IFC Ms. Sevi Simavi

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Female Entrepreneurship

Global Trends and the Case of Bosnia

Conference on Enhancing Women Entrepreneurship in SEE

Sarajevo, October 1 2009

Sevi Simavi, IFC


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Female entrepreneurship is on the rise globally and

has been recognized as an important untapped

source of economic growth.

In USA, the number of women-owned businesses has increased by 20 percent between 1997 and

2002. In 2008, women owned firms employed more than 13 million people, and generating $1.9

trillion in sales.

In Canada, 47 % of SMEs have some degree of female ownership, with 16 % majority-owned by

women. Annually, they contribute $18 billion to Canada's economy.

In China, it is estimated that women own 30% of all small and medium-sized businesses.

In Egypt, Jordan, Saudi Arabia and the West Bank and Gaza, the share of female-owned firms

that have increased their workforce recently exceeds the share of male-owned firms.

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Global Trends in Female Entrepreneurship

Regardless of gender, entrepreneurial activity is significantly higher in

both the low/middle-income countries than in the high-income countries.

Even in mature market economies level of female entrepreneurship

typically falls considerably below that of the male population.

A systematic gender gap exists with respect to new venture creation and

business ownership.

Employment matters to entrepreneurial activity. Those women who areemployed in a wage job are three to four times more likely to be involved

in entrepreneurial activity than those who are not working, are retired, or

are students.

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Womens Entrepreneurial Motivation

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Source: Global Entrepreneurship Monitor, 2007 Report on Women and Entrepreneurship


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Sectoral Distribution of Female Entrepreneurship

by Country Group and Business Stage

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Source: Global Entrepreneurship Monitor, 2007 Report on Women and Entrepreneurship


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Investment Climate and Female Entrepreneurship

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Women have limited voice in public decision making

Networks

Role models

Access toinformation

Lobbying

Gender neutral laws can have gender-biasedoutcomes in practice

Expensive andlengthy

procedures impactwomen more

Interference and

harassment fromgovernment

officials

Legal rights may differ formen and women

Direct:Male consentrequired to

start a business

Indirect: Limited

inheritancerights


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Womens Labor Force Participation in Bosnia

and Comparator Countries

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Source: IFC, Voices of Women Entrepreneurs in Bosnia and Herzegovina


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Entrepreneurship in Bosnia

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22.6%

27 % women

85 % micro/small



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Regional Comparisons

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Bosnia =around 27%

Albania =

around 13%

Macedonia =around 17%



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Main Obstacles for Female Entrepreneurship

Licenses, taxation, cost of finance and labor issues are cited as

the biggest obstacles to women owned businesses.

High level of decentralization in Bosnia and Herzegovina, with

fourteen governments operating with little coordination among

each other.

Frustrations with doing business in different parts of the

country and hesitation to expand to other regions, due to theunclear or varied business requirements of the different

regions.

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Lack of registered property under womens own name becomes

a problem when seeking bank financing.

Absence of strong womens business organizations that could

provide much-needed training, networking and advocacy.

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Main Obstacles for Female Entrepreneurship


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THANK YOU!

Sevi Simavi

[email protected]

++ 1 202 473 9395

To download the Voices of Women Entrepreneurs in Bosnia and Herzegovina, visit

www.ifc.org/gender and click Gender Tools and Resources > Business Enabling Environment >

Bosnia and Herzegovina

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IFC Ms. Sevi Simavi

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