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Challenges and Enablers of Women Entrepreneurs' Career Advancement in Vietnam's Coffee Industry
Challenges and Enablers of Women Entrepreneurs' Career Advancement in Vietnam's Coffee Industry
https://www.emerald.com/insight/1750-6204.htm
JEC
15,1 Challenges and enablers of women
entrepreneurs’ career advancement
in Vietnam’s coffee industry
76 Giang NT Nguyen
Faculty of Business and Law, The University of Newcastle, Callaghan Campus,
Received 25 April 2020 Australia and School of Business and Management, RMIT University,
Revised 24 July 2020
29 September 2020 Ho Chi Minh City, Vietnam
28 November 2020
Accepted 9 December 2020 Thinh Gia Hoang
School of Business and Management, RMIT University, Ho Chi Minh, Vietnam
and Centre for Applied Economics and Business Research, Hanoi, Vietnam
Tam Minh Nguyen
University of Economics, The University of Danang, Da Nang, Vietnam, and
Thanh Thien Ngo
International School of Business, University of Economics Ho Chi Minh City,
Ho Chi Minh City, Vietnam and Centre for Applied Economics and
Business Research, Hanoi, Vietnam
Abstract
Purpose – This paper aims to explore the motivational factors and contextual facilitators of female
entrepreneurs in Vietnam’s coffee industry and also the barriers facing them.
Design/methodology/approach – This study adopts the grounded theory approach, using semi-
structured in-depth interviews with 31 women entrepreneurs in the coffee industry in the rural Central
Highlands of Vietnam.
Findings – This study found that necessity-driven factors play an important role in motivating female
entrepreneurs to advance their careers. However, these factors may be transformed into the opportunity-
driven motives. Furthermore, the findings suggest that Asia’s collectivism culture and family support
significantly affect the success of the women entrepreneurs, although gender inequality is not perceived as a
serious constraint in entrepreneurial activities.
Research limitations/implications – This study has implications for the literature of women
entrepreneurs regarding motivations and contextual influences in agricultural and rural areas of Vietnam.
However, the sample size is relatively small which limits the concept generation of the study. For further
research, a larger sample size with different business sectors should be considered to generate more explicit
findings.
Practical implications – The findings from this study can assist the policymakers in developing
strategies and governmental policies to support the career advancement of women entrepreneurs and
improving gender equality in Vietnam.
Journal of Enterprising Originality/value – This study contributes to the literature about understanding the motives and the roles
Communities: People and Places in
the Global Economy of socioeconomic contexts in women’s entrepreneurial activities in agricultural and rural areas.
Vol. 15 No. 1, 2021
pp. 76-95
© Emerald Publishing Limited
Keywords Vietnam, Women entrepreneurs, Rural development, Coffee industry
1750-6204
DOI 10.1108/JEC-04-2020-0075 Paper type Research paper
1. Introduction Vietnam’s
Entrepreneurship is identified as a vital part of international economic development. The coffee industry
Global Entrepreneurial Monitor (GEM, 2013) notes that entrepreneurship is a complicated
process which is influenced by specific socio-cultural contexts. The GEM mentioned that
entrepreneurship could be seen as a product of the socio-cultural and economic mechanisms
where the entrepreneurs reside. Thus, family, social behavior and both educational and
economic backgrounds greatly influence the entrepreneurial spirit of individuals. It is essential
to understand the underlying motivational factors for encouraging potential entrepreneurs to 77
become involved in business activities.
On top of that, women entrepreneurs have recently been highlighted as an important
factor in boosting the development in both established and emerging regions (Anderson,
2002). The participation of women entrepreneurs has varied remarkably throughout the
continents. Although women from all over the world have agreed that exerting
entrepreneurial spirit can affirm their roles in the public eye and create an appropriate
lifestyle (Marlow, 2002), the development of women entrepreneurs in emerging nations is
still in its infant stage, owing to socio-economic barriers (Çetindamar et al., 2012). As long
as there is a proper implementation of the planned approaches and if women are taken
into the center of the business activities as agents of social changes, although not as
beneficiaries, gender equality can be attained (Lenka and Agarwal, 2017). The 2012 GEM
(GEM, 2012) mentioned that Vietnam is one of the countries which has the lowest
proportion of women entrepreneurs, yet in 2018, nearly a third of businesses in Vietnam
were owned by women, 42% of which are small and medium enterprises (SMEs) and only
1% are large companies . The figure ranked Vietnam in sixth place out of 53 surveyed
nations, ahead of many developed countries such as the Europeans, the USA and China.
Despite an increase in the total number, the statistics also showed that Vietnamese
women ranked among the lowest in the surveyed markets in terms of “quality of
governance” (47), “entrepreneurial supporting factors” (48), “ease of doing business” (36)
and “cultural perception of women entrepreneurs” (25).
Besides, only a few studies have been investigating women-owned enterprises and most
of these researches are mainly focused on developed regions (Agarwal and Lenka, 2018;
Hisrich and Ayse Öztürk, 1999). Poggesi et al. (2015) and Honig and Paul Dana (2008) found
that extant studies of women entrepreneurship concentrated mostly on characteristics,
financial performance, managerial issues and the network of entrepreneurs in both
developing and developed countries, yet not on their underlying motivational and success
factors. Furthermore, OECD (2004a); Ratten (2014); and UNDP (2016) concluded that women,
and especially those in developing countries, have received lower standards of education
and social status and a higher responsibility for domestic duties. They have also been
lacking in role models, networks and funding in business sector. As a result, they do not
have enough confidence to become successful entrepreneurs. Poggesi et al. (2015) and
Agarwal et al. (2018) called for more research into female entrepreneurs, especially in the
rural areas of emerging countries.
We will be considering the coffee industry in Vietnam, which is the second largest coffee
producer and exporter in the world, with an average production rate that currently exceeds 25
million 60 kilogram bags. This industry attracts nearly a million workers each year, although
mostly in rural areas and one of the utmost critical concerns for development in the labor
workforce for this industry is the gender equality issue. This industry is still widely considered
to be a “men’s crop,” and the traditional image of coffee growers is mostly male-oriented.
Females are usually referred to as “farmers’ wives”; however, women play a more critical role
in farming in more recent times than is often expected (USAID, 2018). They are heavily
JEC involved as producers, cooperative leaders, collectors, traders, roasters, cuppers and coffee shop
15,1 owners throughout the coffee value chain. Recent studies have shown that women have
performed more than half of the work in the coffee farms. It was noted in USAID (2018) that
more women have become the first generation of coffee entrepreneurship who have their own
coffee manufacturing businesses. They have changed the traditional male-dominated ideas in
several production stages such as roasting, exporting and trading.
78 However, there has still been very little literature about women entrepreneurs in the
Vietnamese coffee industry. Given this absence of women entrepreneur studies in the coffee
industry, especially beyond the production stage, this study focuses on understanding the
underlying motives of women-led businesses in coffee value chains in Vietnam, along with
the contextual facilitators and constraints of the industry for women entrepreneurs.
In response to these calls, this study aims to shed light on literature about female
entrepreneurship in Vietnam, especially in the coffee industry in rural areas. This research
addresses the following research questions:
2. Review of literature
2.1 Theoretical lens of entrepreneurship
An entrepreneur is a person who possesses, establishes, operates and undertakes the risks of
an economic venture (Greve and Salaff, 2003). He or she is a person who is able to seek
opportunities and develop them into profitable businesses. Entrepreneurship can be seen as
a major driving force in national economic growth (Morris, 2001). Emerging nations are
more reliant on new dynamic start-up businesses to replace public organizations to boost the
economic development (Mazzarol et al., 1999).
There are several studies showing the discrepancy between the entrepreneurial activities
of men and women in terms of roles, motives, organizational processes and styles (Lenka
and Agarwal, 2017; Agarwal and Lenka, 2016). However, most of the results of male
entrepreneurs’ studies have been inadequately applied for women entrepreneurs (Maden,
2015). On top of that, most of the literature of female entrepreneurship is based on the data
from developed nations (Welter et al., 2006; Çetindamar et al., 2012).
Researchers differentiated the factors which influence a new start-up business into three
perspectives, which include personal characteristics, genders, socio-economic backgrounds
and enterprise-related variables (Tuzun and Takay, 2016). Several factors restrict the Vietnam’s
exploration of potential opportunities, which are also used to explain the reasons why coffee industry
entrepreneurs fail to succeed in their businesses (Okafor and Amalu, 2010). In this research,
the authors used the GEM framework in Kelley et al. (2011), the need for achievement theory
and the self-efficacy theory to investigate how the socio-economic environment (contextual
facilitators) affects the motivational factors of women entrepreneurs in the context of the
coffee industry in the rural areas of Vietnam.
79
2.2 Global entrepreneurship monitor framework and contextual facilitators
According to the GEM framework, to explore any entrepreneurship process in any country,
researchers have to examine the social, cultural, economic and political factors where these
entrepreneurs reside. Hindle (2010) mentioned that contextual facilitators are all components
of the environment in which all entrepreneurs are dependent players. They demand a
comprehensive approach in both research and also in practice to have a supportive
environment in which they can adopt an appropriate entrepreneurial strategy. Kelley et al.
(2011) concluded that entrepreneurial activity is not a heroic behavior of an individual,
regardless of the environment in which the activity is performed. It is the result of the
interaction of an individual’s consciousness of a chance and capability (motivation and
skills) to act upon this and the specific environment (culture, education) of the relevant
condition (family support) in which the entrepreneur is located (Naser et al., 2009; Agarwal
et al., 2020). For example, Ozar (2007) mentioned that female entrepreneurs receive various
reactions from their families when starting up their business. Although several husbands
are totally opposed to the decision of their wives running a venture, others provide
meaningful assistance. The different attitudes from families and their life partners can
strongly impact the entrepreneurial motives of women (Agarwal et al., 2018; Agarwal and
Lenka, 2015).
Also, Jennings and Brush (2013) and Kelley et al. (2011) mentioned there are two concepts
called “necessity” and “opportunity” entrepreneurs. They emphasized that the two greatest
driving forces for entrepreneurs are overcoming economic difficulties (necessity
entrepreneurship) and seeking external opportunities (opportunity entrepreneurship).
Depending on the availability of the institutional infrastructure, the stability of the
governmental policies and the differences of cultures and social norms, entrepreneurs would
react in different ways to achieve success (Agarwal et al., 2018; Agarwal and Lenka, 2015).
Vietnam is defined as a factor-driven nation which is in a transition to being an efficiency-
driven nation (Kelley et al., 2011; Nguyen et al., 2014). It can be seen that Vietnamese women
entrepreneurs have initially been “necessity” entrepreneurs to ease their financial burdens
and empower themselves. Even so, their motives may gradually change over time; many of
them have become entrepreneurs with more opportunity-driven motives (Nguyen et al.,
2014).
Research quesons
Literature review
Code indenficaons
5. Findings
85
5.1 Demographic information of respondents
Out of 31 interviewees, 35.5% had completed tertiary education and 41.9% had a diploma
degree; 71% were married and 19.3% were single. Most of them are over 35 years old with
over 10 years’ experience. The detailed profiles of interviewees are shown in Appendix.
Table 3 shows the demographic information of the sample.
Ages
<35 years old 4 12.9
35–45 years old 21 67.7
>45 years old 6 19.4
Years of experience
<5 years 2 6.5
5–10 years 7 22.6
10–15 years 13 41.9
>15 years 9 29
Marital status
Single 6 19.3
Married 22 71
Divorced/widowed 3 9.7
Education level
High school 7 22.6 Table 3.
Diploma/college 13 41.9 Demographics of
Tertiary education 11 35.5 respondents
JEC E1, who was the owner of a coffee powder production firm in Dak Nong, said:
15,1 [. . .] I was a freelancer; I did not have any official job. I have kids to raise. The only thing I had at
that time was the experience of collecting coffee beans, but it was not good enough to feed all of
us. I had to decide to start doing something. If not, we would starve. I did not have much money,
so I bought raw coffee beans to roast and re-sell [. . .]
Similarly, E25, who was the CEO of a coffee bean exporting company in Kon Tum,
86 mentioned:
[. . .] I followed my mom to pick coffee beans in the family’s coffee farms in this local area. At that
time, some representatives of big companies came to my area to buy raw coffee beans, so I helped
my parents to deal with them as my parents were not able to finalize the contracts with them. I
had already graduated with a business degree from a university in Ho Chi Minh city. It was in
1993 and it has always been very challenging to work in this coffee industry [. . .].
Meanwhile, only a few respondents stated that the reasons for establishing the business
were “intrinsic motives.” From the seven intrinsic motive codes, most of them chose “want to
develop the local coffee industry” (five times). Other groups included “gaining new insight”
(once) and “want to help others” (once).
E29, the owner of a coffee powder production firm in Lam Dong, mentioned:
[. . .] My hometown is here, but I worked for a foreign exporting coffee enterprise in Ho Chi Minh
City. I came here to find coffee sources for my company. I have seen a lot of the difficulties for
farmers since I was a kid, and their life is still impoverished. I decided to establish a company
which collects green beans and then processes them to export to develop this local industry
[. . .].
6. Discussion
The findings from our interviews with women entrepreneurs in the coffee industry in
Vietnam confirmed that most of the respondents were “necessity-driven” or “forced”
entrepreneurs. All responses represented a survival problem and a need to generate
additional income to cover family expenses. Only a very small amount of evidence suggests
that female entrepreneurs had established their new businesses with “opportunity-driven”
thoughts. This finding is consistent with Tuzun and Takay (2016) and Sivenesan (2014),
who each confirmed that most women entrepreneurs establish new ventures with more
necessity motives. The females who participated are greatly driven by an urge to improve
the income for their family. These unique outcomes can be relevant to the socio-economic
characteristics of rural areas in Vietnam. The poverty rate in the area is higher than the
national average, and people there are mostly dependent on agriculture. Most female
entrepreneurs who are trading responded that they started their business in collecting and
roasting coffee decades ago before establishing trading businesses. They stated that they
have not yet participated in a training session and that all businesses have been running
without much experience. They have overcome many different challenges arising from their
lack of experience.
However, in those conditions, self-efficacy seems to be a crucial characteristic for them to Vietnam’s
defeat failure. They became stronger in mind, more creative, more enthusiastic and worked coffee industry
much harder. This study confirmed that, with the support of their self-efficacy, the initial
extrinsic motivational factors could make female entrepreneurs more mentally durable, and
this may become their intrinsic motives in time. This outcome has been visualized in the
model below (Figure 2).
It is also noted that there was a remarkable lack of supporting schemes for organic and
certified coffee products. In some cases, the women paid for their training costs because they
89
did not know of any available government-sponsored programs. International markets
demand a lot from certified coffee products which have, for example, 4 C Rainforest
Certificates, so the government should pay more attention to developing these programs for
entrepreneurs. In terms of funding a new business, the financial funds provided by the local
government under micro-credit schemes were relatively restricted and those who have good
relationships with the state or bank staff should be more prioritized. Although women’s
unions and coffee associations have already been reminded, they should play a more
dominant role in promoting the entrepreneurship ecosystem in the vital material sources
areas such as Dak Lak, Dak Nong and Lam Dong to develop the coffee industry. Our
findings are also compatible with the OECD (2017) and GEM (2013, 2015) reviews, which
highlight that, in developing countries, women entrepreneurs require training, seminars and
workshops on sustainable development, entrepreneurial know-how and financial
management from government bodies. The respondents all agreed that competitive
environment has higher impact on entrepreneurial intentions than government support that
align to the research of Anggadwita and Dhewanto (2016a, 2016b) and Anggadwita et al.
(2015). However, Anggadwita and Dhewanto (2016b) showed that although government
support does not have strong impact on entrepreneurial intentions, it has strong influence on
the competitive environment.
In terms of socio-cultural issues, women entrepreneurs agreed that their gender was a
challenge owing to the gender roles constructed by societies. It was evident that socially
constructed gender roles have been a significant constraint for female entrepreneurs. The
respondents showed that, in Vietnam (similar to other Asian cultures), women have to be in
charge of the domestic duties. Interestingly, the women we approached also retained this
fact, although they did not bring up this issue as significant gender inequality. Nonetheless,
women in Vietnam can definitely cope with this situation as they believed that it is
inappropriate to expect a man to take care of the family. They highly appreciate the support
of their husband and family. Besides, gladly, it is not a serious concern in the local
community if women can earn more money than their husbands through their
entrepreneurial endeavors.
Figure 2.
Proposed framework
of motives and self-
efficacy of women
entrepreneurs in the
coffee industry in
Vietnam
JEC In contrast to the research of Tuzun and Takay (2016), Gudeta and van Engen (2018); and
15,1 Kabasakal et al. (2016), which concluded that women entrepreneurs are less helpful to their
male counterparts, female entrepreneurs in Vietnam are confident with their business positions.
The participants confirmed that, as a woman, they could gain more favor in dealing with their
business partners. In the Vietnamese coffee value chain, women entrepreneurs have
contributed more in the collecting and trading stages. They are known as better negotiators
90 who can arrange the deals with farmers and other trading partners. In the production stage,
more males contribute to the business than females. Moreover, most of the interviewees have
experienced living in the transition of the socio-economic condition called “Doi Moi,” and they
all agreed that the current society in Vietnam is much more open than before and is giving
more chances for women to run their own businesses.
7. Conclusion
The research contributes to the women entrepreneurship literature in a number of different
aspects. Firstly, this is one of the first women entrepreneurship researches specifically
targeted to the Vietnamese coffee industry. It provides opportunities for academics and
practitioners to understand insights into motivational factors, facilitators and the challenges
for women entrepreneurs in a specific under-researched context. Most other researches have
been conducted in the industrial and service sectors in developed nations. Second, through
its qualitative nature, this study contributes to the existing literature by highlighting the
importance of the socio-cultural differences between Vietnam and other developing
countries such as India, Indonesia, Turkey and Mongolia in women’s entrepreneurial
activities. Even though women entrepreneurs in Vietnam still feel that gender inequality
may be a hindrance, they are very positive that they are not less advantaged than their male
counterparts. Our findings can be expanded for further studies on female entrepreneurship
in different nations and industries. Eventually, the appropriate literature should provide a
full picture of where the dynamism of women entrepreneurs originated and how to support
women’s entrepreneurial activities in the emerging regions.
In terms of limitations, it is important to recognize that our findings cannot be
generalized owing to our small sample size. Thus, further studies with larger sample sizes in
different industries and nations are necessary to strengthen our conclusions. Moreover,
other scholars should explore the process of extrinsic motives being turned into the intrinsic
motives and in which condition those transitions may result in successful
entrepreneurships. However, the authors believe that the above findings provide a crucial
first stage toward a broader understanding of the contextual facilitators and constraints
affecting females seeking opportunities to participate in agricultural entrepreneurship in
and around rural Vietnam. This research should be a guide to policymakers and fellow
researchers who are interested in developing the rural and agrarian entrepreneurship
ecosystem in developing nations, such as Vietnam, by identifying the social contextual
factors that drive facilitators and ease the constraints to support women who are starting up
their own businesses.
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E1 Coffee powder production Dak Nong 36 Tertiary education 13 years Married 75 min
E2 Coffee bean collecting Dak Nong 41 High school 20 years Married 50 min 95
E3 Coffee roasting Dak Nong 41 Diploma 15 years Married 60 min
E4 Coffee powder production Dak Nong 43 Diploma 14 years Married 55 min
E5 Coffee bean collecting Dak Nong 38 High school 11 years Married 45 min
E6 Coffee roasting Dak Nong 28 High school 6 years Single 75 min
E7 Coffee powder production Dak Lak 39 Diploma 12 years Married 50 min
E8 Domestic coffee trading Dak Lak 55 Tertiary education 32 years Single 45 min
E9 Coffee bean collecting Dak Lak 42 Diploma 3 years Divorce 37 min
E10 Coffee bean exporting Dak Lak 37 Tertiary education 9 years Married 80 min
E11 Coffee roasting Dak Lak 31 High school 14 years Single 60 min
E12 Coffee bean exporting Dak Lak 40 Tertiary education 17 years Married 65 min
E13 Coffee bean collecting Dak Lak 43 Diploma 12 years Married 55 min
E14 Domestic coffee trading Dak Lak 30 High school 7 years Single 45 min
E15 Domestic coffee trading Dak Lak 42 Tertiary education 9 years Married 70 min
E16 Coffee powder production Gia Lai 40 Diploma 3 years Married 55 min
E17 Coffee bean collecting Gia Lai 44 High school 20 years Married 60 min
E18 Coffee bean collecting Gia Lai 60 Diploma 25 years Widow 55 min
E19 Domestic coffee trading Gia Lai 53 Tertiary education 11 years Divorced 45 min
E20 Coffee powder production Kon Tum 41 Diploma 14 years Married 75 min
E21 Coffee bean exporting Kon Tum 37 Tertiary education 25 years Married 90 min
E22 Coffee powder production Kon Tum 38 Diploma 7 years Married 50 min
E23 Domestic coffee trading Kon Tum 33 Tertiary education 9 years Single 40 min
E24 Domestic coffee trading Kon Tum 52 Diploma 12 years Married 60 min
E25 Coffee bean exporting Kon Tum 46 Tertiary education 14 years Married 50 min
E26 Coffee powder production Lam Dong 38 Diploma 20 years Married 60 min
E27 Domestic coffee trading Lam Dong 42 Tertiary education 12 years Married 70 min
E28 Coffee bean collecting Lam Dong 40 High school 22 years Married 65 min
Table A1.
E29 Coffee powder production Lam Dong 36 Tertiary education 13 years Married 75 min
E30 Domestic coffee trading Lam Dong 37 Diploma 8 years Married 55 min Profiles of
E31 Coffee powder production Lam Dong 50 Diploma 27 years Single 80 min interviewee
Corresponding author
Giang NT Nguyen can be contacted at: giang.nguyenngotinh@gmail.com
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