Bridging the Entrepreneurship

Gender Gap
The Power of Networks
Maria Blomqvist, Emma Chastain, Brenda Thickett, Shalini Unnikrishnan and Wendy
Woods
Boston Consulting Group © 2014
17 pages
[@]
Report: getab.li/23579

Rating Take-Aways

8
8 Importance • When it comes to entrepreneurship, the gender gap is broad. Worldwide, women run
40% fewer businesses than men.
7 Innovation
9 Style • Launching a venture requires social capital – that is, access to the networks and support
that help entrepreneurs succeed.

• Female entrepreneurs who receive backing from strong networks tend to run more
  successful businesses.
Focus • Women can foster networks by focusing on the “‘Three I’ framework of social capital”:
First, a clear goal manifests the “intent” of a group.
Leadership & Management
Strategy • Second, having the right leaders and members encourages “inclusion.” And third,
Sales & Marketing
formal and informal “interaction” is critical to sustaining a network.
Finance
Human Resources
IT, Production & Logistics
Career & Self-Development
Small Business
Economics & Politics
Industries
Global Business
Concepts & Trends

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Recommendation
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Women are far less likely than men to own businesses, but it doesn’t have to be that way, say analysts at the Boston
Consulting Group. In this report, they outline strategies for launching women into entrepreneurship and supporting
them once they’ve made the leap. Perhaps the most surprising finding: Support groups that provide social capital
yield measurable gains in the growth and survival rates of female-owned businesses. Intriguingly, this concept holds
true both in developing and developed nations. getAbstract recommends this engaging report to entrepreneurs and
policy makers seeking to close the gender gap in the world economy.
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Summary
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In terms of entrepreneurship, the gender gap is broad. Worldwide, women run 40% fewer
businesses than men. This gulf matters because business ownership is a tried-and-true way
for women to support themselves when they can’t get traditional jobs. Closing the gender
“It’s often been said
that women are the gap could create an economic boom: If the number of female entrepreneurs grew to match
most underutilized asset the male rate of business ownership, the global economy could grow by 2%, or $1.5 trillion,
in the world.”
estimates suggest. Starting a business requires social capital – that is, “access to networks
that can support, connect and mentor entrepreneurs.” But women tend to lack these links.
Thus, women-owned businesses fail more often than enterprises owned by men.

Female entrepreneurs backed by strong networks are more successful at running businesses.
One study found that female entrepreneurs in Malaysia, the Philippines and Thailand who
“The connections tapped into formal support groups ran businesses that were 38% larger than those of women
and credibility that
networks deliver can who didn’t use such resources. The trend holds true in richer nations, too. After Irish women
improve access to participated in roundtable sessions, their businesses’ revenues, hiring and exports increased.
financing.”

Female entrepreneurs in the developed and developing worlds alike face common
challenges of isolation, stress and family demands. Some initiatives in Africa address that
issue by ensuring that each female-owned business has three women leaders. This form of
“built-in social capital” spreads the responsibility of operating the venture, and it also helps
the women brush off family requests for loans and cash. Women can foster networks by
“By recognizing focusing on the “‘Three I’ framework of social capital”:
the importance of
social capital for
women and by helping 1. “Intent” – A network needs to do more than simply meet and share potential leads. The
them develop it
systematically, we can
goal of the group should be clear, whether it’s to help members write business plans,
continue to close the land loans, or find the right advisers and workers.
gender gap in global 2. “Inclusion” – The person or organization in charge must have the staying power to
entrepreneurship.”
keep the network going after the excitement of the start-up stage. Participants should be
dedicated and come from diverse backgrounds to offer useful and innovative ideas.
3. “Interaction” – Formal and informal collaboration is critical to sustaining a network.
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About the Authors
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Maria Blomqvist, Emma Chastain, Brenda Thickett, Shalini Unnikrishnan and Wendy Woods work for the
Boston Consulting Group.

Bridging the Entrepreneurship Gender Gap                                                                                                                                             getAbstract © 2017 2 of 2

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