Measuring Entrepreneurship Question: Do entrepreneurial patterns differ by gender? Data Sources: 1) Gallup World Poll Survey (GWP) Do you own a business? Is your business formally registerd? How many employees do you have (not including yourself)? Do you own a business? 2) Entrepreneurship Survey (www.doingbusiness.org/entreprenuership) Private companies with limited liability Entry Density: calculated as the number of newly registered limited-liability firms as a percentage of the country s working age population (normalized by 1,000) 1 1
Employment Composition (GWP) Developing Countries, women High Income Countries, women 49% 11% 19% 16% Business Owners Self-Employed Employed for Employer Unemployed Out of Workforce 47% 8% 14% 25% Business Owners Self-Employed Employed for Employer Unemployed Out of Workforce 6% 5% Developing Countries, men 21% 20% Business Owners Self-Employed 5% Employed for Employer 24% Unemployed 31% Out of Workforce About half of women around the world report being in the workforce In developing countries, women are about half as likely as men to be wage employees Women in developing countries are more likely to be self-employed, relative to women in high-income countries.
Profile of Business Owners (GWP) Developing Countries, Women High Income Countries, Women Richest Q4 Q3 Q2 Poorest Urban Rural 65+ 25-64 15-24 Tertiary or more Secondary Primary or Less 0% 5% 10% 15% 20% 25% 30% Q4 Q2 Rural 65+ 15-24 Tertiary or more Primary or Less 0% 5% 10% 15% 20% 25% 30% Richest Q4 Q3 Q2 Poorest Urban Rural 65+ 25-64 15-24 Tertiary or more Secondary Primary or Less Developing Countries, Men 0% 5% 10% 15% 20% 25% 30% Entrepreneurs are wealthier; the income gap is larger in developing countries Young women in developing countries are active in starting businesses Education is not as important a factor in developing countries
Business Ownership, by Formality (GWP) 20% 15% What drives differences in business ownership and formality? Access to start-up and working capital? Wealth Outside financing 10% 5% 0% ** Developing Countries Women ** Developing Countries, Men High Income Countries, Women Owns a formal business Owns an informal business
% Adults in Developing Countries Entrepreneurship & Income Distribution (GWP) 10 9 8 7 6 5 4 3 2 Poorest 20% Second 20% Middle 20% Fourth 20% Richest 20% 1 0 Own a Formal Business Own an Informal Business SE Full-Time SE Part-Time (wage)
Financial Inequality: Globally, 47% of women are banked compared to 55% of men
26% percent of unbanked women report that another family member already has an account compared to 20% of men The gender gap narrows from 8% to 3% when we include indirect access to a bank account through a family member.
Entrepreneurship Database (DB) 4.5 4.21 4.0 3.5 3.0 2.5 2.26 2.0 1.5 1.31 1.0 0.5 0.77 0.63 0.79 0.58 0.0 High Income East Asia & Pacific Europe & Central Asia Latin America & Caribbean Middle East & North Africa South Asia Sub-Saharan Africa Source: Klapper and Love, 2012 8 8
Entrepreneurship Database (DB) 9 9
Who keeps gender statistics on business records? Out of 139 countries surveyed during 2013 data collection cycle, 24 countries registrars indicated maintaining gender statistics Countries with gender data come from every geographical region and income group. In some countries gender statistics is collected with respect to sole proprietors only and other legal forms that don t entail limited liability. E.g., France, Senegal, South Sudan. Country Name Region Country Name Region Afghanistan South Asia Macedonia, FYR Europe and Central Asia Albania Europe and Central Asia Malaysia East Asia and Pacific Algeria Middle East and North Africa Mauritius Sub-Saharan Africa Azerbaijan Europe and Central Asia Montenegro Europe and Central Asia Belgium OECD Nepal South Asia Burkina Faso Sub-Saharan Africa Romania Europe and Central Asia France OECD Senegal Sub-Saharan Africa Iraq Middle East and North Africa South Sudan Sub-Saharan Africa Italy OECD Sweden OECD Jordan Middle East and North Africa Tajikistan Europe and Central Asia Kosovo Europe and Central Asia Timor-Leste East Asia and Pasific Kyrgyz Republic Europe and Central Asia Togo Sub-Saharan Africa
Women business ownership varies widely across economies Macedonia indicated increase in women ownership over the years. A little over 30% of firms with limited liability is owned by women entrepreneurs as of May 2013 In Jordan every tenth limited liability company interest owner is woman as of June 2013 Women ownership growth in Macedonia 32% 31% 30% 29% 28% Men - 89.4% Women - 10.6% 27% 26% 25% 24% 23% 2006 2007 2008 2009 2010 2011 2012 2013
Algeria and Tajikistan are among countries with the smallest women entrepreneurship participation 6% Women ownership in firms with limited liability in Algeria is below 5% Just 1.5% of companies with limited liability is owned by women in Tajikistan in 2012 5% 4% 3% 2% Men - 98.5% Women - 1.5% 1% 0% 2008 2009 2010 2011 2012
Entrepreneurship vs Self-Employment A Census of registered firms versus a Census (or survey) of informal firms may paint a very different picture of economic activity (versus employment). For example, the blue bar is data collected from the Registrars of Companies in 135 countries, while the green bar is data collected from an individual-level (demandside) survey in the same countries (those that reported self-employment). Entry density 5 % Self- Employed 50 4 40 3 30 2 20 1 10 0 Lowest Highest Economies ranked by GDP per capita (2000 US$), quintiles Source: Klapper and Love, 2010 0 Lowest Highest Economies ranked by GDP per capita (2000 US$), quintiles Source: Gallup World Poll, 2009 data 13