The economic development of a country is closely related to the advancement of women. In countries where women have been encouraged to participate in all spheres of life, the economy has usually been steady, whereas wherever their participation has been curtailed, the economy has begun to stagnate.
In developing nations there is what United Nations Development Program describes as a strong “inside/outside” dichotomy; this refers to the weaker sex being restricted to the “inside” space of home and household which prevents them from becoming educated, seeking employment, availing training opportunities and being involved in social services. Furthermore, the social disapproval of ladies working outside the home translates into the invisibility of women in the labor force. They may be participating actively in the family business (e.g. farming) but their unpaid work is counted as a social duty and not as an economic contribution.
Under such situations it is already difficult for women to opt to become entrepreneurs. Those who attempt to establish their own business have to deal with various factors that affect the business environment in most underdeveloped and developing countries. These factors generally fall into two basic categories. The first category comprises of the social, cultural, traditional and religious factors, whereas the second category includes laws and regulations as well as policies and institutional mechanisms.
The social and cultural picture is usually that of a traditional patriarchal structure with fixations about gender roles. In such societies the function of reproduction and child rearing fall upon the female population and functions pertaining to production are assigned to men, thus establishing the status of both sexes. The reproductive role confines women to their homes, so as their focus is solely on bearing children and raising the family. Furthermore, traditions of maintaining male honor by limiting women’s mobility and social interactions so as to ensure chastity all impose a check on women’s economic activity. Additionally, females are generally discouraged from taking on leadership roles. As per patriarchal norms, they are to be submissive and subservient to their male counterparts. This stereotyping holds back females in a male-dominated society, and so female leaders are rare. A study conducted in Lebanon blames cultural norms and stereotyping as one of the biggest constraints for female entrepreneurs.
Policies, legal framework, and regulatory structures generally do not discriminate against the economic activity of females as there are written laws which guarantee equality of rights to all citizens irrespective of sex, race and class and also empower the government to take action to protect and promote women’s rights. However, in practice, women’s economic activities are covertly discriminated against.
Research consistently indicates that women of developing countries lack access to finance and this is a major barrier that female entrepreneurs face. A study discovered that after family funding, female entrepreneurs rely on donations, bank loans, governmental schemes and charity. Due to non-availability of easy access to capital, they do not have funds to grow their businesses.
Safety and security issues are also a major constraint, as societal issues such as sexual harassment are highly prevalent. Police harassment is also commonplace in some regions.
Another prime factor that discourages female entrepreneurs is the lack of education which seems to be the underlying cause behind females having a greater fear of failure. Women’s lack of knowledge regarding financial resources and information is also attributed to their lack of education.
Despite these constraints, female entrepreneurs are still making headway in the business world – which is an encouraging sign. To further encourage women to take up entrepreneurship, there is a pressing need to empower women economically by creating employment opportunities and income generating activities that enable them to contribute to the prosperity of their country while simultaneously providing support for their families.
[ad_2]Source by Shelly Morrison