Part 1:
Conceptual Understanding of Woman Entrepreneurship in Developing Economies
Chapter 1
Women Entrepreneurship Footprints: Some Introductory Reflections from Emerging Economies Prospects
Shahamak Rezaei, Jizhen Li, Shayegheh Ashourizadeh, Veland Ramadani and Shqipe Gërguri-Rashiti
Abstract
Women Entrepreneurship has received increasing attention over the past decade. In particular, a new area dealing with women entrepreneurs in the developing societies. The aim of this study is how is women entrepreneurship in developing economies? More specifically, we are excavating various questions at the individual and institutional level. The results of this study contribute to understanding the importance of the context on women entrepreneurs’ activities. Additionally, it systematically provides a comprehensive framework at multilevel analyses to cover all aspects of women entrepreneurship in developing countries. Ultimately, knowing women entrepreneurship in developing countries helps policymakers provide a firm ground for self-employment of women.
Keywords: women entrepreneurship; developing context; culture; entrepreneurship barriers; female entrepreneurial activities; analytical Levels
JEL Classification: B21; L26
Introduction
Earlier twenty-first-century scholars have tapped on women entrepreneurship in the United States and Europe (Brush, 1992; De Bruin, Brush, & Welter, 2006; Hughes, Jennings, Brush, Carter, & Welter, 2012). In this regard, publications try to explore women entrepreneurship at the individual, organizational, and environmental levels (Brush, Carter, Gatewood, Greene, & Hart, 2006) and compared women entrepreneurs' resources, such as human and social capital, and their performance with their counterparts (Wadhera & Koreth, 2012). Studies have also investigated the propensity of women engagement in the entrepreneurial process in different countries (Minniti & Nardone, 2007; Terjesen, 2004) and how they overcome barriers to entrepreneurial activities (Fielden & Davidson, 2005). During the last five years, frontiers in women entrepreneurship have noticed the stimulating effect of context and ecosystem on women's entrepreneurial activities (Manolova, Brush, Edelman, Robb, & Welter, 2017). Also, how it may enhance or impede their performance (for example, Guelich, Bullough, Manolova, & Schjoedt, 2021; Birkner, Ettl, Welter, & Ebbers, 2018; Blackburn, Hytti, & Welter, 2015) in developed countries like the United States.
Though the literature has advanced our knowledge in women entrepreneurship in developed countries, there is a paucity of research in developing countries (Yadav & Unni, 2016). There are 137 countries with a GNI of US $11,905 or less that are counted as developing countries and carrying 90%+ of the world's population, and half of this population consists of women. (Singhal & Khadilkar, 2014). Worldwide experience advocates that economic growth will happen through more substantial support for women to contribute to the economy. Thus, it is merit to investigating women entrepreneurship in developing countries for two reasons:
(1)Over 163 million women pursue entrepreneurial activities worldwide (Global Entrepreneurship Monitor, 2017), which shows women entrepreneurs' significant contribution to the economy. Recent reports on women's entrepreneurial endeavors (Global Entrepreneurship Monitor, 2017) have revealed that women's Total Entrepreneurial Activity (TEA) rate has increased in all 74 countries. The Global Entrepreneurship Monitor (GEM) has reported the highest rising-rate women's role in TEA in developing countries by 15.1% in 2017–18. Women have surpassed men's TEA in developing regions such as Asia (Philippines and Vietnam) and Latin America (Mexico and Brazil), where the gender gap is an institutional challenge.
(2)Developing countries are a matter of interest since their context includes traditional, incomplete, and unstable institutions (Gaur, Kumar, & Singh, 2014) that affect entrepreneurial activities and entrepreneurs' behaviors. However, prior research has not unveiled the impact of such institutions on especially women entrepreneurs and how they face various challenges that are different from developed countries (Coad & Tamvada, 2012; Manolova, Carter, Manev, & Gyoshev, 2007). For instance, how women entrepreneurs struggle with these institutions and construct new values and structure in those societies (Ahl, 2006) to achieve success is yet unknown.
However, very few studies have considered this category. One of the closest research studies is the book on Female Entrepreneurship in Transition Economies, edited by Ramadani, Gërguri-Rashiti, and Fayolle (2015). Other works are about solo-country cases; for instance, some scholars have come up to publish books about countries like India (Jamil, 2019), China (Sun & McLean, 2019), and Iran (Sarfaraz, 2017). Though studies have improved our understanding of women entrepreneurship in developing countries, it lacks comprehensive research to give insights into women's entrepreneurial behavior and understanding to policymakers to design and deliver initiatives that truly exploit women entrepreneurs’ economic growth potentials.
Thus, the purpose of this book is to investigate women entrepreneurship in a multilevel analysis. We are about to answer the general research question that How is women entrepreneurship in developing economies? More specifically, we are excavating various questions at the individual and institutional level. Fig. 1.1 illustrates some of the specific research questions at each level.
Fig. 1.1. Women Entrepreneurship in Multilevels of Analysis.
At the individual level, understanding the nature, aspirations, human and social capitals, psychological derivers, and barriers in such societies may help us to explain the high rate of entrepreneurial activities among women in developing countries.
At the institutional level, drawing upon the institutional view (North, 1990), which consists of formal and informal institutions, it is interesting to know how different policies, rules, and regulations in developing countries affect women entrepreneurs’ outcomes and overcome difficulties hindering institutions.
We believe that working on women entrepreneurship in developing countries is an excellent opportunity to contribute to this field. First, it sheds light on women entrepreneurship in a new context that has been called for research by scholars in women entrepreneurship (e.g., Jennings, Jennings, & Sharifian, 2016; De Bruin et al., 2006). It also provides an opportunity to comprehensively study women entrepreneurship and enable scholars to compare and contrast among different countries and explain the psychological, sociological, and institutional mechanisms that enhance entrepreneurship among women in these societies.
Second, it systematically provides a comprehensive framework at multilevel analyses to cover all aspects of women entrepreneurship in developing countries. Such a framework provides a vivid picture of women entrepreneurship in developing countries, which can help prospective women entrepreneurship scholars position their research correctly in this area.
Last but not least, this research provides fruitful knowledge for policymakers and practitioners. Knowing women entrepreneurship in developing countries helps policymakers provide the ground for self-employment of women when the unemployment rate is higher for women than men (in 2017, the global unemployment was 6.2% women and 5.5% men) and in times of crises. It is specifically noticeable after the COVID-19 pandemic. Women-dominated industries like day cares, education, and other service industries have been some of the most disrupted, and many working mothers have found their work disrupted to stay home. This has led to an unprecedented shock to women's employment by severe uncertainties regarding when businesses might return to normal operations and whether those jobs and the income they imply might still be there.
Understanding women entrepreneurship in developing countries also assists policymakers both in developed and developing countries. In developing countries, they may become aware of the gender gap in the entrepreneurship ecosystem and introduce better policy practices from developed countries to solve these issues. In developed countries, policymakers may inspire women entrepreneurs in developing countries and find solutions to improve the entrepreneurship rate among women in these societies, declining in recent years (Global Entrepreneurship Monitor, 2017).
Structure of the Book
The Emerald Handbook of Women and Entrepreneurship in Developing Economies covers various topics in women entrepreneurship from the gender perspective and institutional view. It includes understanding women's emancipation and empowerment, gender roles, firm performance, digitalization, barriers, and challenges of existing institutions in developing countries. This book represents a comprehensive state-of-the-art picture of women entrepreneurship issues. It provides significant theoretical and empirical evidence that is likely to offer a brighter view of this area from the gender and institutional view.
This work is an outcome of all contributors' long-lasting effort during one of the rough times of human history (COVID-19 pandemic). It includes contributions of highly reputed authors and experts of developing economies. According to the levels of analyses, this book has been divided into four parts, namely: (1) Conceptual Understanding of Woman Entrepreneurship in Developing Countries; (2) Institutions, History, Culture as catalysator or blockage for Woman Entrepreneurship; (3) Entrepreneurial Ecosystem and Female Digital Entrepreneurship; and (4) Early-stage Female Entrepreneurship, Drivers, and Outcomes.
Part I – Conceptual Understanding of Woman Entrepreneurship in Developing Countries – is followed by a chapter about Entrepreneurship and Innovation Emancipation among Women Entrepreneurs in Developing Countries that has been prepared by Huda Al Matroushi, Fauzia Jabeen, Sherine Farouk, and MOZA BINT TAHNON BIN MOHAMED ALNAHYAN...