Woman and Entrepreneurship Professor, Dr. Corinne B. Young The University of Tampa Wirtschaftsuniversität Wien May 14, 2002

Layout of Workshop A Changing World What is Entrepreneurship? Some Facts on Women in Entrepreneurship Reasons for Women to Start for their Own Characteristics of Women Entrepreneurs Women Business Associations Entrepreneurship in Europe Entrepreneurship in Austria Discussion/Questions & Answers

Goal of Workshop Provide a general understanding of Entrepreneurship Give insight in the role of women in Entrepreneurship Entrepreneurship in a global environment Overview Women Business Associations

A Changing World 20 th century was the women century Women became members of the workforce Woman are an emerging economic force Important social, political and cultural changes Changes in today’s world have created economic opportunities for woman who want to own and operate businesses

What is Entrepreneurship? Entrepreneurship is the process of creating value by bringing together a unique package of resources to exploit an opportunity The pursuit of an opportunity without regarding resources Entrepreneurs are innovators, job creators, providers of economic security

Some Facts on Women in Entrepreneurship 70% of people consider self-employment in the US – EU this is 50% Although women make up half of the population in Europe, they own less than a third of small businesses 4 out of 10 women business leaders are involved in international marketplace Business ownership by women is on the rise

Women Entrepreneurship is on the Rise Region Africa 3550 Asia/Pacific Eastern Europe L.A./Caribbean Western Europe World Source: UN, 1995 Ratio of women to men of total business owners)

Reasons for Women to Start for their own Self-determination Career challenge Glass ceiling Respect, recognition, self-esteem Take opportunity of a good idea More independence needed Out of job/Not being satisfied with current job Though major barrier: Access to capital

Characteristics for Women Entrepreneurs Highly motivated and self-directed High internal locus of control and achievement Risk-taking propensity Focus High energy level Personal motivations

Women Business Associations Women’s business association can teach how to play the international game Help identifying appropriate and/or emerging sectors for women entrepreneurs Others: – Business, technical, technology, international trade training – Marketing services, legal assistance, psychological counseling, social welfare programs – Business plan development, market/partner identification, negotiation assistance etc Approximately 700 women’s business organizations are registered in the US alone Women’s EntrepreneurShip (WES)

Women’s EntrepreneurShip WES Goals Raise the visibility of existing women entrepreneurs Create a climate that is favorable to women entrepreneurs Increase the number of new women entrepreneurs Increase the number of existing women running businesses

Entrepreneurship in Europe Many differences in each country Key factors for entrepreneurship: Funding, People and Business environment Funding: 1. France, 2. UK, 3. Austria, Netherlands, Spain People: 1. Italy, 2. Belgium, 3. UK Business environment: 1. UK, USA, 2. Spain.

Europe’s most Entrepreneur- Friendly Countries CountryScore UK1 USA2 Spain3 The Netherlands4 France5 Germany6 Belgium7 Italy8 Austria9 Sweden10 Source: Andersen, 2001, Not just peanuts (

Women Entrepreneurs in Europe Self-employment: men 75% Women are seriously under-represented amongst entrepreneurs Women tend to wish to borrow smaller amounts than men Women tend to make less use of information and advisory services

Women Entrepreneurs as Percentage of Total

Entrepreneurial Boom in Austria Austria joint the European Union Beneficial corporate tax structure – Corporate income tax is close to European average (40.2%) – No capital gain tax (unlike most other EU countries Government sponsoring, Business Angels Boom in Venture Capitalist Funding

Austria’s Entrepreneurial Sprit Impact socialist government – Established tight social security net – Development of broad middle class – Less positive impact on entrepreneurship Limited access to public markets

Considerations Literature, research and statistics on female entrepreneurs is lacking

Discussion Questions and Answers