Author: Neila Holland-Noronha

Publisher:

Published: 2010

Total Pages:

ISBN-13:

Over the last twenty years female entrepreneurs have been increasing innumbers in economies of developing and developed nations across the world. But although female entrepreneurship participation rates have increasedworldwide, it appears that economic and socio cultural patterns still prescribewhether a female can become or want to become an entrepreneur in her society. Some reasons are obvious such as lack of employment and opportunities; otherare disguised in patriarchal culture that deters female entrepreneurship. Againstthis backdrop it appears that in less developed countries necessity and informalentrepreneurship are more prevalent than opportunity entrepreneurship. Anexplanation from economic nature for this phenomenon is perhaps the fact thatwith less job opportunities available in developing nations, the?need? to becomean entrepreneur seems to be the answer for females to make a living by creatingtheir own jobs. At the socio cultural level, the motivation to become anentrepreneur out of need surfaces because of the socio cultural structure ofcertain nations that hinder females from finding work that brings themindependence, self actualization and flexibility for work-life balance. This qualitative exploratory study investigates the phenomenon of femaleentrepreneurship comparing female entrepreneurship in two contexts: Brazil andthe United States. The economic differences on a macro level between these twocountries have been well documented and national socio cultural differenceshave been discussed. But very little has been focused at the individual level of the female entrepreneur per se, that is, how they perceive and experience theeconomic and the social cultural macro environment with their businesses. Thisresearch attempts to fill this gap. This was done by first reviewing the literatureand then by analysing the responses from face to face and telephone interviewswith 34 female entrepreneurs in Brazil and 26 in the United States. The findings indicated that female entrepreneurs in Brazil and the United Statesshare similarities in motivation for starting the business in terms of pull factors, such as search for financial independence, want to be one?s own boss, need forautonomy, and self actualization. The women from both groups also identifiedcustomer satisfaction and recognition from society as key elements for theirbusiness success. But business informality was a phenomenon only found amongthe Brazilian enterprises (the informais) a factor found to be directly related toeconomic necessity and the scarcity of waged jobs and opportunities. Theperception of gender barriers was shared by both groups of entrepreneurs butother factors such as religion and the importance of faith to succeed in businesswere emphasized only by the Americans. Higher education was perceived byboth groups as an instrument to gain recognition from society, but not importantto grow their businesses; vocational training was perceived as more important. Networking was perceived as important, but different patterns of networkingemerged among the Brazilians and the Americans. Definitions of success alsodiffer among the women independent from their nationality. Some were moreinclined to define success in financial terms, others simply define success interms of flexibility and the?got to be in control? syndrome. This research contributed to an increased understanding of the processes offemale entrepreneurship as it related to how economic and socio cultural forcesinfluence these processes. The findings indicated that the female entrepreneurship process becomes a combination of two processes: a persondriven process and a response to environment process. Mentoring and coachingprograms that assist women finding their path to entrepreneurship along withtheir own passions should be emphasized by local agencies. Although policydevelopment was not the specific objective of this study, a number of issueshave arisen that have implications both for future research and femaleentrepreneurship policies. For instance, in Brazil, higher taxes and the high costof starting a business were perceived by the women as barriers to theirbusinesses. It is suggested that Brazilian authorities and legislators continuewith their efforts to streamline the business start process by introducinginnovative and cost effective ways to formalize a business.