Sheer Grit Spurs Women Entrepreneurs, but Supporting Conditions Are Crucial for Them to Thrive
March 07 2017 - 3:30AM
Business Wire
Mastercard Index of Women Entrepreneurs
reveals top countries where female-owned businesses
flourish
While female entrepreneurship is often founded on necessity and
grit, strong supporting conditions such as access to financial
services and ease of doing business pave the way for progress in
businesses owned by women, according to findings from the inaugural
Mastercard Index of Women Entrepreneurs.
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These enabling conditions are pivotal in overcoming the two main
obstacles that most discourage women from becoming entrepreneurs –
cultural biases and fewer opportunities for their advancement.
Overall, developed markets top the index, led by New Zealand,
Canada and the United States. These countries have the strongest
conditions that support women business ownership, such as robust
small- and mid-sized business communities, a high quality of
governance and ease of doing business.
Mastercard Index of Women Entrepreneurs – Top 10 markets with
the strongest supportingconditions and opportunities for
women to thrive as entrepreneurs
1. New Zealand – 74.4
6. Belgium – 69.0
2. Canada – 72.4
7. Australia – 68.5
3. United States – 69.9
8. Philippines – 68.4
4. Sweden – 69.6
9. United Kingdom – 67.9
5. Singapore – 69.5
10. Thailand – 67.5
On the other hand, lower-income economies such as Uganda (34.8
percent), Bangladesh (31.6 percent) and Vietnam (31.4 percent) have
some of the highest percentages of women entrepreneurs, driven
mostly by necessity as opposed to being inspired by business
opportunities.
Women business owners as a percentage of all business owners
– Top 10 markets
1. Uganda – 34.8 percent
6. Bangladesh – 31.6 percent
2. Botswana – 34.6 percent
7. Vietnam – 31.4 percent
3. New Zealand – 33.3 percent
8. China – 30.9 percent
4. Russia – 32.6 percent
9. Spain – 30.8 percent
5. Austria – 32.4 percent
10. United States – 30.7 percent
“The prevalence of ambitious, resourceful women should be
regarded as a prime business opportunity. As society addresses
existing cultural bias, we will do our part to help create those
conditions that will strengthen and fuel the foundation for
personal and economic growth,” said Martina Hund-Mejean, chief
financial officer, Mastercard.
“By increasing access to critical networks, our study shows that
women are more able to recognize their full potential, achieve
their goals and ultimately accelerate more inclusive growth. We
have a fantastic opportunity to address cultural and organizational
issues and further empower women leaders,” said Ann Cairns,
president, International Markets, Mastercard.
The Index suggests that countries with enabling conditions
foster more Opportunity-Driven Entrepreneurs (driven by desire to
progress) while countries with less conducive supporting conditions
tend to breed more Necessity-Driven Entrepreneurs (driven by need
to survive). It also explores varying factors that help or hinder
women entrepreneurs.
- What spurs female entrepreneurship in
developing markets? Grit. Uganda (34.8 percent), Bangladesh
(31.6 percent), Vietnam (31.4 percent) and China (30.9
percent) made the list of the top ten markets for proportion of
women business owners as a percentage of total business owners. In
these economies, women capitalize on business opportunities that do
not rely on knowledge or innovation assets alone.
- However, successful businesses do not
survive on grit alone. To help women entrepreneurs thrive, they
need access to financial services and products; ease of doing
business; strong support for SMEs and quality governance, as seen
in New Zealand, Canada, United States,
Sweden and Singapore, which took the top five spots
on the Index.
- There are other markets such as the
Philippines (68.4, 8th), Peru (64.3,
23rd), Malaysia (63.9,
25th), China (61.3, 31st)
and Mexico (59.1, 40th) where supporting
conditions for entrepreneurs are not as conducive, yet the local
entrepreneurship landscape is highly energized and vibrant with
very healthy perception of business opportunities and high regard
for the status of successful entrepreneurs. Women entrepreneurs
here are often driven by strong desires to succeed.
- The low scores of markets such as
India (41.7, 49th), Saudi Arabia (37.2,
52nd) and Egypt (34.0, 53rd)
are indicative of the fact that cultural biases against women
severely undermine their ability to rise to positions of leadership
and take advantage of entrepreneurial opportunities.
- According to the Index, some of the
biggest obstacles that hinder women from venturing into business
include lack of financial funding/venture capital, regulatory
restrictions and institutional inefficiencies, lack of self-belief
and entrepreneurial drive, fear of failure, socio-cultural
restrictions, and lack of training and education. In nearly all of
the 54 economies covered, at least one or more of these constraints
are holding back the progress of women as business owners.
The full report is available at newsroom.mastercard.com.
Methodology
The Mastercard Index of Women Entrepreneurs tracks female
entrepreneurs’ ability to capitalize on opportunities granted
through various supporting conditions within their local
environments and is the weighted sum of three components: 1)
Women’s Advancement Outcomes (degree of bias against women as
workforce participants, political and business leaders, as well as
the financial strength and entrepreneurial inclination of women),
2) Knowledge Assets and Financial Assets (degree of access women
have to basic financial services, advanced knowledge assets, and
support for small and medium enterprises), and 3) Supporting
Entrepreneurial Conditions (overall perceptions on the ease on
conducting business locally, quality of local governance, women’s
perception of safety levels and cultural perception of women’s
household financial influence).
The index uses 12 indicators and 25 sub-indicators to look at
how 54 economies across Asia Pacific, Middle East & Africa,
North America, Latin America and Europe, representing 78.6 percent
of the world’s female labor force, differ in terms of the level of
Women’s Advancement Outcomes, Knowledge Assets & Financial
Access, and Supporting Entrepreneurial Factors.
About Mastercard
Mastercard (NYSE:MA), www.Mastercard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. Mastercard’s products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
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MastercardSeth Eisen, 914-249-3153seth_eisen@mastercard.com
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