Men and women have very different motivations, business skills and occupational levels, and the factors which co tribute to the start-up process are not similar, especially in terms of support systems, sources of finance and constraints, although there are a few studies which are to the contrary. For example, a pilot study on entrepreneurs in developing countries concluded that male entrepreneurs were in no way different from female entrepreneurs. A study on the personality traits of successful male and female entrepreneurs found that women do not differ significantly from men with regard to innovative traits and internal locus of. Another study confirmed that career women have the same need for achievement as men in the same careers.
The first factor is the motivational aspect. The major motivation for female entrepreneurs to start their ventures was the need to achieve, the desire for satisfaction and economic necessity; while for males, in addition to the need to achieve, there was the desire to ‘make things happen’ and control resources. In comparing the motivations of aspiring male and female entrepreneurs, we find that compared to men, women are less concerned with making money and often choose business proprietorship as a result of career dissatisfaction. Downing (1991), studied the growth strategies used by male and female entrepreneurs in selected developing countries and found that men and women do employ different strategies, motivated by their very different circumstances. For example while male-owned enterprises usually grow vertically, women’s enterprises tend to grow by diversifying.
Hisrich and Obrien (1982) found that men are motivated by the drive to control their own destiny and make things happen. This drive often stems from conflicts with the boss or a feeling that they can run things better. In contrast, women are motivated by independence and achievement arising out of job frustration where they have not been able to perform to full capacity. Reasons for starting a venture and departure points are similar in both men and women in that both generally have the experience and a strong interest the area of their business. However, for men, the change from past occupation to a new venture is smoother because it is an outgrowth of a job, sideline or a hobby. Many women on the other hand would enter the new business after having left a previous occupation with a high degree of frustration, making the transition more difficult.
In a study conducted in Uttar Pradesh, it was found that a high need for achievement motivates 53% male entrepreneurs and only 28% female entrepreneurs. Mali (1992), found that a need for independence (wanting to be on one’s own) and entrepreneurship development programs were ranked most frequently as motivating factors by both male and female entrepreneurs.
The second factor is the demographic and socio-personal differences between men and women. Hisrich found that women entrepreneurs were older and more educated than the male entrepreneurs sampled, and had very supportive parents and husbands. Most women were a little bit older when they embarked on their first significant venture; in the 35-45 age group, while men were mostly in the 25-35 age group, and their educational background was more often in business and engineering fields as opposed to the liberal arts background that most women entrepreneurs were observed to have.
Similarly, Easwaran (1992) found that 36% of the female entrepreneurs sampled were in the 25-35 age group and 28% in the 45+ category, as compared to 28% male entrepreneurs in the over 45 category, suggesting that males sampled composed mainly retired individuals. 80% of women were married as compared to 60% men.
Mali and Baniah (1992), similarly found that over 50% of the women entrepreneurs sampled were over 35 years of age, as compared to less than 25% male entrepreneurs who were less than 35 years old. Also, over 50% women had graduate degrees as compared to less than 50% male entrepreneurs who had mostly lower levels of education.
A third facto is the psychological differences. In terms of personality traits, Hirisch’s research showed that there were strong similarities between the two groups since both tend to be energetic, goal oriented and independent. However, men were seen to be more confident and less flexible and tolerant than women which could result in different management styles. Smith Cain and Warren (1982), found that female entrepreneurs were different in behaviour and attitude traits than male entrepreneurs and tended to be more opportunistic and more adaptable in their entrepreneurial styles; 58% of men sampled were seen to exhibit high self confidence as compared to only 33% women. While fear of failure was an almost equal concern of both sexes, fear of success was cited by 79% women entrepreneurs as compared to only 8% men. This could be due to socialization patterns where women are not encouraged to achieve and fear that if they become more successful than their husbands, their marriages may be strained. Together with this, may be their fear that the attendant time allocation if their business was to flourish, may be to the detriment of their family.
In terms of support groups, men tended to enlist outside advisers (lawyers, accountants etc) as their most important source of support, while women usually enlist their spouse first, close friend second and business associates third. Women also were seen to rely heavily on a variety of sources for support and information, such as trade associations and women groups, while they were not keen to seek so many external support sources. Women entrepreneurs thus need support and motivation from others around them, a phenomenon not very evident amongst male entrepreneurs.
Enterprise differences are another factor. It has been noted that although men and women have prior experience in the field of their new venture, men usually tend to possess more experience in many business skills. Moreover, male entrepreneurs often have experience in manufacturing, finance or technical areas while women by contrast have limited administrative experience in lower or middle management and in service-related areas such as education or retail sales.
In keeping with this is the observation that women are more likely to start a business in a service related area such as public relations, sales or educational services whereas men are more likely to enter manufacturing or high technology fields. This was confirmed by Iyer, who found that most men (75%) selected manufacturing and trading enterprises while most women (75%) chose service and job-work related enterprises. Thus, women invested less and earned less than male entrepreneurs. For men however, no significant association was found between type of enterprise and project cost, while for women there was a significant association in this regard.
Start-up finance is another area where male and female entrepreneurs differ. Males often enlist investors, bank loans or personal loans in addition to personal funds as sources of start-up capital, while women usually rely on personal assets and savings.
There are a myriad other factors that may account for the differences in the level of entrepreneurship between men and women, though in recent times these differences are diminishing with the clamour for affirmative action and women empowerment. Women are taking up enterprises that were traditionally a preserve of their male counterparts. This difference though is still evident especially in the developing world.
The first factor is the motivational aspect. The major motivation for female entrepreneurs to start their ventures was the need to achieve, the desire for satisfaction and economic necessity; while for males, in addition to the need to achieve, there was the desire to ‘make things happen’ and control resources. In comparing the motivations of aspiring male and female entrepreneurs, we find that compared to men, women are less concerned with making money and often choose business proprietorship as a result of career dissatisfaction. Downing (1991), studied the growth strategies used by male and female entrepreneurs in selected developing countries and found that men and women do employ different strategies, motivated by their very different circumstances. For example while male-owned enterprises usually grow vertically, women’s enterprises tend to grow by diversifying.
Hisrich and Obrien (1982) found that men are motivated by the drive to control their own destiny and make things happen. This drive often stems from conflicts with the boss or a feeling that they can run things better. In contrast, women are motivated by independence and achievement arising out of job frustration where they have not been able to perform to full capacity. Reasons for starting a venture and departure points are similar in both men and women in that both generally have the experience and a strong interest the area of their business. However, for men, the change from past occupation to a new venture is smoother because it is an outgrowth of a job, sideline or a hobby. Many women on the other hand would enter the new business after having left a previous occupation with a high degree of frustration, making the transition more difficult.
In a study conducted in Uttar Pradesh, it was found that a high need for achievement motivates 53% male entrepreneurs and only 28% female entrepreneurs. Mali (1992), found that a need for independence (wanting to be on one’s own) and entrepreneurship development programs were ranked most frequently as motivating factors by both male and female entrepreneurs.
The second factor is the demographic and socio-personal differences between men and women. Hisrich found that women entrepreneurs were older and more educated than the male entrepreneurs sampled, and had very supportive parents and husbands. Most women were a little bit older when they embarked on their first significant venture; in the 35-45 age group, while men were mostly in the 25-35 age group, and their educational background was more often in business and engineering fields as opposed to the liberal arts background that most women entrepreneurs were observed to have.
Similarly, Easwaran (1992) found that 36% of the female entrepreneurs sampled were in the 25-35 age group and 28% in the 45+ category, as compared to 28% male entrepreneurs in the over 45 category, suggesting that males sampled composed mainly retired individuals. 80% of women were married as compared to 60% men.
Mali and Baniah (1992), similarly found that over 50% of the women entrepreneurs sampled were over 35 years of age, as compared to less than 25% male entrepreneurs who were less than 35 years old. Also, over 50% women had graduate degrees as compared to less than 50% male entrepreneurs who had mostly lower levels of education.
A third facto is the psychological differences. In terms of personality traits, Hirisch’s research showed that there were strong similarities between the two groups since both tend to be energetic, goal oriented and independent. However, men were seen to be more confident and less flexible and tolerant than women which could result in different management styles. Smith Cain and Warren (1982), found that female entrepreneurs were different in behaviour and attitude traits than male entrepreneurs and tended to be more opportunistic and more adaptable in their entrepreneurial styles; 58% of men sampled were seen to exhibit high self confidence as compared to only 33% women. While fear of failure was an almost equal concern of both sexes, fear of success was cited by 79% women entrepreneurs as compared to only 8% men. This could be due to socialization patterns where women are not encouraged to achieve and fear that if they become more successful than their husbands, their marriages may be strained. Together with this, may be their fear that the attendant time allocation if their business was to flourish, may be to the detriment of their family.
In terms of support groups, men tended to enlist outside advisers (lawyers, accountants etc) as their most important source of support, while women usually enlist their spouse first, close friend second and business associates third. Women also were seen to rely heavily on a variety of sources for support and information, such as trade associations and women groups, while they were not keen to seek so many external support sources. Women entrepreneurs thus need support and motivation from others around them, a phenomenon not very evident amongst male entrepreneurs.
Enterprise differences are another factor. It has been noted that although men and women have prior experience in the field of their new venture, men usually tend to possess more experience in many business skills. Moreover, male entrepreneurs often have experience in manufacturing, finance or technical areas while women by contrast have limited administrative experience in lower or middle management and in service-related areas such as education or retail sales.
In keeping with this is the observation that women are more likely to start a business in a service related area such as public relations, sales or educational services whereas men are more likely to enter manufacturing or high technology fields. This was confirmed by Iyer, who found that most men (75%) selected manufacturing and trading enterprises while most women (75%) chose service and job-work related enterprises. Thus, women invested less and earned less than male entrepreneurs. For men however, no significant association was found between type of enterprise and project cost, while for women there was a significant association in this regard.
Start-up finance is another area where male and female entrepreneurs differ. Males often enlist investors, bank loans or personal loans in addition to personal funds as sources of start-up capital, while women usually rely on personal assets and savings.
There are a myriad other factors that may account for the differences in the level of entrepreneurship between men and women, though in recent times these differences are diminishing with the clamour for affirmative action and women empowerment. Women are taking up enterprises that were traditionally a preserve of their male counterparts. This difference though is still evident especially in the developing world.
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