Influential factors and motivationsfor female entrepreneurs in China

Master’s Thesis 15 creditsDepartment of Business StudiesUppsala UniversitySpring Semester of 2019

Date of Submission: 2019-06-05

Xuan ZhangXuemei ZhangSupervisor: Cong Su

Lingshuang Kong

Abstract

Background: Female entrepreneurship in China is a practice which scholars have explored

severally in recent years. Just as many Asian countries, the role of Chinese women has been

undermined for a longer period. However, the 20th century marked a positive turn in Chinese

culture. The rate of discrimination and seclusion of women from economic empowerment

started reducing significantly. Today, Chinese women are struggling to compete effectively

with their male counterparts in entrepreneurial sector. The purpose of having women

empowerment on the market economy is to generate more income to the country. Also, the

practice lessens the rate of unemployment and high rate of dependency in China. Hence, it is

apparent that the entrepreneurial actions in China are motivated by a number of factors that

are presented in the paper.

Purpose: The primary aim of the study is to determine influential and motivational factors

for female entrepreneurs in China.

Methods: The research has employed a qualitative research approach to determine influential

factors and motivating aspects of female entrepreneurship in China. Random sampling tactic

has been chosen as the methodology to discover data of women that have succeeded in the

country. This approach can help to analyze a broader population of women entrepreneurs in

China. Meanwhile, a semi-structured interview was involved in collecting data so that

first-hand and unbiased information is obtained from interviewees.

Findings: From the study of the influential factors and motivation for female entrepreneurs

in China, it has been noted that the process of entrepreneurship among the current female

entrepreneurs in the country can be categorized as either passive or initiative. While looking

at the passive entrepreneurship among the female entrepreneurs, it is noted that those people

are driven by the daily needs of their families. On the other hand, initiative entrepreneurship

relies much more on human capital and social capital. The zeal and motivation that they

possess lead them to developing far-sighted enterprises, hence contributing to the economic

development of the country.

Key words: female entrepreneurship, Chinese women, motivation, influential factors, social

capital, human capital

Table of contents

1.Introduction.................................................................................................................................11.1 Research Objective........................................................................................... 1-21.2 Relevance of the topic...................................................................................... 2-21.3 Methods............................................................................................................ 2-31.4 Findings............................................................................................................ 3-31.5 Theoretical Contribution...................................................................................3-4

2. Theoretical background............................................................................................................ 42.1 Entrepreneurship...............................................................................................4-52.2 Female entrepreneurship...................................................................................5-82.2.1 Gender consciousness......................................................................................6-72.2.2 Characteristics of female entrepreneurship..................................................... 7-82.3 Human capital and its effect on female entrepreneurship.............................. 8-112.4 Social capital and its effect on female entrepreneurship.............................. 11-12

3. Methodology............................................................................................................................. 123.1 Research design............................................................................................ 12-133.2 Sampling.......................................................................................................13-153.3 Data collection..............................................................................................15-163.4 Data analysis.................................................................................................16-173.5 Reliability of the data................................................................................... 17-183.6 Challenges/disadvantages of the data collection.......................................... 18-18

4. Findings............................................................................................................................... 18-29

5. Discussions................................................................................................................................295.1 Theoretical perspective.................................................................................30-305.2 Problems that Chinese women face in their entrepreneurial activities.........30-315.3 Research hypothesis and description...........................................................31-335.4 Relevant methodological choices in relation to the research problem......... 33-335.5 The consequences of methodological choices..............................................33-345.6 A significant empirical study including data collection............................... 34-355.7 The meaning and implications of the findings............................................. 35-365.8 Comparing and contrasting the findings with arguments of the literature... 36-375.9 Limitations of the results of the study.......................................................... 37-37

6. Conclusion......................................................................................................................... ..37-39References................................................................................................................................40-48Appendixes...............................................................................................................................49-51Appendix 1 Interview guideline (English)........................................................................... 49-50Appendix 2 Interview guideline (Chinese)................................................................................ 51

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1. Introduction

In entrepreneurship, entrepreneurs heighten social and economic prosperity by utilizing

or creating new factors of production in their firms (Bertelsen et al., 2017). For many years,

entrepreneurs have acted as a basis of generating employment and also as significant

engines for economic development across the globe (Xie & Lv, 2016). Among the

entrepreneurs who are at the forefront of creating jobs and developing economy are female

entrepreneurs in China. Chinese female entrepreneurs fall under two categories: the first

category is that of passive industrialists, while the second category is initiative-driven. In

most cases, Chinese women who are classified as passive entrepreneurs are engaging in

business activities as their second-choice occupation. Their entrepreneurial behavior is

motivated, or even forced, by survival necessities or dissatisfaction with their current living

conditions. However, the initiative-driven female entrepreneurs have zeal and an ambition

to take part in social and economic development in a positive manner (Ng & Fu, 2018). This

group views entrepreneurship as their primary career and they often find innovative

approaches to improving business and actively shoulder their portion of responsibilities.

Meanwhile, human capital and social capital have also exerted a certain amount of influence

in the process of an initiative entrepreneurship.

1.1 Research objective

The main objective of the paper is to focus on the dominant factors and motivation

features that encourage female entrepreneurial activities in China. Female entrepreneurs in

the country require motivation since they are vulnerable to market dynamics. At some point,

female entrepreneurs will not be confident with the actions which they are taking in their

enterprises. Hence, the government, non-governmental organizations, and private sectors

should motivate female entrepreneurs by boosting their economic base (Xie & Lv, 2016).

Many female entrepreneurs are uncertain about the future of their enterprises. Today, there

are also emerging issues such as modifications in technology that require thorough scrutiny

(Wang, Li & Long, 2019). Therefore, female entrepreneurs in China should be financed to

acquire new technologies in their organizations. Consequently, there should be proper

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structures designed to instil market skills among these female entrepreneurs. This is an

initiative that brings them motivation.

From the analysis above, the research question is formulated as follows:

What are the influential factors and motivations for female entrepreneurs in China?

1.2 Relevance of the topic to the research

Analyzing influential factors and motivation regarding female entrepreneurs in China is

vital since it looks at the concept of parity in income distribution and economic

development. Initially, many women were neglected in terms of economic growth, not only

in China but also in other parts of the world. Therefore, the involvement of women in

entrepreneurship is classified as a developing concept in Asian countries (Bertelsen et al.,

2017). The concept is also relevant as it looks on how Chinese women are investing in other

areas of the economy. For instance, China is likely to witness a significant expansion in

sectors such as education, health, and vocational training as many women engage in active

entrepreneurial behaviors. Similarly, the topic is relevant to the study as it focuses on

prejudices that are witnessed in various enterprises (Ng & Fu, 2018). Women have been

exposed to bias for a longer period. However, the current economy has stipulated essential

factors that should be undertaken by all people, thus eliminating the traditional notion of

women’s segregation in the field of business.

1.3 Methods

In the methodology of the study, data was collected using the qualitative approach. The

approach incorporated different studies on Chinese women who owned various kinds of

business. Both small enterprises and medium-sized stalls were sampled to determine trends

in the Chinese market. Even though the study was based on the downtown regions, it

considered business data in rural areas as well so as to guarantee diversity in the study.

Ultimately, a semi-structured interview was developed for collecting data so that first-hand

and unbiased information could be obtained from interviewees. Particulars of the questions

that were carried out entailed extensive shreds of evidence concerning female entrepreneurs,

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motivational factors in start-up enterprise and also the attainment aspects of conducting

entrepreneurial behaviors. In addition, the descriptive figures, as well as the analytic

orientation, were incorporated into the process of analyzing enterprise facts.

1.4 Findings

From the study of the influential factors affecting female entrepreneurs in China, and also

their motivation, it has been noted that the process of entrepreneurship among current

female entrepreneurs in the country can be categorized as either passive or initiative. While

looking at the passive entrepreneurship among female entrepreneurs, it was noted that these

people were driven by the daily needs of their families. The burning desire to attain family

necessities makes Chinese women take an active part in entrepreneurial behaviors, thus

stimulating the nation ’ s economy. Female entrepreneurs are eager to fulfill self-needs as

they compete favorably with other entrepreneurs in the global market (Wang, Li & Long,

2019). On the other hand, initiative entrepreneurship relies much more on human capital

and social capital. Moreover, it is apparent that a number of female entrepreneurs in China

start work with small stalls but eventually end up with larger scale and chain enterprises

(Wang, Li & Long, 2019). The zeal and motivation that they possess leads them towards

developing far-sighted enterprises, hence contributing to the economic development of the

country.

1.5 Theoretical Contribution

Education and technological know-how have played a crucial role in creating familiarity

in several respects across the world. In China, the involvement of women in entrepreneurial

actions increased from 1996 after the occurrence of the financial crisis in East Asia (Ng &

Fu, 2018). Since that pandemic, China was exposed to economic disintegration,

employment problems and severe suffering due to high standards of living immediately

following the country witnessing a rate of private capital flows in developing states

(Bertelsen et al., 2017). However, the global economic recession encouraged China to take

an active part in the World Trade Organization (WTO) by involving more women in

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entrepreneurial activities. Since then, women have played a significant role in adjusting the

industrial structures of China so that Chinese economic growth favors everyone despite

their low earnings.

In Hong Kong, women comprise 38% of entrepreneurs. Out of this number, 10% of

female enterprises are faced with the risk of closure due to inappropriate planning and

management. It is clear that female entrepreneurs require proper decision-making in their

companies to thrive (Wang, Li & Long, 2019). However, those that make inappropriate

conclusions continue to strain in providing goods and services to clients. Decisions should

be made at the initiation phase of the market planning. Hence, the skill is vital for long-term

plans that are effective in marketing (Xie & Lv, 2016). Entrepreneurs should be encouraged

to participate in both centralized and decentralized actions as a way of diversifying their

business actions. For example, in China, more than six million small and medium-sized

female entrepreneurs (SMSE) have expanded their marketing actions, thus creating job

opportunities for about 30% of the salaried Chinese population (Ng & Fu, 2018). Various

marketing programs have been set up by the government to urge the community to create

employment and also to enhance economic development.

2. Theoretical background

2.1 Entrepreneurship

Entrepreneurship is a process by which entrepreneurs create resources for greater

economic or social value by concentrating on the resources they own or by optimizing the

integration of existing resources (Gartner, 1990). Entrepreneurship is a kind of labor and a

subjective behavior that requires in-depth thinking, careful reasoning, accurate judgement

and meticulous organization (Iversen & Jørgensen, 2007). Entrepreneurial research mainly

explores the interpersonal relationship between entrepreneurs’ personal traits,

entrepreneurial processes and entrepreneurial outcomes, as well as the macro-environment

and micro-environment of entrepreneurship (Gnyawali & Fogel, 1994). In the early 18th

century, French economist Richard Cantillon and the physiocratic school proposed the

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notion of “entreprendre” to generalize the concept of “starting a business”, representing the

origin of “entrepreneurship” (Meyer et al.).

In addition, Professor Jeffery Timmons, known as the “ father of entrepreneurship

education” , believes that entrepreneurship does not only mean starting a business, raising

money and providing employment opportunities, but also refers to concerns about

innovation, creation and breakthrough (Kent et al.). Entrepreneurship is not only

constrained by opportunities, but also motivates by rigorous implementation plans and

superb balance skills, as well as the strong ability of leadership (Baron, 2000).

On the other hand, entrepreneurship is an opportunity-driven process under the premise

of scarce resources and a behavioral process combined with a lot of uncertain factors

(Bygrave et al., 1992). Resource endowment before entrepreneurship constitutes the

resource foundation of entrepreneurs (Greene & Hart, 2001). A series of rational decisions

made by entrepreneurs in the process of entrepreneurship is closely related to the resource

endowment before entrepreneurship (Auty, 1998). Economic research shows that individual

endowment affects the ways and results of rational decision-making to a certain extent,

which is reflected in the behavioral result of an individual coping with uncertain external

factors and seeking the maximization of profits in the process of rational choice based on

his endowment (Mole & Ram, 2012). The resource endowment of entrepreneurs determines

the entrepreneurial behavior process by influencing their entrepreneurial behavior decisions.

Meanwhile, a large portion of the literature emphasizes the important role of entrepreneurs'

resource endowment in the entrepreneurial process (McMullen & Shepherd, 2006).

Entrepreneurs' resource endowment is a key factor in the entrepreneurial process and even

determines the resource-composition characteristics of new enterprises to a certain extent

(Leyden & Link, 2014).

From the above definition of entrepreneurship, it is discovered that the process of

entrepreneurship is a series of activities aimed at achieving entrepreneurial purposes, such

as the integration of resources, the capture of opportunities, and so on (Kuratko, 2015). In

this research paper, the definition of female entrepreneurship is relatively broad, i.e, it is the

entrepreneurial activity process carried out by Chinese women with the purpose of

achieving their own entrepreneurial goals.

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2.2 Female entrepreneurship

2.2.1 Gender consciousness

Gender consciousness is the product of the human-centered stage of social development

and is the concept of re-examining gender norms and gender equality (Becker, 1985).

So-called gender awareness involves observing and analyzing the status of men and women,

resources and opportunities in real life from a gender perspective, and conducting gender

analysis and gender planning in terms of socio-economic, political, cultural and

environmental aspects (Frederick & Ingrid, 1998). Its purpose is to prevent and overcome

patterns and initiatives that are not conducive to gender development and to achieve gender

equality (Hill et al., 2016). Gender consciousness includes two meanings: first, gender

sensitivity and gender awareness. This is necessary to observe social reality from the

perspective of gender and to examine the characteristics and role-positioning of both sexes.

Second, it involves balanced development between sexes and avoidance of widening and

deepening the gender gap (Bierema, 2003). In this sense, gender consciousness is not

neutral, but has a strong tendency of gender equality development (Li, 1996).

However, gender-bias has existed long before the awakening of female gender

consciousness. Gender-based barriers are easily encountered by female entrepreneurs on

their way towards a successful entrepreneurship (Bauer et al., 1992). In small-business

development initiatives, groups of women entrepreneurs with low levels of power and

influence are often ignored. Starting and developing their businesses could become rather

difficult because of cultural practices, traditional views and the limited female voice, as well

as the unequal share of family responsibilities (Hasan & Almubarak, 2016). These factors,

together with gender-biased social exclusion, signify that women entrepreneurs will have to

suffer a great deal more than men in terms of accessing commercial credit from both

financial -service providers and higher-profit markets, let alone traditional local markets

(Ascher,2012). Due to existing conscious bias, the entrepreneurial environment for female

entrepreneurs is more difficult and challenging. Hence, female entrepreneurship stands out

as a research focus to be investigated. In fact, a great deal of research on female

entrepreneurship has already been done on a worldwide basis in recent decades for the sake

of the prosperity of the female entrepreneurial phenomenon.

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An unhealthy social environment has disoriented women, which is in fact amounts to

gender discrimination. The glass-ceiling effect refers to the invisible barrier preventing

women attaining career advancement to senior positions (Mattis, 2004). In the business field

dominated by men, women are consciously or unconsciously rejected (Longman et al.,

2018). A lack of human capital and social capital makes their entrepreneurship more

uncertain, thus reducing their willingness to enter in this field (Roomi, 2013).

As for the special context of China, the traditional role of “male and female” is rooted in

the minds of many people through ethics and morality and is widely accepted by traditional

social psychology (Li, 2017). Obviously, the mass media pays more attention to the political

and social status of men and to the biological gender characteristics of women (Ulrike &

Gisela, 2013). The traditional belief is that the "male should be in charge of making money

while the female should be in charge of caring for the family " (Xu, 2018). In this gender

ideology, men are gifted the highest value in earning money to support their families while

women care for their families (Attané, 2012). Thus, society has formed a series of

stereotypes about gender-behavior standards. For example, men are aggressive, intelligent

and efficient, while women are gentle, passive, and inefficient (Tang et al., 2010). Men's

success lies in their careers and women's success lies in their families, etc. The idea of what

men should do and what women should has dominated people's thought, almost to the point

of social consensus (Kelso & Cahn, 2012).

2.2.2 Characteristics of female entrepreneurship

According to Poggesi and Sara (2016), the main characteristics of female

entrepreneurship can be generalized from the following perspectives.

Entrepreneurial characteristics: Generally speaking, female entrepreneurs are in lack of

business operating experience, especially in high managerial positions (Hisrich, 2012; Brush,

Greene & Hart, 2001); Female entrepreneurs are mainly motivated by survival pressure,

unfavorable situations and loss of jobs (Moore & Buttner, 1997). Meanwhile, female

entrepreneurs have to balance the responsibility of taking care of their families and of their

entrepreneurial careers. According to Amit & Muller (2013), two types of entrepreneurs are

acknowledged, according to their motivation for engagement in entrepreneurial activity.

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“Push” entrepreneurs are those who are unsatisfied with their current positions for reasons

unrelated to their entrepreneurial characteristics. These reasons forced them to start their

ventures. Meanwhile, “ pull ” entrepreneurs are those who are illuminated by their

innovative venture ideas and who initiate venture activities for the sake of the attractiveness

of their business ideas and their individual implications.

Financing characteristics: In the process of financing, female entrepreneurs are less

confident and more inclined to avoid risks, especially when dealing with financial decisions

and bank-credibility issues (Powell & Ansic, 1997), while the majority of female

entrepreneurs are centralized in the service and retailing fields (Loscocco et al., 1991).

Managerial and strategic characteristics: Female entrepreneurs are comparably

conservative in growth expectation. They are accustomed to implementing moderate growth

methods and expansion plans due to the limitation of their time and their family

responsibilities. On the other hand, female entrepreneurs have a weaker and less informal

social network compared with male entrepreneurs (Lee-Gosselin & Grise, 1990).

Entrepreneurial characteristics: In the process of entrepreneurship, female entrepreneurs

attach great importance to the sense of personal achievement and social responsibility and

their companies are more flexible and humanistic. The economic index has never been

their only concern (Anna et al., 1999).

In fact, although female entrepreneurship is not an emerging research point in the

academic field, however, previous scholars and researchers have hardly touched upon

studies of respective characteristics. As a result, the above categorization of characteristics

may open a brand new perspective and contribute some positive hints to later researchers.

On the other hand, the majority of scholars have already discussed the influential factors of

female entrepreneurship, such as human capital and social capital, which will be discussed

next.

2.3 Human capital and its effect on female entrepreneurshipAmerican economists first proposed that people's investment in education, health,

vocational training, immigration and other aspects is a conscious investment behavior

(Schultz and Becker,1950s). These investments eventually form human capital (Schultz &

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Becker, 1950s). Like other capital, it can bring benefits to the owner, but it is characterized

by its inability to be separated from its owner (Cyril & Louis, 2004). The concept of human

capital breaks through the traditional concept of material capital and expands capital into all

resources that can bring added value (Becker, 1987).

Human capital is a further determinant of society, but the acquisition of human capital

requires scarce resources (Schultz, 1979). Human capital, including the formation of human

knowledge and human skills, is the result of investment (Becker, 1987). Only through a

certain method of investment can human resources become the most important contributor

of all production resources (Schultz, 1979). All human carriers and the impact of future

earnings constitute the content of human capital (Schultz, 1972).

Many scholars have explored the relationship between human capital and female

entrepreneurship. For example, Junquera (2010) was devoted to developing a model

dedicated to studying the factors determining the accumulation of entrepreneurial human

capital by female entrepreneurs. Adom (2016) has also critically evaluated how constituents

of human-capital theory, such as level of education, area of core competences, training and

previous working experience, influence female entrepreneurship in developing countries.

According to the results of their study, they concluded that people were inclined to believe

that women were not equipped with the qualities necessary to become entrepreneurs

(Lee-Gosselin & Grise, 1990). It is widely believed that women's education and training

background is not suitable for entrepreneurship and their relevant professional experience is

insufficient for, or inapplicable to, entrepreneurship (Chirikova, 2014).

In the eyes of the public, women’s business is considered to be inadequate in terms of

management experience (Mattis C, 2004). The combination of education and professional

socialization, combined with the social focus on male success stories, has led to a dearth of

examples of female decision-makers in reality and these factors have influenced people's

views on the education, training, work experience and business operation of female

entrepreneurs (Brash et al., 2006). Some scholars, for example, such as Demartini and

Alzahrani (2014), have also found that female entrepreneurs in non-traditional industries are

better educated than those in traditional industries, such as retail and wholesale, indicating

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that human capital has an important influence on the industry choice of female

entrepreneurs (Caputo & Dolinsky, 1998).

In fact, human capital is of greater significance for women entrepreneurs than for men

(Rosenbusch et al.). Women with lower human capital, for example, and a lower

educational level will probably have a weaker sense of self-consciousness or self-awareness

(Jafry, 2000). In that case, a woman would be easily influenced by traditional cognition bias

such as “ Giving birth to a boy and taking good care of your husband are your most

important missions” (Jing, 2010). For example, in the traditional ideology of China, women

are considered subordinates of men, i.e, it is a woman’s obligation to obey the will of her

husband, regardless of her own thoughts (Ban, 1996). A woman with a lower educational

level usually gets married at a young age as she cannot find a well-paid high-tech job to

support herself, and she is not able to shoulder any kind of physical labor as her men peers

do (Sabbah, 2017). But if a man has a lower level of human capital, for example a lower

educational level, he still suffers from a certain degree of discrimination in job-seeking,

especially when it comes to well-paid high-profile office jobs (Xu, 2018). However, this

could in turn serve as a stimulus for his entrepreneurship behavior for he has to shoulder the

responsibility of supporting a family (Ju, 2015). That is to say, at a lower level of human

capital, women are inclined to get married in order to take themselves out of an awkward

situation, rather than open a new business, while men usually have narrow choices and

entrepreneurial behavior resulting from survival needs can be counted as one of them (Ju,

2018).

Briefly speaking, in terms of either job searching or entrepreneurship, men are gifted with

more opportunities compared with women. They have plenty of wider choices even if they

are not well educated. In other words, they are less dependent on human capital (Becker，

1985).

Some scholars, for example, Orser (2006) and Lin (2016), have also found that human

capital has an important impact on the success of female entrepreneurs in financing.

William (1993) found in two loan-application experiments that education level was a more

important consideration for female loan applicants than for men. On the other hand, three

qualities of female entrepreneurs - formal education, prior work experience and level of

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assignment - are associated with successful financing (Cuba et al., 1983). All this fully

demonstrates that women must have higher human-capital capabilities in order to succeed in

financing (Eniola, 2018).

2.4 Social capital and its effect on female entrepreneurshipIn the late 1970s, the economist Glenn Loury first proposed a brand-new theoretical

concept corresponding to physical capital and human capital from the perspective of the

influence of social structural resources on economic activities：social capital (Lesser, 2000).

Social capital is one of various resources that exist in the family relationship and the social

organization of the community (Loury,1995). Although Loury used the concept of social

capital, he did not systematically study it and thus did not attract the attention of the

academic community. Later the French sociologist Pierre Bourdieu (1972) took the lead in

systematically analyzing social capital and the concept of social capital has gradually been

accepted by social scholars. By the end of the 20th century, social capital research had

become a hot topic in sociology.

Social capital mainly exists in interpersonal relationships and social structures and

facilitates individual actions within the structure (Coleman, 1988).

Social capital is one of the three basic forms of capital, which is a collection of actual or

potential resources obtained through the possession of an "institutionalized relationship

network" (Bourdieu, 1972). This "institutionalized relationship network" is associated with

the membership of a certain group (Bourdieu, 1975). The acquisition of this identity will

win "reputation" for individuals and in turn provide a guarantee for the acquisition of

material or symbolic benefits (Bourdieu, 1992).

Putnan believes that social capital is composed of a variety of invisible factors, such as

trust, norms and networks. Like other capitals, social capital is productive, which makes it

possible to achieve things that cannot be accomplished without it (Putnan, 1993).

Social capital is a social network evaluating from the perspective of patterns of

manifestation (Zhang, 1999). On the other hand, social capital can also serve as the link

between the main body of action and society and the ability to ingest scarce resources

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through this connection (Bian and Qiu, 2000). For most entrepreneurs, their most important

resource is the intricate personal network (Bert, 2000).

Social capital is a necessary resource for female entrepreneurship (Yetim, 2008). Despite

its importance, women's access to social capital is greatly limited due to a series of

complicated reasons (Yetim, 2008). Gender differences in social capital make women not

only a minority but also a marginalized group in the business world (Stroh et al., 1992).

Women have fewer entrepreneurial opportunities and lack of money and access to these

business opportunities is like a cast-iron wall which blocks them from seizing opportunities

and entering the field of entrepreneurship (Mattis, 2004). For women, social capital has a

more complex impact on their entrepreneurial behavior from a gender viewpoint (Jane,

2005). Unlike men, emotional support is the most important comfort that entrepreneurial

women receive from social networks (Norris, 2003).

For entrepreneurial women, the understanding and emotional support of others, especially

their loved ones, is badly needed. It is often more important than financial support in

entrepreneurial activities (Imbaya, 2012). In short, the social capital owned by

entrepreneurial women plays an indispensable role in the entrepreneurial process (Kyrö &

Sundin, 2008). Through social capital, they acquire key resources, opportunities and support

for the existence and development of enterprises (Dastourian et al., 2017).

3. Methodology3.1 Research design

Qualitative research is adopted with the purpose of studying the influential factors

affecting female entrepreneurs in China and the case study should，of course，be prioritized

in this targeted research.

Case studies are one of the first types of research to be used in the field of qualitative

methodology (Kyrö & Sundin, 2008). The case-study method enables a researcher to

examine data closely within a specific context (Zaidah, 2007). Yin (1984) defines the

case-study research method “ as an empirical inquiry that investigates a contemporary

phenomenon within its real-life context; when the boundaries between phenomenon and

context are not clearly evident. Generally speaking, case study is a comprehensive, in-depth

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and detailed investigation and study of a single or a limited number of cases.” (Zaidah,

2007). On the other hand, case study also attaches great importance to the general

significance of results for the whole samples (Zaidah, 2007). One of the reasons for the

recognition of case study as a research method is that researchers are becoming more

concerned about the limitations of quantitative methods in providing holistic and in-depth

explanations of the social and behavioral problems in question (Zaidah, 2007). Through

case-study methods, a researcher is able to go beyond the quantitative statistical conditions

through the actor ’ s perspective. By including both quantitative and qualitative data, case

study helps to explain both the process and outcome of a phenomenon through complete

observation, reconstruction and analysis of the cases under investigation (Tellis, 1997). This

study focuses on the classification of female entrepreneurship, of which there is little

knowledge in the previous literature. Thus, it is appropriate to use the case-study approach

in this study to conduct further exploration.

3.2 Sampling

Convenience sampling is a type of non probability or non-random sampling which

members of the target population apply to meet certain practical criteria, such as easy

accessibility, geographical proximity, availability at a given time. Willingness to participate

is also considered as one of the factors of the study (Dörnyei, 2007). It also refers to

researching members of the population who are easily accessible to the researcher (Given,

2008). As Chinese society is a relationship-based community, so our family social network

is used to get access to our sampled female entrepreneurs. After neatening，analyzing and

mining all our collected data, we ended up with a table containing the general information

about our female entrepreneurial interviewees:

Name（pseudony

m）

Time Age Province

Workexperience

before startinga business/

Educationalbackground

Financial

resource

Field ofentrepreneurship

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Semla 1987 52 Beijing Textile workers Own capital Textile industry

Bloodpudding

Before andafter 1988

50Hubeiprovince

Countrywoman/semi-lit

erateOwn capital Catering business

Crayfish 1989 55Hubeiprovince

Laid-off workerfrom chemistry

factoryOwn capital

Manufacturing industry（Fireproof material)

PrinsesstårtaBefore andafter 1990

41Fujianprovince

Country woman Own capitalBuilding materials（Steel-window

factory）

Lingonberries

1992 47Guangxiprovince

Worker in thefield of

manufacturingindustry

Own capital;bank loan

Flower planting andselling

Gravlax 1996 45Shanxiprovince

Laid-off womanfrom department

store

Own capital;capital fromfamily andfriends

Clothing selling

KnäckebrödBefore andafter 2000

40Anhuiprovince

Graduate fromagricultural

technical school

Support oflocal

governmentand relatives

Agriculturalcultivation

Smörgåsbord

2001 47Hunanprovince

Cadre ofrailway

department

Own capitaland capitalborrowedfrom

previouscolleagues

Book bar

Gubbröra 2010 29 Shanghai Free lancer

Own capital;support offamilymembers

Hair salon

Meatballs 2012 37Hebeiprovince

No previousexperience;

master’s degree

Own capital;support offriends

Cram school

Saffransbullar

2014 29Inner

Mongolia

Costumedesigner；bachelor’sdegree indesigning

Crowdfunding

Clothes designing

Macaroni 2015 22Zhejiangprovince

No previousworking

experience;junior college

Own capital Mass media

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majored inartistic

designing

The sampling consists of twelve female entrepreneurs ranging from twenty to fifty four

years old. They came from different provinces of China, sharing different entrepreneurial

backgrounds and motivations. Some were recommended by the female entrepreneurs’

association of Hubei province. The secretary of the association assisted us in contacting

those female entrepreneurs and we then made our own efforts to schedule an online

interview at their earliest convenience. Other female entrepreneurs were elaborately chosen

from our own social network, for instance, our relatives, our friends, our neighbors, our

acquaintances, etc. Meanwhile, some web-based social communities, for example, an

alliance of female entrepreneurs, is also included as an efficient way to search for the target

female entrepreneurs. This sampling is suitable for our case study for the sake of having a

huge diversity and variance in terms of human capital, social capital and social

environmental issues. They cover a great range of female entrepreneurs of different ages

and industries ranging from clothes-making to home-furnishing decoration. Simply

speaking, they are all appropriate for our case study research for the sake of

representativeness, diversity, authenticity and detail. Their origin can be traced back to

different provinces of China, ranging from south to north and east to west. Their age span

varies from early twenties to middle fifties, thus representing different social backgrounds

and the economic evolution progress of China. Their entrepreneurial histories are well

known in local areas, or even nationwide, and the web-address of their companies can be

easily searched in Baidu (a typical Chinese searching engine similar to Google). As for their

own characteristics, they are talkative and optimistic. All of them are ready enough to share

their stories and eager to express themselves. All these characteristics allow them to give a

touching, interesting and detailed descriptions of their entrepreneurial experience.

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3.3 Data collection

Semi-structured interviews are carried out by using the technique of convenience

sampling, aimed at getting detailed information on the interviewed Chinese female

entrepreneurs within the arm’s-length of our social network. What is worth mentioning is

the method of interview. Our target sample are all based in China, so we have no choice but

to adopt the means of long-distance interviews as we are currently based in Sweden.

Remote connections and online interviews are established through various social media

such as QQ and Wechat (a social platform similar to Facebook or Skype). Each interview

lasts about one hour. Semi-structured interviews are adopted in order to cover a series of

questions such as family background, educational level, personal experience, motivations

and difficulties, as well as human capital and social capital. The details of the interview

questions are presented in Appendix 1 and Appendix 2 (interview guidelines).

3.4 Data analysis

Coding is used as an approach to analyze data and is adopted in our qualitative research

in order to enhance the “ qualitative rigor ” , while still retaining the creative, revelatory

potential for generating new concepts and ideas, for which such studies are best known

(Gioia,Corley & Hamilton). A code is a descriptive construct designed by the researcher to

capture the primary content or essence of the data (Petria, 2015). Coding is not only

labeling, but also linking, that is linking data to an idea. It is a cyclical process (Petria,

2015). By incorporating more cycles into the coding process, richer meanings, categories,

themes and concepts can be generated from the data (Saldana, 2013).

We organize our data into 1st and 2nd order categories to facilitate their later assembly into

a more structured form.

In our 1st order analysis, we tried to adhere faithfully to informant terms and made little

attempt to distill categories to ensure that the number of categories tends to explore on the

front end of a study.

In our 2nd order analysis, we have carefully considered that the emerging themes

successfully suggested concepts that might help us to describe and explain the phenomena

we were observing. After a workable set of themes and concepts was in hand, we began to

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investigate whether it was realizable to distill the emergent 2nd order themes even further

into a 2nd order “aggregate dimensions”.

When we acquired the full set of 1st order terms and 2nd order themes, as well as

aggregate dimensions, we had the foundation for constructing a data structure. This step can

also be regarded as the most pivotal step in our entire research approach. With the

assistance of the existing data structure, not only can we configure our data into a sensible

visual aid, but we can also harvest a clear graphic representation of how we progressed from

raw data to useful terms and themes in conducting the analyses. Thus, the rigor and

precision in our case study will be highly enhanced.

3.5 Reliability of the data

Data reliability of the case study can be guaranteed for the sake of following reasons:

Generally speaking, all interviewees have been conducted through social-media platforms

such as QQ and Wechat, and the whole process is totally anonymous. Interviewees will

suffer less from unpleasant sentiments such as pressure, embarrassment or reluctance, which

easily appear on the occasion of face-to-face interviews. Great attention has been attached

to the diversity (different ages, educational levels, social backgrounds, locations, business

fields) of the chosen interviewees in order to avoid the homogeneity. Last but far from least,

sophisticated questioning skills were applied with the consideration of the psychological

feelings of individuals during the whole process of the interviews.

Specifically speaking, reliability is efficiently guaranteed through the following ways:

First, although you need a sensible balance to avoid tests being too long, reliability

increases with test length (Kleeman, 2013). Each interview lasts for about one hour and the

amount of questions is sufficient enough for us to learn the real situation of each

interviewee.

Secondly, the interviewing environment is consistent for each interviewee. As is

mentioned in the above description, all interviews are conducted in the same environment,

that is an online interview through social media in a fixed period. All our interviewees were

ready to answer questions and none of them received the interviewer in a hurry or in a bad

mood.

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Third, regular item analysis has been conducted to weed out ambiguous or poorly

performing questions. Poorly performing questions are filtered through repetitive and

in-depth considerations. On the other hand, before the formal interview, the interview

guideline had already been presented to several doctor students majoring in linguistics and

rhetoric in order to check if there were any problems with the expression of the phrases,

ambiguity of the words and chaos in the linguistic logic.

3.6 Challenges/disadvantages of the data collection

Just as a coin usually has two sides, some difficulties appear in the process of data

collection. For example, all our chosen interviewees are based on China. As a result, the

problem of time lag emerged as a barrier in terms of interviewing. On the other hand, the

coding process could be rather difficult since huge amounts of various data were required to

be written down, extracted and analyzed in a limited period.

Random sampling is the process of selecting cases from a list of all (or most) cases within

the sample universe population, using some kind of random selection procedure (Robinson,

2014). In a convenience sample, on the contrary, neither biases nor their probabilities are

quantified (Hatch & Lazaton, 1991). Although the obvious disadvantage of convenience

sampling is that it is likely to be biased (Mackey & Gass, 2005), this problem could be

partly overcome by the deliberate avoidance of homogeneity in sample choosing.

Although chosen interviewees from different fields of entrepreneurship may represent a

large diversity, the sample still suffered from a lack of female entrepreneurs coming from

other industries. Our coverage of interviewees mainly focused on traditional fields, such as

catering and clothing, rather than emerging fields, such as the Internet, finance and online

education. As a result, perhaps it is not so representative in terms of reflecting the status quo

of contemporary Chinese economy. Meanwhile, our chosen sampling mainly centered on

middle-aged female entrepreneurs, as their entrepreneurial environment is much different

from nowadays, so their motivations may also vary. It is a pity that we haven’t reached a

balanced proportion, that is to say, fifty percent of interviewees born in the middle of 60s or

70s, with the other fifty percent born after 1985s or 1990s.

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4. Findings

According to the presentation of our female investigators and the analysis of the above

data, we concluded that：

Passive entrepreneurship and initiative entrepreneurship are two predominant

modes of entrepreneurship among contemporary female entrepreneurs in China.

According to the analysis of the above samples, we defined the following.

Passive entrepreneurship is a kind of entrepreneurial activity simply motivated or even

forced by survival necessities or dissatisfaction with the status quo while, initiative

entrepreneurship is a kind of entrepreneurial activity motivated by the burning temptation of

self-challenge, sense of social responsibility and aroused self-consciousness or

self-awareness, as well as their demand for self-achievement, etc.

Bloodpudding (pseudonym, the owner of a famous chain-store food court), one of our

interviewees coming from the central region of China, has told us her entrepreneurial story,

from which we can sense her hardship and her arduous efforts in struggling in order to make

a living:

“ I’m an orphan and adopted by the owner of a noodle shop at the age of thirteen, I am

semi literate. I became her most competent helper and married her handicapped son at the

age of eighteen. Everything went well in the noodle shop until, one day, I discovered that

our customers no longer took our noodle as their first breakfast choice. I was so worried

about that because the noodle shop was the sole economic source for the whole family. In

order to earn enough money to cover the tuition fee of my children, the medical fee of my

husband and mother-in-law, I had to come up with new solutions to make it thrive.”

According to the statement by Bloodpudding, every attempt she has made in her early

days was out of survival requirements. In fact, her real journey of entrepreneurship began

when she encountered the stagnancy of her little noodle shop, the health condition of her

handicapped husband and the responsibility of raising her two young children. All these

factors served as stimuli for her entrepreneurial behavior. She had to come up with new

solutions to get herself out of her desperate plight. For her, the most feasible way to achieve

the goal of making a living was to make full use of her only noodle shop. She told us that

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she had never dreamed that, one day, she would be the boss of a food-court chain. Neither

did she possess any kind of ambition nor sense of self-actualization. All her entrepreneurial

behavior was a passive behavior driven by life pressures.

“ At that time, my strongest wish is that my stomach will be successfully filled, my two

children will never drop out of school at such a young age for the sake of poverty, my

husband could have enough money to maintain the continuous medical treatment. I had

never dreamed of one day I would become the boss of a chained food-court. At that time,

issues of survival remain to be my only concern when I waked up every morning.”

Her voice shivered when she talked about her old tough days and we could clearly sense

her struggle in making a living by means of a passive entrepreneurship. Similar to

Bloodpudding, the following female entrepreneur also expressed herself as if she has been

“pushed” by an invisible hand.

Semla was once a laid-off worker from the textile industry in Beijing, but now she has

created her own textile and embroidery company. She explained her entrepreneurial path

like this:

“ After having graduated from junior high school, I inherited the position of my mother

and became a textile worker. I married at a young age and led a casual life until one day I

was announced laid-off. As a storm may arise from a clear sky, my husband lost his job, too.

Out of the enormous pressure of making a living, I began to tailor clothes for people at

different ages.”

Her statement clarified that her entrepreneurial journey began coincidentally as a result of

living pressures and, consequently, she had to use her toughness to discover a feasible way

of making a living.

Prinsesstårta, raised from a humble background in a rural area of Fujian province, has

successfully established her own steel-window factory and has been honored by the local

government as a “ glorious taxpayer and the forerunner of female entrepreneurs ” . She

narrated her experience with a slight sense of pride:

“ I was born and raised in a poor family so that I was little educated. I was introduced

to marry a building worker and moved to live with him at the construction site. Later I

became pregnant and realized that I could no longer live in this shabby place for the sake of

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my coming baby. I realized that a wage-earner could never have enough money to buy his

own house. At that time, the real-estate business started to soar, so I proposed to my

husband to open a steel-window store beside the familiar construction site. My decision had

turned out to be wise. Little by little, I had achieved this sizable factory.”

From her statement, we knew that her initial pursuit was simply a settled residence.

“ I need a house to shelter. In fact, I could put up with any kind of awful conditions. I

have become accustomed to it, but I don’t want to see the suffering of my unborn baby. It is

the duty of a mother to offer a quality life for her child.”

She said this in a firm way with her eyes glittering.

The original entrepreneurial motivation of Prinsesstårta was a house for shelter and she

came to realize that the slender portion of wage she received could not even satisfy even her

simplest wish. Driven by the strong temptation to offer a better living conditions for her

coming baby, she explored a path of entrepreneurship unhesitatingly.

Similarly, we also conducted interviews with, and transcribed the records of, several

other female entrepreneurs in the identical situation. For example, Crayfish, a

fifty-five-year-old woman, was once a laid-off worker from a chemistry factory but is

currently the owner of a fireproof-material company. She told us: “ To be honest, I don’t

want to be an entrepreneur, I am a traditional woman and my biggest wish is to be a

blessed housewife. But I was a laid-off worker and didn’t receive any kind of formal

education. Without source of income, I have to come up with ways of surviving for I cannot

beg others for money”.

Lingoberries, a forty-seven-year old woman, was once a worker in a manufacturing

factory but is now the owner of an ecological garden. She told us: “ I became a worker of

the manufacturing factory at sixteen and didn’t finish my junior high school. When I was

thirty, I found that I could no longer stand the tough job as a worker due to occupational

diseases. However, By then I was still young so I had to find ways for making a living. Then

I thought of the land left in my hometown, so I came back and rented an area to grow

different kinds of plants and developed it in into a scenic spot.”

Gravlax, forty-five-year old, was once a salesperson in a department store but is now the

chairman of a listed garment company. She said: “ The department store where I worked had

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gone bankrupted. I didn’t know anything else except for selling clothes and it was too old for

me to learn typical technical skills such as accounting or English, to win an office job. I was

an adult and I could not ask my parents for living expenses, so I ended up with the creation of

my own clothes-manufacturing and selling company through trials and errors.”

Generally speaking, the primal intentions or motivations of the above female

entrepreneurs are straightforward and understandable: make a living by means of trials of

entrepreneurship. Most don’t possess a so-called “ blueprint” in their brain and their sole

ambition is to survive. All expressed that they had no expectation of achieving a “master

stroke” at the beginning of their entrepreneurial journey. Their entrepreneurial career began

with factors such as unemployment, unacceptable job conditions, professional frustrations

and lack of childcare facilities, as well as economic necessity. However, they all became

successful through years of industrious work, perceptibility and a certain extent of luck.

This kind of entrepreneurship can be summarized and understood as passive

entrepreneurship and, in China, it happens far more frequently among female entrepreneurs

with weaker human capital and social capital.

On the other hand, not all interviewees chose to begin their journey of entrepreneurship

out of survival pressure. Some of them are eager to make a difference and walk out of the

shadow of dull routine life by inventing, establishing or creating something inspiring,

innovative or interesting.

Smörgåsbord, forty-seven-year old, was once a cadre of a railway department but is now

the CEO of a reputable book-bar chain.

“ After having graduated from a recognized university, I was allocated to the local

railway department and became a civil servant. I was tired of dull routine repetitions of

conferences, presentations and documents and felt hopeless in promotion. Free from the

anxiety of making a living, I resigned my job and determined to do something meaningful.

Inspiring by schoolmates of my daughter, I decided to open a book bar with the expectation

to offer a leisurable and instructive place for students and book-lovers of all ages. My

former colleagues help me a lot in choosing places and room decorations. They also

borrow me money to serve as my start-up capital.”

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From her narration, we learn that her entrepreneurial behavior was not generated by

survival needs. Instead, her inner impulsion to achieve something meaningful became the

major motivation for her entrepreneurial career.

Saffransbullar, a twenty-nine-year old girl from Inner Mongolia, has created her

customized clothes-designing store by means of crowd funding:

“ I am an oversea postgraduate majored in clothes designing. I have an incredible

passion for my major and a strong conviction to become a first-class designer like Karl

Lagerfeld. When I returned to China, I found there still existed a certain kind of distance

between Chinese designing and world ’ s first-class ones in terms of artistic vision and

comfort level. To my surprise, the high-end customization market still remains to be blank.

Judging from my intuition, this will be an amazing opportunity.”

From her explanation, we can infer that she is a well-educated girl with great ambition to

become a world-renowned designer. She is equipped with advanced designing knowledge

and an overseas background, which has given her a special vision for discovering “ niche

marketing” in the contemporary designing field. On the other hand, she has a strong sense of

patriotism: “Why China cannot have her own world-renown clothes brand such as Brioni

and Hermes? And I want to be the pioneer.” Obviously, her entrepreneurial behavior is

driven by a sturdy sense of self-achievement, a strong feeling of patriotism and the initiative

attitude to make a breakthrough.

Apparently, Saffransbullar is a brave and courageous girl who deserves our respect.

However, the following entrepreneur really amazed us with her young age, decisive

character and unusual courage.

Macaroni, a twenty-two-year old girl, started her legendary journey of entrepreneurship at

the age of seventeen. Today, she turns out to be the CEO of a mass-media company:

“ My father is a successful entrepreneur so I inherit his entrepreneurial gene to some

extent. In fact, he offers me great help in the process of my entrepreneurship. My major is

artistic designing and I have an unimaginable enthusiasm for it. I love browsing online

shopping websites, for I always expect to discover something fresh and interesting. One day,

a bold and innovative idea struck me: why can ’ t I design a similar website by taking

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advantage of my own strength of aesthetic appreciation? After trials and errors, an

elaborated designed website, focused on mass media, has come into being.”

It seems that her entrepreneurial journey started accidentally with some casual glances at

websites. However, she is always prepared to explore something new and she is courageous

enough to take adventures. She is an observant and conscientious person and always pays

close attention to linking her knowledge, her targeted goals and her external opportunities

together. Evidently, she is an initiative entrepreneur.

Gubbröra, a twenty-nine-year old girl from Shanghai, was once a store manager of a

high-end hair salon. She created her own hair-styling brand and salon in 2010:

“ I am graduated from a vocational school specialized in hair-styling. I once worked as

a store manager in a chained high-end salon. The salon is really wonderful for it has

offered me numerous opportunities to study all around the country, sometimes even abroad,

without asking for a penny. I grow quickly in such an atmosphere and I am welcomed by

almost all my customers. I maintained a good relationship with all my customers and I am

designated for service. Unsatisfied with the fixed method of management and limited salary,

I decided to open my own hair-styling brand.”

Gubbröra has accumulated a lot of experience and business connections from years of

previous learning and working. After having broadened her horizon, she is impatient to

liberate her own intelligence and explore her own territory.

Meatballs, a 37-year old mother from Hubei province, was once a house wife but is now

the CEO of a cram-school chain:

“ I am a postgraduate from a reputed university. However, I didn ’ t look for a job

immediately after my graduation because I was pregnant. No one could help me with my

new born baby so I stayed at home and became a housewife. Luckily, my husband is a

qualified breadwinner so I don’t need to worry about money. However, when my only child

went to kindergarten, I had much spare time. I don’ t want to waste what I have learned

from school and opened a chained cram school with the support of my family.”

From what she has told us, we can learn that Meatballs is a cultivated and well-off

mother who wants to take advantage of her school knowledge and educational background.

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She has an initiative spirit which impelled her to start her brand new career after years of

making sacrifices for her family.

Judging from the above examples, it is clear that they are all entrepreneurs with initiative

and a positive attitude towards realizing their self-worth. Their self-consciousness

distinguishes them from ordinary females. The strong temptation towards self-actualization,

their sense of social responsibility and their desire for wealth stand out as the main

motivations for their initiative entrepreneurship.

Coincidentally, the notions of passive entrepreneurship and initiative entrepreneurship

correspond well with the theory of push and pull (Amit & Muller, 1995). Unemployment, a

lack of job opportunities, unacceptable job conditions, professional frustration, a lack of

childcare facilities and economic necessities, mentioned by the above interviewees, can be

regarded as push factors for passive entrepreneurs, while the pursuit of independence and

autonomy, self-fulfilment and self-achievement, social objectives and wealth, can be

considered as pull factors according to the statements by these initiative entrepreneurs.

Based on the results of data analysis, we have also found that:

Compared with passive entrepreneurship, initiative entrepreneurship relies much

more on human capital and social capital.

This can be accounted for and supported by the coding data from the following table.

Table 4. 1 passive entrepreneurs

Name of entrepreneurs(pseudonym)

Statements ofinterviewees

(1st - order concepts)

Extraction ofconcernedinformation

(2nd - order themes)

Conclusion(aggregate dimensions)

Semla

After having graduatedfrom junior high school,I inherited the positionof my mother and

became a textile worker.

Junior high school(Low educational

level)Textile worker

(Low social status)

Weak in human capitaland social capital;

Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

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Bloodpudding

I’m an orphan andadopted by the owner ofa noodle shop at the ageof thirteen, I am semi-

literate.

Orphan(Hardly enrolled in anykind of social network)

Semi-literate(Low educational

level)

Weak in human capitaland social capital;

Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

Crayfish

I was a laid-off workerand didn’t receive any

kind of formaleducation.

No formal educationalbackground

(Low educationallevel)

Laid-off worker(Low social status)

Weak in human capitaland social capital;

Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

Prinsesstårta

I was born and raised ina poor family so that Iwas not educated well. Iwas introduced to marrya building worker andmoved to live with himat the construction site.

Little educated(Low educational

level)Married a building

worker(Low social status and

weak in socialnetworks)

Weak in human capitaland social capital;

Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

Lingonberries

I became a worker at amanufacturing factory atsixteen and didn’t finishmy junior high school.

Non-completion ofjunior high school;(Low educational

level)Worker at

manufacturing factory(Low social status)

Weak in human capitaland social capital;

Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

Gravlax

I didn’t know anythingelse except selling

clothes and I was too oldto learn typical technicalskills such as accountingor English needed to win

a decent office job.

Knows nothingtechnical

(Low educational leveland professional skills)

Weak in human capital;Deprived of the humancapital and social capitalthat helps to promoteentrepreneurship.

Table 4.2 initiative entrepreneurs

Name of entrepreneurs(pseudonym)

Statements ofinterviewees

(1st order concepts)

Extraction ofconcernedinformation

Conclusion(aggregate dimensions)

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(2nd order themes)

Smörgåsbord

After having graduatedfrom a recognized

university, I was allocatedto the local railway

department and became acivil servant. At thebeginning of my

entrepreneurship, myformer colleagues helpedme a lot in choosingplaces and room

decorations. They alsolent me money as my

start-up capital.

Graduated from arecognized university(High educational level)

Civil servant(High social status)

Strong in human capitaland social capital; Highlydependent on the humancapital and social capitalthat helps to promoteentrepreneurship.

Gubbröra

I graduated from avocational school and

specialized in hair-styling.I am welcomed by almostall my customers I onceserved. I once worked as a

store manager in ahigh-end salon chain.

Graduated from aspecialized school;

(Possesses a certain kindof education)

Welcomed by customersStore manager

(Rich experience in hair-styling)

Comparably strong inhuman capital; Highlydependent on the humancapital (previous skills andexperience)that helps topromote entrepreneurship.

Meatballs

I am a postgraduate from areputed university and myhusband is a qualifiedbreadwinner so I don’tneed to worry about

money. I opened a cram-school chain with thesupport of my family.

Postgraduate from areputed university

(High educational level)Breadwinner husband;no worries about money;support of my family

(Strong social networks)

Strong in human capitaland social capital; Highlydependent on the humancapital and social capitalthat helps to promoteentrepreneurship.

SaffransbullarI am an overseas

postgraduate who majoredin clothes designing.

Overseas postgraduate(High educational level)

Strong in human capital;Highly dependent on thehuman capital that helps topromote entrepreneurship.

Macaroni

My father is a successfulentrepreneur so I inheritedhis entrepreneurial gene tosome extent. In fact, he

offers me great help in theprocess of my

entrepreneurship. Mymajor is artistic designing

Father is a successfulentrepreneur;

Received help from hisfather

(Strong social networks)

Strong in social capital;dependent on the socialcapital that helps to

promote entrepreneurship.

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and I have anunimaginable enthusiasm

for it.

Knäckebröd

I graduated from arecognized agriculturaluniversity in Beijing.After graduation, I

voluntarily chose to returnto my hometown and

implement the scientificagricultural cultivation Ihad learned at university

by registering anagricultural company;

Graduated from arecognized agricultural

university(High educational level)

Strong in human capital;Highly dependent on thehuman capital that helps topromote entrepreneurship.

Human capital and social capital are crucial constituents of resource endowment and the

amount of resource endowment is a decisive factor in choices about different types of

entrepreneurship.

Judging from the coding results, it is not difficult to discover that initiative

entrepreneurship requires more human capital and social capital. Almost all interviewees

who chose to begin with initiative entrepreneurship possess a higher educational

background, which increases the chance of winning a decent job. Benefiting from their

previous working experience, they have established a lot of business connections and

successfully weaved their social networks. Almost all of them are free from anxieties about

money so they don’t need to worry about survival problems. Meanwhile, they have received

sufficient assistance from their family members, friends or colleagues. All these factors

serve as contributors in their later entrepreneurial stage.

However, as for passive entrepreneurship, entrepreneurs are not equipped with an

educational background, nor a certain kind of formal training. So they are deprived of the

opportunity to earn a decent job. As a result, they are weak in human capital. On the other

hand, since most of them are born and raised in a humble circumstances, they are almost

deprived of any form of social capital that they can rely on.

From the analysis above, we can come up with the following model:

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Initiative

entrepreneurship

Human capital

(educational level, previous

working experience,etc.)

Social capital

( family background,

business connections)

Resource

endowment

Successful

entrepreneurship

Table 4.3

5. Discussion

The concept of female entrepreneurship is broad, requiring self-confidence to be

successful. The main aim in practising female entrepreneurship in China is to create

employment. Female entrepreneurs create job opportunities by instigating, setting up, running,

generating, and upholding relevant factors of production. In most cases, women generate

ideas that they use during the provisions of brand new services. Meanwhile, female

entrepreneurs in China generate business ideas by analyzing the existing ones or by

eliminating practices that limit their progressive endeavors. In China, about 50% of women

engage in entrepreneurial activities without getting the relevant skills that are associated with

business (Bhardwaj & Mittal, 2017). Examples of professional actions in which women take

part include teaching, secretarial jobs, or other actions not associated with business. The jobs

mentioned above usually limit women from taking part in competitive entrepreneurial

activities compared with female entrepreneurs from other nations. A non-commercial context

and limited management skills do not put Chinese women on a perfect competitive scale in

their country. However, the study depicts women as being more persevering in trying to

overcome entrepreneurial difficulties as compared with men (Block, Sandner & Spiegel,

2015). Female entrepreneurs in China can be successful in business since they are more

committed in their undertakings. The nature of the market chosen by female entrepreneurs

makes them exploit various resources that are found in China.

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5.1 Theoretical perspective

Entrepreneurial activities in China can be enhanced when the government invests its

resources in education. In China, the participation of women in entrepreneurial endeavors

increased after 1996 following the financial crisis in East Asia. From that moment, the

country was exposed to the crumbling of the monetary system, occupation issues, and much

grief as a result of high living standards (Bertelsen et al., 2017). Nevertheless, the world

economic recession stimulated China to participate actively in the World Trade Organization

(WTO) actions by encouraging many women to take part in entrepreneurship. Since then,

women have played a striking role in modifying industrial structures.

Today, Chinese women are playing a major role in creating jobs and also developing

other sectors across the nation. For example, in Hong Kong, 38% of entrepreneurs are women.

From this figure, 10% experience many losses, resulting in high rates of business closure as a

result of unsuitable market design. It is apparent that female entrepreneurs require appropriate

decision-making structures so that their corporations can flourish (Wang, Li & Long, 2019).

Nevertheless, organizations that use unsuitable assumptions usually face pressure while

providing essential goods and services to customers. The process of making choices should

be realized at the initiation stage of market design. Trading skills are fundamental for

long-term strategies that are active in marketing (Xie & Lv, 2016). Female entrepreneurs

should be stimulated to partake in consolidated and devolved activities as a method of

spreading risks in entrepreneurship. For instance, in China, about six million small-scale, and

medium-sized female enterprises are conducted in rural and urban centers. The practice helps

to generate about 30% of the Chinese waged opportunities for the residents (Ng & Fu, 2018).

The entire process has reduced the government’s the burden of securing jobs for its people.

5.2 Problems that Chinese women face in their entrepreneurial activities

For many years, female entrepreneurship in China has been faced with the problem of

family commitments. Parental obligations often affect the nature of decisions made by

women in the country. For instance, parenting women are limited in the amount of time

they can spend on prolonged business seminars, training, and workshops that might be

carried out in various places. According to the study by Bhardwaj & Mittal (2017), some

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families view women commitment in other fields as parental negligence. Such beliefs

hinder female entrepreneurs from becoming fully committed to their actions. Therefore,

married women find difficulties in allocating enough time to their enterprises and families

(Ramadani, 2015). Since most mothers fear becoming involved in family break-ups, they

incline to their families, thus lessening the output of their businesses. For many years,

family commitments in China have continued to be associated with the endeavors of

females rather than males.

The other problem that Chinese women face in entrepreneurial activities is the concept of

biases. Gender bias has greatly lowered the morale of many female entrepreneurs in China.

For instance, agencies that have male and female entrepreneurs depict bias when it comes to

decision-making, role allocation, and leadership. In some enterprises dominated by men,

higher management leadership roles are usually assigned to men. In most cases, women are

given lower positions or used to accomplish minor roles in enterprises. Such practices lower

female motivation and reduce the zeal to become involved in sensitive business actions. In

addition, the cultural belief that women should be below men is a hindrance that has

continued to limit the actions of female entrepreneurs. Outdated cultural beliefs are among

the major features hindering women from succeeding in entrepreneurship.

5.3 Research hypothesis and description

In the study to determine the influential factors and motivations for female

entrepreneurship in China, it is crucial to consider the independent variables of the study.

Some of the independent variables that are important to the study include the social capital

of the female entrepreneurs, the characteristics of female entrepreneurs, human capital and

motivation (Ramadani, 2015). In terms of social capital, female entrepreneurs can engage

their families in business matters so that they reduce any operational costs that they might

incur. Also, the study concerning entrepreneurial actions and female entrepreneurs is

determined by the dependent variables such as the prosperity of women in their

entrepreneurial actions. In an association between dependent and independent variables, the

hypotheses that can be seen include issues such as:

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H1: There is an affirmative association between domestic background and the achievement of

women entrepreneurs in China.

H2: There is an affirmative association between human capital and social capital and the

triumph of women entrepreneurs in China.

H3: There is a good connection between self-inspiration and the achievement of women

entrepreneurs in China.

The hypotheses on the relationship between self-inspiration and the achievement of

women entrepreneurs in China is a predominant debate in the country. Self-inspiration can

be enhanced by various factors in the country. For example, female entrepreneurs are

captivated when there is gender parity in the market (Ramadani, 2015). Men and women

should be given equal opportunities in sectors such as employee representation, the ability

to make informed decisions and also higher pay. When such considerations are taken into

account by various enterprises, women entrepreneurs in China will find an opportunity to

foster and drive forward their business activities.

On the other hand, the hypothesis on the relationship between human capital and the

success of female entrepreneurs in China is also a predominant factor. The female role is

analyzed when entrepreneurs are looking at the dynamics of female entrepreneurs in China.

Many economists have stated that people making commercial ventures should be regarded

as a cognizant venture behavior. This kind of investments ultimately creates human capital

in the country (Bhardwaj & Mittal, 2017). As with other forms of capital, investment in

commerce can be beneficial to women entrepreneurs. The notion of human capital covers

the traditional perception of material capital (Bhardwaj & Mittal, 2017). Furthermore, the

hypothesis that analyzes the background of female entrepreneurs and their entrepreneurial

behavior is crucial when considering the nature of enterprise activities in China. Ramadani

(2015) states that women in China have not received enough attention from all sections of

society in terms of support for their entrepreneurial activities. In most cases, female

entrepreneurs are regarded as household helpers rather than being as tools that can also be

used to generate income for their families. As with men, female entrepreneurs have the

opportunity of increasing revenues in the country through entrepreneurship (Ramadani,

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2015). The ancient notion of perceiving women as household workers is regarded as

retrogressive and China should create awareness programs that disregard such practices.

5.4 Relevant methodological choices in relation to the research problem

As stated in the above section on problems facing Chinese female entrepreneurs, the

government needs to find appropriate approaches to curbing these problems using a variety

of tactics. The primary methodology that has been integrated into the research is the

qualitative research approach. This methodology integrated several types of research on

Chinese women that depicted the interest of different entrepreneurial activities. Small and

medium-sized enterprises were appraised to find the nature of the market in Chinese

enterprises (Van der Zwan et al., 2016). The interviewees were chosen from downtown

regions as well as rural zones in China. This was done to guarantee a multiplicity across the

country. Eventually, a semi-structured interview was included in the process of gathering

data. The semi-structured interview could ensure that first-hand and unbiased information

was acquired from the interviewed female entrepreneurs. The specifics of the interview that

were conducted involved broad proof about the female entrepreneurs, the motivational

aspects in a start-up market and the fulfilment facets of carrying out entrepreneurship.

Furthermore, the descriptive figures and the logical orientation were merged in the process

of examining the facts of an enterprise.

5.5 The consequences of methodological choices, including the choice of sample

The qualitative research approach has both positive and negative consequences whenever

it is used in the analysis. In the research to analyze the influential factors and motivation for

female entrepreneurs in China, it is apparent that the qualitative research method can be

applied to determine scientific proofs on female entrepreneurs in China. The study helps in

bringing out the relationship between entrepreneurial activities and a “post-positivist”

prototype or worldview (Block, Sandner & Spiegel, 2015). In this methodology, there is a

potential for contracting systematic try-outs on the topic of the research. Readers and

researchers can readily identify factors that are associated with the study. For example, a

scientific approach can be used to determine the type of sampling used to discover the traits

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of enterprise actions across the entire nation. Since random sampling was used to conduct

the research, the global population can readily identify the steps that were applied while

determining the study (Van der Zwan et al., 2016). Whenever the qualitative approach is

used to find data regarding the market trends, people can readily identify exact or

prospective figures that were involved in the study.

However, the qualitative-research approach can be annoying as a method of research

since it is sometimes linked to the non-formal approaches. Non-formal analysis in research

is an aspect that is not reliable in many scientific studies. Since qualitative study tends to be

casual, many people fail to find it compatible with other kinds of study, such as the

interpretive methodology of the research. According to Bertelsen et al., (2017), the

qualitative research on the concept of female entrepreneurs in China can fail to give a

comprehensive proof that can be used to support casual assertions associated with the topic

of analysis. Nonetheless, this method can be effective in a situation where “ casual

explanation” is required within a particular locality (Indarti, Rostiani & Nastiti, 2016).

Since the study requires a broad explanation of the factors that limit the progress of female

entrepreneurs in China, qualitative research can fail to disclose all the required information

in the study.

In the sampling that was done, the population comprised enterprises that were mostly

occupied by women. Sampling was carried out in major cities of China and also in rural

areas. During the entire process, the unit analysis was regarded as a fruitful and preferred

approach for addressing the issue of women entrepreneurs owning large businesses in the

country. On the other hand, Rostiani & Nastiti (2016) stated that the “sampling frame”

consisted of women entrepreneurs who had businesses that had been in operation for more

than five years. The reason for using a sampling frame of many years was to determine the

pros and cons that face women in China, regardless of the increasing cost of living in the

country.

5.6 A significant empirical study including data collection

Empirical research on female entrepreneurial activities in China is vital as it allows

pre-intervention processes to be conducted on both dependent and independent variables.

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The study offers apparent content on emerging trends in the Chinese market and on how

women are given opportunities to handle themselves in the country (Block, Sandner &

Spiegel, 2015). Moreover, the empirical study allows people to analyze information on

Chinese markets in an in-depth nature. At the same time, people can readily find data that is

outside the scope of the dysfunctional population or the information that is found within the

scope of functional groups in the Chinese market.

The main approach used to collect data regarding the notion of influential factors and

motivations regarding female entrepreneurs in China was the application of the

semi-structured interview. Respondents were willing to provide true information since they

also wanted to improve trading features that they realized were hindering their progress on

the Chinese market (Indarti, Rostiani & Nastiti, 2016).

5.7 The meaning and implication of the findings

Motivation factors for female entrepreneurs in China can be grouped as passive or

initiative features. The yearning to achieve household requirements makes Chinese women

take part in entrepreneurial activities, hence refining the state’s economy. Also, the

inventiveness of private enterprise looks at the notion of social obligation (Wang, Li &

Long, 2019). Initiative entrepreneurs depend much on human capital and social capital.

Female entrepreneurs are enthusiastic about realizing their requirements since they compete

with other entrepreneurs in the world market. Moreover, it is apparent that female

entrepreneurs in China begin their entrepreneurial actions with small stalls, and ultimately

end up creating greater businesses (Wang, Li & Long, 2019). These efforts imply that the

enthusiasm and inspiration that they possess enables them to create superior organizations,

thereby enhancing economic growth in China.

The findings on engaging family members in research bring forward the concept of social

capital in entrepreneurship. In social capital, female entrepreneurs can engage their families

in business matters so that they lessen any operational costs that they might incur. On the

other hand, it has been found out that the study of entrepreneurial actions and female

entrepreneurs is determined by dependent variables such as the prosperity of women in their

entrepreneurial actions. Women require motivation to accomplish entrepreneurial actions

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appropriately. This is an implication which depicts that trading actions should be done by

various agencies. Other than family members, women are required to acquire assistance

from other stakeholders in terms of decision-making, business security and the resources

that are vital in an organization.

5.8 Comparing and contrasting the findings with the arguments in the literature

From the literature review, it is evident that female entrepreneurs carry out their

marketing practices through creativity and innovativeness. Entrepreneurship requires critical

thinking since most of the actions are done exclusively. While conducting trading actions, it

is important to link micro-and macro-elements in the market so that female entrepreneurs

can have practices in the market (Block, Sandner & Spiegel, 2015). Other than raising

money and other production resources, female entrepreneurs in China look at actions that

can be used to expand their businesses. In most cases, entrepreneurial people are looking at

proper implementation plans that can be used to accrue more income in their enterprises.

Therefore, it is evident that entrepreneurship is a chance-driven course that is accomplished

under the principle of limited assets, as well as a behavioral practice that is combined with a

lot of undefined factors. Therefore, there is a need for the government and other private

investors to consider the concept of resource endowment for their actions to be effective

(Ramadani, 2015). The notion of resource endowment can be fruitful when Chinese female

entrepreneurs make proper decisions concerning their marketing actions. The study of

economics depicts that personal endowment can readily affect the manner in which the

results of rational decisions are realized. Consequently, the study describes female

entrepreneurs being successful in their endeavors when political, social and economic

aspects are favorable in the market.

Therefore, the argument of the literature is similar to the research since they both analyze

the concept of decision-making. From the two perspectives, it is clear that successful

enterprises have entrepreneurs with the ability to make informed decisions. As with the

findings, the theoretical aspects have considered the role that the government plays while

protecting its entrepreneurship (Block, Sandner & Spiegel, 2015). The only differences that

exist between the two explanations are that the theoretical framework distinguishes female

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entrepreneurs as “push” or “pull” entrepreneurs, based on their line of specialization, while

the findings have classified female entrepreneurship in China under one entity. Moreover,

the literature of the study is similar to the research as it highlights issues associated with a

personal endowment. From the analysis, the personal endowment can readily affect the

manner in which the results of rational decisions are realized. Consequently, the study and

the literature review show that female entrepreneurs can be successful in their endeavors

when political, social, and economic aspects are favorable in the market. Hence, the two

concepts are interrelated and form a basis in which the study on the market can be

conducted and eventually analyzed.

5.9 Limitations of the results of the study

The results of the study on Chinese women and their entrepreneurial activities have

various limitations that need to be analyzed critically. For instance, the results present

women as weak players in the market, who cannot complete effectively in enterprise

activities with their male counterparts (Bertelsen et al., 2017). The study shows that women

in China are faced with the problem of stiff competition from male entrepreneurs, a finding

which disregards their efforts in developing the Chinese economy. As much as there is stiff

competition in the country, the research should analyze male and female entrepreneurs

based on a similar scale rather than looking at some market players as being “weak”.

Also, it has been realized that many of the Chinese women are given the role of taking

care of their families rather than becoming involved in entrepreneurial behaviors. This is a

limitation since all people have an equal opportunity of partaking in any legal actions, as

long as the activity generates income to the country and the family of such market

participants. However, skills are crucial when it comes to analyzing market features in

China. Women should not be inclined to some roles since the world has received significant

modifications due to the introduction of modern technology.

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6. Conclusion

The case study in this paper discusses the trajectory of female entrepreneurship driven by

different motivations at both the macro-(for example, contributions to the society) and

micro-level (for example, self-survival necessity). It will analyze the differences between

the two and delve deeply into various influential factors affecting the process of female

entrepreneurship.

Summarily, the discussion on influential factors and motivations affecting female

entrepreneurs in China is wide and requires keen analysis by the researchers. Women in

China are playing a leading role in developing the country’s economy to a great extents.

Female entrepreneurs have helped in attaining the major aim of the study as they are

participating in trading actions which generate income for the Chinese economy. The

finding which states that some women are engaged in other professionals, such as teaching,

secretarial jobs, or other actions not associated with business, helps in defining the role of

women in entrepreneurial actions. Such practices limit women from taking part in

competitive entrepreneurial activities as compared with female entrepreneurs from other

nations. Therefore, there is a necessity to develop a proper structure that can be used to train

women in basic entrepreneurial skills. This initiative would enable women to participate

fully in entrepreneurial activities and thus drive the Chinese economy to even greater

heights.

The qualitative research used in the analysis has helped to identify theories that can be

used to find information concerning female entrepreneurs in China. The qualitative study in

the paper has offered an in-depth analysis through array tactics. Information provided in the

paper has brought out an analysis of how people think about, react to and view changes

brought up in the global market. Through qualitative research, it was easy to carry out

random sampling on various Chinese enterprises and on how women can acquire skills for

enhancing productivity. Also, it is vital to include methods such as the use of focus groups

while analyzing the market or how market trends affect the actions of Chinese women

entrepreneurs. The qualitative research has enabled people to generate ideas about future

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happenings on the market. The entire process has made women find appropriate methods to

use while carrying out market analysis.

The study has been analyzed critically and the qualitative study has helped in bringing

out basic and crucial information required by entrepreneurs in the country. The qualitative

study helps in bringing out the relationship that exists between entrepreneurial activities and

a “post-positivist” prototype or a worldview (Block, Sandner & Spiegel, 2015). This kind of

relationships is vital as it helps in realizing what other countries accomplish on the global

market. The comparison can be used as a scale of evaluating market success or failure and

the actions of the Chinese women on the economy. On the other hand, the research into the

influential factors and motivations for female entrepreneurs in China shows that the practice

of trade among the contemporary female entrepreneurs can be classified based on the

actions of Chinese female traders. The action helps in identifying market trends and this

aids in providing proper remedies for market dynamics (Bertelsen et al., 2017).

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Appendix 1 Interview guideline (English version)

The following appendix demonstrates a series of questions designed for the

semi-structured interview. In the process of the interviews, some additional questions are

asked while other less relevant questions are omitted on account of the actual situation of

the different interviewees.

1. How old are you?

2. Where do you come from?

3. For what reason you began your journey of entrepreneurship?

4. What is your highest educational level?

5. How much influence does your education level exert on your entrepreneurship?

6. What is your family background?

7. How much influence does your family background exert on your entrepreneurship?

8. Why did you choose to enter your current field as an entrepreneur?

9. What is the attitude of your family members (especially the most intimate ones) when

you made your choice to engage your entrepreneurship?

10. What kind of assistance you have received from your social networks? For example,

the assistance of your family members, your friends, your colleagues.

11. What kind of assistance you have received from governmental departments such as

local entrepreneurial association or the women’s association?

12. What kind of influence brought about to you by other entrepreneurs in your family

or around you?

13. What kind of distinguished characteristics do you think you have to make you a

successful female entrepreneur?

14. What was your expectation when you began your journey of entrepreneurship? Do

you think you have reached your initial goals? If no, what is the gap between your initial

goals and your current situation?

15. What is your proudest harvest you received from the process of entrepreneurship?

16. How does your entrepreneurship behavior influences your life in an all-around

perspective?

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17. What kind of changes brought by your entrepreneurial behavior to your

surroundings and the society?

18. How do you balance the role of a female entrepreneur, a mother and a wife?

19. In your opinion, what hinders most women to become an entrepreneur in China?

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附件 2 采访纲要（中文版）

此次研究采访问题如下。需要说明的是，在采访过程中，采访者视被采访者的具体

情况对下列问题进行了酌情增删，因此，以下采访大纲仅具有参考意义。

1. 请问您的年龄是?

2. 您的家乡是哪里?

3. 您是因为什么原因决定创业?

4. 您的最高教育程度是？

5. 您认为您的受教育程度对您的创业有何影响?

6. 方便说说您的家庭背景吗？

7. 您的家庭背景对您创业有何影响？

8. 您为什么选择了这个创业领域？

9. 当您决定选择创业时，您的家人（特别是最亲近的人）持何种态度？

10. 您的社会资源网络为您创业提供了怎样的帮助？比如说，您的家庭成员，您的

朋友，您的同事，为您提供了何种程度的帮助。

11. 政府部门，比如说创业者协会，或者妇女联合会，给予过您何种帮助？

12. 如果说您的家庭成员，或周围的人是创业者，那么他们对您的创业有何影响？

13. 作为向您一样成功的女性创业者，您认为自己有怎样异于常人的特质？

14. 您在开始创业的时候，对自己有怎样的期待？您认为您实现了您的初心吗？如

果没有，您认为您的现状和期待之间的差距是什么？

15. 在创业的过程中，您最引以为傲的收获是什么？

16. 您的创业行为如何影响到您生活的方方面面？

17. 您的创业行为给周围环境和社会带来了怎样的改变？

18. 您是如何平衡一个女性创业者，一个母亲，以及一个妻子三者之间的关系的？

19. 在您看来，什么因素阻碍着中国女性成为创业者？