What Percentage of Businesses are Owned by Women Globally?
Women‘s entrepreneurship and business leadership has seen rising traction, albeit gradual, across most regions worldwide. However, sizeable ownership participation gaps compared to men entrepreneurs persist on average. Let‘s analyze the trends.
Recent Global Estimates
According to the Global Entrepreneurship Monitor (GEM) 2021 survey, total early-stage entrepreneurial activity (TEA) rate for women stood at 13.3% globally, compared to 18.7% for men counterparts. Here TEA represents percentage of working-age adults starting or running new enterprises.
The share of women engaged actively starting or managing new firms increased from 10% to 13% from 2015 to 2021 based on GEM sample estimates across 50+ economies. Sub-Saharan Africa saw the highest TEA growth at over 15% for women founders in the period reviewed.
So while more women undertake entrepreneurial ventures now versus a decade back across most countries, significant ownership gaps persist nonetheless which we discuss next.
Women‘s Business Ownership Rates Diverge Among Countries
Participation percentages vary notably depending on specific countries‘ institutional environment and prevailing social attitudes towards women in leadership roles.
As per OECD, approximately 1/5th of SMEs globally have women ownership participation. But among G20 major economies this share fluctuates from 13% to over 30% highlighting divergence.
The chart below outlines sample ownership variation statistics:
| Country | % Firms With Women Ownership |
|---|---|
| Brazil | 37% |
| Indonesia | 30% |
| Vietnam | 30% |
| Turkey | 13% |
| India | 14% |
| Japan | 15% |
OECD‘s separate estimates for women sole proprietors also shows participation ranging from less than 10% in Turkey, to over 50% in Latvia across member countries.
Within continental Europe, Nordic countries like Latvia, Sweden and Lithuania report shares above 35% which exceeds EU average. Southern European states lag behind at under 25% women-led enterprises.
Contrast Between Developing and Developed Economies
The data indicates that women participate more actively in entrepreneurial capacities within most large developed economies. Structural factors such as higher women labor force involvement, smaller informal sectors, availability of financing and positive governmental efforts enable this.
Whereas lower income developing countries demonstrate much weaker women ownership percentages typically under 15%. Barring few exceptions like Brazil and Indonesia mentioned earlier.
Adverse cultural outlooks coupled with acute financing barriers for women dampenfemale entrepreneurship across poorer nations still struggling with basic gender parity issues.
Lack of commercial rights also undermine chances for budding women entrepreneurs in many South Asian or Middle East countries. Sample ownership statistics across country income levels highlight the contrast:
| Economy Type | Country | % Women Ownership |
|---|---|---|
| Lower Income | Ethiopia | 10% |
| Lower Income | Bangladesh | 8% |
| Middle Income | Paraguay | 32% |
| Upper Middle Income | Mexico | 16% |
| High Income | Australia | 35% |
| High Income | United States | 42% |
Underlying Reasons For Low Rates Globally
Scholarly research on persistent gaps between men and women entrepreneurship cite these primary explanatory factors:
- Ongoing labor force participation inequities
- Capital raising barriers for women-led ventures
- Time poverty challenges due to household responsibilities
- Minimal emphasis on entrepreneurship training for women in colleges
- Absence of targeted public policy incentives
Access to flexible financing and building capabilities are thus vital to enhance start-up activity among aspiring women business owners battling social restrictions.
Positive Examples Worth Emulating
Despite roadblocks, few developing regions demonstrate possibility of greater gender balance in entrepreneurship through progressive measures.
For instance, South Africa‘s estimated share of women-owned SMEs grew from 18% to 34% between 2015 to 2018 owing to conducive small business promotional policies.
Chile and Costa Rica have also witnessed above average growth in women entrepreneurial engagement by adopting open regulatory systems coupled with strong technology infrastructure investements that aid women-centric ventures.
Within Southeast Asia, Philippines and Thailand have driveh higher MSME participation by embedding required education programs and access to microcredit for women in national financial inclusion initiatives.
Sole Proprietorships: Viable Avenue for Low Income Women
Microenterprises and own account firm structures foster viable self-employment pathways for women lacking resources to undertake ventures straightaway.
World Bank data estimates women operated over 30% of total sole proprietor micro firms globally circa 2015. Percentages range from less than 5% in deprived Afghanistan to over 50% in several progressive Scandinavian countries on parameters like Larvia:
| Country | Share of Women Sole Proprietors |
|---|---|
| Afghanistan | 2.8% |
| Algeria | 6.6% |
| Austria | 54% |
| Sweden | 40% |
| Slovenia | 38% |
So women sole traders attain much greater parity with men in supportive high income states. Governments hence have to emphasize microenterprise growth to enable low income women navigate around systemic barriers inhibiting larger commercial initiatives. Nuturing informal sectors through standalone agencies and easily accessible registration plus tax processes can significantly boost women participation.
The data indicates that while more women pursue entrepreneurship now, but most countries continue to display substantial gender gaps in business leadership. Even larger developed economies have scope for improvement on benchmarks like sole proprietorship despite recent expansion.
Targeted financing vehicles, favorable small business regulations, women-centric capability building coupled with gender sensitive legal rights are vital to close the divides. Regional leaders across Latam and Southeast Asia demonstrate that right frameworks foster women‘s involvement.
National and local programs must thus evolve urgently across low income countries to reverse trends. Cooperate support tying trade deals with gender inclusion principles can accelerate this transition too.
With the right structural incentives and socio-legal foundations reinforced globally, women entrepreneurship could rival male counterparts generating over 250-300 million women-owned enterprises worldwide over the next decade.
