The Female Entrepreneurship in Comparison to Its Male Counterparts in UK - Essay Example

?Introduction “Women are the nuclei of a nation. They are the real builders and moulders of nation's destiny” (Tiwari, 2007 p1). Women play a highly decisive role in every society. They have strong connections with children in the community and also have the ability to excel in every department of endeavour in the nation. The position and status of women in any society is an index of its civilisation and progress (Tiwari, 2007). Entrepreneurship is an important component of every economy. It is often said that the private sector is the engine of the growth of every economy. As such, the involvement of women in entrepreneurship is crucial for the growth of every nation's economy. In the UK, women gained the right to vote only in 1918 (Peele, 2004 p251). This shows that women were marginalized in the past and were prevented from taking full and active part in the economy. However, ninety years after women gained the right to vote in Britain, the lot of women has increased significantly. In the 1970s, women became more proactive in matters relating to entrepreneurship. This paper examines the trends in the increase in the numbers of women involved in entrepreneurship in the UK since the 1970s. It identifies the core concepts of and theories of female entrepreneurship in relationship to changes in trends and improvement the bridging of gaps between UK female entrepreneurs and their male counterparts. It also evaluates the elements of female entrepreneurship in Britain in relation to female entrepreneurship in other nations around the world. Theories of Female Entrepreneurship Female entrepreneurship is a combination of structured and chaotic methods which lead to women establishing and running businesses (Ho Chu, 2004 p111). This means that there are two main ways that female entrepreneurship comes up. In the first route, female entrepreneurship is a conscious effort made by females to set up businesses by learning the art and science of entrepreneurship. This way, there are structured methods and means that enable women to set up businesses. On the other hand, Casson et al (2008) identify that most women find themselves in entrepreneurial positions by circumstances which lead them to take up business ownership positions around the world. Thus, in this context, female entrepreneurship is simply seen as a phenomenon whereby women establish or gain ownership of businesses in a given nation. This conception therefore views the process through which females get to rise to this level. Another view put forward by Carter (2005 p11) is that female entrepreneurship can best be evaluated and understood if it is viewed in direct contrast to male entrepreneurship. In this vein, Carter begins her thesis by stating that entrepreneurship has been traditionally viewed as a man's thing. As such, the involvement of females is a study that is meant to bridge the gap that has been created by the stereotypes that has existed in society for generations. Whereas the first view examines the procedure through which a woman acquires the position of entrepreneurship, the second view tries to view the whole concept of female entrepreneurship as a method of reducing the injustices of the male dominated society. Thus, the second view diagnoses the reasons why women are not often seen in business ownership roles and tries to find ways of addressing the issue. This has been seen as a feminist position because it adopts a conflicting position to the status quo and demands some degree of recognition of women through positive discriminatory measures where necessary (Greer & Greene, 2004). Either way, the fundamental view of female entrepreneurship is to identify the characteristics, training and innovation systems that are necessary to keep females in business ownership roles (Ho Chu, 2004). It involves amongst other things, the motivation, expertise and expectations that female entrepreneurship adds up to society (Carter & William, 2003). Casson et al (2008) identify that there are three main motivations that guide women towards entrepreneurship roles in society. They are: 1.The need to achieve 2. Desire for job satisfaction and 3. Desire for independence According to Maslow's hierarchy of needs, everyone has the desire to achieve something worthwhile in her lifetime (Maslow, 2004). Due to this, most women set targets which they seek to achieve at the crux of their careers or occupations. To some women, the milestone or the climax of their careers is to go private. This leads such women to set up their own businesses and run them. Secondly, some females seek job satisfaction by doing what they really love and/or desire. Thus for example, if a person has a deep desire too become a specialist in a niche of what her employers do, she can take the bold decision to go private in order to specialise and devote more time to do what she loves. On the other hand, some women desire independence. Some women might loathe the idea of having to work in an atmosphere where their superiors and/or managers can always make all the final decisions. As such, the solution to such a situation could be to go private and set one her own business in order to get the opportunity to take all the decisions. Causes of Social Marginalisation in Female Enterprise Around the 1970s, there were some significant differences between female entrepreneurship and male entrepreneurship. First of all, there was an under-representation of women in the ownership of businesses in the UK and around the world (Carter & Williams, 2003). Secondly, the entrepreneurial processes used by men and women were quite different because whereas some businesses were viewed as men-owned, women were expected by many to settle for certain entrepreneurial ventures only (Fischer et al, 1993). Thus, it was common for men to own large engineering empires whilst women were expected to own beauty parlours and restaurants. Thirdly, there was some strain on the accessing of resources on the part of women (Greer & Greene, 2004). This is because investor confidence was low in women doing certain businesses and other sponsors and financial institutions had prejudice against women (Fischer et al 1993). In summary, Casson et al identify that there are two main reasons why women had a lower representation of females in its entrepreneurial statistics (2008 p621). First of all, they identify tat the social structures such as occupational segregation limits women's ability to gain experience in certain sectors that are traditionally considered male dominated. This trend begins right from school through to organisations. A typical example is the case where most women in medical schools are encouraged to do paediatrics rather than surgery or other demanding jobs. In another instance, most females in law schools are encouraged to go into family and civil law. Due to the low demand in paediatrics and family law, most of these women would have to ply their trade under a male dominated firm or organisation because of reasons like high overhead costs amongst others. Secondly, socialisation of women in the community ensures that women inherit different perspectives, goals and choices. Right from the home, many women are treated as delicate and some accept that without much thought. In some schools, women are often exempt from tough situations and punishments. It is quite common for women to develop some resentment for figure centred courses like mathematics and physics in their teenage years because many of them accept that such courses are for the boys and not for the girls. Thus, the internalisation of the expectations of society causes many women to build goals that exclude things that are not normally expected of a woman. As such, in their older and advanced ages in their careers, these women lack the fundamental skills and abilities to go solo and set up businesses. Statistics of Female Entrepreneurship in Britain and other Nations The statistics of UK female entrepreneurship shows that there 15% of businesses in the UK are owned by females, 50% are male owned whilst 35% have joint male and female ownership (Carter & William, 2003). Between 1992 and 2005, the number of female entrepreneurs rose from 899,000 to 962,000 in 2004 (Carter, 2005 p12). However, since 2004, the numbers have remained static. In other parts of Northern Europe, the statistics and trends of female entrepreneurship are similar to that of the UK (Carter, 2005). Elsewhere in the United States of America, 10.1 million businesses have majority shareholders who are women (Carter, 2005). This shows that women owned 28% of all businesses in America. This is in contrast with the UK where only about 15% of businesses are fully owned by women. Gender Bias and Sources of Funding/Advantages One of the biggest challenges that stands in the way of most women entrepreneurs is the lack of funds (Fielden & Davidson, 2006 p211). In other words, most women do not have access to funds because of the gender bias of bank staff members in granting loans (Fielden & Davidson, 2006 p211). This means most female entrepreneurs do not have access to important financial support in the expansion and growth of the company. Most of the women entrepreneurs lack external funding because they do not have the physical support and acknowledgement to raise funds (Aalto-Marjosola et al, 2008 p40). In other words, most of these women are not in the position to provide information and security for default when female entrepreneurs fail to pay off the loans. Coughlin & Thomas (2009) identify that there are some important things that most female entrepreneurs lack that prevents them from acquiring loans and financial support. First of all, some of these female entrepreneurs lacked business planning. Secondly, many female entrepreneurs lacked the emotional support that men often got in their efforts to acquire loans. Also, the lack of capital to set up an income generation system makes it tough for such women to attain the recognition they need to be given a loan to support their working capital. Due to these challenges, most women get more support in their applications for loans. Thus, male entrepreneurs are often given preferences over women. This is often because of some degrees of bias. In other situations, female entrepreneurs have no option but to turn to other sources of capital which are relatively more expensive. Some of the options on the alternative capital markets include specialised groups like women's banking services and other micro finance companies (Fielden & Davidson, 2006). Most of these micro finance options are relatively more expensive than mainstream funding sources. It therefore makes it difficult for female entrepreneurs to grow businesses compete with male businesses. Reasons for Increase in Rate of Female Entrepreneurship in Britain In spite of all the difficulties and challenges that female entrepreneurs face in their existence, there are some important and vital reasons why female enterprises have increased since the 1970s towards the end of the 20th Century. Butler conducted a number of studies on this and came up with five observations from surveys that were conducted on the subject (2003). The first observation is that humanitarian organisations around the world have led the campaign for the promotion of equality and fairness around the world. Groups like Organisation for Economic Corporation and Development (OECD) as well as the United Nations have created serious cases for the creation and expansion of female owned businesses around the world. Secondly, the UK government and other national governments have instituted laws that have sought to eliminate discrimination against female organisations across the nation. These laws have been in the form of equal opportunities laws and concepts that have led to the growth and expansion of female businesses around the world. Thirdly, the success of women in business cannot be overlooked. Due to this, many people have come to accept the fact that what a man can do, a woman can also do. This has led to renewed confidence in female owned businesses and has gradually led to the pulling down of barriers that prevented women from venturing into business ownership. Fourthly, there has been serious changes in the social position of women in the UK. The growth in feminism and other forms of equality oriented matters have led to an egalitarian treatment of women throughout the country. Due to this, it is becoming acceptable for people to recognize women as independent individuals. Marriages and other social systems are being adjusted to accommodate women who are entrepreneurs in the society. Finally, the trends in certain biological aspects of womanhood like childbearing and the like are being modified to suit female entrepreneurship. Laws like abortion laws and family planning systems and methods have supported in giving women a more independent status in society which has enabled them focus on business empire building. Conclusion Female entrepreneurship can be viewed from two angles. One angle examines the art and science involved in the making of female entrepreneurs. The other angle views female entrepreneurship as a system meant to address the imbalances between male entrepreneurs and female entrepreneurs. Few women are into entrepreneurial roles because of occupational segregation and the effects of socialisation on the goals of women. The UK has about 15% of its businesses being female owed whilst another 35% are jointly owned by men and women. One of the main challenges that female entrepreneurs are faced with is the lack of funding. Due to this, most women are faced with a relatively higher cost of capital. This makes it difficult for female businesses to compete on the markets. Although financial challenges and other social challenges stand in the way of female entrepreneurs, their numbers are increasing and will continue to increase because of international rights activism, social acceptance of female entrepreneurs, legal considerations, changes in social structures and modifications in unfavourable biological and family requirements for women. 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