Women's entrepreneurship rises across the globe

What you probably already know: From tech startups in Silicon Valley to small businesses in rural Africa, women’s entrepreneurship is growing rapidly around the world. The 12th annual Women’s Entrepreneurship Report: Reshaping Economies and Communities — from Global Entrepreneurship Monitor — notes that one in 10 women launched new businesses in 2023 (compared to one in eight men), and one in 16 women owned an established business. Startup activity is especially high in France, the Netherlands and Hungary (where rates more than doubled over the past two decades), while established, women-owned businesses (more than three-and-a-half years old) are thriving in South Korea, Saudi Arabia, Lithuania, Puerto Rico and Thailand.

Why? The study (which surveyed more than 4 million individuals across 120 countries) found that women entrepreneurs tend to be younger than men, particularly in low-income countries. They’re also more aggressive in adopting emerging digital technologies following the pandemic, and more likely than men to prioritize sustainable strategies and practices — particularly in high- and middle-income countries. Several notable organizations across the world now offer education, mentorship, financial resources and market access, including the UN Women’s Empower Women program; the Global Banking Alliance for Women; and SheTrades (International Trade Centre), a group that aims to connect 3 million women to marketplaces by 2025.

What it means: Women represent about 40% of high-potential startups (defined as businesses with strong prospects for rapid growth and significant market potential), debunking “the stereotype that women entrepreneurs do not think big,” the report says, noting that women are “close to parity with men” in bringing innovative products to market. It also found that women start businesses for very similar reasons to men: to overcome job shortages, to make a difference in the world and to build wealth. Of interest: Almost half of all women entrepreneurs were active in the wholesale-retail sector and were more concentrated than men in government and social services. However, they were about half as likely to launch businesses in the IT sector and three times less likely to run an agriculture or mining startup.

What happens now? Women business owners still face several disadvantages in access to capital. High-income countries, for instance, show the lowest rates of startup activity and the largest gender gaps. But, as the survey says, “gender gaps in key entrepreneurial indicators” are narrowing in the 120 countries surveyed. The report suggests several key strategies going forward, including promoting successful women entrepreneurs as role models; supporting research and data collection to better understand specific challenges women face; strengthening enforcement of anti-discrimination laws; and supporting dedicated funding programs (such as grants or government-backed loans) aimed at women-owned businesses.