Skip to main content
Part of complete coverage on

Where are all the women entrepreneurs?

By Donna Kelley, Special to CNN
updated 9:54 AM EDT, Fri April 13, 2012
STORY HIGHLIGHTS
  • The number of women running businesses in the world is about equal to the population of Brazil
  • Women are more likely than men to be dissuaded by fear of failure and to doubt their capabilities
  • Mentors and role models would help grow confidence, says expert Donna Kelley

Donna Kelley is an Associate Professor of Entrepreneurship and the Frederic C. Hamilton Chair of Free Enterprise at Babson College in the United States. She leads the Global Entrepreneurship Monitor's U.S. team and coauthored the GEM 2010 Women's report. Follow GEM on Twitter at GEMNOW.

(CNN) -- Consider who comes to mind when we think of entrepreneurs. Does a day go by without mention of Bill Gates, Mark Zuckerberg or Richard Branson in the media? While admirable, these men are not accessible, especially to women.

Women are as likely as men to think entrepreneurship is a good career choice, that entrepreneurs have high status, and are represented positively in the media. So why do they admire this endeavor from afar, but think they are less equipped to do this?

A study of women entrepreneurs released last December by the Global Entrepreneurship Monitor (GEM) found an estimated 187 million women starting and running businesses in 59 economies. That's a lot of women entrepreneurs -- about equal to the population of Brazil.

Entrepreneurs provide the majority of new jobs ... We should be concerned when any group is excluded from this activity
Donna Kelley

Yet this pales in comparison to the number of men running businesses. In only one of the 59 economies (Ghana) were there more women than men entrepreneurs. Of the other 58, a handful had equal participation among the sexes, but the majority showed fewer women entrepreneurs than men -- with a ratio as low as 1:5 in South Korea, meaning there were five male entrepreneurs for every female entrepreneur.

The biggest concern right now for policymakers centers on job creation. When people have jobs, society thrives, both economically and socially. Entrepreneurship plays a major role in job creation -- it is high-growth entrepreneurs who provide the majority of net new jobs in a society each year. We should be concerned when any group in society is excluded, even in part, from this activity, and when those participating tend to shy away from higher potential ventures.

Films take on media portrayal of beauty

Why aren't there more women entrepreneurs? One explanation, revealed in the GEM study, centers on attitudes. Fewer women than men believe there are lots of opportunities for entrepreneurship and that they have the capabilities for this endeavor.

Women are also more likely than men to be dissuaded by fear of failure. In wealthier countries, where entrepreneurs face more competition and markets are more sophisticated, the gap widens. It may stem from less awareness, training, or experience with entrepreneurship, but a seeming lack of confidence in one's capabilities and an aversion to failure is disconcerting.

In addition, women are less likely to know an entrepreneur personally. Their inner circle of advisors is smaller, less diverse, and more often made up of family, spouses, in particular.

What all this suggests is that women need more entrepreneurial role models, for one. This is happening in Brazil, Sweden and even Iran, where women entrepreneurs, even those in traditionally male-dominated fields are celebrated in the media and given recognition for their accomplishments.

Dr. Rehana Kassim is the owner and founder of Rehanstat Sdn Bhd, which offers customized market research for an extensive list of public agencies and private companies. She is a role model in her home country of Malaysia. Yet her story, and those of other successful women entrepreneurs, are scarcely in the public eye.

Top female chef's recipe for success

Other elements include training and guidance, as well as connecting women with other like-minded entrepreneurs to share experiences and provide support and advice. Programs like the Goldman Sachs 10,000 Women project are providing women with training, networks, and the confidence to grow their businesses. In Ireland, the Going for Growth initiative holds roundtable discussions for women entrepreneurs, led by female mentors who have successfully grown their businesses.

What remains a challenge, however, is infusing these positive attitudes across societies. Women entrepreneurs need people willing to invest in their businesses. They need families that support their ambitions, customers willing to buy from them, suppliers willing to work with them, and employees willing to work for them.

When stakeholders such as these, and their societies as a whole, embrace their efforts, their economies can benefit from the ideas, the creativity, and the energy of half their population.

ADVERTISEMENT
Part of complete coverage on
updated 12:19 PM EDT, Tue April 1, 2014
In 2007, Arianna Huffington collapsed at her desk. Suffering from a broken cheekbone, the editor-in-chief decided to change her workaholic ways.
updated 12:23 PM EDT, Fri April 18, 2014
Meet Mo Abudu, the talk show host portraying a very different Africa. As a glamorous presenter, she also heads up Ebony Life TV network, based in Nigeria.
updated 8:16 AM EDT, Fri April 11, 2014
Their job is capturing the most horrifying images on Earth -- keeping their eyes open, where others must look away. Meet Kate Brooks and Gerda Taro, the war photographers of today and yesterday.
updated 2:19 PM EDT, Tue March 25, 2014
Gloria Steinem speaks onstage during Equality Now presents 'Make Equality Reality' at Montage Hotel on November 4, 2013 in Los Angeles, California.
As Gloria Steinem turns 80, Kathleen McCartney highlights the remarkable life of the feminist so far.
updated 11:32 AM EST, Sat March 8, 2014
CNN hosted a Tweetchat on gender equality with special guests including Nobel Peace prize laureate Tawakkol Karman. Here's what you missed.
updated 6:59 AM EDT, Thu March 13, 2014
From shaving her head for climate change to opting for a sustainable business model, Vivienne Westwood is simply unstoppable.
updated 11:02 AM EDT, Wed April 2, 2014
In what would be a dream come true for her alter ego, Carrie Bradshaw -- Sarah Jessica Parker has turned her love of fashion into a new shoe range with Manolo Blahnik.
updated 10:39 AM EDT, Wed March 12, 2014
The Facebook COO's latest headline-making action is a new "Ban Bossy" campaign, which aims at getting rid of the word "bossy."
updated 10:17 AM EDT, Tue March 18, 2014
Meet Gail Kelly, the woman who started as a bank teller -- and now runs the banks.
updated 12:46 AM EST, Thu March 6, 2014
What kind of politician is slashed in the face with a knife, and upon waking up in hospital the first thing they ask about is the election campaign?
updated 11:50 AM EST, Wed February 26, 2014
Former U.S. State Deparment Anne-Marie Slaughter says Brad Pitt is 'posterchild for engaged fatherhood'.
updated 10:25 AM EST, Tue February 25, 2014
Cast your eye across a line-up of world leaders and it might look a little something like this: Man in dark suit, man in dark suit, man in dark suit, Angela Merkel in fire engine red two-piece.
updated 8:21 AM EST, Tue February 18, 2014
Meet Margarita Louis-Dreyfus, the chairperson of French commodities giant Louis Dreyfus Holdings, with a net worth estimated at an eye-watering $6 billion.
updated 6:38 AM EST, Mon February 17, 2014
YouTube has a new boss and she has a "healthy disregard for the impossible" -- according to Google CEO Larry Page. Here are five things you didn't know about her.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT