SWP 5187 FEMALE ENTREPRENEURS - ARE THEY REALLY ANY DIFFERENT? SUE BIRLEY Philip and Pauline Harris Professor of Entrepreneurship Cranfield School of Management Cranfield Institute of Technology Cranfield Bedford MK43 OAL United Kingdom (Tel: 0234-751122) (Fax: 0234 751806) Forthcoming in Journal of Small Business Management School Working Paper 5/87 Copyright: Birley, 1988 FEMALE ENTREPRENEURS- ARE THEY REALLY ANY DIFFERENT? ABSTRACT female literature on recent discusses This pap== order to discover evidence as to any entrepreneurs in differences from the data available regarding significant The paper concludes that the major male entrepreneurs. a natural is in the market-entry choices made, difference of their differing nature the considering phenomenon backgrounds. ****************** Philip and Pauline Harris Professor of Professor Sue Birley, is Director of Research at the Cranfield Entrepreneurship, the Cranfield School of Management, UK, as well as heading She is a member of Entrepreneurship Research Centre (CERC). including the Board of several journals, the Editorial Small the International Management Journal, Strategic She is Business Journal and the European Management Journal. also Chairman of a venture capital consultancy company in the City of London. FEMALE ENTREPRENEURS- ARE THEY REALLY ANY DIFFERENT? The past ten years attention The paid sector design has to the is for seen that, Government Department the Department sectors of now example, Trade ethnic for for minorities segmentation history of and for the market of research male estimates founded which entrepreneurs. indicate that in the United a number of recent female entrepreneurs which have convenience for been studies was however, consider there managers, often samples which may, indeed, are for growth in the been based upon a almost however, entirely recent of the new firms owned by women, [l] [Z]. all specifically This rapid have observed, are recently to for has drawn evidence are Kingdom the alone, the unemployed, is limited conducted are urged BY contrast, more than one third States So important Increasingly, sector women. firm. the programmes has, small the in Industry are in factor Enterprise. the education students, to the in the United and population In and shift a significant "Start-Your-Own-Business" designed from as of re-named self-employment. remarkable economic recovery. for the a entrepreneur now viewed of strategies they now seen yet, as the data regarding Moreover, based the studies upon small, have had a significant 3 influence upon the nature Throughout cultures, history, and according is gradually full-time into of dish-washers part changing the technology into the labour the question - upon changes entrepreneurs? the nature men market. It what is the effect the nature has brought are taking Are they, is important, a indeed, a such as more active of children; more housewives therefore, of these the of and into education, products forcing increase, of these More women home and the rearing of the is on the have always revolution household micro-waves; in the running and divorce and higher time-saving and society in Western economies. further employment; multitude to the norms of particular However, different. are continuing [3]. of men and women in the roles been significantly roles of the results back to ask environmental supply female of significantly different from men? This paper starts business, its suppliers, The bankers influence develop describes a three the premise and advisors by Cooper for is "set [5] to entrepreneurial the initial theory that relationships trading model suggested which to from female the nature customers, with at the analyse start" the decision entrepreneurs. of any The [43. factors is used model broad groups: a. "Antecedent Influences" include those aspects of the entrepeneur's background motivations, They perceptions, include education, and previous immediately include the prior skills and with which 18small family career experiences. the describes start-up. Relevant knowledge location, acquired, fellow gains settinglV. motivations and or to leave the organisation worked factors the type of experience triggers - the of and the extent Beyond these, the particular of the degree founders, entrepreneur business the nature entrepreneur geographic possible influences, which the to the specific contact to for his and knowledge. factors, Organisation" organisation affect and skills genetic b. The "Incubator the which of a there are to stay with push versus pull factors. C. "Environmental Factors" and incubator to his important setting entrepreneur here conditions, but the supporting which to flourish. general of venture entrepreneurs, services. provide the prevailing an individual factors economic the accessibility capital, and individual Important more specifically and availability successful to the organisation within is able include external the role models of availabilty of 5 ANTECEDENTINFLUENCES It Motivations: is clear entrepreneurs are similar counterparts. Thus, Goffee supervision, (in the incubator identities has seem that money, that support the wish [8] notes that when traditional conducted no significant and locus one note El-Namaki differ from their apparent with an trait lack of employee [ll], and Popay [13] labour force the in have been regarding aggression, provides note United that self-employment Kingdom l only women Despite women are money", in 1979, only non-western [lOI of "the is and few "pin Beyer and factor, counterparts" or through Rimmer tests leadership conclude they self-confidence, work which merely Chaganti Gerritson, important of an Indeed, emerged Nevertheless, would the need for persistence, on which western male It goal-orientation, further which self-confidence, well-validated [9]. [7]. differences non-conformity, of control imposed the seizing personality autonomy, motivation, independence, male of and male counterparts roles comparable. in the literature. independent, to be as their achievement directly have the same motivations by occupations, domestic rejecting of male identified of - are female to their low paid constraint organisation) little that motivations - avoiding and the females opportunity four three fourth, the Further, literature many respects in of the and Scase [6], escaping from the whether [12] this satisfied it be as for, 8% of the consisted of as male sole . 6 providers Family for the archetypal Backaround: the background Whilst of their substantially similarity in [14], and general level Moss and Saunders [15] with than the men. caution since in enterprise females of male that marriage female for and creating the after Regarding age, Birley, However, that enterprise further differentiating results the sample was both small which had regarding roughly owners that family between males and marital similar status. proportions were married, '@the apparent divorced support for among women is an alternative is males in Watkins a function sample constructional. Cromie businesses in their these the entrepreneur's reports Scase entrepreneurs, However, that upon self-employment to occupation from a population or to dependence upon approaches fathers any differences he concludes Goffee data training. identifies and female notion of their Most of the literature Curran or separated, and drawn solely concentrates Thus, whilst position, that women were found the women entrepreneurs participated which examination of education. being background conclude 58 men and 43 closer and biased, Influences: and Watkins sample of sibling be younger must be treated Marital Watkins different, shows sample to family. [16] of In detected between married examination factor was not, non-random study different and single of the data, in to and Watkins, the his the of 34 reasons women. he concluded fact, marriage itself but rather the self-employment mothers, opportunity for lifestyle which combined comments that Yhis female both executives who 39%) f and the women in this study number of women in management, Vinnicombe contrast to concludes that these "starting their with at home are the kinds (only types types them to and Catalysts explain the rigidity" part-time, strategies of fall in She' colleagues. male working of coping mothers found [I81 "organisational own business, who of whom as many as 74% are differing which women encounter a between the choose to be Traditionalist their by Hertz disparity of Visionaries the categories in of the personality Further, into is underlined a employment and domestic in her study mothers". mainly required the great explains For [17]. afforded flexibility the This point [18]. children entrepreneurship or greater responsibilities of pos.session problems and that and staying women managers are adopting". THE INCUBATOR ORGANISATION In study his organisation as for underlying the nature However, immediate Whilst entrepreneur. narrow the this of the the nature previous definition that previous entrepreneurial of the skills the incubator employer of the would appear to be too economic conditions the current assumption Cooper saw ventures, new of experience choice and trends, will still and knowledge the influence pertains. of the 8 unemployed, different from his mid 30s. gain their those is this often experience taking at face The of prior emolovment which incubator process, but rather Taking same entry important this their education, experience, for example, it is clear Rubery is as not the type ingredient in the whatever found that enter sectors opportunities" whilst not been employed had housewives, its "women make the open to age, economic and family and career [19] classification that all the term of women's work exnerience, i.e. sample had been many employed, and its most women of therefore, prior background, Hertz value quite own business, for is an important as men - them given in their be the male in that the value issue, view, choices notes Garnsey, re-assess unskilled. nature. for begs the definition Craig, of the need to may observed Stevenson also Indeed, to avoid housewife not even the case but it l~managerial~~. and the traditionally managerial males, cautioned or Thus, although first not only skilled student the status, [ZO]. Thus, many of the women in her in the traditional nevertheless sense, 81% had but "relevant experience". It that follows many traditionally from the above argument that women enter those markets male dominated" and, most commonly, is seen Kingdom, on both statistics retailing sides in [21] [22]. of the the 1987 - it is not surprising which are the service This Atlantic. industry is a pattern In "not which the United Employment Gazette r231, whilst that not directed towards solely self-employed, the show 1. Females account 2. Total for 45% of the employed population. female employemnt 3. Part-time female is growing. employment is 42% of all female employment. 4. 65.7% of female distribution, other and health, education, catering, hotels, is in retail employment services. In the USA, the 1986 State businesses women-owned male-owned of were and notes that 1. Increased growing the reasons [24] much and in the "traditional businesses and service", Small Business found that faster than areas of retail are threefold - of women in the labour participation force in general 2. Increased 3. Flexible In of firms working hours. 95.9% of Canada, entered trend either females the service to contract starting or retail out services. businesses industries in 1985 [25]. ENVIRONMENTALFACTORS It is clear from the literature that the motivation to start a new firm, idea, the the development take many years to incubator. fact and that the supply quantity, but national level, norms of behaviour, and role Laura to entrepreneurial behaviour. suggests that important finally fact the that in to move employee base, Within throught contribute to entrepreneurs society's and at work. is also the part reduced can of the their security, has - that of own firm. factors which of female supply roles, who no longer of a general female an Thus, the mere of long-term in and are study Cooper of people levels of their t6 this, environmental to male and In their significant new form of security increase are subtle attitudes a general an beyond all publicised attitudes substantially the ownership the made of Branson of the much self-employment. as a source firm Richard the number have influence availability economic climate management at many have sought this, However, into firms that look to the large self-reliance and advice, have determining many large meant that assistance national prevailing factor decide shaping On a acceptable and management buy-out contributions factors. the Ashley, a fixed clearly Moreover, or the of for is culture, models such as Ted Turner, Atlantic success national to this is not relationships attitudes. attractive of family individual Virgin role product The corollary by external new networks traditional an associated of entrepreneurs can be influenced the of both entrepreneurial change in at home role of . developing women in identified the following industry El-Namaki countries, seven barriers and Gerritson..[26]. to women's entry ' into and entrepreneurship: 1. Behavioural barriers low self-confidence, - negative self-image. 2. Education barriers training opportunities. - barriers 3. Occupational skill admission - and progression, and confinement, traditional constraints. - barriers 4. Role performance visibility, status, minority pressures. - discriminatory 5. Legal barriers 6. Infrastructural laws. - access to credit, barriers support, information. 7. Societal and cultural - hostile values and role conflicting structure, family attitudes, barriers demands. that They conclude that circle: or no education conditions -> daughters However, whilst most Western these Countries, -> no needed conditions recent supports position chance to help certainly evidence the view constituting formidable, -> no work in the formal income -> evidence "secondary low sector existing are barriers these never-ending the a of women -> little sector of --> informal improving in the life house..." have prevailed in the United in Kindom 12 and the United Positive role States paints models, positive increased travel, are supportive environment, all factors women considering the begin In to gather their of in unique remains as to any serious sex. particular difficulties of by without business plan. reports capital quite in their "Pink Pages". the to female women an idea into this is a as they study firmly for often the that State female from that more heavily or of is supported owners is because of a as a problem difficult the entrepreneurs' of men, although to particular Small Business upon personal by some did report quoted of in any obstacles loans and knowledge firm of 300 female Although of women did not conclusion entrepreneurs, Indeed, more years or service problems, also detailed or found that in qualifying was no different to depend one a retail formative male validate of [28] collateral, encountered whilst they encounter with This general and Saunders in the lack more whether to translate and Reece [27] registered seem question which a of the number of condusive the operating to their Bradley in more 20 females the USA, Pellegrino experience to However, ability nature resources. study experience to an increase environment in the increased changing may be from men in their picture. contribute self-employment. entrepreneurship, business, and the which and environment differ more optimistic discrimination, media coverage education general a access [291 to women did savings. Hertz 13 underlines this point in her comparative and which she discrimination, business Indeed plans. founder that and investors bankers women of although the evidence correlation the American performance On the of person, Whilst available, points to a strong the particular network of and sales Council they of motivations being it discrimination not to women entrepreneurs. be a of of the is interesting to from being them a positive supported serious By contrast, absorbing and thus their necessary far - a better at drive that, is considered opinions, many and a woman gave conclusion better studies reflect felt This and by personal skills and for any note that 40% discriminated advantage Gumpert who obstacle the only are results than men self-reported hunger respondents be better comparative Moreover, entrepreneur. Hertz' confident, these are characteristics, men. for data on the use 60% of her respondents more by any against, of networks States discrimination, not validated of her is little in succeed women had to stress. the view uncompromising assistance interesting. business reports Women's Economic Development issue to financial [31]. particularly that there between involvement and of Goodspeed Systems Inc. the United from no real are "equally various of British was because of.sound [30] and president Beyond this, men and women". found concludes Gumpert Helen Charov, of who women entrepreneurs American study study for over found high-tech which found 14 significant which problems took as for women is its l~subordinationl~, theme that the and her responses of Goffee and Scase assumption of women's to it. CONCLUSION This paper is based motivations, family experience factors (as distinct the choice which the business evidence that individual education, both to of the decision market, operated. male entrepreneurs. and and the work are all to start environment a within However, most of the empirical theory is based have been studies The aim of this paper was to explore of the of female entrepreneurs. Almost all the descriptive some comparisons executives minority [33] easily available subtle factors experiences" From the studies of their entrepreneurs, that premise from employment experience) upon which this situation the background, which contribute business, with upon basic of backgrounds entrepreneurs female entrepreneurs and male [32], and female However, background and observable, "different and often cultural are and characteristics between female entrepreneurs respectively. of female ignores data is the more conditioning and [34]. evidence whilst presented, Cooper's model this holds, paper proposes the particular the theory factors 15 contribute which to the supply of SITUATIONALLY and CULTURALLY bound, that any differences entrepreneurs and it between men their position also in this is and are sense women are to be observed. For any "minority" group, factor significant role determining in Until activity. entrepreneurial and women to be that of wife they take employment, this that roles the different from the prior and basic for commercial within the and of confident It is clear about even should in addition to therefore, were whereas women often (the Home) for organisation they lacked many of which were associated credibility base, men and of As owned economic transformations. 11". major with many failed gate. business range of economic the entrepreneurs Moreover, this Western economies. number of small always experience, Without role to is not surprising, networks to reach the starting attitudes Indeed, of female of men. "managerial" employment. However, It upon the incubator drew heavily ideas was almost choices those be a recently, very and mother. as home-maker. market-entry their will most Western economies by both men of women was seen in their in society women is changing McDermott notes by women reflects than at any time that women are beginning own skills, to exploding both crossed Women have barriers their "the since build rapidly a social wider World War to feel more their own . 16 commercial networks, suppliers, and bank-managers, lltraditionalVl paper that to establish businesses. the growth reflection of between the Therefore, if entrepreneurs changing their the in the situation, male colleagues. is the society, sexes of proposition theory future and move rather skills than or holds, the will continue even more customers, successful, women-owned businesses a changing difference with and to start It of credibility albeit of is this but one any inherent of motivations. profile of to match closely to women their that of . 17 “\ REFERENCES 1. The Second "Women Entrepreneurs: G.Gregg, Across the Board (January 1985) pp 11-18 Generation" 2. Female Entrepreneur: "The and D.Watkins, J.Watkins Choice - Some of Business and Determinants Background British Data" International Small Business Journal ~01.2, no.4 (Summer 1984) pp 21-31 of "Against all Odds: The Entrepreneurship L.A.Stevenson, Women" Journal of Small Business Manaaement ~01.24, no.4, (October 1986) pp 30-36 3. "Bolton Fifteen Years On: A Review and Analysis J.Curran, in Britain 1971-1986~~ Paper of Small Business Research presented to the Ninth UK National Small Firms Policv and Research Conference (Gleneagles 1986) 4. S.Birley, Business 5. A.C.Cooper, "Strategic Lana Ranae Business" 39-45 Management: New Ventures and Small no.5 (1981) pp Planninq ~01.14, 6. R.Goffee and R.Scase, Female Entreoreneurs 1985) Women in Charae: The Exoeriences of (George Allen and Unwin, London 7. C.Beyer J.C.M.Gerritson, Entrepreneurship Revisited: RVB Research Paper vol.VII, L.Hertz, "New Ventures and Employment Growth" Venturinq vol.2 (1987) pp 155-165 The Business Journal of "Female and M.S.S.El-Namaki, The Trait Approach DisputedI' no.1 (March 1987) Amazons (Deutsch, London 1986) Women-Owned Enterprises" no.4 ~01.24, Manaaement 8. "Management in R.Chaganti, Small Business Journal of (October 1986) pp 18-29 9. "Male and Female Entrepreneurial and E.Young, H.Welsch Characteristics and Behaviours: A Profile of Similarities Journal International Small Business and Differences" vo1.2, no.4 (Summer 1984) pp 11-20 "A Comparison of Selected J.F.DeCarlo and P.R.Lyons, and non-Minority of Minority Characteristics Personal Business Small Journal of Entrepreneurs" Female Manasement ~01.17, no.4 (1979) pp 22-29 see also F.T.Waddell, "Factors affecting Choice, Satisfaction and =k. \ 18 Success in the Female Self-Employed" Behaviour vol.23 (1983) pp 294-304 10. M.C.Berry, "Targetting More Aid to Venture (May 1980) pp 49-52 11. G.Joseph, Women at Work: The British Allen, Oxford 1983) Journal of Vocation Women Entrepreneurs" Exoerience (Philip 12. C.E.Scott, IWhy More Women are Becoming EntrepreneursI' Journal of Small Business Manaaement ~0.24, no.4, (October 1986) pp 37-44 13. L.Rimmer and J.Popay, Gazette (June 1982) "The Family at WorkI Emnlovment 14. D.D.Bowen and R.D.Hisrich, "The Female Entrepreneur: A Career Development Perspective" Academv of Manaaement Review ~01.11, no.2 (April 1986) pp 393-407 15. S.Birley, C.Moss and P.Saunders, "The Differences between Small Firms started by Male and Female Entrepreneurs who attended Small Business Courses" Entrepreneurship Research (Babson, MA 1986) 16. S.Cromie, "Towards a Typology of Female Entrepreneurs" Paper presented to the Ninth UK National Small Firms POliCv and Research Conference (Gleneagles 1986) see also R.D.Hisrich C.Brush and "The Woman Entrepreneur: Management Skills and Business Problems@@Journal of Small Business Manasement ~01.22, no.1, (January 1984) pp 30-37 17. K.McDermott, & B Renorts "The '80's (July/August Decade of Women Entrepreneurs" 1985) pp 14-16, 34 18. S.Vinnicombe, "Drawing out the Differences and Female Working Styles" Forthcoming Manaaement review (Spring 1987) p between Male in Women in of this issue, For a discussion see Longstreth M. Stafford K and Mauldin T "Self-Employed Women and their Families: Time Use and Socio-Economic Characteristics" Journal of Small Business Manasement (July 1987) pp 30-37 19. C.Craig, E.Garnsey and J.Rubery, "Payment Structures and Small Firms: Women's Employment in Segmented Labour Markets" Denartment of Emolovment Research Paner no.48, (1984) 20. R.Chaganti, "Management in Journal of Small Business (October 1986) pp 18-29 Women-Owned Enterprises" Manaoement ~01.24, no.4 19 21. D.D.Bowen and R.D.Hisrich, "The Female Entrepreneur: A Career Development Perspective" Academy of Manaaement Review ~01.11, no.2 (April 1986) pp 393-407 22. C.E.Scott, 'Why More Women are Becoming Entrepreneurs" ~0.24, Journal of Small Business Manacement no.4, (October 1986) pp 37-44 23. Emnlovment Gazette (January 1987) 24. The State of Small Business: A Report of the President United States Government Printing Office, (The Washington, 1986) 25. The State of Small Business: Ontario (Ontario Business in Toronto 1986) Annual Report on Small Government Bookstore, 26. M.S.S.El-Namaki and J.C.M.Gerritson, "The Entrepreneurial Countries: Entry and Role of Women in Developing Barriers" RVB Research Paoer vol.VII, no.1 Performance (March 1987) 27. E.T.Pellegrino and B.L.Reece, "Perceived Formative and Operational Problems Encountered by Female Entrepreneurs and Service Firmsll Journal of Small Business in Retail Manasement ~01.20, no.2 (April 1982) pp 15-24 28. D.B.Bradley and H.L.Saunders, Entrepreneurial Development" Business Institute Directors February 1987) "Problems Women Face in Proceedinas of Small Association (San Antonio, 29. The State A Report of the President of Small Business: Office, (The United States Government Printing Washington, 1986) 30. D.E.Gumpert Opportunities" for High-Tech "Wanted: Women Entrepreneurs Workins Woman (December 1985) pp 37-39 Mean "New Women Entrepreneurs 31. R.N.Carter, Review of Business no.1 (Winter 1980) pp 9-10 33. D.L.Sexton and C.A.Kent, "Female A Preliminary Comparison" Entrepreneurs: Research (Babson MA, 1981) pp 40-55 Business" and Executives EntreoreneurshiD 34. N.R.Smith, G.McCain and A.Warren, "Women Entrepreneurs Ideal A Comparison of Constructed Really are Different: EntreDreneUrShiD Types of Male and Female Entrepreneurs" Research (Babson MA, 1982) pp 68-77
© Copyright 2024