful entrepreneurs (Entrialgo & Iglesias, 2017, Pg. 1).

Barriers to Gender Equality in Entrepreneurship

Pursuing this further, barriers such as lack of support, failure phobism, and lack of competency lead to the gender biases in entrepreneurship. Lack of support barrier leads to a lack of financial aid and inspiration which is necessary for any financial career (Raghuvanshi et al, 2017, Pg. 232). Bruni et al (2014 Pg. 258) assert that women-owned businesses record low or average customer base as compared to male-owned companies.  Surprisingly, women claim that the environment of starting a business to be hostile and unfavorable; therefore, lack of support is an essential factor to the gender-oriented entrepreneurial notion.

Also, lack of competency has led to the shaping of individuals’ perception of entrepreneurship resulting in the emergence of societal gender roles, stereotypes and gender typing. According to the GEM data, men and women tend to assess their entrepreneurial abilities based on social norms and beliefs (Goel et al, 2015, Pg. 166). Moreover, due to this, men are most likely to believe in their entrepreneurship intention ideas compared to women. Tsai et al, (2016, pg. 1130) suggest that women ought to do away with the belief that only men can become entrepreneurs.

Additionally, fear of failure is a threat to entrepreneurial intentions. Scientific research on women suggests that they are more prone to starting a business summing that failure phobia is indeed affecting entrepreneurship due to its relation to entrepreneurial intentions (Muntean & Ozkazanc, 2015, Pg. 32). However, Dawson and Henley note that a high-risk aversion technique is evident through women since the majority of female founders’ lack debt financing; thus, a more production and capitalization in the business (2015, pg. 503).

Impacts of Gender on Entrepreneurship

Similarly, gender has inflicted both positive and negative effects on developing entrepreneurship skills. Majorly, this is due to gender perception on entrepreneurship and implementation of entrepreneurial intentions. The problem of gender imbalance in the entrepreneurship sector seems not to end as soon as expected due to prevalence stereotyping. For instance, in the United States, male entrepreneurs cover three-quarters of the whole entrepreneurship sector thus implying more women are required in the industry to create a gender-balanced sector.

Additionally, the issue of gender biases has led to demoralization and mockery to the female gender due to their societal norms. Globally, women are perceived to be weaker compared to men (Allen & Truman, 2016, pg. 6). Similarly, in the entrepreneurial industry, they tend to receive a lot of negativity since they are recognized to be inferior. Although, most of the businesses owned by females thrive and become successful too. Besides, demoralization leads to lack of an implementation intention; thus, the failure in actualizing the business idea.

Apparently, the traditional perception of gender in entrepreneurship pull the goals of the entrepreneurship sector behind. The business world has goals such as attaining an equilibrium on gender; therefore, both genders are encouraged to pursue their entrepreneurship intentions regardless of the kind of business (Cuberes & Teignier, 2016, Pg. 17). By 2030, the gender gap is expected to reduce by 29%. Consequently, changes are evident in entrepreneurship with more females venturing in technical jobs such as piloting, engineering, and surgery resulting in an escalated improvement over a short span. Business institutions lack new ideas or approaches in solving entrepreneurship problems due to the fear of failure of entrepreneurs resulting from gender biases. Cuberes & Teignier (2016, Pg. 20) agree that some of the upcoming females in entrepreneurship have robust, effective and smart solutions for entrepreneurial problems but due to lack of chances in entrepreneurship, their solutions remain meaningless. In the same context, gender perception of entrepreneurship has resulted in the influx of male entrepreneurs in the industry (Muntean & Ozkazanc, 2015, Pg. 39).

Gender Bias

Gender bias in entrepreneurship imposes a threat to the upcoming entrepreneurs in the world. In comparison, the female gender is more vulnerable to gender biases than the male gender. Although, some jobs such as hospitality consider the female gender more suitable for employment than the male gender. Until now, the current system of entrepreneurship equates femininity in entrepreneurship to inferiority while masculinity compared to supremacy; however, more awareness of gender equality through gender debates and programs is in progress (Alsos & Ljunggren, 2017, Pg. 570). Use of feministic approaches in fighting gender bias such as liberal, radical and poststructuralist feminism helps in the creation of gender equality in entrepreneurship. Empirical study shows that feministic attitudes bring along innovative, flexible, and responsive market opportunities (Santos et al, 2016, Pg.54). Consequently, the dynamics of gender and entrepreneurship are adequately explained by the theory of gender schema and stereotype threat.

The Role of Self-efficacy on Gender in Entrepreneurship

In general, self-efficacy in entrepreneurship is very vital in implementing a business idea. Self- efficacy is usually influenced by personal perception and confidence to succeed in any business implementation. According to Tan (2017, pg. 4), studies reveal that more women than men have low self-efficacy when it comes to entrepreneurship since they perceive themselves as inferior and lacking the necessary abilities. Also, women have a moderate reaction in matters of incorporating business roles and confronting the challenges that come along with starting a business. Self-efficacy drives an individual to the realization of entrepreneurship as a professional career; therefore, women should be brave and have effective managerial skills to be more competitive in the entrepreneurship sector. Despite young females having high self-efficacy they barely choose entrepreneurship as a career (Raghuvanshi et al, 2017, Pg. 229). However, if they give entrepreneurship a chance, the negative perception of entrepreneurial self-efficacy and entrepreneurship intentions change with time.

Research Design, Sampling and Access

Since the case study is based on a statement, the inductive approach was the fittest method of conducting the research. Also, the research was conducted through a mixed-approach whereby both qualitative and quantitative approaches were used in data collection, analysis and integration to have accurate results. Due to the limited timeframe, data sampling was conducted using the cross-sectional criteria since different people were used as sources of information on the different occasions. A sum of 10 different organizations (from different professional fields) were chosen as the bases of conducting the research after subjective sampling.

Data Collection

Using random sampling method, a group 6 individuals (3 male and 3 female) from each organization were picked randomly for both qualitative and quantitative data collection procedures. Twenty-minutes semi-structured interviews were chosen for the qualitative method were the individuals gave their opinions of gender on entrepreneurship. Both closed-ended and open-ended questions were used to gather comprehensive data. On the other hand, closed-ended questionnaires were used for the qualitative data collection technique. However, they were done online to avoid physical interruptions at the organization.

Some of the questions included in the interview and questionnaire included whether the participants had been involved in any entrepreneurial workshop, if there was gender equity in entrepreneurship, if women faced many challenges than men in business, if culture influenced self-efficacy among others.

Data Analysis

The qualitative data analysis used data captured during the interviews, in which, the data was transcribed and analyzed electronically using coding. Significantly, technological analysis was fast and gave accurate data about the individuals’ perception of gender. Consequently, the quantitative data gathered from the questionnaires was analyzed statistically. Results from both analyses confirmed that 61% believed that men dominated SMEs, STEM and technical professions while 39% believed women were more concerned of education, psychological and beauty sectors.

Research Ethics

Due to the fact that any researcher should consider ethical research considerations, my research was conducted to the ethical standards required. For instance, the information of the research subjects (such as their ages, emails, and employers) was kept confidential, they were briefed on the research procedures and what was expected of them.

Limitations of the research

Although the research was successful, it was accompanied by some challenges too. For example, the employees at the different organizations had limited time for the interviews which resulted to gathering of less detailed information. Also, some of the professional fields were not included in the research meaning that the research results were not comprehensive. Besides, the random sampling of the research subjects could have affected the validity of the research.

Recommendations on Reducing the Gender Gap

References

Allen, S. and Truman, C., 2016. Women in business: Perspectives on women entrepreneurs.          Routledge. (Allen & Truman, 2016, pg. 6)

Alsos, G.A. and Ljunggren, E., 2017. The role of gender in entrepreneur–investor relationships:    A signaling theory approach. Entrepreneurship Theory and Practice, 41(4), pp.567-590.

Bruni, A., Gherardi, S. and Poggio, B., 2014. Entrepreneur-mentality, gender and the study of     women entrepreneurs. Journal of Organizational Change Management, 17(3), pp.256-        268.

Cuberes, D. and Teignier, M., 2016. Aggregate effects of gender gaps in the labor market: A        quantitative estimate. Journal of Human Capital, 10(1), pp.1-32.

Dawson, C. and Henley, A., 2015. Gender, risk, and venture creation intentions. Journal of Small            Business Management, 53(2), pp.501-515.

Entrialgo, M. and Iglesias, V., 2017. Are the intentions to entrepreneurship of men and women    shaped differently? The impact of entrepreneurial role-model exposure and             entrepreneurship education. Entrepreneurship Research Journal, 8(1).

Goel, R.K., Göktepe-Hultén, D. and Ram, R., 2015. Academics’ entrepreneurship propensities     and gender differences. The Journal of Technology Transfer, 40(1), pp.161-177.

Groot, J., Mohlakoana, N., Knox, A. and Bressers, H., 2017. Fuelling women’s empowerment?     An exploration of the linkages between gender, entrepreneurship and access to energy in        the informal food sector. Energy Research & Social Science, 28, pp.86-97.

Henry, C., Foss, L. and Ahl, H., 2016. Gender and entrepreneurship research: A review of           methodological approaches. International Small Business Journal, 34(3), pp.217-241.

Kimbu, A.N. and Ngoasong, M.Z., 2016. Women as vectors of social entrepreneurship. Annals     of Tourism Research, 60, pp.63-79.

Liñán, F. and Fayolle, A., 2015. A systematic literature review on entrepreneurial intentions:         citation, thematic analyses, and research agenda. International Entrepreneurship and Management Journal, 11(4), pp.907-933.

Malmström, M., Johansson, J. and Wincent, J., 2017. Gender stereotypes and venture support       decisions: how governmental venture capitalists socially construct entrepreneurs’    potential. Entrepreneurship Theory and Practice, 41(5), pp.833-860.

Muntean, S.C. and Ozkazanc-Pan, B., 2015. A gender integrative conceptualization of      entrepreneurship. New England Journal of Entrepreneurship, 18(1), pp.27-40.

Raghuvanshi, J., Agrawal, R. and Ghosh, P.K., 2017. Analysis of barriers to women          entrepreneurship: The DEMATEL approach. The Journal of Entrepreneurship, 26(2),        pp.220-238.

Ratten, V., Ramadani, V., Dana, L.P., Hisrich, R.D. and Ferreira, J. eds., 2017. Gender and         Family Entrepreneurship. Routledge.

Santos, F.J., Roomi, M.A. and Liñán, F., 2016. About gender differences and the social    environment in the development of entrepreneurial intentions. Journal of Small Business          Management, 54(1), pp.49-66.

Sweida, G., Reichard, R. and Bligh, M., 2016. THE WOMAN ENTREPRENEUR’S        PARADOX. In United States Association for Small Business and Entrepreneurship.             Conference Proceedings (p. GI). United States Association for Small Business and    Entrepreneurship.

Tan, T.Y., 2017. Relationship between Work Motivation and Work Self-Efficacy, and Motivating    Factors of Generation Y(Doctoral dissertation, UTAR).

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Appendices

Appendix A

Interview Questions

1. Was becoming an entrepreneur your dream? If yes, why?
2. Did gender stereotyping affect your dream in any way? If yes, how?
3. How long have you worked in this institution?
4. Do you think there is gender equity in entrepreneurship?
5. What are the barriers hindering the sector from attaining gender equity?
6. What is your opinion for women in the technical sector of entrepreneurship?
7. How does self-efficacy on gender affect entrepreneurship?
8. Do you think that women entrepreneurship workshops would have any impact on gender distribution in entrepreneurship?

Appendix B

Questionnaires

Instructions:

Kindly answer all the questions as accurate as possible.

Appendix C

Gender Statistics on Entrepreneurship

Figure 1: Distribution of female entrepreneurs and possible solutions to reduce the gender gap

Figure 2: Gender trend in academic graduates

Figure 3: Statistics on gender related SMEs ownership

Figure 4: Gender statistics on STEM professionals in the workforce

Figure 5: Distribution of female entrepreneurs in different careers in different countries

Where are the “Research aims and questions” section?