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Chap 2
Chap 2
Chap 2
2. Introduction
This chapter reviews the literature to understand the importance of empowerment by
entrepreneurship for women. Since the 1970s, issues relating to empowerment and gender
equality have been on the international development agenda. Recently the WDR (2012)
highlighted the importance of empowering women and equal rights as a key lever for poverty
reduction and the impact of development (Wu, 2013). Entrepreneurship is an effective
poverty reduction strategy and also offers women several benefits. No significant changes
have been made to women's position despite the opportunities offered by entrepreneurship
and increase in entrepreneurial activities.
2.5.3 Societal Support (SS) Relation with Women Entrepreneurs’ Performance (WEP)
Social capital is composed of social networks, social rules and social trust (Haynes, Hitt, and
Campbell 2015). (Payne, Moore, Griffis, & Autry, 2011; Putnam, 1995; Ritchie, 2016). We
talk to each other. Studies show that they are important for business success in relation to the
social networks of entrepreneurs – an aspect of the setting in the 5M model (Batjargal et al.,
2013; Davidsson and Honig, 2003; Hanson & Blake, 2009; Haynes et al., 2015). For
example, a crucial way for businesses to compensate for their limited resources is to use their
social networks when beginning a new company (Jones and Jayawarna, 2010; Urbano, Ferri,
and Noguera, 2014). Social networks are particularly important in the success and
continuation of women's businesses (Apergis and Pekka-Economou, 2009; Carter, 2000;
Estrin & Mickiewicz, 2011; Gray and Finley-Hervey, 2005; Kwong, Jones Evans, &
Thompson, 2012; Lans, Blok, & Gulikers, 2010; Noguera, Alvarez, Merigo & Urbano, 2015;
Ramadani, 2015; Tlaiss, 2014), in particular in the development of women's businesses.
Women are more likely to solve problems in getting finance for their projects when they have
access to networks (Carter et. l., 2003; Hodges et al., 2015; Kuada, 2009) that can improve
their efficiency. In the case of transitional economies, networking is of particular importance
due to shortage of resource and the impermissible institutions according to Hodges et al.
(2015), Manolova, Manev, Carter and Gyoshev (2006), Manolova, Manev and Gyoshev (14)
and Xheneti and Bartlett (2012). Similarly, Inman (2000) and Tlaiss (2014) indicate that,
primarily due to their highly contextual existence, access to networks is advantageous for
entrepreneurial women in Arab countries. The most economic results in these countries are
determined by informal and social networks (Cunningham and Sarayrah, 1993; El-Said &
Harrigan, 2009). The failure of women entrepreneurs' social and professional networks in the
Gulf countries is an obstacle to their companies' development (Mathew, 2010). Networking is
therefore more important and plays a vital role in environment where institutions are poor and
trust in institutions that are characteristic of developed economies is limited (Danis et. l.,
2010; De Clercq, Danis, and Dakhli, 2010; Prasad et al., 2013).
2.5.4 Entrepreneurship Education (EE) Relation with Women Entrepreneurs’
Performance (WEP)
The professionalism and the number of flexible staff was confirmed to have major effect on firm
success by human resources such as educational level, skills and experience of owners,
management and staff (La Porta and Shleifer, 2014). Suitable competence and skills are key
factors in small business development (Huarng et al., 2012). It is noted that women
entrepreneurs have been taught subjects that are not very much related to their departmental
functions (Cormier et al., 2011) and lack the specialisation required for performing financial-
sector duties (Jafari et al., 2011). This lack of business education leads to occupational
contracted online marketing. Shane and Venkataraman (2000) suggest a greater and better
vision of how to profit women who have studied certain functional businesses (Shane and
Venkataraman, 2000).
Male entrepreneurs are more experts in the past either in jobs with their managers or as
employees in companies similar to those they subsequently create or acquire. These
differences are attributable to discrimination or segregation of women in the labour market,
which has taken away the expertise they need to grow and sustain a company. In addition, for
reasons linked to maternity and family responsibilities, women's careers are more likely to be
interrupted than men (Anderson et al., 2012).
2.5.5 Access to the Network (ATN) Relation with Women Entrepreneurs’ Performance
(WEP)
Networks are a vital source of social capital and provide a channel for information and
resources exchange that can positively impact the development and survival of a company.
Owners may gain access through social networks to resources and opportunities and get
advice and moral support, which otherwise may not be accessible (Watson, 2012). According
to the social network theory, people can interact with individuals that lead to the separation of
networks (Brass, 1985). Studies show that female business networks are homophile and
predominantly female. The review by Carter et al. (2003) of the Venture Capital Sources
Manual (2000) in Pratt revealed that investment sector networks were predominantly male,
with only 529 women of more than 6086 men from Venture Capital. They concluded that the
chance of having a female equity investor in a women's business network is remote because
of those odds. In addition, they suggest that women entrepreneurs may need to use alternative
networking strategies if they are to make useful contacts within the investing community.
Female entrepreneurs with relevant industry, management, and start up experience combined
with different social networks can take advantage of bootstrapping to position their
companies and attract more investments than female business people who lack these
experiences and networks (Carter et al., 2003). Hanson and Blake (2009) argue that
networking can reduce transaction cost by small business owners and facilitate access to
resources through improved access to information. The less the other network members are
connected, according to Seibert et al., the more an entrepreneur can benefit from the network
and have 'more unique and timely access to information (2001). Ruminska-Zimny (2002)
found the lack of access to information, networks and collateral rest online marketing.
Various researchers investigated the role of networks in access to finance and success for
entrepreneurs. Baron and Markman (2000) have proved to be an important factor in attracting
venture capital and growing their sales results that enterprises are able to create or participate
in networks. Concerning the gender gaps in the access to entrepreneurial start-up funds,
Kuada findings (2009) indicate that female entrepreneurs depend on their relationships and
social capital more than male entrepreneurs to offset rest online marketing of bank funding.
By finding answers to the following questions, this paper advances this research stream: Are
women entrepreneurs who collect help beyond their social network (friends and family)
getting their companies started with higher start-up funds? Are these women businesses
selling better than women who depend primarily on close links, such as family and friends?
Access to
Finance
(ATF)
Work- Innovativeness
Family in Marketing
Interface via Online (MI)
(WFI)
Societal
Support
(SS) Women
Entrepreneurs
Performance (WEP)
Entrepren
eurship
Education
(EE)
Access to
the
Network
(ATN)
Access to
the
Network
(ATN)
2.7 Summary
The results of this study contribute to the research efforts directed at understanding the
dimensionality of the entrepreneur construct and the role that the entrepreneur dimensions
together with the social and business environments have in explaining business performance in a
constrained context such as Asian countries.