Top Ten Womenabling Research Facts of 2014

Top TenWe’ve kept tabs on the facts and figures that have been published during the course of the year (as we do every year). Here are what we consider to be the top ten new research-based facts about women business owners and their enterprises of 2014. They fall into four general categories: money, mentoring, metrics and STEM (science, technology, engineering and math). Here they are, along with links to the original source material for your reference. Many happy returns of the season from Womenable!

Money

  1. International CurrencyClosing the credit cap for women-owned SMEs across the developing world as a whole could boost the growth in per capita income by over 110 basis points (1.1%) on average. ~ Goldman Sachs Global Market Institute. February 2014. Giving credit where it is due.

  2. In an analysis of over 25,000 projects on Kickstarter, launched by 22,000 entrepreneurs between 2009 and 2012 and supported by over 1.1 million investors, researchers found that this crowdfunding platform is more hospitable than many other forms of business financing for women. For example: 1) a significant share of Kickstarter investors (40%) are women; 2) these women are more likely than men (40% versus 23%) to invest in women-led projects; and 3) women-led projects are more successful than those launched by men. The fundraising success rate for women was 69.5%, compared to 61.4% for men. ~ Dan Maroum, Alicia Robb, Orly Sade. May 2014. Gender Dynamics in Crowdfunding (Kickstarter): Evidence on Entrepreneurs, Investors, Deals and Taste Based Discrimination.


  3. The amount of early-stage investment in companies with a woman on the executive team has tripled to 15 percent from 5 percent in the last 15 years. Despite this positive trend, 85 percent of all venture capital–funded businesses have no women on the executive team. This is the case despite the finding that businesses with a woman on the executive team are more likely to have higher valuations at both first and last funding (64 percent higher and 49 percent higher, respectively). ~ Candida G. Brush, Patricia G. Greene, Lakshmi Balachandra, Amy E. Davis. September 2014. Women Entrepreneurs 2014: Bridging the Gender Gap in Venture Capital.


  4. In 2013 women angels represented 19.4% of the angel market, similar to 2012 (21.8%). Women-owned ventures accounted for 23% of the entrepreneurs that were seeking angel capital and 19% of these women entrepreneurs received angel investment in 2013. ~ Jeffrey Sohl, Center for Venture Research. April 2014. The Angel Investor Market in 2013: A Return to Seed Investing.

Mentors

  1. Closeup of business people with hands on handsAn analysis of high-growth women entrepreneurs (those with sales or employment growth of 20%+ over the past three years) in Latin America and the Caribbean finds that growing up in an entrepreneurial family helps define their entrepreneurial spirit. Both high-growth men and women are more likely than average to seek mentors to guide their growth. However, while high-growth men entrepreneurs seek mentors from outside their family, women tend to receive guidance from within their own families. ~ EY, Multilateral Investment Fund of the Inter-American Development Bank. March 2014. WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean.

  2. A comparison of a survey of women in technology firms launched between 2002 and 2012 with a more general sampling of technology firms founded in 2004 (the Kauffman Firm Survey) finds that female and male entrepreneurs have a lot in common. They would seem to start their companies for similar reasons, cite similar self-perceived reasons for success, and face similar challenges. However, several differences stand out: 1) the women technology entrepreneurs surveyed don’t appear to have had inspiring role models as their principal motivation; 2) women entrepreneurs in general appear to respond differently than men do to failure, and cite lessons learned from failure as a big reason for success; and 3) there is a financing gap when it comes to high-tech and high-potential women entrepreneurs. That financing gap turns into a growth gap in terms of company outcomes. Finding ways to fill that financing gap could have a huge payoff in job creation and innovation. ~ Alicia Robb, Susan Coleman, Dane Stangler. November 2014. Sources of Economic Hope: Women’s Entrepreneurship.

Metrics

  1. measuring_tape copyIn an analysis of the conditions in which growth-oriented women’s entrepreneurship can prosper, the United States (with a score of 83), Australia (80) and Sweden (73) are the top ranking countries among 30 analyzed. They are followed by France and Germany (tied at 67), Chile (55), the United Kingdom (54) and Poland (51) which all received an overall score of 50 or more. ~ Ruta Aidis, The GEDI Institute. June 2014. The Gender Global Entrepreneurship and Development Index.

  2. As of 2012, just under one-third (29%) of the 40.6 million business owners in Europe are women, up from 26% in 2003. Over that nine-year period, the share of business owners who are female has risen most strongly in Lichtenstein (with a 16% increase in the share of entrepreneurs who are female), Iceland (+8%), and Cyprus (+8%), compared with the overall 3% increase. ~ European Commission. September 2014. Statistical Data on Women Entrepreneurs in Europe.


  3. On average over the past 17 years, there has been a net increase of 591 women-owned businesses in the United States each and every day. The number of net new women-owned firms has fallen in the wake of the recession – there was a net increase of 714 women-owned firms per day from 2002 to 2007, and a lesser 506 per day between 2007 and 2014 – but start-up activity is increasing. Just in the past year, there have been an estimated 1,288 net new women-owned firms launched each and every day. ~ American Express OPEN & Womenable. March 2014. The 2014 State of Women-Owned Businesses Report.

STEM

  1. womanlab copyWomen have increased their representation in STEM graduate enrollment, but that increase has been uneven across STEM fields. Women have achieved parity for PhDs in biological and medical sciences, but their enrollment continues to lag in some of the most entrepreneurial fields, such as bioengineering, mechanical, and civil engineering and materials science. Further, across all STEM fields, female PhDs have lower rates of entrepreneurship than their male colleagues (5% compared to 7%), and file fewer patents (15% vs. 28%). ~ Margaret E. Blume-Kohout for SBA Office of Advocacy. October 2014. Understanding the Gender Gap in STEM Fields Entrepreneurship.

  2. (A 2-for-1 listing: this report also appeared in our ‘mentors’ category) A comparison of a survey of women in technology firms launched between 2002 and 2012 with a more general sampling of technology firms founded in 2004 (the Kauffman Firm Survey) finds that female and male entrepreneurs have a lot in common. They would seem to start their companies for similar reasons, cite similar self-perceived reasons for success, and face similar challenges. However, several differences stand out: 1) the women technology entrepreneurs surveyed don’t appear to have had inspiring role models as their principal motivation; 2) women entrepreneurs in general appear to respond differently than men do to failure, and cite lessons learned from failure as a big reason for success; and 3) there is a financing gap when it comes to high-tech and high-potential women entrepreneurs. That financing gap turns into a growth gap in terms of company outcomes. Finding ways to fill that financing gap could have a huge payoff in job creation and innovation. ~ Alicia Robb, Susan Coleman, Dane Stangler. November 2014. Sources of Economic Hope: Women’s Entrepreneurship.

2nd Annual Gender-GEDI Report Reveals Most Womenabling Economies

Yesterday, Dell hosted the fifth gathering of the Dell Women’s Entrepreneur Network (#DWEN) in its hometown, Austin Texas. In addition to sharing their own stories of struggle and success, these women of accomplishment also saw Dell release their second annual Gender Global Entrepreneurship and Development Index report (also known by the moniker #Gender-GEDI). The Index analyzes the conditions favorable for high-growth potential women entrepreneurs – including laws, programs, and individual characteristics. This year saw the analysis expand from 17 to 30 countries, which collectively account for 66% of the world’s female population and 75% of global GDP. The analysis finds that:Woman hiking to Everest basecamp

  • The most womenabling economies in the world are the United States, Australia and Sweden, with scores of 83, 80 and 73, respectively. They are followed by France and Germany (tied at 67), Chile (55), the United Kingdom (54) and Poland (51);
  • With the top tier economies receiving scores of 51 to 83 on a 0-100 scale, there is room for improvement. Indeed, the other 22 countries received scores under 50, including four countries (Uganda, Egypt, Bangladesh and Pakistan) receiving Gender-GEDI scores under 20;
  • Among the 17 countries included in both the 2013 and 2014 Gender GEDI Index reports, four increased their ranking and four declined. Japan improved the most, up three places from 12th to 9th. Brazil jumped two places, from 14th to 12th. The biggest decline was seen in Malaysia, which dropped four spots, from 9th to 13th; and
  • When comparing the rankings of countries included in the Gender-GEDI analysis with those also included in the non-gendered GEDI rankings, ten countries rank better for high-potential women’s entrepreneurship than for general entrepreneurial conditions. In alphabetical order, they are: Bangladesh, Brazil, China, Germany, Ghana, Mexico, Panama, Russia, South Africa, and Thailand.

Read more about the report’s highlights in the study news release, and click HERE to learn more about the Gender-GEDI and how it is constructed. And for you fellow statistical mavens, click HERE to download and read the 46-page executive report. A more complete report, including background tables and more country-level detail, will be available soon – and when it is, you’ll be able to find it on Womenable’s Reference Library web page.

A New Measurement of Support for Women’s Entrepreneurship

The Womenabler has long lamented the lack of a business-enabling environment (BEE) assessment that takes the special challenges facing would-be and established women business owners into account. Traditional BEE assessments (such as The World Bank’s Doing Business indicators or the Heritage Foundation’s Index of Economic Freedom) are “gender-blind,” thus ignoring both the legal and cultural impediments that exist for women in many countries when they attempt to start or grow businesses. And, at the same time, gender equality indices (such as the World Economic Forum’s Global Gender Gap reports, the Economist Intelligence female figure on map of EuropeUnit’s Women’s Economic Opportunity Index, or the UN’s Gender Empowerment Measure) do not include entrepreneurial measures as among the factors assessed. And, interestingly, the top-ranked countries in each of these two distinct types of environmental assessments share exactly 0 countries in common. (See the paper, “Assessing Business-Enabling Environments: How Gender Changes the Equation,” presented by Womenable CEO Julie Weeks in 2011 at both an academic conference and a meeting of national policy institutions.)

Now, into the breach, comes an exciting new project: Gender-GEDI. Spearheaded by a team at George Mason University that also developed the Global Entrepreneurship and Development Index (hence GEDI), this new index insist of 30 evaluation factors, aggregated into 15 pillars and three main environmental elements: entrepreneurial environment, entrepreneurial eco-system and entrepreneurial aspirations. The pilot effort assessing the individual, institutional and legal environment for high-potential women’s entrepreneurship includes 17 countries – picked to represent a variety of regions and development contexts. Who came out on top? Here’s the list:

  1. United States
  2. Australia
  3. Germany
  4. France
  5. Mexico
  6. United Kingdom
  7. South Africa
  8. China
  9. Malaysia
  10. Russia
  11. Turkey
  12. Japan
  13. Morocco
  14. Brazil
  15. Egypt
  16. India
  17. Uganda

This new analysis was underwritten by Dell, and released today at their 4th annual Women’s Entrepreneur Network gathering in Istanbul, Turkey. Womenable was pleased to have played a role as an advisor on this effort, and we look forward to expanding the analysis to additional countries in the future (pending funding, of course!)

Click on these links to learn more about Gender-GEDI, a news release summary of the findings of this important new analysis, and to download and read the 22-page white paper.