UNIVERSITY OF NAIROBI

SCHOOL OF BUSINESS
MASTERS OF BUSINESS ADMINISTRATION

Group Assignment: In Partial fulfillment of the

requirements in the course Entrepreneurship.

Topic: GENDER AND ENTREPRENEURSHIP: ISSUES AND

POLICIES

Lecturer: Jackson Maalu

Submitted by: WALEKHWA P NAKU D61/75508/09
DIMPHO L MMOLOKI D61/75221/09
ELIZABETH W KAHIHUD61/73012/09
TINA W MASAI D61/74521/09
JACQUELINE N MUKEKU
D61/72719/09

Date: 18th august 2010

INTRODUCTION

The creation of subsets that distinguish one set of characteristics from

others has long been a defining factor replicated in all fields of
academia so as to assert the uniqueness of these entities. Use of the
term gender is not unique to this. Gender can be defined as the social,
economic and cultural roles and relations between women and men;
taking into account the different responsibilities of women and men in
a given culture or location and in different population groups (children,
aged people, ethnic groups etc.). Encompassed in this definition is the
fundamental assertion of sexuality as based on the roles each of these
sexes partakes in within the tenets of social conformity.
Encumbering the optimum growth of entrepreneurship is the challenge
women entrepreneurs’ face. Numerous gender-based barriers are
experienced when starting and growing businesses and such include
discriminatory property, matrimonial and inheritance laws and/or
cultural practices, limited mobility, voice and representation, and an
unequal share of family and household responsibilities. These factors,
combined with social exclusion based on sex connotes that women
entrepreneurs are in a less favorable position in comparison to men
when it comes to accessing for example commercial credit from formal
financial service providers, more lucrative markets, rather than the
traditional local markets, technology and information to establish and
grow their businesses, national incentives in small enterprise
development through gender blind private sector development and
fiscal policies, legislation and training and education for small
enterprise development.

Although women have been included in a number of studies on

entrepreneurship in recent years, there has however been little focus
on challenging traditional definitions of entrepreneurship or on
developing new methods to collect information on entrepreneurship.
Existing knowledge on women and entrepreneurship could be
enhanced through reflection on two issues: first; on the essentialism in
the very construction of the category of the female entrepreneur and,
second; on the ways in which the connections between gender,
occupation and organizational structure differently affect female and
male business owners. Women are less preoccupied than men with
economic gain, and more often cite child-rearing demands and career
dissatisfaction as reasons for business formation.

GENDER AND ENTREPRENEURSHIP: THE PAST

Often women face particular constraints in developing their
entrepreneurial activities; women usually have a heavy domestic
workload that is unpaid, leaving them less time to expand their small
businesses. Yet another constraint is that in some regions women’s
mobility is constrained. They may not then realize the market potential
or profitable adjustments they could make in outside markets.

Gender-based differences between male and female

entrepreneurs

There are some generalized differences that exist regarding men’s and
women’s businesses. Factors which are said to explain these differences
include; fist, that women and men are socialized differently and as a
result have different orientations; second, that women face certain
structural barriers; and third, that women have unique ways of
conducting business.

SOCIALIZATION AND ORIENTATION:

 There are four types of female entrepreneurs; conventional,
innovative, domestic and radical, on the basis of their acceptance of
conventional gender roles and their attachment to entrepreneurial
ideals.
 Attachment to entrepreneurial ideals includes beliefs in
economic self-advancement, individualism, self-reliance, and a
strong work ethic, while acceptance of conventional gender roles is
defined as an acceptance of women’s subordination to men.
 Conventional businesswomen are highly committed both
entrepreneurship ideals and to the conventional gender role for
women. As a result, these women accept the fact they have to work
long hours in order to be able to fulfill both their domestic and
entrepreneurial roles.
 Innovative entrepreneurs, by contrast, are committed to
entrepreneurship ideals but not to conventional gender roles.
 Domestic businesswomen do not uphold entrepreneurship ideals
but committed to conventional gender roles.
 Radical proprietors have low commitment to both
entrepreneurship ideals and to conventional gender roles.
 These ideals in fact parallel assumptions of ‘traditional male
roles’ developed in masculinity-femininity scales. Masculine items on
this scale include; ambition, independence, individualism,
competitiveness, self-reliance, risk-taking behavior and ease of
decision-making.
 The focus on socialization as an explanation for differences
between female and male entrepreneurs and for differences
amongst female entrepreneurs therefore provides a partial and
highly individualistic analysis of these differences.

STRUCTURAL BARRIERS:
 Rather than using socialization as a starting point, a number of
theorists attempt to identify ‘barriers’ which female business owners
 face. These theorists focus on the social structures which support
gender differences.
 They argue that women’s lack of industry experience and family
situation in particular responsibility for childcare, explain part of the
difference in income.
 Other reasons include the fact that women-owned businesses are
typically small in size and are concentrated in poorly paid sectors of
employment.
 Women tend to form larger numbers of strong ties; this over-
investment in the maintenance of networks can translate into
business disadvantages as a woman entrepreneur risks spending
much of her time on relationship matters rather than business ones.
 Central problems faced by women entrepreneurs and develops
their prescriptions for success which include; the need for women to
gain experience in financial management by taking loans or
managing family finances, obtain occupational experience in middle-
management, study engineering, science, technical or business-
related subjects, learn to prioritize between organizational and
family responsibilities, and develop support systems and mentors.
 Women need to develop a ‘girls’ network to parallel the ‘old
boys’ network’, and to learn to delegate business or family
responsibilities to others when necessary.
 Women need to increase their network diversity by adopting, like
male entrepreneurs, an ‘assertive’ and ‘instrumental orientation’ to
personal networks.
 Innovators are likely to be successful entrepreneurs in so far as
they mimic the masculine work norm.
 ‘The profile of women entrepreneurs in future will continue to
move closer to that of their male counterparts’. So, women are to
train or educate themselves better, develop more appropriate
networks and mentoring relationships, and re-assign domestic work.
 Despite the focus on structural barriers, therefore, it is women,
rather than structure, which are seen to require change so that the
experiences of female and male entrepreneurship can be equalized.

WOMEN’S WAYS OF DOING BUSINESS:

 A third approach to comparisons between female and male
entrepreneurs attempts to develop a ‘female’ model of
entrepreneurship to parallel the existing male model.
 ‘Non-traditional work syndrome’ in place in analyses of women’s
work, whereby economic gains are prioritized over social ones and it
is assumed that women should individually ‘conquer’ traditional
 men’s domains rather than attempt to gain social and economic
recognition for domains in which women predominate.
 Women’s business relationships tend to be ‘integrated’ rather
than separated from family, societal and personal relationships.
 Women themselves gave greater weight to masculine traits in
their evaluation of entrepreneurial success.

 Certain small businesses pose constraints on female as well as

male business owners and it is women who predominantly own
these businesses. Women and men create different types of
businesses and control them in different ways.
 Structural differences between the businesses which women and
men operate are seen to produce the gender differences in their
entrepreneurship patterns.
 Women who are highly committed to both entrepreneurial ideals
and conventional gender tend to establish businesses which are
extensions of their domestic work such as guest houses,
secretarial businesses, nursing agencies or restaurants.
 Women who are highly committed to entrepreneurial ideals but
not to conventional gender roles, on the other hand, establish
businesses in areas which require technical skills such as market
research, advertising, public relations and publishing.

ISSUES:
 Although women have been included in a number of studies on
entrepreneurship in recent years, however, there has been little
focus on challenging traditional definitions of entrepreneurship or
on developing new methods to collect information on
entrepreneurship.
 Existing knowledge on women and entrepreneurship could be
enhanced through reflection on two issues: first; on the
essentialism in the very construction of the category of the
female entrepreneur and, second; on the ways in which the
connections between gender, occupation and organizational
structure differently affect female and male business owners.
 Women are less preoccupied than men with economic gain, and
more often cite child-rearing demands and career dissatisfaction
as reasons for business formation.

Beijing conference
The Beijing Conference (15th September 1995) was a defining moment
in the role of the woman as we have come to know it to date. The
principal themes discussed were the advancement and empowerment
of women in relation to women’s human rights, women and poverty,
women and decision-making, the girl-child, violence against women.
One of the outcomes of the Beijing Conference is an agenda for
women's empowerment. The Platform for Action That aims at
accelerating the implementation of the Nairobi Forward-Looking
Strategies for the Advancement of Women. It deals with removing the
obstacles to women's public participation in all spheres of public and
private lives through a full and equal share in economic, social, cultural
and political decision-making.
The Beijing Declaration and Platform for Action were adopted by
consensus on 15 September 1995. The Declaration embodies the
commitment of the international community to the advancement of
women and to the implementation of the Platform for Action, ensuring
that a gender perspective is reflected in all policies and programmes at
the national, regional and international levels. The Platform for Action
had set out measures for national and international action for the
advancement of women over the five years to 2000. The Platform for
Action enhances the social, economic and political empowerment of
women, improve their health and their access to relevant education
and promote their reproductive rights. The action plan sets time-
specific targets, committing nations to carry out concrete actions in
such areas as health, education, decision-making and legal reforms
with the ultimate goal of eliminating all forms of discrimination against
women in both public and private life.

Role of socio-cultural factors

Hosfede defined culture as the collective programming of the mind
that distinguishes the members of one group/category from another.
Socio-cultural and personal background factor such as age, ethnicity,
religion and education together with language, customs, mores, and
values, attitudes, beliefs, customs, traditions, art and achievements of
society passed on to each generation constitute components of
culture. These factors play a great role in conceptualization and
formation of roles to be acquired by both female and male
entrepreneurs.

Studies for instance have shown that some of the factors within culture
that play a role on entrepreneurship in general are risk aversion, a
culture of consumerism (desire of material goods), handing over trade
across generations, learned social and value systems such as
(spending habits). Socially conservative risk averse culture may as a
result be wary about the spawning of entrepreneurial ventures by
women. These factors in combination with the social aspects such as
age may further impede rate at which women commence
entrepreneurial ventures due to other responsibilities such as the
family.

Other cultural factors such as inheritance (that is predominant in the

African culture) may play an impeding role in the acquisition of assets
that women may use so as to acquire financial backing.

Role of Microfinance
Microfinance is promoted as a mechanism for triggering or sustaining
social and economic development by supporting entrepreneurial
activities. Microfinance can have multiple spin-off benefits, including
the potential to be a component of poverty reduction strategies, thus
contributing to the Millennium Development Goals (MDGs). Whilst
clients who use microfinance services differ according to age, income,
ethnicity and whether they access microfinance services as individuals
or in groups, typical microfinance clientele in many parts of the world
have been resource poor female entrepreneurs.

Microfinance programmes contribute to the MDG 1 by giving low-

income rural women and men a chance to develop both their on and
off-farm income generating activities. An increase in women’s income
has been shown to have positive effects for children’s nutrition,
education and well-being, which also supports other MDGs. Although
responding to major development challenges cannot be based solely
on simply improving access to financial services, microfinance is an
effective tool if used in conjunction with other development
approaches and policies.

Promoting “gender-sensitive” entrepreneurship via microfinance

institutions puts the onus on the institution itself to be ‘gender
sensitive’. But, what do we mean by “gender sensitive”? Being gender
sensitive would mean that the gender-based differences between men
and women clients/staff are acknowledged and transparent. Once
acknowledged, staffs from microfinance institutions take into
consideration how such differences affect the ability of microfinance
clients to avail of microfinance services and how such differences
affect their entrepreneurial activities. Through this process issues that
help or hinder men and women clients (or staff) are identified. Very
often women face particular constraints in developing their
entrepreneurial activities, so the focus of being gender sensitive is
frequently on women ‘catching up’. On top of their entrepreneurial
activity, rural women usually have a heavy domestic workload that is
unpaid, leaving them less time to expand their small businesses.
Another constraint is that in some regions women’s mobility is
constrained. They may not then realize the market potential or
profitable adjustments they could make to their products.

Gender sensitivity in microfinance institutions would imply that the

institution acknowledges gender-based constraints that affect women
in their entrepreneurship activities and plan services accordingly. At
the very least, the microfinance institution can try to ensure that it
does not worsen or perpetuate inequalities between women and men
by ignoring gender based constraints, or expecting women’s business
to operate exactly like men’s. Microfinance institutions should consider
how their services can help women to operate in an often ‘male-
dominated’ business world.

Unemployment
Over the last ten years there has been a marked increase in the cost of
living as a result of factors such as inflation. This has seen the need to
expand means in which one earns their living. This as a result has seen
many women opening businesses so as to provide a supplementary
income. Some of the businesses opened up weaving centers, poultry
and diary farms, tailoring and bakery shops, beauty parlors, gift and
manufacturing, restaurant, IT café, photo studio, potato chips factory,
auto workshop, construction service enterprise and courier service so
as to earn a way of living. Entrepreneurship thereby provides the best
security for life.

Emphasis on Girl- child

Following the 1995 Beijing Conference on female empowerment,
improving the overall quality of life of the girl child has grown in leaps
and bounds. This has been done through provision of education,
advocacy for the eradication of cultural practices that in the modern
day society are viewed as impinging on the rights of the girl-child (such
as marriage). All this has provided the girl child with a wider range of
opportunities of which entrepreneurship is encouraged. This allows for
a healthier balance in the field which as a result of some of the
mentioned practice was associated with men.

Availability of Education
Culture is learned behavior; formal, non formal and informal education
plays an important role transferring cultural values from one
generation to another. However, prior experience and skills gains
through informal learning have been useful in making a start. This goes
to state that although there is provision of culturally transmitted
knowledge, formal education may provide various other benefits.
Advanced education for instance, can play a role in dissipating the
gender imbalance by providing models and concepts that enable
women to balance career and family.

Impact of Globalization
Entrepreneurship has been known to serve as a catalyst towards
economic development and indeed the globalization process has
progressively reduced barriers to entrepreneurship and increased
competition in the global market.
Gender equality means women and men have equal opportunities to
realize their individual potential, to contribute to their country's
economic and social development and to benefit equally from their
participation in society. With today’s world changing at a startling
pace, political and economic transformations seem to be occurring
everywhere creating economic opportunities for women who want to
own and operate businesses. Women therefore, are increasingly
choosing business ownership as a career path. This as a result has
seen women in advanced market economies and developed countries
today owning more than 25% of all business and has improved their
position in the business world.

The lack of role models in entrepreneurship

Studies such as that of Shapiro and Sokol (1982) have shown a strong
connection between the presence of role models and the emergence of
entrepreneurs. Historically, women have not been present as
entrepreneurs in general due to lack close role models. Role models
are persons that by their attitudes, behaviors and actions establish the
desirability and credibility of a choice (in this case becoming an
entrepreneur) for an individual. Furthermore, the influence of role
models is gender related. An individual will be more influenced by
another individual of the same sex, as one’s aspirations and choices
tend to be more influenced by persons of the same sex. This bare fact
implies a strong need for female role models so as to equate the
balance between male and female entrepreneurs.

Other issues bearing upon the role of gender and entrepreneurship

with particular focus to women is lack of relevant networks and of
societal position. Women have in general a lower social position than
men, which affects the kind of networks they can access or are part of.
There is evidence to prove that women are less involved in networks
than men are, and their type of network is different.

Policies
Some of the policies to promote gender equality in entrepreneurship
include:

Programmes, which have been put in place to support women-

entrepreneurs in starting and expanding business. The Kenya Women
Trust (Kenya) and KANDET encourage women particularly those in rural
areas to form groups, save a certain amount of money with the
organizations in order for them to qualify for a loan whose interest is
very minimal and payable. The group of women serves as guarantees
for each other. As a result of this, women have tremendously started
their own businesses and boosted others. There have been good
reports from the rural areas especially eastern province where these
financial supports have helped women improve their statuses and
those of their villages. Children are able to go to school and attain
education because the strength of a woman is made manifest.

Provision of entrepreneurial and managerial skills has played a

detrimental role in improving the status of rural women through
intellectually empowering them with practical skills. Exposure to
knowledge that aids them in getting themselves out of their current
status to much more better statuses e.g. a woman may just be a
housewife but immediately she receives entrepreneurial and
managerial skills is becomes a craving/desire for them to apply what
they have been taught and by so doing they improve their status.

Programmes are now available that help to enable the active

integration of women into the labour market. These programmes have
a wide range of activities like market skills training, educating women
on their rights and opportunities, Pilot projects assisting women to
start up their own business (UNDP project) and loans and credits to
women-entrepreneurs.

The objective of an organization could be consolidation of

entrepreneurial women. Association has as a broader goal the social
protection of women by targeting low-income families:-for example
assistance to women entrepreneurs, business education(including
computer skills),defense of the women entrepreneur’s rights;
expressing the interests of the members; allocating micro-credits to
women in order to improve the livelihood of low-income families
Step in and step out programmes offer services such as counseling,
training and planning to those owning small and medium sized
businesses, it also supports women entrepreneurs if they feel
discriminated especially when denied/refused credit from the banks. It
gives legal support in access to loans and banking services. This step
in and step out programme only comes in when there is need or
problem that needs resolution.

There are programmes which have been established to provide

support to aboriginal women with economic and business
development. The activities undertaken in this kind of programme are
networking, training, advocacy and some pilot projects to improve
access to capital and business resources. Entrepreneurs are exposed
to various avenues for networking purposes, several interactions with
different groups of people in terms of ideas, levels of income, social
and economic status. The main purpose for this is to ensure that the
aboriginal women have all the opportunities available in order to
advance themselves into the business world.

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