In the context of the 21st century, there is an increasing trend towards self-employment and entrepreneurship, although perhaps for different reasons, and surely under totally different conditions in developed and underdeveloped countries.
Entrepreneurship in some cases is an option and in others simply a necessity. During the 20th century, women have entered work, and now, in the 21st century, we are becoming entrepreneurs and entrepreneurs. This work will attempt to explore what women entrepreneurs are like, what their difficulties and opportunities are, and how they manage entrepreneurship.
Key words: Entrepreneurship, micro-enterprises, self-employment, empowerment.
THE NEW CONTEXT OF WORK
In the context of a globalized economy, the sources of work and the possibilities of working have changed radically. Today there is no longer a company that guarantees jobs for life. Organizations live immersed in a process of accelerated and aggressive change, in which not only new competitors permanently appear, but also new products and services that generate a new demand and make the old one disappear. Companies are quickly born and die, and permanent jobs are increasingly difficult to create and maintain.
Employment, as an expression of permanent work, decreases in the world. In the central countries there is greater economic growth but with less generation of jobs. The growth of employment in Europe is not enough to absorb the growth of the population of working age and, in turn, in Latin America thousands of permanent jobs have been lost in the 1990s. The use of new technologies and changes in the organization of work they have led to job instability. At the same time, many new services, education, commerce, finance, internet and other companies have been created, which are absorbing the unconnected, under other forms of work and productive activities.
Employment was a figure created by the industrial society, a great consumer of labor, but the contemporary knowledge society does not require jobs, technological advance is the main predator of labor. According to other opinions, the root of the phenomenon is not in technology but in the current business organization that works only with a part of its own staff, which is increasingly reduced, and carries out its activities through outsourcing with other companies - outsourcing - and with independent workers. In the traditional economy, an increase in production necessarily implied an increase in the number of jobs, but in the new economy, companies have been moving from a type of business that involves intensive work to a type of business that involves less work. (Tucker, 1992).
Cost reduction has become imperative. Businesses have quickly become capital intensive sectors as a result of new information processing technologies. The capital-labor relations characteristic of Fordism and the mechanisms of regulation of labor activity have changed, the so-called labor flexibilization has produced a change in employment.
The patterns of employment have changed. From the frameworks that involve intensive labor, which we are used to calling Fordists, a displacement towards a «postfordism» has not yet been well defined. 60% of the current workforce is made up of part-time or self-employed, perhaps more out of necessity than choice. The decrease in employment has produced the displacement towards the informal economy, as a place where new forms of work are developed.
In the 21st century, not having a job no longer means not having a job (Tucker, 1992). The concept of work has to do with new forms of economic activity that give rise to other forms of jobs, new occupations and different approaches to economic activity.
Charles Handy (1991) noted that: "At the beginning of the 21st century, less than half of the labor force in the industrial world will have a job", the world of work has been changing; and therefore, the entire society is changing. Regarding the pursuit of growth in the age of intellectual capital, Handy poses the dangers of capitalism, "We are going to a dead end if we think that economic growth is the only thing that matters." Consider that future job trends will be:
- Much more people who will not be working for a company. Life time dedicated to work will be shorter for many people. There will be more unstable businesses. More requests for specialists and professionals in companies. Greater importance will be given to home economics and from the community, to informal and uncountable economies.The manufacturing sector will be smaller in terms of the number of people employed, but it will be larger in terms of performance.Smaller number of people who will earn money and a higher proportion of Dependent population Greater demand for education New forms of social organization that will complement the organization of employment
Handy's predictions are coming true, and in 21st century capitalism two phenomena unfold that explain one another: there is a continued and pronounced reduction in employment at the industrial level, and an expansion of occupation in commerce and services. The relative growth of skilled workers - technicians; professionals; White-collar bureaucrats - together with the expansion of atypical occupational forms, precarious jobs and the increase in the spaces occupied by the informal economy and work in micro-businesses, have promoted trends that lead to a deepening of the heterogeneity of the labor market.
The structured economy continues to decline, while the informal or informal economy grows continuously. The informal economy can be seen as a reservoir that naturally fills up when there is little demand and an increasing supply of people. But the informal economy comprises different worlds of work, which Handy identifies with shades:
- The BLACK economy: undeclared market activities carried out by small businesses and self-employed people; The MALVA economy: personal and home business services, on the fringes of the formal economy; The GRAY economy: domestic and voluntary work in which we are all involved to some extent.
No one is no longer unaware of the existence of a sector of the economy called informal, as well as its importance in terms of the number of workers, and their families, who live in that sector in the world; and more and more attention is beginning to be paid to the alternative forms of productive activities that have a place there, which respond to social needs: jobs and income on the one hand, and access to goods and services on the other. Although it may seem simple, workers in the informal economy need specific skills to adapt to the ambiguity and uncertainty of having a job in a sustained and secure way, to unforeseen expenses, and to the pressures of the formal economy. And there are limitations: the goods and services offered have to be a class that does not require complex accounting systems,no bureaucracies or technologies. They have to offer products that can be produced easily and using equipment that can be transported or placed in small spaces.
In the 21st century, employment is no longer generated in large numbers. The opening of a factory with millionaire investments contributes a minimum number of jobs and the service sector whose most intense expression is microenterprise opens up space for three or five people in each business. Therefore, new strategies for job creation and alternative forms of insertion become essential, through the development of entrepreneurial capacity and cooperation strategies, which at the same time partially replace even the lost jobs, grant economic coverage to new social demands (daily life, environment, time management, leisure, security, etc.)
At the same time, new forms of work have appeared in formal employment: teleworking, home and part-time work, and self-employment activities multiply, the original but one-person services whose realization space is substantially the home. All this translates into a modification of the private and public space, which is profoundly changing relationships within the family.
The new knowledge economies stimulate the emergence of small businesses that grow and develop around formal businesses; Thus, some jobs that people do on their own become formal economic activities over time. This sector is made up of people who are self-employed, companies and very small businesses. It is a diligent, personalized, moderately qualified sector that uses high-level technology and does not require intensive investments. Rather than saving work, what you do is take on work, because, although efficiency and productivity are important, the personal nature of work is a limit when substituting capital for work. The jobs they provide are not the traditional ones.
The ILO, in its 2004 Annual Report on Employment Trends in the World, affirmed that in 2003, employment in the world did not improve despite the fact that economic growth returned. Globally, an estimated number of more than 185 million are unemployed, and in Latin America open unemployment is still almost one percent more than it was 10 years ago and much higher among women and youth. The ILO warns in the 2004 Report that women's unemployment tends to worsen in Latin America despite the moderate increase in employment and the gradual recovery of the region's economies. In the region, the unemployment rate for women has always been much higher than that for men: in 2003 it was 10.1 percent, compared to 6.7 percent for men only.The female unemployment rate has been kept at 1.4 times the male unemployment rate.
ENTREPRENEURSHIPS and WOMEN
In this context, the generation of new companies, with different formats and sizes, but emphasizing the medium, small and micro-enterprises, has been seen as a factor that could stimulate productive transformation, providing new avenues and directions for development and economic growth.. The conviction has grown that in the regions with the highest birth rates of firms and business dynamism, the use of economic resources is more efficient and the growth of the economy and the living conditions of the population tend to be higher than in areas where Business fertility is weaker. (Angelelli and Listerri, 2003). Governments, especially in developing countries and international organizations, have pinned their hopes on small businesses as generators of quality jobs. In this light,Different programs have been designed to promote new ventures aimed at different social groups, including women.
Different approaches have been tried to explain the reason why entrepreneurship exists. There are those who focus on the personality of entrepreneurial people, on the social legitimacy of business activity, on social mobility, on the process of creating organizations, on the contextual (mixture of cultural, economic, sociological and psychological factors), in the existence of networks, in the rate of perceived benefits or in the option of self-employment, among others.
The truth is that the generation of companies is related to a complex set of reasons, ranging from the need for self-realization and taking advantage of business opportunities, to the situation of survival, in an environment that does not provide employment. In summary, we could speak of two contextual extremes between which the creation of the new company is located: opportunity and need.
At the extreme of companies that have emerged in relation to taking advantage of opportunities, the possibilities offered by the technological innovation process stand out. In this context, the business option is assumed as a way to achieve market valuation. From this point of view, the structure and dynamics of the industry, the regulatory framework and the cultural environment conducive to entrepreneurship are factors that favor the creation of new companies. However, other more personal factors such as motivations, education, work experience, etc., contribute to an increase in expected income through imitation or innovation activities; and personal assets, age, marital status, etc. have an impact on the attitude of individuals towards risk,and determine the ease of starting the venture. Additionally, social networks play a key role, both for identifying opportunities and for mobilizing resources and business sustainability. (Kantis, Angelelli and Gatto, 2001)
This approach –Schumpeter / Drucker- focused on the entrepreneur as an innovator, entails the need for enterprises to have the ability to exploit science and technology in order to profitably create new and improved products and processes. Innovation becomes the main responsibility of the entrepreneur, oriented to the conscious search for new opportunities that increase the economic and social potential of the company. Entrepreneurship is thus based on a set of knowledge and potential that must be present to produce successful results. Opportunity sources that generate innovations are unexpected occurrences, inconsistencies, necessary processes, and industrial and market changes. Also,There are sources of opportunity in the external environment related to demographic changes, changes in perception and new knowledge. But human and social capacity is essential for its use.
The restructuring of capitalism has moved from industrialism to informationalism, and companies have changed their forms of organization seeking greater versatility to face the ever-changing circumstances of the global economy. And they have been adopting a flexible form of production, with different forms of organization: multidirectional schemes, in which large companies maintain network relationships with their suppliers (toyota model); franchises and subcontracting. In this way, less capital employment is ensured and risk is distributed.
Thus, many new companies arise in the first instance as self-employment, both in situations of taking advantage of opportunities and in situations of survival. In the nineties, many of the new companies arose from outsourcing carried out by large companies, which simply derive certain activities from their central body, which are carried out externally, thus giving rise to undertakings forced by circumstances.
The dominance of small businesses has become general and overwhelming: Firms with five or fewer employees represent half of the non-farm workforce in Latin America and two-thirds of the non-farm workforce in Africa. In Latin America, the informal sector made up of: own-account workers, family businesses, micro-enterprises and domestic service, generated 85 out of every 100 jobs in the 1990s, weakening the generation of permanent jobs and the expansion of employment in large companies, which cannot compensate for the loss of occupations (UTAL, 1998).
For its part, the Global Entrepreneurship Monitor, in its 2003 report, which explores 41 countries (ranging from Japan to Uganda), determined that new companies or ventures generate between 2% and 15% of jobs. Likewise, it was observed that the vast majority of enterprises are single-person micro-enterprises:
| No employees | 53.1% | An owner | 60.5% |
| 1-4 employees | 35.4% | 2 owners | 21.3% |
| 5-9 employees | 5% | 3-5 owners | 15.6% |
| 10-19 employees | 3.1% | 6 or more owners | 2.6% |
| 20 or more employees | 3.3% | Total | 100% |
| Total | 100% |
Source: Global Entrepreneurship Monitor 2004
For their part, the ten countries studied with the highest proportion of startups were in this order: Uganda, Venezuela, Thailand, India, Argentina, Chile, Korea, New Zealand, Brazil and Mexico. Being the countries with the lowest proportion of startups: Japan, Russia, Croatia, Hong Kong and Belgium. Based on these findings, it could be affirmed that there is more entrepreneurial activity in the poorest countries.
Analyzing entrepreneurship by gender, it was found that men participated 60% more than women in new ventures, that is, that for every two women who started businesses in the four years prior to the research, three male entrepreneurs were found. In detail, the results of the study were:
Figure 1:
% of Enterprising Men and Women
Source: Global Entrepreneurship Monitor 2004
However, -in the analysis by country- the same report showed that important differences between the countries studied, curiously, a more even participation between men and women in new ventures occurs more frequently in less developed countries. The variation ranges from more than three entrepreneurial men for every woman in Israel to practically one entrepreneurial man for every woman in Venezuela.
Some of the results by country were:
Table 1:
Rate of Men and Women Entrepreneurs by country
Source: Global Entrepreneurship Monitor 2004
Another important element analyzed by the Global Entrepreneurship Monitor is the motivation that leads to start a company. Although there are a variety of reasons that may lead to the adoption of the entrepreneurial option, basically two situations are distinguished: a) those who seek to take advantage of a unique business opportunity, that is, "entrepreneurs by opportunity" and b) those who do not find a job suited to their abilities and needs and they start a business to survive, that is, "entrepreneurs by necessity".
93% of entrepreneurs can be classified in one or the other group, and 7% can be classified as entrepreneur @ s for both reasons. The reasons stated by the new entrepreneurs were:
| New signatures | Established ventures | |
| Opportunity | 51.8% | 71.9% |
| Mix of opportunity and need | 15.2% | 9.3% |
| Need | 33% | 18.8% |
| Total | 100% | 100% |
Source: Global Entrepreneurship Monitor 2004
This analysis allows us to observe the proportion of people who started ventures motivated by need in 2002, and comparing the results by country, it can be seen how in the developing countries the proportion of “entrepreneurs @ s by necessity” increases dramatically.
Figure 2:% of people who started businesses out of necessity
Source: Global Entrepreneurship Monitor 2004
Relating then the information from the different analyzes of the GEM, it could be thought that there is a higher proportion of women's entrepreneurships, associated with an origin of need, and this situation is especially frequent in the poorest countries. In addition, other data on the work situation of women confirm these hypotheses: for example, the adjusted poverty femininity index for Latin America (ECLAC, 2003) presented values above 100 in both urban and rural areas, the rate unemployment rate exceeds that of men by more than 50%, especially in the poorest strata and employment opportunities for women are less, due to the impact of the socialization of roles and the weight of domestic work.Women are especially affected by the trend of deterioration in the quality of employment that is occurring, they receive less remuneration than men for work of equal value and these differences are exacerbated in more qualified jobs.
In many countries, regardless of their level of development, access to the labor market is systematically more difficult for women than for men. Women are frequently denied opportunities for paid employment because of family responsibilities, lack of qualifications, social and cultural barriers, or lack of jobs. In this context, the exercise of an independent activity or the creation of a company - usually a micro-company - are often the only means available to women to obtain an income that allows them to guarantee their subsistence and that of their children.
For these reasons many women, under these conditions, have undertaken some type of economic activity. As a result, in many countries - especially in developing countries and countries undergoing economic transition - the majority of entrepreneurs in micro-enterprises and in the informal sector are women, including self-employed or self-employed workers. The entrepreneurial option represents an avenue for subsistence and personal and family sustainability for an increasingly larger proportion of women.
CONTEXT AND CHARACTERISTICS OF WOMEN'S ENTERPRISES
Due to the variety of obstacles and different socioeconomic levels, women entrepreneurs are not a homogeneous group. Their motivations, interests, and potential abilities may be different. Although an increasing number of women have had access to training and wish to use their skills and experience not only as salaried workers - where their chances for career advancement are often still low and where they encounter great difficulties in reconciling their multiple roles - but also as self-employed workers and as entrepreneurs. An increasing number of women undertake business activities, even without adequate training, and this out of sheer necessity. For most women, especially in poor countries,the business option is not an option but a necessity.
Women-run companies cannot be considered in isolation from the economic and socio-cultural environment in which they operate. This environment may or may not be conducive to promoting female entrepreneurship. Social values, such as the underestimation of the economic function of women, the existence of stereotypes regarding the specific functions of each sex, the limited access of women to certain types of vocational training, policies or legislation are factors that influence the creation, survival and development of women-led companies or may even exclude women from important segments of the micro and small business sector (for example, companies with high growth potential, technology-based companies, certain types of industrial or agricultural companies).On the other hand, the service sector is considered to be the “feminine” sector by nature, hence also a very large proportion of companies run by women are established in this sector. The business option is also characterized by a gender bias.
ILO in 2001 noted that women-led microenterprises, apart from their differences, generally have certain common characteristics:
- They are established with the capacities that are available (for this reason, they are very often developed around the domestic sphere, and based on “traditionally” female activities) and with a meager capital. Most of them are not registered and They operate in the informal sector of the economy. In many cases, they carry out production at home, usually in the same areas where other domestic activities are carried out. Sometimes women settle in the market while they manufacture their products (for example, basketry), sell, cook, and care for their children. It is always a matter of reconciling domestic obligations with productive activity. They depend to a large extent on workers in their own families (paid or unpaid). They tend to be concentrated in the least profitable sectors,related to women's activities. Production generally encompasses a fairly narrow range of consumer goods (clothing, woven products, and processed foods) and handicrafts, given that in most cases economic activity is carried out without abandoning household chores and, in rural areas, combining it with agricultural tasks, women cannot devote continuous attention to it. There is no sharp division between home and business, either in terms of time allocation or financial flows (reinvestment is often subject to prior satisfaction of basic family needs). Furthermore, the total workload for women is considerable, which negatively affects their productivity.The owner / administrator performs all the functions herself. Marketing and management functions are rudimentary and poorly differentiated. Production is either traded locally (as is often the case with local consumer goods) or is destined for the tourism and export markets (as is generally the case with Craft items). Depending on the socio-cultural environment and transport services, women can either directly market their production or use intermediaries: male members of the household or merchants (including lenders). Depending on the socio-cultural and legal environment, women may or may not fully control the income from their economic activities. In many cases,male members of the family unit exercise control over that income. As a general rule, women lose some control when they cannot market their own production. However, women who do business are more likely to control the income from their business.
From these characteristics, another important aspect of women entrepreneurs is derived: the visibility of their companies is often imperceptible, since many women entrepreneurs operate from home, this way of operating even prevents them from receiving programs for the development of entrepreneurial skills.. Based on these circumstances, it is necessary to develop special programs for women entrepreneurs to achieve gender equality, which implies the advancement of women in participation through positive actions that contribute to reducing inequalities between genders.
Julie Weeks (2001) argues that access to capital is a key aspect for the development of women entrepreneurs, but it is not in itself sufficient. Support initiatives for women's businesses should include assistance in strengthening support networks that provide technical assistance, training and consulting for growth.
The vast majority of research on women's entrepreneurship has been carried out in the European Union. There is little research on this topic in Latin America, however, it is estimated that between 1970 and 1990 the number of women in situations of self-employment or micro-enterprise has doubled, and women are at the forefront of entrepreneurial activity.
Gloria Bonder (2003) argues that:
This trend started in the 80's was noticeably accentuated during the 90's. Thus, the female labor participation rate went from 39% in 1990 to 44.7% in 1997. This is particularly evident among the youngest whose participation level (but also unemployment) is among the highest.
The female presence in the labor market increased especially in the groups of 25 to 34 years and 35 to 44 years. This phenomenon shows a notable change with respect to the traditional female pattern in the labor market: entering as young people, retiring in the early parenting stage and trying to re-enter after that period, but in fewer numbers. Today, there are more and more active workers and entrepreneurs of reproductive age, with young children in their care, many of them heads of household, who remain or at least try to remain in the productive sphere, most of their life cycle., in full-time jobs
Currently, the creation of micro-enterprises by women has repeatedly exceeded the rate of increase of micro-enterprises directed by men. Women microentrepreneurs have become a social actor in economic activity with enormous potential for generating income and jobs, overcoming poverty, and the most equitable distribution of wealth. However, the limitations they encounter are still very important.
Women's entrepreneurships are gaining increasing recognition in public policy circles, as their positive impact on growth and job creation is increasingly seen. In addition, it provides economic opportunities for women to improve the social, educational and health status of both themselves and their families.
The relationship of female entrepreneurship with poverty and the flexibility of labor markets, which have led to unemployment, is shown in the following graphs. The Inter-American Development Bank determined that in the poorest countries of Latin America the participation of women in business ownership is more important than their participation in the labor force:
Figure 3:
Women: labor and business participation
Source: IDB
Furthermore, the smaller the businesses, the greater the participation of women:
Figure 4:
Women: labor and business participation
Source: IDB
According to the 1999 ILO report, Latin American businesswomen are mostly middle-aged, over 35 years old, mothers and many of them heads of household. Their educational levels are medium and high (50% of them reach university level). They tend to have less time for their businesses than men, due to the need to simultaneously meet the demands of the workplace and care for the home and children: they have to divide their time between business work and domestic work.
Women have turned to the entrepreneurial option in the last decade: their businesses are less than 10 years old, in general, they do not exceed 5. Despite the fact that they have a business strategy open to innovations, they are more concerned with changes organizational and labor relations. Very low percentage of female entrepreneurs access international trade. Data from Brazil, Argentina and Mexico indicate that only between 22% and 32% of women business owners participate in exports and imports. (Bonder, 2003)
During the last decade, the creation of micro-enterprises has been a widespread strategy among women in Latin America to cope with the economic crisis and face high levels of unemployment for themselves and their peers. Many of these initiatives are located in the gastronomic, textile, artisan and decoration sectors. In many cases they consist of forms of self-employment or family production, especially among the poorest or those in the impoverished middle sectors.
Among those with greater educational and economic capital, there are those who prefer this type of activity with the intention of maximizing the performance of their skills outside of salaried employment, where their chances of professional advancement continue to be low and where they encounter great difficulties in reconcile their multiple social roles. So we could say that in this segment, the combination of "entrepreneurs by necessity and opportunity" is presented.
The weakness of microenterprises and the difficulties faced by their entrepreneurs are reflected in the high failure rate. The conciliation between productive work and domestic work determines a pressure that acts as a factor favoring micro-business failure. For example, in the Dominican Republic, women start 58% of the businesses created each year, but the failure rate is equally high, according to a survey by ADOPEM (Dominican Association for the Development of Women). Problems range from a weak institutional framework and a lack of business organizations, to poor access to information, an unfavorable climate for small businesses, and the absence of business services and training programs.
In addition, being an enterprising woman also means overcoming shyness, low levels of education, inadequate health care, and all the deficiencies and inequities to which they are exposed due to gender conditions. Gender inequality has a direct impact on the higher failure rate of women's entrepreneurship.
Traditional stereotypes marked by the patriarchal condition of women define women as beings-for-others, structured by alienated sexuality, work and subjectivity, to give life, meaning and care to others. Vital dependency marks subjectivity and defines the corporate character of women. Ontologically, this configuration supports the incompleteness and limitlessness of women as beings whose meaning of life and whose personal limits are beyond, are in others.
International research conducted by the National Foundation for Women Business Owners showed that women entrepreneurs from all countries have common characteristics, interests, and concerns. The five critical areas for business consolidation that women feel are decisive are:
- Access to information, including technical and technological assistance Access to capital Access to markets, including government purchases Access to networks, including women's entrepreneurial associations and regional trade organizations Validation and social recognition as entrepreneurs
Studies carried out in Argentina, Chile and Venezuela show that in the field of difficulties, businesswomen coincide in highlighting the lack of business and marketing experience, insufficient specific business training (administration / marketing), poor updating and information on economic issues and financial, barriers in access to financial sources and marketing networks, lack of self-confidence and other obstacles derived from stereotypes and prejudices about the desirable female image. Few spontaneously mention the issue of reconciling their entrepreneurial activity with domestic work as a limitation, probably because it is “naturalized” as an exclusive or primary responsibility of women.
A central problem that we have already mentioned and to which no effective solution has yet been found, at least in Latin America, has to do with the demands placed on them when responding to their reproductive and productive role, with the consequent burden of time and physical and emotional work that this implies. The pressure of time to fulfill the domestic and productive roles, impel microentrepreneurs to opt for pragmatic and short-term solutions instead of considering alternatives that would improve their position and, within this aspect, their own training and that of their teams in managing new technologies.
Cristina Carrasco (2003) points out that the labor incorporation of women has meant entering a world defined and built by and for men. The commercial productive world works the way it does because it relies on unpaid family work. The world of productive work is:
The entrepreneurial activity of women takes place in hostile environments, surrounded by cultural prejudices and social inequities that limit the action and development of the different spheres of women's lives. In relation to the role assigned to women as guardians of the home and affection, the belief of female incapacity for business is deeply embedded - even in women themselves.
Generally, women in productive activities awaken less confidence regarding their managerial, business, technical and technological capacities. In general, they have received an education that does not prepare them to assume this type of tasks and are not encouraged and supported to carry out programs or courses on business, management, marketing, computer science; Although this situation is beginning to change in the new generations, it only reaches a reduced number of women with greater economic possibilities.
The management of women's businesses
Micro-business activity has been shown to produce substantial changes in the way of life of women. When a woman starts a company, she transforms herself and modifies her environment, as her project develops. Regardless of undertaking undertakings of a different scale driven by obligations or as a better option, most of the studies on this topic show that throughout the process of gestation and development of their businesses, women acquire various competences linked not only with the commercial, technical and managerial aspect, but also gaining autonomy, authority and expanding their negotiation capacity, both socially and within their family.
Field studies carried out in Argentina, Venezuela and Chile show that among the favorable aspects of their work, most of the microentrepreneurs highlight their satisfaction with professional achievement and the achievement of autonomy, in addition to valuing the encouragement of the family and their partner or husband as a key factor to develop as entrepreneurs. Through their work, women increase their self-esteem and achieve visibility and social empowerment, due to greater control over their lives in the social and economic spheres.
"Entrepreneurship" is also taking over a space, tackling it, capturing it, making it your own, in a process in which not only the "object" of the company, but also the entrepreneurial subject is caught and captivated by its own action. "Undertaking" is generally accompanied by words such as "path", "flight" or "march", all referring to movement.
On the path of entrepreneurship, women present important changes; the variations are multiform. They go from being inactive to looking for work, from domestic service to the informal sector, they combine micro-enterprise with self-employment activities or they keep some salaried work. In general, they stress that they can participate in conditions of greater autonomy and dignity with their families, their partners and the communities.
In 1997, REPEM (Network of Popular Education among Women) carried out an investigation in 100 enterprises led by women, located in five regions of Latin America (Andean Area, Southern Cone, Brazil, Mexico and Central America). The perception of the interviewees, of very different ages, about the improvement of their quality of life was very significant. 88% said they perceived positive changes in this regard, after their involvement in productive activities; only 2% do not report having experienced improvements in their quality of life.
Changes in the family sphere presented an even more marked profile. With reference to the articulation of roles within and outside the domestic sphere, 71% of women report having achieved an adequate distribution of time and an increasing assessment of their family regarding the work they do outside the home. The family is also transforming, in the heat of the entrepreneurial activity of women.
Speaking of the changes in their lives, a Uruguayan micro-entrepreneur says:
“When we are asked this question, it always refers to the economic, but in reality, the economic issue is insignificant compared to the personal growth we have had, we are other women. We have managed to defend our products, reach the Municipality of Montevideo, which for us was monstrous… ".
A Venezuelan micro-entrepreneur from the Sucre State affirms:
“I am achieving my expectations, I feel free and I am a fulfilled woman in life, as I have been working. I have achieved goals, credit made me something important. Increased my self-esteem by the achievements, it makes me feel good that I can contribute so that other women can also take the initiative to do so. I have always been fixated on getting ahead, my goal of moving forward proved to be an achievable goal. ”
And a Mexican indigenous woman participating in a women's cooperative says:
Without regional differences, women through entrepreneurship increase the possibility of shaping their lives, deepening the process of self-determination by which they gain control over their own way of life. This is a process of liberation, of gaining decision-making power over your own destiny.
In terms of income, from their productive activities and projects, these have not only benefited families and communities, but also the status and position of women; positive effects are observed with respect to their subordination situation, since “money is an instrument of power, a means through which it is possible to carry out practices of autonomy”, generates and favors mechanisms of independence (Coria: 1992: 89).
From the personal, family and economic transformations that the management of the enterprises is causing in women, the “empowerment” is produced, which Rowlands defines as:
"… a set of psychological processes that when developed, enable the individual or group to act and interact with their environment in such a way that increases their access to power and its use in various ways (…) It is a set of processes that can be seen in the individual, collective and close relationships dimensions, centered around the core of developing trust, self-esteem, the sense of individual or group capacity to carry out actions for change and dignity. ” (1997: 224,230)
Women found their companies to survive, they and their children. Hence the need to keep your business running, despite the problems and hostility of the environment, facing with weak tools all kinds of difficulties that the environment and gender inequality pose. Some opinions from heads of Support Organizations for microentrepreneurs come to the case:
- Mercedes Canalda, Director of ADOPEM (Dominican Republic) maintains: "Women cannot afford not to give their tasks one hundred percent" Mohammed Yunus, President of the Grameen Bank. "Men are impatient and want to enjoy themselves. Women are more cautious about money and never spend in bars. " In 1983, the Grameen decided to build a strong female customer base and today 94% of its 2.4 million customers are women. Holland Millis, CEO of Atuto (Honduras), says: “Women are used to getting up in the morning and doing things to survive. ”Nora Castañeda, President of the Women's Development Bank of Venezuela, for her part, highlights the low level of delinquency among women, despite the economic crisis.
In addition to being good credit payers, other notable aspects that characterize the management of feminine ventures are that women entrepreneurs employ more feminine work, they tend to associate with other women, they are inclined to develop novel products, to seek market niches, they distribute their income more to the family and are more likely to save. Women tend to have greater perseverance that increases the chances of sustainability for micro-enterprises.
Others argue that there is evidence that women structure their companies differently from men, establishing more horizontal organizations, based on the construction of networks, decision-making by consensus, and pay more attention to issues related to quality., image and design. While they are attributed a greater technological capacity related to the understanding and handling of machinery and equipment, as well as a greater predisposition to take risks.
It is also stated that the central objectives of women when starting a business are not necessarily related to the search for increasing economic gains, but rather they tend to pursue other goals such as achieving independence, flexibility to combine family and work commitments and ensuring subsistence. of the family. It is considered that many of them are more interested in social objectives than male entrepreneurs, they have smaller companies and because of this, their businesses do not achieve high levels of performance in terms of volumes and increased turnover, and they have a lower rate of survival and growth compared to male-led companies.
Microenterprise work can be defined as personal growth, from a new perspective of personal fulfillment. In this order of ideas, Graciela Messina maintains that
"This specificity implies connecting not only with work as work -socially necessary and homogenizing work, whose characteristic is that its products can be used by others- but with the dimension of work as labor, as individual execution in which people recognize themselves and they value, as a work (the opposite of alienated work) and not as a burden or task, imposed and inevitable to guarantee survival. ” ….. ”Work lived as a work is also the possibility of living in the event, in the deregulation of history itself and in being open to the new. This possibility of recognizing oneself at work is not exclusive to “intellectual” or qualified jobs, but to any job. Recognizing yourself at work, at any job, allows you to experience it as a work and grow in integrity. ” (2002: page 15)
Entrepreneurs create companies to meet their personal needs; and they must be convinced that the nature of the business is in accordance with their wishes, attitudes, personality, knowledge and potential. There is a univocal relationship between the psychosocial characteristics of women and the type of ventures they take on. For this reason, there are different types of micro-enterprises, but in all cases, the activity itself becomes a configuration option for the life and individuality of women. In this order of ideas, relevant conclusions from the exhaustive work carried out by Valenzuela and Venegas, 2001 stand out:
Based on gender socialization, in household chores and responsibilities, women naturally learn to be administrators, and this is reflected in their entrepreneurial abilities. Hence, some argue that all "housewives" are potential entrepreneurs. From the responsibility of the home and the generationally transmitted training, the organizational capacity of women is derived, from the thinking in various "gangs". Women have an almost natural ability to stay on top of several issues at once. So it could be argued that women are “culturally equipped” for various aspects of business management activity.
Women's companies have a specific economic rationality, which in many cases is not focused on growth. In some studies (Valenzuela and Venegas, 2001) it has been found that one-person or self-employment companies have a higher profitability than micro-companies with employees, so that the small size of the company is related to maintaining operations in one dimension. limited and under control. From educational strata and different combinations of networks and social capital, businesses of different scales are generated. Although it should not be considered that size is necessarily related to profitability.
The educational level of microentrepreneurs is positively related to business success, understood as sustainability and profitability. Better levels of education facilitate greater economic achievements, but are not a necessary condition for this. In this regard, it is important to highlight another finding from the Valenzuela and Venegas research: "Expressed in statistical terms, education is not a significant variable to explain the gross income of microentrepreneurs, as is the case with men." This situation could be explained by the need to have specific knowledge that allows business development, which is not provided by formal education.
An important qualitative aspect that explains the low relationship between education and success in women microentrepreneurs, is that it obviously reproduces the general relationship of the women's labor market, in which higher education is not reflected in even levels of remuneration. The challenge is to emphasize the theme of economic empowerment and the administrative and business management competencies and skills in women's education, opening possibilities and empowering entrepreneurial options.
Although for many microentrepreneurs, the labor project does not include the expansion of their activities or the growth of their business, they have very clear goals in terms of the income they seek, since the company occupies an important place in the survival of their families. This "need situation" determines its insistent permanence in time and its economic viability.
An important aspect of the management of microentrepreneurs is the management of time, in which, necessarily - forced by socialization or necessity - household activities must be combined with business activities. In many cases, this limitation determines the type of business that women choose: for example, the commerce sector is widely preferred by female enterprises, because although it requires significant time dedication, customer service tends to focus mainly on only a few hours of the day. This makes it easier for women to manage their home and business, and can use the support of their children and other family members to care for them.
However, one of the strongest constraints to women's entrepreneurship is their household responsibilities. The number of hours to dedicate and the concentration and efforts necessary to carry out a business make the microentrepreneur women have long working days, in which in many cases they compensate with time and dedication, not only for the low capital investment, but the impossibility of hiring labor. In general, it can be stated that long working hours are a requirement for the sustainability of the company. All microentrepreneurs agree on this, speaking of their efforts to reconcile family life with the demands of their own company.
All the evidence from different studies and in different countries indicates that the development of an independent economic activity is more difficult for women than their performance as an employee. Long working hours and difficulties in accessing the most profitable markets are the main limitations of business activity for women; both depend on gender factors.
Self-discipline and organization are essential to develop an activity without bosses. Whoever develops an autonomous activity is faced with the task of taking charge of all the facets that are part of the chosen activity. Set your own work schedules, place and way of carrying out daily tasks, put together your agenda and organize constantly and without rest each and every one of the aspects that make your business. So you must learn to develop routines and methods that help simplify and save effort.
But it happens that women in situations of greater vulnerability and poverty subjected to more unstable living conditions, are also more susceptible to personal or family contingencies, which impede the operation of their businesses, and therefore their sustainability. This establishes the vicious circle of gender-based limitations.
Consensus and support from close family members is necessary, since they will be affected or will be involved in some way in sustaining productive activity. A micro-enterprise generally begins in an artisanal and personal way. It uses existing resources in the family, which usually plays a fundamental role. It is very common for something new to start from home or that requires assistance or collaboration from others nearby (children, spouse, friends, etc.). If women do not have understanding and help, the path will be much more difficult.
Consequently, the willingness to become the owner of her work makes the confirming perception of family support (whatever the way it takes) almost essential as a particular expression of the social view. The heroic example of those who successively achieved successful business practices, who feel that they became, that they fulfilled their dreams, that they could be something in life, is stimulating for other entrepreneurs and can be an important contribution to the awakening of the "entrepreneurial spirit". Entrepreneurship inspires a 'joy' of living and producing that is vast in scope, reinforced by the family's willingness to share it.
A potentially successful micro-entrepreneur will be one that has social capital (especially relationships and family-parental support) and minimal material capital to start their task, seeking to increase the volume of their symbolic capital. But the greater relative isolation of women and the lower capital of productive social networks negatively affect the performance of companies. For this reason, associativity represents a key element for promoting market development and business development.
Networks, productive associations and associativity in all its forms serve as a boost to women's productive activities, in material aspects but also in affective aspects. The emotional impulse that associativity gives to women entrepreneurs can be the determining element of their sustainability. In various investigations, it is reported that women entrepreneurs tend to develop a more collaborative management style, establishing more horizontal relationships that could favor associativity (ILO, 2001). In recent research carried out in Venezuela, most microentrepreneurs indicate the importance of the impulse they receive from other women who are in similar situations. "When any of them declines, the others with their company inspire them to continue with their activities."
Networks can be the main guarantee for studies and access to markets. And at the same time, the most viable vehicle for the dissemination of business management tools and technical advice. Currently, there are many proposals and offers of training through government or private organizations. Even services in this sense are offered on the internet. Networks are support and fabric that serves as the basis for the sustainability and development of enterprises.
Realistic setting of clear, achievable, measurable goals that develop over time in the short, medium and long term is part of the strategic planning that is facilitated through networking. The entrepreneurial networks make up a particular fabric, which allows the consolidation and sustainability of micro-enterprises, with positive consequences on productive and socioeconomic development.
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Entrepreneurship is a term that is used in many ways and has different definitions; but it refers to businesses created by their owners who are both employees.
In general, a microenterprise is one that employs less than 10 workers, small companies between 10 and 50 and between 50 and 250 are considered medium-sized companies.
This type of origin of companies is very frequent in Latin America, according to research carried out by Mantis and others under the auspices of the IDB. (2002-2003)
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