Entrepreneurship A Better Understanding Commerce Essay

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The true entrepreneur is a doer not a dreamer Bushnell, 1943. It is an undeniable fact that in this 21st century, the term entrepreneur and entrepreneurship are gaining more and more importance worldwide. Not only, male entrepreneurs are satisfying societies needs and wants efficiently but female entrepreneurs as well are proving the world about women leadership skills. The societies, the government along with support institutions are striving hard to enhance the image of entrepreneurship irrespectively of gender differences. However, even if entrepreneurship sounds easy, Horwitz (2012) stated that the hardest part about an entrepreneur is that failure is ten times greater than success.

Focusing on women entrepreneurs, it is a very up to date issue. Women are no longer prisoners of the orthodox life style; they are leading a much better life in all prospects. According to an article, "Some facts about female entrepreneurs'' (Anon, 2010), it is stated that women initiate business activities as a second or third occupation and they leave no stone unturned to prove their management skills.

Even though, women entrepreneurship is becoming popular, it still remains a fact that male entrepreneurship is still dominating the world. Hence, it is one of the reasons why support institutions act as a facilitator to bring businesswomen at an equal level to businessmen. The institutions are usually supported by the concerned state or private support institutions are set up to help women better in management skills. So along with female entrepreneurship, support institutions also are having wider interest globally.

In this study, various literatures have been referred to and theoretical, empirical, frameworks and others types of researches have been used in the works of the scholars. Hence by considering these factors, a better understanding about the literatures focusing on women entrepreneurship can be attained.

1.1Entrepreneur and entrepreneurship- a better understanding

In this contemporary society, the thought of entrepreneurship itself brings famous images of Bill Gates, Mark Zuckerberg, Steve Jobs and others to mind (Baron, 2012). Schumpeter (1883-1950) describes entrepreneurs as the ones who are not only influenced by profit motive but consider it as a medium to measure success. The following are the qualities that entrepreneurs possess; independent, optimistic, accept challenges and struggle hard for success. In addition, authors classified into three parts- an individual or a team, innovation and an act while considering the dimensions of entrepreneurship which give a complete definition of entrepreneurship. The first factor- an individual or a team is defined by Holt (2001) as someone who is determined to work hard and do efforts with the mindset of being successful while being controlled emotionally. Innovation, according to Drucker (1909-2005) was described as someone who not only start a business but who also possess the creativity instinct. The third factor- an act was clearly illustrated by this quote '' Entrepreneurs are people who are not astute at identifying opportunities but who will actively do something to capitalise on them" (Schaper and Voley, 2004)

It is a fact that entrepreneurship is a very debatable issue since it has multi-faced perception. Baron (2012) relates it to a query focusing on fortune, fame, personal achievement, helping the society or all of these. Since it is very mysterious, different scholars hold different views of this term. Firstly, Stokes and Wilson (2006) argue that an entrepreneur is any individual who initiate trade and entrepreneurship is mostly related to small businesses. Some scholars focused on "opportunity-recognition'' factor while describing entrepreneurship. Hence, "Entrepreneurship is the process by which individuals- either on their own or inside organisations pursue opportunities without regard to the resources they currently control'' Steven and Janilo(1990).

Schaper and Voley (2004) opposed against definitions emphasising only on individuals, however he proposed to merge the likelihood of opportunities and characteristics of individuals to the term of entrepreneurship even though it is accepted that entrepreneurship can have several meaning.

Entrepreneurship is a very primordial industry since it is not only an issue of female and man entrepreneurship but also the young entrepreneurs are giving it a new meaning as internationally more and more young people are favouring entrepreneurship.

1.2Why entrepreneurship

Not only, because there are more support institutions to help women to venture into business activities but also the fact that there are other reasons to shift towards entrepreneurship. "Entrepreneurship is the last refuge of the trouble making individual" Barney (1876-1972). Different authors owned different opinions. The desire to earn own income, achieving success and fame, helping the society, enjoying independency or possessing entrepreneurial instincts are the reasons determined by Baron(2012) to engage into entrepreneurship.

While according to the Global Entrepreneurship Monitor (GEM) (2012), opportunity or necessity is the two reasons identified to start business. As mentioned in the works of Baron(2012), most of the reasons are the same while additional reasons identified are unemployment or redundancy by other authors.

Even though entrepreneurship seems to be very easy, it has many challenges to overcome. Emerson (2009) added security, frustration with actual work or career in general, a desire for investment to the list. Moreover, economic crisis which led to high rate of unemployment worldwide, it has been one of the major reasons identified for people to indulge in their own businesses.

1.3Female entrepreneur v/s male entrepreneur

As mentioned before, it is a fact that male entrepreneurs are still enjoying leading part worldwide while women are still lagging behind in this particular field. A study by Kepler and Heights, (2007) revealed certain findings such as differences in the reasons, occasions, enthusiasm and objectives of initiating a business between businessmen and businesswomen. However, men were defined as true fighters towards entrepreneurship.

A summary about the differences between them according to (Brush,1992; Fischer 1992;Rose et al.,1996,Sexton and Bowton-Upton, 1990; Van Stel 2003; and Verhuel et al., 2004) showed that the capabilities of taking risks, the method of business, the identification of business opportunities, the size of businesses, the challenges and the main objectives differs enormously.

Verhuel et al., (2004) concluded that men spend more time in the development of their business compared to women. Furthermore, female entrepreneurs are found to be the owners of small businesses (Kallerberg and Leicht, 1991), however, the reason behind it is because women set up with small amount of employment and finance as well. (Brush,1992; Carter et al.,1997)

Men and women, having different characteristics, they also venture in different types of businesses as well. Most female entrepreneurs are found in personal services delivery businesses compared to men who are more likely to be in high technological and production concepts (Anna et al., 2000; Brush et al., 2006). Furthermore, women are less prone to bear risks, they always venture in activities which are less risky hence demanding less funds which is one of the main issues for most businesswomen.

Women, being emotional in nature , they are prone to seek support from friends, relatives, government or support institutions in most of the cases to achieve better enhancement. However, men face less start-ups problems despite the lack of help from others (Kelper and Heights, 2007).

However, even though female entrepreneurs are still striving , according to GEM , a study in 2002 among the GEM countries , Thailand, India, Brazil are among the highest rated levels of entrepreneurship while France, Hong-kong, amongst others are those having the lowest rates of entrepreneurship.

It is still a very challenging field, however, the new generation is heading towards an equal footing concept, hence women will be less likely to undertake only easier or less-burden tasks and they might indulge in challenging activities like men. Studies have shown that women will not leave any stone unturned in being successful in entrepreneurship in the future.

Referring to an article (Anon, 2010), it was stated that even a down-size rate of businesswomen compared to male entrepreneurs is observed worldwide. In the United States (US), females are the pillars of the economy as over 9 million women are engaged in entrepreneurship. It is estimated that the percentage of female entrepreneurs can rise from 40 per cent to over 55 per cent by 2025 and this has been estimated by the United States Bureau. The world as well might soon follow the trend as US and hence experiences an enhancement of this issue soon.

1.4 Female entrepreneurs

It is a fact that women indulging in business activities are a growing issue. They are making optimum opportunities to prove themselves. Hence according to the articles of "Some facts about women entrepreneurs", (2010) internationally, women are ruling one-third of entrepreneurial activities. Moreover, not only, women from a higher literacy level, but those from low income earning countries are also found interested to become leaders.

1.4.1 The need for female entrepreneurs

Brittingham (2011) argued that women can make a difference to the world by indulging in entrepreneurial field. It was further discussed that to become an entrepreneur, it does not necessary mean to become a transfer in the corporate traditions, hence women are found to be creatures of different personalities since they are experts for collaboration, passionate, optimistic, amongst others. That is why. Dalai Lama (2009) claimed that western women are the rescuers of the world, hence a strong statement to encourage women.

Furthermore, Brittingham (2012) supports women by stating that they have the ability to build a better future for the upcoming generation as well with their skills of being sustainable and passion. It was further debated with this quote "the female brain works differently than the male brain in a few critical aspects- some of which are related to nurturing, care and collaboration".

Since, women have a package of skills for consistency in the decision - making process, this makes them more demandable on the job market. Sumanthi (2010) also concludes that for a better and sustainable world, the empowering of women is primordial. In India, Thamaraiselvi(2007) stated that media is promoting women to be more informed about their own rights, capabilities and opportunities on the job market. Nowadays, job seekers are turning into job creators; hence, female leaders should take maximum use of these opportunities.

Not only, because women are still behind globally but also it is high time to break gender discrimination which can result in demanding the need of female job creators. (Brittingham,2012). However, according to Joone and Wadensjo(2008), using qualitative research, female entrepreneurship is known as a growing corner compared to businessmen as there are growth in small firms as well. (Cowling el al.,2004).

1.5 Support institutions

In the light of the above, since ladies face more difficulties in establishing their own business, it has created the need for the emergence of institutional support for the following reasons; to create women's entrepreneurial network, to go for growth and expansion, to be profitable and create sustainable enterprises (British Association of Women Entrepreneurs, (BAWE), 2012).

A research by Stevenson (2004) shows that countries contributing in enhancing the status of women through different approaches like support institutions have a higher rate of businesswomen compared to others. Moreover, in the work of Drine and Grah (2010), mostly the developed countries already showed concern about the usefulness of businesswomen associations.

1.5.1 Roles and effectiveness of empowering women associations

Konayuma (2007) states that support institutions should provide the following facilities- firstly conducting training programmes relating to entrepreneurial management abilities mostly focusing on human resources management, marketing, business performance skills, amongst others. Facilitating business networks among themselves is also essential. Conducting particular training programmes in specific areas, monitoring newcomers in the business world, helping different segments of businesswomen also form part of the role of these associations.

According to an article (Anon, 2010), a systematic mapping of the support framework focusing on the factors of women's enterprise development has been used for the study which illustrates the following; the associations related to women empowerment are also established for the co-ordination of business development, hence through these single body associations, all necessaries are being done to help women. On this prospect, advices about regulations and other legal matters are also handled with care by these institutions; this is done while aiming to reduce all types of complicated issues related to the administration process. In this article, the support of Small and Medium enterprise (SME) is to be linked with these associations in order to reach the businesswomen easily, the link between other business institutions whether public or private are also found to be under the roles of the association.

All these show that offering counselling and training benefit are not only the tasks of institutional support for female entrepreneurs.

Sheikh and Steiber (2002) describe the main concern of support institutions as the action of bring equality for businesswomen in the society hence, focusing on an equal-footing attitude in the world of business as well. On this aspect, almost all needs of women in the adventure of business are viewed and solutions help are considered by the associations. Evaluation of the programmes being offered is made, hence there is no stone left unturned to prove the effectiveness of the support institutions.

It was also illustrated by Groot (2001) that for the promotion of empowering women associations, a great need of awareness projects should be made accessible. The collaboration of media, the state and the institutional as well should focus on awareness campaigns. Promotional tools such as media, schools campaigns, role models and specific training are the ways found to create awareness.

Based on typological studies, Groot (2001) while evaluating the institutional support factor came across the fact that private and public associations fail to apply certain policies such as establishing gender-based rules and regulations. Moreover, through the studies, there was a need to better progress and better result. For an effective functioning of these associations, it was recommended, the programmes being offered should always be cross-checked, to be up-dated with the changes world-wide. It was also noted that the associations in some countries were not establish for the creation of women entrepreneurs but they mostly act as a medium to prepare women on the industrial world, hence applying helping them to seize opportunities and combat difficulties.

1.6 Challenges of businesswomen

Women have always undergone through hardship in any thrives; the business market as well is not an exception. Many challenges came across female entrepreneurship. Dr Chan (2010) explained that even though in countries where supports are been given to women in entrepreneurial activities, however in some countries, women are still aware of their rights and are not allowed to become independent.

While in some countries even though focus is being put on such women, still there are certain barriers towards the ladder of success. (United Nations,2006). Having different characteristics compared to men also lead them to come across more difficulties compared to businessmen (Kantor, 1999). It was further argued that the challenges encountered are the reasons of failure in women business activities.

In the work of Okafor and Amalun(2010) the following barriers are cited by using a conceptual framework ; lack of financial support , lack of experience and competencies, inexistent records and opportunities, cash problems, little prospects towards moral supports, sales and productions, lack of capabilities, communications barriers, little concern in the society and no role models. Mayoux (2001) and United Nations (2006) added cultural barriers, no motivations and crime rates and issues such as government incentives and employment to the factors.

Women are divided and entitled as 'better-off and low- income women' by Gould and Perzen (1990). And as criticised, the 'better-off women' encounters absences of education towards entrepreneurial activities at home, schools and the community at large. Gender discrimination, orthodox beliefs, no confidence, beliefs which include that only men are the market leaders are among the other challenges these types of women face.

Focusing on the other part' low income women', challenges such as limited savings, longer time hours, no education, difficulties in finding loans , lack of skills and competencies , poverty , cultural differences. To support this issue, even though there is a rise in the business world, it is difficult to accept that 88-93% of female owned businesses are not indulged in exporting activities since they have to come across many barriers. (Ando and Associates, 1988 and Kizilaslan,2007).

Women involving in business activities as a necessity factor face difficulties in gaining confidence, hence it is in itself a time consuming factor to make marketing. (Kurtanis and Bayracktarogh,2003). One of the major challenges are definitely no management skills and competencies in the business world. (Kuratko and Hodgetts, 1995).

In addition, Ulusay (2001), women do not have the same rights as men in every societies and it is a fact that they lagged behind in the contribution of the economy. Efforts are required to help women in order to make them more competitive, training is provided to make them for the creation of better income and production. Advances in technologies and globalisation changes also affect women to be able to compete more effectively.

In the works of Kepler and Heights (2007), an entrepreneurial dynamics framework has been referred. Hence, start-up problems were mostly classified as follows; since there are more regulations concerning women in the society, the lack of role models and other burdens associated compared to men. Also according to Brush (1992), the response towards role models is one the reasons for failure as it leads to lack of seriousness towards businesswomen while Stoner et al., (1990) state the family responsibilities as the starting up barriers of businesswomen. Sumathi (2010) added market-oriented problems in terms of competition, non- motivational elements, no facilities for resources and finance problems to the list of constraints.

1.7 Motivational factors to embark on entrepreneurial activities

"Act as if what you do make a difference,It does"-William James (1842-1910). It is an undeniable fact that there are many factors promoting women towards businesswomen associations and also willingness to indulge in entrepreneurship.

Thamaraiselvi (2007) clearly depicted opportunities which institutions in India offer are undoubtedly motivational factors. Training programmes offered to those who want to set-up business, a desirable environment which involves giving advices, information about finance facilities, resources are also available.

A conceptual framework was used in the work of Okafor and Amalu (2010) to explain better the factors since motivation reasons differ. Bartol and Martin (1998) divided some of these factors into three parts- personal qualities, life-path situations and environmental elements. While Shapero et al., (1986) divided these characteristics into push and pull factors. The former is known as one of the main reasons which motivate women. Some examples of push factors are unemployment, frustration previous job dissatisfaction. However, the latter comprises of reasons such as liberty, security, stability, amongst others to indulge into business activities.

Opportunities towards growth and expansion, profit motives are the reasons according to Carland et al., (1984). Moreover, the push and pull factors were explained as personal achievement, pride and respect, combat the gender differences, loss of job , just to mention a few in the works of Ivancevich et al., (1997). Taylor (1988), Fierrman (1990) and Zellner (1994) came to the conclusion that for the sake of a balanced lifestyle between family and work is one of the main reasons promoting women entrepreneurs.

Bartol and Martin (1998) shows that social factors such as the literacy level , job and family background, the living environment also play a primordial role in influencing women in becoming businesswomen. Being a very debatable issue in the works of Parboteeach (2000), the factors were divided as the owner's background, characteristics and environment. On the other hand, Bird (1988) and Jones (2000) view them as personal and contextual factors which comprise of knowledge, competencies, skills and the PEST factors.

Okafor and Amalu (2010) having different views state that motivational elements are key elements in finding the type of challenges women come across. Hence, these help to know better about solutions and barriers associated in entrepreneurial activities. This illustrates that women faces challenges since there are no preparation from their part. Through motivation, challenges can be identified and handled as well.

Brush et al., (2006) stated that people indulge in business activities for various reasons and the motivations reasons also varies between men and women. Women are firstly seen to set-up a business for a balance living. Flexibility, parenthood and managing family- life are also discovered as the reasons pushing women towards entrepreneurship. (Boden,1999; Carter et al., 2003 and Birley, 1989).

Focusing on this issue itself, referring to an article (Anon, 2010) the passion women have for their work is incomparable. Since, businesses require risks, there is no doubt that women are true risk-takers and they do possess the creativity factor which is very demanding in business market. Being one's own boss is also another issue found and women feel proud to be job creators and indulge in the sustainable development of the economy.

Similarly, the motivations factors for starting a business according to Kepler and Heights, (2007) were based on four different elements identified; to be one's own boss, for income purposes, more flexibility and other reasons. These were measured by a factor analysis hence determining that these are the major reasons to end up in entrepreneurship.

Women have proved to be great leaders for instance, Indira Gandhi. Hence being motivated is a key point in order to survive and combat the world by proving that women can be placed on an equal-footing to men in entrepreneurship as well.

1.8 Summary

A better future is predicted for women entrepreneurs. There has been an enormous effect on the pull and push factors since there are more businesswomen. (Wagner,2005, Caliendo and Uhlenddoff,2007). As a summary, Taylor and Newcomer (2005) focused on the three business entrepreneurs namely the 'River of Time' model, which states the management of stress compared to personal living. Secondly, the integrated perspective model, which shows the determination elements between both personal and professional commitment. The psychological factors which influence women towards entrepreneurship are known as the third model. If women become independent, it will lead to a progress towards the inequalities which exist between men and women. (Roy and Tisdell, 2005). The models clearly state the power women have. Groot (2001) states that the institutional frameworks through the services provided have a great impact on women who are likely to end up in entrepreneurship. A high amount of costs is involved in the activities set for these women. Moreover, support institutions bearing enormous costs should also help the businesswomen in assistance and give other supports when needed. Hence, these define better the effectiveness of businesswomen towards entrepreneurship.