Is fear of failure and lower perception of opportunities holding back female entrepreneurs?

[ChrisGoodfellow]

Hello,

BIS published research that compares UK entrepreneurs to their peers in Germany, France and the US today. The good news? We've overtaken Germany and France with about one in five of our working-age population either running a business, starting up or thinking about doing so (the total early-stage entrepreneurial activity increased from 7.3% in 2013 to 9.0% in 2014).

The bad news? It doesn't look great for diversity. The growth happened "mainly because more men, particularly those aged between 50 and 64 years old, are taking the first steps to running their own business". And the figure for female entrepreneurial activity dropped marginally to 5.7% in 2014 (it increased from 8.7% to 11.5% for men).

The research also highlighted a greater fear of failure among women and non-entrepreneurial individuals saw less opportunity than their male counterparts.

What do you think? Why isn't the number of female entrepreneurs increasing?

You can read the full report here and our write-up of the story on BusinessZone here.

Thanks,

Chris

 

[ethical PR]

I think the fact that there is a lack of diversity is hardly news unfortunately - for women, those with disabilities and those from BAME backgrounds.

 

[michaellivingstone]

I feel that entrepreneurs in general and enterprise in the UK is held back "culturally" - we simply do not have the same enterprise culture as the US. It seems more ingrained into their thinking. I must admit I admire them for this. I see (and know) many bright young/youngish people who simply want a job and corporate career. The idea of enterprise is simply too risky and they can't relate to any role models in this sector. Whereas America is chocka block with them. It could be due to our greater risk aversion when compared with other national personalities.

As for female entrepreneurs, the same applies but there are indeed other factors. It is easy to generalise, but perhaps "fear of failure" might be higher with them? Perhaps this might be due to a perceived focus on entrepreneurship where it is much more targeted at men. Perceived gender roles might also play a part - like the often-mentioned shortage of women scientists and engineers. There could also be a shortage of support systems and networks for women entrepreneurs and their specific needs, plus the different daily demands on time/energy that they face. Such support networks are sure to be highly appreciated.

Whilst I think things are changing - we have a herculean task ahead of us if we want to even approach the enterprise culture of the US. Or Israel, which is also racing ahead. There is also a shortage of women role models that are "relatable to". This is an important point. Michelle Mone springs to mind as one. However there are many others who are from highly affluent backgrounds or have a comfortable professional career to fall back on - respectfully, Sahar Hashemi of Coffee Republic whose family wealth and gilded NY lawyer career makes her very difficult to relate to. Profiles of entrepreneurs, whether male or female with "better starts in life" can create many psychological barriers to personal belief systems in the "appropriateness" of enterprise to many people.

In conclusion, I really think it is a cultural issue overall. And more so for female entrepreneurship. Part of this is rooted in nationality, as stated in the beginning. Part of this is rooted in personality, belief systems and attitude to risk. But the lack of support/advice/help infrastructures together with relatable role models may also play its part.

These are just my own humble opinions, it would be great to hear what others think.

Michael

 

[fairdealworld]

There seems to be a thing in general that more women need to feel themselves fully qualified or pretty much fully qualified for a job before they will apply for it, while more men will apply for a job if they have just some of the qualifications. I suspect that the same tends to apply to women/men re: the decision to launch into entrepreneurial activity.

As a (female) business owner I have signed up to schemes such as 'Inspiring the Future' and 'Apprentice Ambassadors' which involve a willingness to talk with school pupils about your own business and potential careers. These don't involve any specific focus on girls - and I'm equally interested in inspiring boys - but I do hope that such initiatives if used right will help girls have more confidence in their own abilities whether in aiming for a career they might not have thought of or thinking seriously of doing their own thing as an entrepreneur.

I've been to one 'Inspiring the Future' event so far which was particularly interesting as it was in a hugely multi-cultural Primary School in a very deprived area. Enterprising initiative on the part of the school headteacher and staff I thought. I asked if I could take my apprentice and they eagerly agreed. Said (female) apprentice came to work for me as a Retail Apprentice at Intermediate Level, two years on she is aiming at management and has just started an Advanced Apprenticeship in Retail Management which provided some interesting things to say to the youngsters and their parents on the subject of 'getting on' without necessarily taking the conventional school/college/uni route. It was particularly interesting that more than one proud father from cultures/religions which are not necessarily associated with female entrepreneurship or even with just women 'getting on' were pushing forward their daughters saying for example 'She's really good at maths, she's really loves maths' while the girls were nodding enthusiastically and we were able to jump in and say to these girls that it is so fantastic to be good at maths, it opens so many careers and opportunities to you. Who knows what works but maybe one day such a girl will meet a crossroads about subjects and stick with maths because someone long ago suggested it was a good idea especially if it was my vivacious and fashionably dressed young apprentice (frankly she's rubbish at maths like me but we both know maths is a GOOD THING and both of us are suitably admiring of anyone who is good at it).

I think there are still big cultural barriers & patterns of expectation against female entrepreneurship in this country. It is an interesting point that because of the nature of my business we are often requested to let groups of primary, secondary and college students visit the shop with their teachers/tutors. We answer their questions but I always try to slip in the query 'is anyone here interested in being self-employed/running their own business?' It is almost always girls who at this point speak up and say they'd like to run their own business, occasionally a girl will actually say that she is already running a small online business while still at school/college. What happens to these young female entrepreneurs or aiming to be entrepreneurs?

 

[IanG]

I think this country has a lot of work to do regarding enterprise.

Despite having been running a successful company for three years, I still have friends who ask when I'm going to get a proper job.

My old salary friends now think I have to do dodgy things in order to get paid money that isn't processed by a HR department.

My Facebook friends' first comments in a discussion about that kid selling sweets overlooked his skills as an entrepreneur and went straight for his tax liability.

I have friends who say they couldn't do what I do because it can't be relied upon to pay bills. This is despite them working in a depreciating public sector.

Etc. etc.

I just think when you say enterprise, self-employment, entrepreneurship a good proportion of people will think its somehow a bit of a mess about and not real. Whether they're scared of it, jealous of it or just don't have any ideas I can't be sure.

But the attitude is all wrong.

 

[Nuno]

Women seem to enjoy a greater support network if it comes from other women. This is nowhere near universal, but highlights a confidence issue. Men don't have a Dadsnet or local groups of entrepreneurs limited to one gender. Women do. This limits contacts.

The need for confidence and lack of it might well stem from a feeling of being the last resort care giver and nurturer. When the chips are down it is women who will look after the kids, elderly relatives etc. This means entrepreneurial risks are that much greater for women.
This means women will stay in low income jobs, and part time jobs more than men, keeping them out of self employment.

I don't know why this is cultural, or seen as such, one reason is economic: as the economy struggles to recover, the jobs that are coming back are low income and part time. Women are more prepared to take these. I'd imagine it is a scenario mirrored to some extent in a lot of EU countries, it is certainly true of the USA.

 

[Jennie@FreeAgent]

Women seem to enjoy a greater support network if it comes from other women. This is nowhere near universal, but highlights a confidence issue. Men don't have a Dadsnet or local groups of entrepreneurs limited to one gender. Women do. This limits contacts.

This is an interesting quote. There are so many female only networking events and groups out there and they have always had me torn. On one hand they are great if some woman feel more comfortable in these situations but as Nuno said above, this might be quite limiting. I also wonder what it would be like if there were men only groups like this, I'm sure there would be an uproar.
I have attended lots of these events but I personally do prefer mixed gender ones as I would rather speak to a broader range of people.

 

[Paul Norman]

I spoke to the Female company director sat at the desk next to me. Her response, as I suspected, was not complimentary to the condescending nonsense being pedalled.

The biggest challenge for people wanting to start their own businesses is not gender. It is that it is very hard work. But those that can rise to the challenge, and survive, do so on raw ability and determination. Not being a bloke. Or not.

 

[GoPromotionalUK]

I don't think it is about fear of failure or lack of confidence for some of the women. More likely it is about happiness and stress-free living, which being an entrepreneur likely doesn't afford that luxury. It takes a great deal of work to be a successful entrepreneur. The odds increase if you have support. Sadly, most businesses fail, and that is a statistic reality.

 

[Nuno]

I spoke to the Female company director sat at the desk next to me. Her response, as I suspected, was not complimentary to the condescending nonsense being pedalled.

The biggest challenge for people wanting to start their own businesses is not gender. It is that it is very hard work. But those that can rise to the challenge, and survive, do so on raw ability and determination. Not being a bloke. Or not.

The facts remain that women are underrepresented as entrepreneurs.

Is your contact saying that women are inherently lazy and afraid of hard work or might there be other reasons for the gender imbalance?

Explanations are not the same as excuses, some of which will be condescending. Explanations, where credible, allow us to understand and thus change things.

 

[CWT2k1]

I don't know about internationally; however here in the US Female entrepreneurs are becoming more common every day.

 

[deniser]

Women still have the bulk of the childcare responsibilities and are having children later and later so it doesn't give them quite the same freedom (timewise) to start a business as a man might have although in many cases it does provide them with financial security having a partner who works.

It drives me mad that the women I employ are always the ones who take time off when a child is off sick from school; it's never the father. His job is always seen as more important.

But otherwise, I don't think there is any difference at all between the genders.

 

[ethical PR]

This is an interesting quote. There are so many female only networking events and groups out there and they have always had me torn. On one hand they are great if some woman feel more comfortable in these situations but as Nuno said above, this might be quite limiting. I also wonder what it would be like if there were men only groups like this, I'm sure there would be an uproar.
I have attended lots of these events but I personally do prefer mixed gender ones as I would rather speak to a broader range of people.

Jennie until a few years ago there were lots of men only groups from golf clubs to Masons to gentlemen's club and lots of the traditional business networking groups such as Rotary, Chamber of Commerce, Institute of Directors etc which were very male dominated.

Unfortunately for many years there wasn't even a murmur let alone an uproar. It is only in recent years that society has agreed that it is unacceptable.

Personally I don't find being part of women's networking organisations limiting any more than I do being part of mixed networking groups that is say sector or area specific. To me it's about finding the right sort of support you are looking for at any particular stage in your career and/or developing your business.

 

[Karimbo]

First few years of business is hard work. You have to put in extra long hours - working 50,60 hour weeks.

There's a big elephant in the room that we are unable to address and that is women go through childbirth and have to take time off work during latter stages of pregnancy and around a year after birth.

Just addressing this point gets you ostracised as a misogynist and nobody seems to want to acknowledge that. But if you're a woman in your 20's and want to have children in a few years down the line, the sure and steady public sector income route is going to be much more attractive than starting a business that requires your full and total devotion for the first 5 years.

In my business I have to work weekends, often work 8,9pm into the evening. There is no way I could be in business if I was the primary carer for newborn. I could take a break for 18 months to raise a child but that would kill my business every time I did it.

 

[ethical PR]

Karimbo you are right that it is more difficult for women entrepreneurs to cope with having babies/juggling small children and running a business. Quite often, because their partners aren't willing to work more flexibly in order to play a fuller part in looking after their children.

It's simply a fact and something that has been discussed widely in the media, by government and in business circles, so I can't see why anyone would be perceived as a misogynist or ostracised for mentioning it.

That being said, there are lots of women (including myself) who combined running their own business with being the prime or sole carer of their young children.

Most women don't take 18 months off every time they have a child.

With technology today it is much easier than it was to have flexible working, which in turn makes it easier to run a business when you have small children.