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Addressing the Gender Gap in Entrepreneurship Student Name： XUXIN MA Student ID:2742177 Date: Abstract Overview: This dissertation investigates gender gaps in entrepreneurship. The study seeks to comprehensively examine existing research to gain insights into the effects, contributions, and interventions to address gender gaps in business. Objective: Methodology: The study analyses 38 studies through a thematic analysis. Patterns and themes are identified from the existing secondary data sources. Thematic analysis serves to enrich the investigator’s understanding, allowing for an identification of critical themes across the available studies. Results: The findings demonstrate that gender gaps have adverse effects on the economy. Gender gaps reduce the contribution of women to major economic activities, limiting the ability of the economy to operate at its full potential. The findings indicate that a majority of women entrepreneurs lack the skills needed to start and operate successful businesses. Gender discrimination also serves to push women away from entrepreneurship, further limiting their contribution. The research identifies inadequate access to capital as a major contributor to gender gaps in entrepreneurship. Women-led businesses are less likely to secure the needed capital for their startups. Angel investors and venture capitalists often view women entrepreneurs as less competent to run businesses, preferring to fund male-led businesses. The results indicate the need for training and education on entrepreneurship for businesses. Government policies aimed at creating an enabling environment for business-led are critical for reducing gender gaps. Conclusion: The research underscores the importance of women's entrepreneurship in the economy. However, women continue to face numerous challenges, which limit their ability to succeed in business as their male counterparts. Contents Page Table of Contents TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc163919909 \h 2Dedication PAGEREF _Toc163919910 \h 4Chapter One: Introduction PAGEREF _Toc163919911 \h 5Chapter Two: Literature Review PAGEREF _Toc163919912 \h 7Chapter Three: Methodology PAGEREF _Toc163919913 \h 15Chapter Four: Data/Findings PAGEREF _Toc163919914 \h 21Chapter Five: Analysis/Discussion PAGEREF _Toc163919915 \h 34Chapter Six: Conclusions and Recommendations PAGEREF _Toc163919916 \h 45References PAGEREF _Toc163919917 \h 47 Dedication Chapter One: Introduction Women constitute a larger percentage of the world’s population. As a result, one would expect the participation of women in entrepreneurial activities to have a far-reaching impact on the economy. Unfortunately, the contribution of women is scarcely apparent in some developed countries and most of the developing nations (Mashapure et al., 2022). Entrepreneurship is critical in today’s world, where businesses are expected to compete on a global scale. Globalization has given businesses access to diverse markets, promising to increase business activity. As countries strive to enhance their competitive advantages, the need to have more entrepreneurs has become important (Ibraheem and Alshuraym, 2021). Women's entrepreneurship has been seen as a major step towards enhancing the start and development of businesses, which can create employment opportunities and lead to economic growth. While women constitute the majority in the world, their participation in businesses is dismal. A global reality is that women are downgraded and tend to be on the receiving end of male prejudices. Women in some countries are considered second-class citizens, due to their gender. The systematic discrimination of women is evident in many aspects of society. Gender inequality in entrepreneurship deserves attention since it continues to disadvantage not only women entrepreneurs, but also hinders economic growth and growth worldwide (Bastian, Metcalfe and Zali, 2019). While significant effort has been dedicated to promoting gender equality in entrepreneurship, women remain underrepresented in entrepreneurship, due to numerous factors that limit their participation. The move towards gender equality has made tremendous progress over the years, as seen by the increase in the number of women in the corporate world (Smith and Sinkford, 2022). However, fewer women are starting and running businesses, signifying the existing gender gap in entrepreneurship. An understanding of the underlying issues and implications of the gender gap in entrepreneurship is important in developing strategies for addressing the disparity and promoting more inclusive growth. Women entrepreneurs can make a major contribution to society and the economy if allowed to thrive as their male counterparts. This dissertation endeavors to examine the gender gap in entrepreneurship, majoring in understanding the major challenges that women entrepreneurs encounter. The study appreciates that the failure of women to engage fully in entrepreneurship has adverse effects on the economy and the entire society. As a result, there is a need to examine the barriers hindering women-led businesses from achieving and exceeding those led by men. Utilizing a thematic analysis approach, the study analyses secondary data sources. The study uncovers underlying themes and patterns that contribute to the gender gap in entrepreneurship. The study examines relevant research articles and reports on gender and entrepreneurship. Analyzing the data offers insights into socio-cultural and economic factors that influence gender disparities in entrepreneurship. The findings of this dissertation are critical in informing the policies and interventions to enhance female entrepreneurship. The study suggests ways stakeholders can follow to create more opportunities for women entrepreneurs to address the existing gender disparities in business. The dissertation appreciates that the failure of women to start and grow businesses can be attributed to the gender inequalities that have persistent over the years. As a result, the study proposes strategies for promoting female entrepreneurship. The research aims to advance efforts to create a more inclusive and equitable entrepreneurship environment. Chapter Two: Literature Review Introduction Entrepreneurship has been hailed as an important aspect of today's economy. Through entrepreneurship, countries can create job opportunities, enhance global competitiveness, create wealth, and spur innovation and creativity (Rusu and Dornean 2019; Wong, Ho, and Autio 2005 Kritikos 2014). Entrepreneurship promises to address most of the economic challenges facing nations, not only in the developing world but also in developed countries (Seelos and Mair 2005). In particular, attention has been drawn to the need to include more people in the entrepreneurship space, especially women, who are a vulnerable group (Kern, 2013). The increasing contribution of women entrepreneurs to economic development has been well documented (Dean et al., 2019). As a result, attention has been drawn to the importance of increasing the participation of women entrepreneurs in mainstream entrepreneurial activities. According to Hechavarria et al. (2019), women entrepreneurs on board, will increase diversity in the entrepreneurial space, and increase female-led businesses, while also lowering unemployment and contributing to economic growth. Historical background Women have for a long time been a disadvantaged group. Historically, women have had limited access to education compared to men. The educational disadvantage has served to limit their pursuance of entrepreneurial ventures. Additionally, gender roles have assigned women caregiving and homemaker jobs (Sharma, Chakrabarti, and Grover, 2016). Such a mindset has continued to discourage women from the risk-taking associated with entrepreneurship. Manimekalai, Geetha, and Poulpunitha (2017) argue that women’s work-life balance is challenging because of societal expectations. The perception that women should prioritize family over career limits their ability to venture into entrepreneurship (De Clercq, Kaciak, and hongpapanl 2022). Moreover, access to financial resources remains a major issue making it challenging for women to access the funds needed to start and run businesses. Numerous studies indicate that discriminatory lending practices and the lack of collateral have made it challenging for women to access the security needed to secure capital (Morsy, 2020; Roy and Patro 2022 Aterido, Beck, and Iacovone 2013). Despite the challenges women continue facing in their entrepreneurial journey, some of them have managed to run successful businesses. These women have gone beyond societal expectations to establish businesses, which continue to impact society. A World Bank report demonstrates that so far women run 20% of companies, which is more common among smaller firms (Hiraga, 2018). A report by the IMF indicates that more than 90% of companies women run are microenterprises (Coverline, 2019). The benefits of female entrepreneurship have been well-documented in the developing countries. Returns from women entrepreneurs can enhance family support (Kevane and Wydick 2001) given that women are engaged in daily family taking compared to men (Cerrato and Cifre 2018; Ferrant, Pesando and Nowacka 2014). Entrepreneurship opens the door for additional resources needed to improve household outcomes. Female entrepreneurship's benefits extend beyond individual benefits to enhancing the well-being of households and hence society. Definition of terms To navigate the literature, a definition of key terms is important. * Entrepreneurship: The process where an individual identifies an opportunity in business and creates a new business to address the issue. * Gender gap: The difference between the average outcomes for men and women in a particular area. In this case, the gender gap will focus on the outcomes exhibited in entrepreneurship. * Founding: Starting a new business * Access to capital: The ability of entrepreneurs to secure external financial sources needed to start and grow an enterprise. Research questions To address the factors leading to the gender gap in entrepreneurship, the following research questions will be used: 1 How does the gender gap in entrepreneurship adversely affect the growth of economies? 2 What challenges contribute to gender differences in entrepreneurial success? 3 What challenges do women face at the founding and access to external capital? 4 What are some of the effective interventions that can be applied to address these challenges and promote female entrepreneurship? By answering these research questions, the researcher gains a better understanding of the issue and assists in developing more effective strategies to promote the participation of women in the entrepreneurial process. Theoretical Frameworks Several theoretical frameworks will be applied to study the challenges women face in founding businesses and accessing external funding leading to gender differences in entrepreneurship. The theoretical frameworks offer a lens through which to understand the complex factors that contribute to the disparities and inform the development of appropriate interventions. 1 Institutional theory: The framework emphasizes on the role of institutional structures and norms in shaping outcomes (Zhang, 2020). The theory suggests that gendered biases and stereotypes embedded in institutions, like financial institutions and business networks can hinder women’s access to resources and the support they need to start and run businesses, limiting their entrepreneurial journey. 2 Gender Role Theory: The theory explores the influence of gender roles and expectations on outcomes (Kwesiga, Bell, Pattie and Moe 2007). The theory demonstrates that traditional gender roles often assign women caregiving responsibilities while allowing men to pursue their dreams. In this case, the framework will guide an analysis of how work-family constraints limit women's entrepreneurial engagement. 3 Intersectionality Theory: this framework recognizes the intersection of gender and other social identities like race, ethnicity, and class, which shape the entrepreneurship experience (Abbas, Byrne, Galloway, and Jackman 2019). Using the intersectionality theory will be instrumental in demonstrating how women from marginalized groups may encounter compounded disadvantages because of the interplay of multiple forms of discrimination. The framework will be used to demonstrate how gender connects with other constraints, further exacerbating the gender gap in entrepreneurship. Outcomes for Female Entrepreneurs Researchers agree that there are differences in the outcomes of female entrepreneurs. A majority of studies have established that women run smaller businesses in terms of sales, assets and number of staff members (Eliana, Chandra and Inessa, 2018). According to Baum (2013), in the US demonstrated that women operated in the service, retail, and hospitality sectors. To make it worse, Carter and Shaw (2006) indicate that women-owned businesses are overrepresented in lower-order services, which a report by Eliana, Chandra and Inessa (2018) shows it includes the businesses that need less human capital and formal qualifications. In developing countries, while studies are limited, the available ones show similar results to the developed nations. In developing countries, especially in Africa, Wube (2010) agrees that women entrepreneurs focus on sectors like hotel, food, retail trade, tailoring and other sectors that require little capital to set up and limited skills. On the contrary, Goedhuys, and Sleuwaegen (2010) provide evidence that African men have their businesses distributed across a wide array of sectors like construction, electronics, metal and wood among other sectors which need high amounts of capital and skill to set up and operate. Sadly, Goldstein, Gonzalez Martinez and Papineni (2019) indicate that the sectors where women operate are less profitable compared to the male-dominated industries. In the service sector where women are the majority, these tend to be smaller in size. As the women run their small businesses, family responsibilities force them to locate their businesses near or in their homes (Al-Dajani, and Marlow 2010). Locating the businesses at home allows women to attend to family needs. The choice of location constrains their operations and undermines the legitimacy of their businesses in the eyes of clients and creditors. Potential clients are less likely to see home-based businesses, which significantly reduces the client base. Questions arise as to why women chose to operate in less economically rewarding sectors. Numerous studies have established that female-owned businesses tend to have lower yields compared to male-owned ones (Rosa and Sylla, 2018). Since a majority of women run small businesses, they are less likely to get more profits compared to the males who operate relatively large enterprises. Given the location of the businesses, women are unable to attract clients and get the business networks they need to advance their businesses. An evaluation of the risk-return trade-off shows that women are more risk averse compared to men (Rosa and Sylla, 2018; Watson and McNaughton, 2017). According to Jaiswal (2020), women tend to focus on lower risk ventures, leaving the men to concentrate on high risk businesses, which are also more profitable. In such sectors, women find themselves confronted by slower growth of their firms. The industries where a majority of women venture are unable to grow and generate more benefits to society like employment. The external constraints women face discourage them from pursuing high risk and high return enterprises and restrict them to smaller businesses (Elborgh-Woytek et al., 2013). The Underrepresentation of Women in Business Despite the apparent benefits of female entrepreneurship, females remain underrepresented in entrepreneurship as males dominate the space. A report by the Global Entrepreneurship Monitor (2019), female entrepreneurs are less likely to own established businesses than male entrepreneurs. Researchers agree that such differences have negative incomes on entrepreneurship in general. With women accounting for about half of the population in the world, their underrepresentation in a critical area of the economy like entrepreneurship is a cause for alarm. A majority of studies focus on how gender inequality perpetuates inequalities in entrepreneurship (Meliou and Ozbilgin 2023). However, little has been done to understand the various forces that may propagate disparities between female and male entrepreneurs. Entrepreneurship is a process that commences with founding new venture to getting capital then exiting. Unfortunately, few studies assess the essence of each stage in generative less favorable outcomes for female entrepreneurs (OLAREWAJU and Fernanado 2020). Little has been done to highlight if females face resistance at founding, or if the challenges increase later in the process. For policymakers, such an understanding is essential in formulating policies which address gender inequality in entrepreneurship to ensure that women are represented in this important economic activity. Where the disparities are shown to emanate at various phases and accumulate over time, numerous actors at different stages of entrepreneurship can be targeted to address the issue. Strengths and Limitations of Studies This study seeks to go beyond attributing gender inequality to the gap in entrepreneurship. The numerous studies which have shown the link between gender inequality and entrepreneurship have done little to address the fundamental issue why women continue missing in the entrepreneurship space. This study extends the current literature by providing a more comprehensive account of gender disparities, demonstrating how they the disparities arise at different phases of the entrepreneurship pipeline. In particular, this study shows the gender gap between male and female entrepreneurs at the initial founding stage. In evaluating the number of female and male entrepreneurs, wishing to founding businesses, the study proposes that disparities emerge at the initial stages of entrepreneurship. An analysis of disparities in the founding stage provides allows the paper to show that women are disadvantage at the very beginning of their entrepreneurial journey. Additionally, the paper shifts attention to the second phase of entrepreneurship, which is access to external funding. Without funding, businesses are unable to progress to the next level. External funding has proven to provide entrepreneurs with the needed capital to start and scale a venture. In particular, women, like men, require capital to cover initial expenses. External funding serves as a risk mitigation measure, where the financial support assists entrepreneurs to navigate the challenges like market fluctuations and unexpected setbacks. Women entrepreneurs require external funding to help them mitigate the risks associated with founding businesses. When women access external funding, it assists them in accelerating growth in their businesses. They can expand their operations, get into new markets and scale their enterprises quicker than when they rely on organic revenue generation. The study seeks to gather information related to the degree of external funding for women. In the resulting comprehensive analysis, this study seeks to break down entrepreneurial process into the critical points of founding and funding, identifying the differences that exist between female and male entrepreneurs at each stage. The research adopts Aldrich and Ruef (2003) view that entrepreneurship is not an event, rather a process which includes founding a new venture to looking for capital to exit. Conclusion Entrepreneurship is a critical component of the economy and needs to be taken seriously. It is through entrepreneurship that countries can create the economic activities needed to create opportunities needed. Stakeholders have been concerned about ways of increasing entrepreneurial activity where men and women can participate equally. A synthesis of literature has shown that women are disproportionally underrepresented in the entrepreneurship, despite efforts to empower women. The participation of female entrepreneurs is more felt at small businesses especially in the service industry which have little yields. Men on the contrary dominate high income industries, allowing them to get more profits and start more ventures. A lot of focus has been on how gender inequalities have perpetrated the problem. However, less focus has been given on identifying the challenges women face at the difference faces of entrepreneurship. This research seeks to offer a more comprehensive approach to the analysis of the gender gap in entrepreneurship, to show the problems women entrepreneurs face from founding, to external funding and exit. Chapter Three: Methodology Introduction In this chapter, we detail the approach utilized in collecting data on the research topic, “Addressing the Gender Gap in Entrepreneurship.” The aim is to collect data from secondary sources to answer the research questions. We offer details that indicate how we collected and analyzed the data, and the ethical issues encountered to allow other researchers to replicate this work. The research design, philosophies, strategies, and approaches are indicated. The ethical challenges encountered are also included. Research Design This dissertation will employ an exploratory research design that entails a preliminary study where the researcher has little or no knowledge. It is a type of study that endeavors to answer a question or address a phenomenon. An exploratory research design is useful where the nature being studied cannot allow a variable to be manipulated by the investigator (Kivunja and Kuyini, 2017). This type of research seeks to identify general principles to explain data and observations. Since the research design explores a specific phenomenon, a researcher can learn as much as possible between the two variables. Since the exact nature of the dependent variable may not be understood before the start of the study, the observation is more holistic. There are two methods for conducting research: primary and secondary approaches. Primary research methods involve collecting data directly from the subject, either as a group or an individual. A primary study is done to investigate a particular problem that requires an in-depth investigation. Primary research can be done through surveys, interviews, focus groups, and observations. Secondary research methods refer to the collection of information from previously published primary research. Secondary research can be done through online research, literature research, and case study research. This dissertation collects data from secondary sources through literature research. Undertaking exploratory research follows the following steps. The first step is identifying the problem. The second step is defining the research questions. Here, the investigator defines the research questions, which will guide the study. Research questions help in keeping the research on track, ensuring it is done efficiently. The third step is designing the methodology by conceptualizing the data collection and analysis methods. The fourth step is gathering data. A researcher is expected to explore different sources to collect data from the best source. The fifth stage is analyzing the result, which entails analyzing the collected data to establish if preliminary results align with the research questions earlier defined. The last stage is prospects for future research where the researcher suggests areas for improvement when researching the same topic. Using an exploratory research design has advantages and disadvantages. Firstly, exploratory research is characterized by its flexibility. Where a problem is now defined specifically, the exploratory research design can be the starting step (Casula, Rangarajan, and Shields, 2021). Secondly, the exploratory research design is critical in understanding what is happening by gaining new insights regarding phenomena. It allows investigators to question and assess phenomena using the available evidence. The use of an exploratory research design enabled the researcher to gain new insights regarding what causes the gender gap in entrepreneurship. Thirdly, an exploratory study aims to formulate problems more precisely by clarifying concepts and gathering explanations. However, using an exploratory research design has some disadvantages. Firstly, exploratory research results into qualitative data. The interpretation of such information can be biased, which can interfere with the validity of the findings. Additionally, when data is collected from secondary sources, there is a chance that it can be old, hence giving outdated results (Olabode, Olateju, and Bakare, 2019). Research Strategies The research will use secondary data sources to investigate gender biases in entrepreneurship. The data was collected from different secondary sources. Firstly, data will be obtained from academic journals like JSTOR, ScienceDirect, and EBSCOhost. These academic journals were searched for topics related to gender biases in entrepreneurship. Academic journals offered peer-reviewed articles, which enhanced the credibility of the data collected. Secondly, reports from organizations focusing on gender issues were used to collect data. For instance, the Global Entrepreneurship Monitor (GEM), the World Bank, and the Organization for Economic Co-operation and Development (OECD) were used to offer data on the participation of women in finance, innovation, and entrepreneurship. Efforts were made to ensure the data collected was relevant to the research questions. The credibility of the data was enhanced by choosing sources with established methodologies for data collection and analysis. The data used was current to ensure that it reflected the current trends in entrepreneurship. The scope of the data collected allowed for comparisons across different regions and industries. Research Philosophy A research philosophy refers to the set of beliefs and assumptions that guide research. It serves as a foundation for building the research design, methodology, and conclusions (Tamminen and Poucher, 2020). A research philosophy is critical because it determines the types of questions to ask, the methods to be used, and how to interpret the findings. There are two main research philosophies; positivism and interpretivism. Positivism is the perspective that emphasizes that the only way to get information is through systematic and scientific approaches. The underlying premise of positivism is that people learn about the world in the same way natural sciences do (Gannon, Taheri, and Azer, 2022). Positivism aims to help discover objective facts. When something is objective, it implies that it has not been influenced by the views and opinions of people. It is undoubtedly a fact that cannot be disputed using personal thoughts or feelings. On the contrary, interpretivism indicates that knowledge regarding society and humans cannot be objectively known. Interpretivists hold that the correct way of getting knowledge about the world is by exploring the meanings that individuals attach to it. Unlike positivism, interpretivism indicates that scientific approaches cannot be used to obtain knowledge about the world (Mauthner, 2020). The main aim of interpretivism is not to uncover objective facts but to understand the meanings that individuals attach to particular behaviors and experiences. Interpretivists recognize that the insights are subjective. In this dissertation, interpretivism. In the context of the research on the gender gap in entrepreneurship, interpretivism is critical because it acknowledges that reality is socially constructed. The understanding of gender norms and inequalities is shaped by the social and cultural contexts where they reside. Adopting an interpretive perspective will enable the researcher to understand the subjective meanings that people and societies attach to gender, entrepreneurship, and the challenges that women face when beginning and growing their ventures. The approach recognizes that meanings are not fixed, rather they are shaped by historical and cultural factors. Interpretivism will allow the exploration of the complexities of gender disparities in entrepreneurship using thematic analysis. Using interpretivism encourages reflexivity, which makes researchers to be aware of their biases and assumptions. This is important when interpreting qualitative data since it helps avoid imposing external interpretations on the data, hence minimizing biases. Research Approaches The approach will involve systematically sorting and interpreting the qualitative data to pinpoint recurring patterns and themes. The research approach will be thematic analysis, a qualitative research method for identifying and analyzing patterns of meaning within the data (Dawadi, 2021). A thematic analysis is ideal since it goes beyond summarizing the existing data and delves deeper into identifying themes related to gender gaps in entrepreneurship. Additionally, a thematic analysis will not require a set of pre-determined themes. Instead, themes can emerge from the data, ensuring that the study reflects the major issues women entrepreneurs face. Moreover, a systematic approach, while flexible follows a structured process. This ensures that research maintains its rigor and that the findings can be presented in a clear and organized way. The following steps will be used in extracting data from the secondary materials. Firstly, data familiarisation will be done by re-reading the materials to gain a better understanding (Dawadi, 2021). The researcher will read through the data sources many times to identify important insights related to the research questions. These insights will be written down to facilitate the second stage of generating the initial codes. This second stage will involve generating short labels that summarize the data portions. The codes are a description of the data and serve as a basis for organizing the gained insights. Next, the researcher will proceed to search for themes with the aid of the codes generated (Dawadi, 2021). The process will be done carefully to ensure the themes refle...