Gender Discrimination and Need of Gender-Aware Framework - Research Paper Example

Women in Business Table of Contents Introduction 4 Background of Study 4 Rationale of the Study 4 Objective of the Study 5 Literature Review 5 Need of Gender-aware Framework 5 From 3Ms to 5Ms Framework 6 Motherhood 6 Macro and Meso environment 7 The Interconnection of five Facets 7 The Disadvantage Theory 8 Entrepreneurship Literacy 9 Analysis 9 Beverly Case Study 9 Gender Discrimination and Need of Gender-Aware Framework 9 Analysis of 3Ms and 5Ms Framework 10 Analysis of the Disadvantaged Theory 11 Entrepreneurship Literacy 11 Beverly’s experience of being a Woman in Business 12 Evidence of Women in Business 12 Conclusion 13 Reference List 14 Appendices 18 Appendix 1 18 Introduction Background of Study The women make vital contributions towards wealth creation, employment, and innovation in entire economies. In spite of the increasing value of women industrialists, they are still understudied (Brush et al, 2006). Women are progressively more discovering the benefits of an industrial career as it presents flexibility, both temporally and spatially. Although, female industrialists constitute an upward section of the industry, then also they are getting fewer businesses in comparison to men. In most of the Western developed nations, women represent only 25-30% of entrepreneurs (Arenius and Kovalainen, 2006). In Denmark, the total number of the self-employed female member went up from 23.85% in 1999 to almost 26.7% in 2009. While this female entrepreneurs’ underrepresentation may be normal in those countries, which do not offer significant family benefits, but it is not expected in country such as Denmark, which have well-built family policies intended to support opportunities of women to contribute on equal provisos with men (Mahon, 2002; Mandel and Semyonov, 2005). The augmentation in the female as well as racial minority entrepreneurship is expected to encompass a positive consequence on economic growth. People and women from different cultural backgrounds are effectively starting novel business ventures (Fuller-Love, Lim and Akehurst, 2006). In Israel, Arab women undergo double discrimination. Due to the situational particularities, these Arab women engage in the entrepreneurial undertakings, even though the female entrepreneurs’ rate within Arab is very low. Rationale of the Study This paper presents a novel gender-aware structure or framework that offers a spur for further research that can instigate to mitigate or minimize the gap prevailing in the gender. Drawing on the institutional theory, the highlight will be given on the family and household context of the female industrialists, and the macro and meso environment which detains considerations ahead of the market, for example expectations of cultural norms and society (macro), and intermediate institutions and structures (meso). The framework of 3Ms i.e. ‘management, money, and market’ are required for the entrepreneurs in order to launch as well as grow ventures. Further, this framework is extended into 5Ms i.e. ‘‘macro and meso environment’ and ‘motherhood’’ is added to the existing framework to aid the learning of the women’s entrepreneurship (Bates Jackson, and Johnson, 2007). Objective of the Study The main purpose of this paper is to present a critical analysis on the life stories of women entrepreneur by illustrating different concepts and theories for example 3Ms and 5Ms framework, entrepreneurship, and disadvantage theory. The paper will focus on whether women get their right position in the industry according to their qualification or they are forced to remain behind the men. Literature Review Need of Gender-aware Framework The understanding of the entrepreneurship challenge instituted narratives of entrepreneurship and entrepreneurs. The current theory of entrepreneurship is based on the three fundamental constructs which are management, money, and market. Access to the framework of 3Ms is observed as fundamental in order to instigate and develop ventures. Within such models, modernization is generally viewed as the reverse of convention, and therefore the emphasis is on the characteristics and result of entrepreneurs or industrialists rather than on the entrepreneurship methods. As a consequence, traditional entrepreneurship’s accounts most frequently focus on sole actors. These have created storylines and notions of the heroic, creative, and individual entrepreneur, neglecting the complication of entrepreneurial relations and processes. Most of the feminist researchers pointed out that, these hegemonic situations have given rise to the gender gap in the entrepreneurship research (Bruni, Gherardi and Poggio, 2004). Women are frequently viewed as disadvantaged, because their orientation and strong ties towards the kinship is regarded as disadvantage for the entrepreneurial conduct. The scarcity of gendered move towards the entrepreneurship research have resulted in the reproduction of master description of male entrepreneur, as well as contributed towards making the female innovation unseen (Wetler, 2004). Williams (2004) argued that there are vast numbers of ‘unknown female entrepreneurs’ functioning in unofficial or informal economy. The entrepreneurship of these women is frequently necessity-driven. The backdrop of women industrialist is usually gendered terrain. Gender-aware knowledge of entrepreneurship is required to have an understanding of this landscape, thereby making clear the cultural creativity and social entrenchment of the female entrepreneurs (Anniken, 2013). From 3Ms to 5Ms Framework The current theory of entrepreneurship explaining venture formation is normally organised around the three fundamental constructs, namely management, money, and market – the 3Ms. It is considered that an entrepreneur is required to have an access to the money, market, and management to start a venture. These are regarded as three ‘primary constructing blocks’ of company viability. These blocks are derived from the management-driven vision and mainstream economics of entrepreneurship (Steyaert and Katz, 2004). It is argued by Bates et al (2007), that the 3Ms are vital for the establishment of any company, yet for the minority business ventures there are considered as obstacles. In order to holistically learn or study the entrepreneurship of women and encompass standards; external expectations and values are very important to anyone’s understanding (Davidson, 2003). Not just the 3Ms should be properly qualified and delineated to consider any exceptionality of entrepreneurship of women, but also the structure or framework necessitate extension to form 5Ms by including ‘motherhood’ and ‘macro and meso environment’. ‘Motherhood’ is regarded as a metaphor symbolizing the family/household perspective, therefore drawing awareness on the reality that family/household perspectives might encompass a great impact on the women as compared to men. The ‘macro and meso environment’ generally captures thought ahead of the market, by embracing factors like cultural norms and society’s expectations, for example revealed in media images of the female entrepreneurs (Jennings and McDonalds, 2007). The macro environment generally includes strategies, economic and cultural influences, and national policies; while the meso environment shows local support policies, initiatives and services. This dimension incorporates organized common life and work. Both the macro and meso environment and the motherhood intervenes the industrial activity of the women in dissimilar ways (Pitelis, 2005). Motherhood It is gradually more identified that the family perspective plays a significant role as well as can help to explain the social and economic differences. The gender differentiations are better described by the household characteristics. However, the household or family composition does not give the entire picture. Examining deeper into the characteristics of the family and its relationships are vital for an understanding of the women’s entrepreneurship. Recent investigation on the nascent entrepreneurs, which scrutinize the emergence of novel ventures, clearly includes investigation of the responsibility of household/family as a source for social support and resources. Thus, overt identification of the details of family dynamics, including uneven division of work as well as access to the household resources, which differentially influences access to the model 3Ms of management, money, and markets, is what that will be focused with motherhood symbol in the 5Ms framework. The two Ms will impose on women’s rights of capital, their access towards the resources as well as the recognition of their abilities (Cliff, 1998). Macro and Meso environment Macro environment is generally referred to national level laws, culture, economy, and policies; whereas meso environment is defined as support services, organizations and initiatives, and also includes industries. Industries could be differentiated in terms of representation or image and also in terms of professional segregation which might make it complicated for women in order to enter definite arenas of the business (Barrett, 1998). However, the researchers look beyond industry and market considerations and include the persistent embedded environment in the framework or structure. This is regarded as a clear acknowledgement of vital significance of institutional dimension upon the lives of the women (Kantor, 2002). The macro and meso environment can restrict the use of selection for the women entrepreneurs. The macro surroundings are efxogenous in the sense that it affects both women and men with the low economic authority but are susceptible for women because of the unequal gender relationships within class. It impacts on the gender socialization that encompasses a broad range of the decision making perspective. Meso institutions encompass business associations, occupational networks, etc. There is growing identification that social capital and networking activity plays a significant role in the female business possessors’ access to the financial capital (Carter et al, 2007). The Interconnection of five Facets In the 5Ms framework, ‘motherhood’ is placed at the centre in order to point out the significance of the position and role of woman in family, and also to represent the centrality of consequential gender awareness as well as scrutiny to the entire framework also (See Appendix 1). The letter M’HER symbolizes motherhood and places focus on the ‘gender as a method or process important to the business ownership (Mirchandani, 1999). The 3Ms i.e. management, money, and market; are represented with the help of Venn circles. ‘Market’ is revealed as encapsulating chance, the source for entire entrepreneurship. Entrance as well as continued existence in market needs management and money, which is reflected by the two circles in the bottom (See Appendix 1). These two are considered as enablers of the opportunity utilization. Surrounding the areas or circles is regarded as the all-including influences, which shape and mediate the other elements. Thus, for example at macro level, gender socialization and social norms can mediate M’HER through conditioning the family division of work, or market by the employments within which female predominate, or money by means of access to the external finance (Sen, 1990). At meso level, the mediating organizations could influence any of the remaining four M components. The continuation of sex-segregated systems could constrain access of women to the financial capital i.e. money, and also to the markets. In the same way, less number of females in the venture capital organizations might limit the access of women to private equity finances (Greene et al, 2001). The Disadvantage Theory The disadvantage theory suggests that the women entrepreneurs suffer from double discrimination in the place of work and society. It is referred to those who are barred from the leading mainstream economy because of the discrimination factor and therefore, they prefer self-employment above unemployment (Berger, 1991; Light and Rosenstein, 1979). This theory is used to describe the truth that minorities and immigrants frequently embrace the entrepreneurship as economic survival approach (Horton and DeJong, 1991). In this framework, the thought of the ‘survivalist entrepreneurs’ is initiated, referring to individuals who become freelance or self-employed in reaction to the urgent requirement to discover an autonomous means of employment, as they have no other choices in the conventional economy (Cooper and Dunkelberg, 1987). Discriminated and disadvantaged people frequently face resource limitations. The authors distinguished between ‘employment market disadvantages’ ensuing from nativity, gender, or racial discrimination not essentially related to individual’s productivity or group’s productivity on demand side as well as ‘resource or capital disadvantage’ on supply side (Haddleston-Mattai, 1995; Light and Rosenstein, 1995). Capital or resource disadvantage takes place when an individual or groups tries to penetrate the labour marketplace with lesser capital in terms of networks and human capital. Therefore, individuals or groups that face resource disadvantage as well as labour/employment market disadvantage will become industrialists in the marginal enterprises, for example those that work in informal economy (Boyd, 2000). Some authors argues that the result of those who are forced to engage in self-employment because of significant shortcomings are more unofficial or informal (Volery, 2007). Other advocates that this type of self-employment frequently indicates sole proprietorships as well as low equity, low income, small and sluggish growing enterprises (Heilman and Chen, 2003). Entrepreneurship Literacy Women rule the informal or unofficial segments of the economies, but they dominate the small section of formal sectors. Therefore, enhancing their engagement in entire sectors signifies a main step in the poverty reduction as well as in the greater economic development. This may possibly be attained if women will have entrepreneurship literacy. It had been found that there is little connection between the highest education level of women and their satisfaction with the business performance. So, there is a necessity to boost entrepreneurship literacy, particularly setting many entrepreneurship institutes that aim women specifically (Nmadu, 2011). Analysis Beverly Case Study The framework of 3Ms, 5Ms, entrepreneurship literacy, and the disadvantaged theory will be applied in the Beverly case study. Beverly was brought up in a traditional poverty stricken rural community in the United Kingdom in the 1950’s. Beverly’s mother put her entire effort to perk up their living condition. Gender Discrimination and Need of Gender-Aware Framework Beverly always faces gender discrimination from school to the workplace. In school, despite of having enough knowledge, she always acquires second position because the first is occupied by the boy. Instead of possessing adequate knowledge, she was unable to join college or university because she was always demoralised by her father and was never encouraged to join the college or to engage in the occupation. The reason behind this is her gender, because people think that men can only do well in all fields. Afterwards, she joined cafe as well as worked in the travel agent company but it also didn’t work for her. She was forced to leave the job because of some reasons. So, Beverly faced gender discrimination at every step but she never lost hope. This signifies that there is a requirement of gender-aware framework. Equality in each aspect is extremely important because women work as hard as men and therefore the female employees also ought to have same rights. Lack of gender-aware framework leads to poverty as most of the women remains unemployed despite having the enough knowledge for their job. When women do not encompass the same access to resources as well as equal opportunities to participate in the process of decision making then there are straight social and economic cost. These generally have consequences or costs for communities, their children, and countries. It has been also noticed that in spite of possessing adequate knowledge, Beverly was unable to join college or university and this highlights the requirement of gender-aware framework because poverty reduction and education go together. Therefore, this framework should be adopted in every organisation and equality must be encouraged to give equal importance to women and men. Analysis of 3Ms and 5Ms Framework Beverly possess adequate qualification so, she managed to get a job in the heath authority and she got placed in the personnel department and then ended up being the personal assistant to the chairman, which was really a great achievement for her. Motherhood: After getting married and having a child, she works as a part-time employee in order to pursue both her career as well as caring responsibilities. After having the second child, she had to quit the job as that was expected from the women at that time. 3Ms: 3Ms signifies the management, money, and market to set up a business. After quitting the job, she establishes her own business by selling the second hand equipment of baby. Being in the business, Beverly had the opportunity to continue working at the same time as taking care of her children. After three years of successfully running her business, the rent on her shop was about to end, so she again got the chance to return to the secretarial job. Though, this time Beverly found it little difficult to stay into the job. Macro and meso environment: It signifies that the organizations make it complicated for women in order to enter definite arenas of the business. These environments are susceptible for women because of the unequal gender relationships within class. Beverly was employed in a company as a junior reporter and it emerged as a lethargic place to work because there also, preference was given to men. She faced the gender issue several types in school as well as in the society. Analysis of the Disadvantaged Theory The disadvantage theory explains that the women entrepreneurs suffer from double discrimination in the place of work and society and this give rise to self-employment. Beverly faced double discrimination at the place of work after having her second child and forced to give up the job. So, she preferred to be self-employed rather than sitting idle and therefore she started her own small business of selling the second hand baby kits in order to carry on her livelihood. Working for other people make her feel disadvantaged as it does not fit her qualification, whereas working for herself allowed to become more imaginative and creative. Beverly was forced to involve in self-employment due to some shortcomings and therefore she can be viewed as informal and illegal type of entrepreneurship. It also signifies low equity and slow growing enterprise. Choosing to get self-employed may result in disadvantages of capital or resources for Beverly because of the lesser capital in terms of networks, and human capital. Entrepreneurship Literacy Entrepreneurship literacy is considered as the chief driver of social and economic development across the world. As discussed earlier, it had been highlighted that there is little connection between the highest education level of women and their satisfaction with the business performance. In this case, after returning to the secretarial work, Beverly felt that this job does not match to her qualification as she can do much better things according to her ability and skills. So, she enrolled to pursue her teaching qualification. Due to her adequate knowledge, she got the position of Principle Tutor at the government training institute. While continuing this occupation, she saw a prospect to establish a new business i.e. a computer training company. She convinced two female colleagues to join the business with her. So, all three of them gave up the training centre job and started the new business on their own capital. Entrepreneurship literacy is important because it involves continual learning in allowing the people to attain their goals in order to grow their potential and knowledge and also to participate entirely in the wider society and community. Entrepreneurship literacy will help Beverly to organise as well as manage its new business and will facilitate her to presume the risks which are associated with the business. Beverly is enough qualified to start up a new business, which she proved by developing her own business with her own capital and also expanded it into different industry sectors along with raising her three children as a single parent. As a whole, this represents the 5Ms framework in her, which means that she understands the market and manages the business with her own capital along with her motherhood characteristics. She didn’t get chance to go to the university but she always wanted to prove herself and she have done it by setting up her own business and running it successfully. Due to possessing enough skills and talent, she does not have to depend on other people to make any decision. Beverly enjoyed pursuing her own business because it gives her freedom of taking her own decision and she do not need to rely on others for any suggestions. She was highly literate and therefore she enjoys taking responsibilities and putting more efforts in her business. Beverly’s experience of being a Woman in Business According to Beverly, women are well structured or organized in all fields. Women can engage in several things at a time, so they can multitask and due to this reason they are considered as a valuable asset of the company. It is not about gender; it is about who one is and it only requires anyone to believe that they can make things happen. Beverly believes that it is not difficult to start s business. The only thing require is to have dedication and motivation towards own work and efforts. Anyone can achieve anything just by having determination and faith in oneself. Evidence of Women in Business It is well known that women make major contributions in the business and this will be proved by means of different real life evidence. It has been a pioneering year for women in the business. IBM appointed their first female Chief Executive Officer; Sheryl Sandberg led the Facebook through much-predicted IPO, as well as Marissa Mayer moved from the position of Google Executive to the seat of CEO at Yahoo (Forbes, 2015). Kathrin Winkler, who is the sustainability officer at EMC, the IT Company, explains that women are regarded as better sustainability leader, and the gender doesn’t make any difference. The only thing required is the leadership quality with the positive attitude towards the work (The Guardian, 2015a). For almost sixteen years, Fortune has categorised the most dominant women in the American business. The women are making most progress in some regions such as Asia-Pacific, Africa, the Middle East, and the Europe region. Most of the businesswomen are getting tougher jobs as well as managing bigger firms (Arora and Fry, 2014). It has also been found out that the scarcity of women in the leading position is hurting the energy sector. The utilities and the global energy sector were not performing well for the past few years. This is because the need of gender diversity in the senior leadership position is holding back the innovation (The Guardian, 2015b). From this, it can be estimated that there is a need of women executives at the top positions in every business. Conclusion The background of the entrepreneurship of women is gendered terrain. The 5Ms structure is placed forward in order to conduct the study of entrepreneurship of women as well as encourage theory building. The focus has been given on various implications and dimensions of the other two Ms, and therefore the possibility for further investigation on women’s entrepreneurship is considered. It has been clearly recognized that the institutionalized social arrangements at the macro and meso levels could have a considerable impact on entrepreneurship of women. The women with great commitment towards their family are less expected to interact in industry/financial/market networks, probably affecting the development prospects of venture. The women entrepreneurs who suffer from double discrimination prefer self-employment above unemployment. Entrepreneurship literacy is the major driver of social and economic development across the world and this has been proved by the help of various examples. As the basic literacy is essential to curb poverty, in the same way entrepreneurship literacy is also important to help the women entrepreneurs to grow their business and to become active member in their own areas. Reference List Anniken, F., 2013. Female Entrepreneurship in a West African Context: Network, Improvisation and Dependency. Journal of International Women’s Studies, 14(3), pp.1-3. Arenius, P. and Kovalainen, A., 2006. Similarities and differences across the factors associated with women’s self-employment preferences in the Nordic countries. International Small Business Journal, 24(1), pp.31-59. Arora, R. and Fry, E., 2014. The Most Powerful Women of Europe, the Middle East and Africa. [online] Available at: < http://fortune.com/2014/09/18/most-powerful-women-emea/> [Accessed 20 February 2015]. 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Effects of childcare activities on the duration of self-employment in Europe. Entrepreneurship Theory & Practice, pp. 467-485. Appendices Appendix 1 (Source: Brush, Bruin and Welter, 2009) Read More