Women entrepreneurs in Australia: The state of play in 2012

Mary BarrettUniversity of Wollongong

mbarrett@uow.edu.au

Three basic questions

• Where does Australia rank in female entrepreneurship compared with other developed economies?

• What are the differences and similarities between male and female entrepreneurs in Australia?• What initiatives are being pur- sued in Australia to promote women’s entrepreneurship?

Australian women’s entrepreneurship in comparative perspective

• GEM (measures entrepreneurial activity in > 80 countries).• Main indicator is Total Early-Stage Entrepreneurial Activity rate (TEA),

ie proportion of a country’s adult population that is engaged in entrepreneurship.

• GEM 2011 data show Australia is second only to U.S. in proportion of women in TEA. • In 2010, Australia had highest proportion of women in TEA (7.8%), same proportion as for men. Australia he only developed country with this result.• High rate of employee entrepreneurial • activity (EEA) in Australia.

Reasons for Australian women’s high involvement in entrepreneurship

• Combination of skills and opportunities• About 40% of Australian women identify

opportunities and believe they have necessary skills

• Consistently favourable media attention positive role models

Male and female entrepreneurs in Australia differ in their aspirations

• Job growth: 42% of men but only 24% of women want to grow their business to > 5 employees in next 5 years.

• Internationalisation: 13.7% of men but only 6% of women want to have a major share of their customers from international trade.

Gender differences in Australian entrepreneurship

• Industries where businesses started:– Men: finance, mining, industry, manufacturing– Women: service industries

• Women underrepresented in high growth industries

• Networks: more used by men• Sources of advice: – Men: work colleagues, professionals – Women: family members

Government information sources for business planning

• From the Australian Statistician

Know your market

Locate potential clients

Target promotions

Assess site location

Grow your business

Support your business case

Improve your marketing strategy

Estimate your market share

ABS has information on...

Contact the ABS for more information

Government information sources

• In addition to advice and data, the government provides a number of programs which offer valuable services and resources at low cost. Examples include:– training programs, – consulting services, – mentorship programs, – opportunities to attend trade fairs abroad– introductions to potential suppliers, partners and customers.

Government programs to promote exporting

• Workshops, training seminars and courses on international trade

• Designated certifications• Trade offices or commissions• Tools and guides

Government business development offices

• provide help with assessing, planning and implementing solutions that correspond to the current development stage of individual businesses.

• Tools are also available, eg– business planning, – self-assessment tests for potential entrepreneurs – consultation with business service professionals.

• Training services range from different types of financing to information about venture capital services and how to approach them.

NFP initiatives to assist women to become entrepreneurs, eg:

Springboard Enterprises• Has created 1000s of jobs, generated $US5 billion in capital• Connects women with entrepreneurs, investors and

industry experts• Currently operates in US and Israel• Offers investor forums where women pitch to potential

investors• Founded because of statistics worldwide showing 95% of VC $$$ goes to men.

Australian Women Chamber of Commerce and Industry (AWCCI)

Open to women who own and operate their own businessesSurveys members to understand women entrepreneurs’

problems. Findings in 2012 include:

• 78% of the women surveyed left employment at a middle or upper management level to start their business.

• A third of respondents (33%) employ staff, but only 27% of respondents have an annual turnover of more than $250,000.

• 42% of respondents started their business with less than $5000, but 51% now require capital in order to grow their business.

Comments from AWCCI chief executive

• “Women don’t grow [their businesses] as fast because they are more conservative, but have a higher ROI because they don’t spend as much.”

• “However, they still need access to capital, access to markets and business capacity, and skills building to expand and grow.”

• “Women often struggle to secure capital because venture capitalists and angel investors tend to overlook service industries. Home-based business are also perceived as less successful.”

• “We also need to educate women into making sure they do have the information and are prepared when they go to lenders so they don’t get knocked back.”

• “They don’t tend to sell themselves as well as men do.”• “The AWCCI will [help] to ensure women are included in business programs

and policy decision-making, and are able to procure contracts to guarantee revenue growth.”

Organisations created by women entrepreneurs themselves

• For example: Women as entrepreneurs• http://womenasentrepreneurs.com.au/join/#join• Access Members only special offers• Get connected to other Members and business experts both offline and

online• Opportunity to purchase tickets to Members only networking events and

seminars (read testimonials & check out some photos)• Free inclusion and promotion of the business through the

Women as Entrepreneurs Biz Directory of female owned businesses (optional)

• Promotion of business through social media channels• Members can contribute to the content of the website and be

profiled/interviewed/promoted through the website, social media channels and e-newsletter

Organisations for women entrepreneurs affiliated with international organisations

Women Chiefs of Enterprise International (WCEI) provides

• national and international connections; • an online community; • state events and national conferences; and • numerous learning and leadership development

opportunities. • WCEI is a member of FCEM and NEWWW, and

collaborates with UnitedSuccess.

Initiatives by individual banks,

Bank initiatives, eg Westpac’s Women in Business Survey of 1,100 women entrepreneurs in Australia

• Most Australian women (51%) take a pay cut when they start their business

• Most are happy to do so, but often struggle to stay afloat.• 62% who took a pay cut felt it was worth it, while 77%

would start their business again if they had the choice to remain in the corporate world or become an entrepreneur.

Westpac survey results (continued)

• Those aged 30-39 have the highest propensity to leave corporate life to start businesses.

• More than 60% of respondents cited independence and flexibility as the main reasons for women starting their own business.

• Retail is the most popular industry among Australian businesswomen, (34% of respondents), followed by health and hospitality (10% and 6% respectively).

Women and high-tech based entrepreneurship in Australia

• Neglected policy area• Comparative absence of women

entrepreneurs in high-tech industries may stem from ‘big infrastructure’ focus of Australian high growth industries

• Separatist networking/entrepreneurship agendas are a problem for women entrepreneurs

Illawarra initiative: iAaccelerate(iAccelerate.com.au)

• Wollongong is the central city of the Illawarra region, 80 km south of Sydney.

• Current industry base is manufacturing and resources (steel, coal, iron ore) and the U. of Wollongong.

• 28 May 2012: Launch of the StartPad ideas incubator

– focuses on entrepreneurship and fast growth businesses.– Modeled on successful reinvention of Waterloo, Canada – joint initiative between UoW, Wollongong City Council, NSW Trade & Investment, Enterprise Connect, Regional Development of Australia , Illawarra local business and entrepreneurs.– ‘Deliberate gender inclusion’– Build ‘Silicon beach’ .

Microcredit schemes

• “This program is appropriate for women already operating a micro business, looking to transition a ‘hobby’ into a business or simply has an idea that she would like some support to develop.”

• Source: Extract from website advertisement for Equality Rights Alliance, Canberra). See equalityrightsalliance.org.au/event/orientation-session-interest-free-loans-women-entrepreneurs

• Cf Mohammed Yunus’ microcredit schemes which began in 1976.

Indigenous women’s entrepreneurship

• Women and the indigenous art industry