The Importance of Female Entrepreneurship - Essay Example

Contents Contents 0. Terms of reference In the world today, female entrepreneurship has become a huge enterprise in many nations. This paper will focus on current issues within female entrepreneurship. 2.0. Introduction Entrepreneurship involves an entrepreneur being innovative in a business oriented way. An entrepreneur is a business person who seizes opportunities as they present themselves. Entrepreneurship is the art of getting involved in business. Entrepreneurship activities are diverse. They depend on the specific business activities that organizations or individual entrepreneurs opt to undertake. Entrepreneurship results to the invention of new projects and creation of jobs. Entrepreneurs are known to possess leadership qualities and creativity. A good example of an entrepreneur is Facebook’s Mark Zuckerberg who saw an opportunity in the social network and seized it. Over the years, entrepreneurship has been generally associated with men. Research evidence shows that gender has been a determining factor for lenders. 70% of successful loan holders in most financial organizations are men. However, the females have risen to the occasion and they have set the competition bar a notch higher. Women have assumed the role of being innovative and have incorporated their creativity with actual deeds. They are no longer afraid to take risks in business ventures. Their entrepreneurship quest is however filled with more social and economic challenges compared with men. 3.0. Female Entrepreneurship Female entrepreneurs have significantly increased in number in today’s word as compared to previous eras. The number of women starting up businesses has risen by 28% in the last ten years. There are different types of female entrepreneurs. Among them are drifters, who are normally young females trying to fight unemployment by being self employed. They come up with innovative ideas and implement them. Their enterprises are usually small and unstable. Most drifters depend on sponsors to fund their initial capital. Some drifters with original viable business plans write their own success stories with endurance (Jose & Ajith & Paul 1994). Another group of female entrepreneurs are the young achievers. These women are normally very well equipped with the theoretical knowledge in entrepreneurship. Their literacy level in business is normally commendable. Young achievers draft their entrepreneurial ideas and implement them; they gain business experience through training courses. Ambitious young achievers have a very great chance to succeed in business. Just like the drifters, young achievers depend on external donors to fund their projects (Miller 2008). There are also a group of female entrepreneurs called the returners. These are women who had previously been pursuing their individual careers then took a break. These women are mostly very educated and with high potential in the business world. They opt to be self employed instead of making a return to their careers. This group of women entrepreneurs is growing at a very high rate (Reynolds 2007). Last in the female entrepreneurs list are the traditionalists. This group of women is made up of older women who have a good history in business enterprises. They possess outstanding experience in entrepreneurship and they are very innovative. They understand the risks involved in entrepreneurship and they are very good decision makers. Their ideas rarely go wrong since they only take thoroughly calculate risks. Most of these women work in partnerships. Among the many examples of such businesses is the renowned Golden Gift Shop. This bracket of female entrepreneurs engages on huge budgeted business ideas. They are known to take huge loans from banks and other financial organizations (Howkins 2001). In the developing nations worldwide, majority of the women who engage in entrepreneurial activity are aged 25-34 years. This is the peak entrepreneurial age in the low income nations for women. In the developed nations, female entrepreneurship is mainly assumed by women aged 35-44. It is observed that most of the women in the developed nations who choose to undertake entrepreneurship activities are highly educated (Shane 2003). 3.1. The Importance of Female Entrepreneurship Entrepreneurship is basically aimed at providing more income for the people who engage in it. Innovation provides new ideas to harness potential business opportunities. Successful ideas give back very satisfying profits to the parties involved. Entrepreneurship contributes to the national economy growth. A country with a high growth rate in entrepreneurship activities records significant increase in their Gross Domestic Products (Johansson 2004). Entrepreneurship generally creates a lot of job opportunities. Innovative ideas when implemented provide self employment. The entrepreneurs may also employ other people if their project requires so. Female entrepreneurs who venture into business in partnerships with their friends help in reduction of the unemployment gap in their nations. Female entrepreneurs have successfully managed to empower themselves and have a positive mentorship to the young (Starcher 1996). Female entrepreneurship also contributes to new inventions in business. Women are creative and many of the female entrepreneurs have come up with new ways of conducting business and also new products in the markets. For instance, Randice-Lisa Altschul invented a disposable cell phone and Barbara Askins came up with a better way of processing films. Women have come up with viable bootstrapping tools and methods that ensure that their businesses minimize the use of external funding. This increases their enterprises’ profits margins. Other businesses may also borrow these ideas from them (Ebbena & Johnson 2006). Entrepreneurship has a major role in contributing to research for the development of the economy. Innovation in entrepreneurship accounts for most inventions. This is particularly true in the technology world. An invention provide easier ways of handling stuff and also paves way to further inventions in the future. Innovation motivates research in order to come up with the best solutions. Competition motivates innovation and innovation is accompanied by research which in turn provides a platform for entrepreneurs to come up with new ideas (Livingston 2007). Entrepreneurship provides a learning experience and brings along motivating factors to female entrepreneurs. When a woman enters the entrepreneur world, they gain experience in their fields. These women can later act as mentors and advisors to other prospective female entrepreneurs after many years of experience. They may also be employed by the government to draft business analysis reports in their specific entrepreneurial areas for further use by new entrepreneurs (Richard 2007). Female entrepreneurship provides a means of self liberation to women. Women entrepreneurs are self sufficient and independent. They achieve their own set goals and they make their own decisions. This gives women a sense of self sufficiency and massages women’s egos. This gives a lot of women a driving force that ensures that they keep pushing their limits higher. Female entrepreneurship liberates women from financial dependency on their male counterparts (Fauchart & Gruber 2011). 3.2. Current issues in female entrepreneurship Globally, more women than men are involved in entrepreneurial activities. 65% of the entrepreneurs are women and the numbers keep escalating by the day. This is due to the lack of substitute employment opportunities and the women empowering campaigns that have been set up. Women are more vulnerable than men with relation to their business environment surroundings. Their adaptive measures also vary from those of men. Women tend to be more innovative than men but they lack the necessary tools to realize their dreams. Generally, female entrepreneurs face more challenges than male entrepreneurs. These challenges emanate from social, cultural and political beliefs and discrimination (Ucbasaran & Westhead 2001). Lack of trustworthiness from their business partners is one of the issues that female entrepreneurs face. Many women who establish business enterprises in conjunction with their male partners do not get the credit they deserve. This has even prompted women to start acknowledging their achievements themselves. For instance, women in America came up with the First Women in business Awards, to motivate themselves in business. Female entrepreneurs may come up with very good ideas that upon implementation, they bring success to their enterprises but their partners fail to acknowledge the women’s efforts. This is rather discouraging to any entrepreneur (Bailetti 2012). Lack of entrepreneurial skills and experience is also a very big challenge that women face worldwide. Entrepreneurship goes hand in hand with business risks. A miscalculated move can bring down an entire enterprise. Most women fail in the first stages of their entrepreneurship quests due to lack of knowledge. They end up giving up on business. Lack of experience also poses a great challenge to women who fail to make wise decisions in their businesses. The case is different for men. In most business schools worldwide male students are more than female students; this explains the general lack of adequate business skills in women (Lundström & Stevenson 2005). Entrepreneurship requires one to be prepared with enough capital to invest into their innovative ideas. Most prospective female entrepreneurs have very good business ideas but they lack capital. In most developing nations, it is quite a pity that there are not many channels that these women can follow to acquire the required funds. Women empowerment organizations have not been adequately set up in these nations and therefore female entrepreneurs just remain with their ideas (Duening & Hisrich & Lechter 2009). Competition is a big issue to female entrepreneurs. Male entrepreneurs tend to control the business world due to their superior skills and experience in entrepreneurship. There is also the aspect of fair and unfair criticisms from different people. Most women fail to alienate their personal emotions in their businesses. This makes them easy prey for manipulators in their fields and this disrupts most women from focusing on their strategies (Shane & Venkataraman 2000). Female entrepreneurs also suffer from self-esteem issues. Most women have their goals set way below their potential levels. They don’t believe in themselves. They doubt that they would ever emerge at the top in terms of success in their business zone. The female entrepreneurs are consumed by this vice and they end up not putting their ideas into practice due to the fear of failure (Birley 1989). In the developed countries and some of the developing nations, there are financial organizations that are specifically set up to fund women’s projects. However, the disbursement of these funds is not done fairly. Corruption is eminent in the developing countries. Lenders categorize the people they lend their money to. This leaves out some of the female entrepreneurs. Money lending in itself has become a booming business in the developing countries. This has caused the lenders to adopt very high interest rates on their loans and subsequently making it difficult for new female entrepreneurs to sign for the loans (Albert 1992). Cultural issues are also a big challenge to female entrepreneurship. Male chauvinism is still very prominent in some developing nations. Women are presumed to be destined to be followers and not leaders. Therefore, when a female entrepreneur becomes more successful than their spouses, domestic problems arise. It is a common belief that women should be provided for by men, not vice versa. Successful women in the developing nations are discriminated upon by the male race and this may even cause a downfall of their enterprises (Male 2010). Female entrepreneurs tend to come up with similar business ideas. In most nations, women have come up with the majority of small businesses. As their businesses become successful, other entrepreneurs join in the business with the hope of attaining similar results. The set up enterprises compete for the market of similar goods. This causes the supply for the goods or services to radically overlap the demand for them. This in turn causes a decrease in prices and eventual fall of the business (Bowen & Hisrich 1986). There also exists an indirect competition between men and women in the same entrepreneurial fields. Each sex has their strong points in business. Similarly, men and women have different weaknesses that render them vulnerable in the business world. Women are known to fear taking big risks with their money. Men on the other hand tend to harness any opportunity that knocks at their doors even if it means abandoning the entire original business plan. This raises the hurdle for women too high (Zahra & Neubaum 2009). 3.3. Possible solutions to the issues First and foremost, the skeptical view approach that financial organizations have on female entrepreneurs should be put an end. Women’s entrepreneurial ability is actually higher than that of men due to their superiority in creativity. Loaning institutions should therefore stop viewing women as a higher risk than men in loaning. This way, more women should be able to benefit from the loans (Birley 1989). In most nations, there are more female entrepreneurs than there are male. This should be acknowledged by their governments by allocating more funds for women to file for loans. Women empowerment should be central in the developing countries’ economic strategy. An increase in the number of entrepreneurs translates to a divine increase in GDP (Johansson 2004). The governments should therefore invest more in female entrepreneurs by promoting their ideas. Education facilities should be put up and women should be encouraged to take courses that will instill entrepreneurial skill in them. The theoretical part of entrepreneurship is as important as gaining experience. Women who have already established their innovative businesses should be provided with relevant literature that will assist them in maintaining their businesses (Jose & Ajith & Paul 1994). Women should also be cheered to participate in decision making in the corporate sector and in business partnerships. This will help them to develop the courage required while making important decisions and risk taking. Women need to be natured to become aggressive in competing in their business territory. They need to be seasoned so that they can endure the harsh business climates. The government should see to it that female entrepreneurs are not harassed in the business world (Lundström & Stevenson 2005). There should also be a change in some cultural beliefs. Women in both developed and developing nations are solely left with the responsibility of taking care of their family chores and taking care of the children. This leaves them with little time for themselves to undertake their entrepreneurial endeavors. The society should change its mentality that women are meant to be in the house taking care of the family. The society should embrace the fact that women have the potential to be successful entrepreneurs and give them a fair chance to prove it (Lundström & Stevenson 2005). On average, the literacy level in technology of women is too low compared to that of men. Men are more accustomed to the latest technology. Incorporating the latest technology in business enterprises makes work easier and faster. Women need to be to be tutored in the use of the latest technological gadgets and they should keep track to the ever upgrading technology. Governments should promote technology in their business industries and ensure that learning institutions provide compulsory courses on technology for students (Bailetti 2012). The relevant administrations in various nations should also promote female entrepreneurs by giving them incentives to be aggressive in entrepreneurship. There should be annual awards associated with female entrepreneurs. A trophy will make women entrepreneurs to raise the competition bar a notch higher as they fight for the top spot. This will also motivate prospective entrepreneurs to join the business league (Starcher 1996). 4.0. Conclusion Entrepreneurs are the backbone of many nations and the field is constantly growing as people get more innovative. Women have not been left behind in the entrepreneurial world. They are actually the majority in the field. Women in their quest for financial dependence have contributed a lot in the development of their country’s economy. Despite the many issues that challenge female entrepreneurs, women have endured and they keep pushing on while hoping for a brighter future. Entrepreneurship has a lot of benefits to an entrepreneur and the people around them. Self employment is a good option where unemployment is a problem. It creates job opportunities for other people too as the enterprises expand. All entrepreneurs should work to the best of their ability and keep focused to their goals. They should embrace technology and keep their innovative minds open and ready to formulate ideas. 5.0. Recommendations 5.1. Allocation of funds Governments should ensure that they allocate adequate funds targeted at empowering female entrepreneurs. These funds should be made available at the grass root level for the aspiring entrepreneurs. Governments should allocate funds for women empowerment in their national budgets and the disbursement method of the funds should be transparent. 5.2. Motivating young entrepreneurs Many potential female entrepreneurs are holding back their ideas due to fear of venturing into business and the possibility of failure. The government should hold motivational campaigns that will see established female entrepreneurs addressing young females and encouraging them to take the initiative to follow their dreams. 5.3. Incentives The relevant authorities should draft incentive plans that will attract female entrepreneurs into business. For instance, the government could make a policy that allows new female entrepreneurs to do business on zero tax for their first six months in business. The government could also provide platforms for acquiring loans with zero interest rates. 5.4. Encourage female-Male partnerships Women who are looking into launching their huge businesses should try partnering with trusted men. This move is more likely to lead to success than a solo venture or a partnership with a fellow female. When both sexes are involved in an enterprise, decision will be arrived at after thorough discussions that are fair since both sexes argue from different points of view. 5.5. Nature children into entrepreneurs Young children should be taught the basic idea of entrepreneurship. Those young boys and girls who show a persistent interest in business are bound to make very good entrepreneurs in the future. They should be identified and guided towards achieving their passion. Female entrepreneurs have really tried in changing the world economically and their efforts have led to many success stories. More women should engage in entrepreneurship and the world will be a better place due to the job opportunities created. A lot of money will also be raised, benefiting the individual nations. References Albert, S.W. 1992, Work of her own: How women create success and fulfillment off the career track. New York: Tarcher/Putnam. Bailetti, T. 2012, Technology Entrepreneurship: Overview, Definition, and Distinctive Aspects. Technology Innovation Management Review, Technology Entrepreneurship, 5-12. 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