The Gender Gap in Entrepreneurship
The gender gap in entrepreneurship has been closing slowly. Between 2000 and 2019, the gender gap in entrepreneurship, as measured by self-employment, shrank in 25 out of 31 OECD countries where data were available. While this is an important achievement, it must also be acknowledged that this is due partly to a decline in the share of men who were self-employed.
However, progress has been slower in closing other gender gaps associated with entrepreneurship. The gender gap in entrepreneurship represents a missed opportunity for innovation, social and economic value creation and job creation (OECD/EU, 2021). Policy makers could have an important role to play in closing this gap through targeted entrepreneurship policies.
Lessons for Policy Makers
In 2021, the Organisation for Economic Cooperation and Development (OECD), in collaboration with the Global Women’s Entrepreneurship Policy Research Network (Global WEP), published a report that explored entrepreneurship policies with a gender lens. Key lessons include:
* Address underlying biases: Governments must address biases in society and the labour market, as gender roles exert a strong negative influence.
* Strong framework conditions: A prerequisite for effective policy is a solid framework for entrepreneurship overall.
* Strong commitment and investment: Policies need consistent funding and a robust delivery system.
* Contextualization: "One size does not fit all." Policies must reflect the diversity of women entrepreneurs.
* Early education: Gender-neutral and women-focused entrepreneurship education should be offered early to instill confidence and skills.
* Financial Access: Initiatives must account for gender differences in founder motivations and circumstances.
* Regulatory Support: Strong institutions are needed to support parental leave and care responsibilities for business owners.
COVID-19 and the Risk of Reversal
The COVID-19 pandemic disproportionately impacted women entrepreneurs, who are often in hard-hit sectors like personal services and retail. Liquidity support measures, while quick to implement, were often undifferentiated, meaning they did not always reach women-owned enterprises effectively due to reliance on traditional bank loans or revenue thresholds.
Moving Forward: Frameworks and Context
Women’s entrepreneurship policy remains a "work in progress." To succeed, interventions must be contextualized to local institutions and social norms. Furthermore, policy makers need to "close the loop" by establishing systematic methods for monitoring the impacts of these policies. There is a specific need for better objective evidence regarding the effectiveness of training, coaching, and mentoring schemes, as well as a broader, more effective use of financial instruments like microfinance and loan guarantees tailored specifically to the needs of women founders.