Female Entrepreneurship Global Trends and the Case of Bosnia Conference on Enhancing Women Entrepreneurship in SEE Sarajevo, October Sevi Simavi, IFC

Female entrepreneurship is on the rise globally and has been recognized as an important untapped source of economic growth. In USA, the number of women-owned businesses has increased by 20 percent between 1997 and In 2008, women owned firms employed more than 13 million people, and generating $1.9 trillion in sales. In Canada, 47 % of SMEs have some degree of female ownership, with 16 % majority-owned by women. Annually, they contribute $18 billion to Canada's economy. In China, it is estimated that women own 30% of all small and medium-sized businesses. In Egypt, Jordan, Saudi Arabia and the West Bank and Gaza, the share of female-owned firms that have increased their workforce recently exceeds the share of male-owned firms. 2

Global Trends in Female Entrepreneurship Regardless of gender, entrepreneurial activity is significantly higher in both the low/middle-income countries than in the high-income countries. Even in mature market economies level of female entrepreneurship typically falls considerably below that of the male population. A systematic gender gap exists with respect to new venture creation and business ownership. Employment matters to entrepreneurial activity. Those women who are employed in a wage job are three to four times more likely to be involved in entrepreneurial activity than those who are not working, are retired, or are students.. 3

Womens Entrepreneurial Motivation 4 Source: Global Entrepreneurship Monitor, 2007 Report on Women and Entrepreneurship

Sectoral Distribution of Female Entrepreneurship by Country Group and Business Stage 5 Source: Global Entrepreneurship Monitor, 2007 Report on Women and Entrepreneurship

Investment Climate and Female Entrepreneurship 6 Women have limited voice in public decision making Networks Role models Access to information Lobbying Gender neutral laws can have gender-biased outcomes in practice Expensive and lengthy procedures impact women more Interference and harassment from government officials Legal rights may differ for men and women Direct: Male consent required to start a business Indirect: Limited inheritance rights

Womens Labor Force Participation in Bosnia and Comparator Countries 7 Source: IFC, Voices of Women Entrepreneurs in Bosnia and Herzegovina

Entrepreneurship in Bosnia % 27 % women 85 % micro/small Source: IFC, Voices of Women Entrepreneurs in Bosnia and Herzegovina

Regional Comparisons 9 Bosnia = around 27% Albania = around 13% Macedonia = around 17% Source: IFC, Voices of Women Entrepreneurs in Bosnia and Herzegovina

Main Obstacles for Female Entrepreneurship Licenses, taxation, cost of finance and labor issues are cited as the biggest obstacles to women owned businesses. High level of decentralization in Bosnia and Herzegovina, with fourteen governments operating with little coordination among each other. Frustrations with doing business in different parts of the country and hesitation to expand to other regions, due to the unclear or varied business requirements of the different regions. 10

Lack of registered property under womens own name becomes a problem when seeking bank financing. Absence of strong womens business organizations that could provide much-needed training, networking and advocacy. 11 Main Obstacles for Female Entrepreneurship

THANK YOU! Sevi Simavi To download the Voices of Women Entrepreneurs in Bosnia and Herzegovina, visit and click Gender Tools and Resources > Business Enabling Environment > Bosnia and Herzegovina 12