The Growing Trend of Entrepreneurship Among Lower Income Women

The Global Entrepreneurship Monitor (GEM) 2022/23 Women’s Entrepreneurship Report has recently unveiled intriguing insights into the entrepreneurial landscape for women on a global scale. Based on data collected from 175,000 individuals in 49 countries, the report has illuminated six significant trends that could potentially open up new opportunities for women in the business world.

A particularly striking revelation from the report is the heightened inclination of women in low-income countries towards entrepreneurship. The survey revealed that 28.2% of women in low-income countries expressed entrepreneurial ambitions, compared to just 11% in high-income countries. This disparity may indicate that economic constraints are compelling women in low-income countries to seek alternative means of income generation.

Additionally, the report has brought attention to the increasing involvement of women in high-growth entrepreneurship. Countries such as Togo, Indonesia, Romania, Colombia, and Iran have witnessed a surge in innovative and successful ventures led by women, challenging traditional stereotypes that often portray women as disadvantaged in the realm of business leadership.

Of note, the study has observed that younger women are taking the lead in entrepreneurship, particularly in low-income countries. The younger generation of women appears to be more eager to embark on entrepreneurial ventures, especially in regions like North America, the Middle East, and Africa.

The primary driving force behind women pursuing entrepreneurship, as indicated by the report, is the scarcity of traditional job opportunities. Nearly three-quarters of women surveyed cited job scarcity as their main motivation for starting their own businesses, with this trend being particularly pronounced in Latin America and the Caribbean, where 82.2% of women attributed their entrepreneurial journey to the lack of employment options.

Another noteworthy finding from the report is the increasing trend of women opting for solo ventures when establishing their businesses, especially in regions like Latin America and the Caribbean, as well as Europe.

However, the report has also uncovered a sobering reality – there is a higher rate of business exits than entries among female entrepreneurs, especially in middle and low-income countries. This suggests that the economic landscape in these regions can often be volatile and challenging for women looking to establish stable and sustainable businesses.

In conclusion, the GEM 2022/23 Women’s Entrepreneurship Report has provided valuable insights into the global trends surrounding women in entrepreneurship. It is crucial to comprehend and address these trends in order to create better opportunities and support systems for aspiring women entrepreneurs, both locally and globally. By doing so, we can potentially unlock the economic potential of women in business and foster a more inclusive and diverse entrepreneurial landscape.