JOURNAL OF WOMEN'S ENTREPRENEURSHIP AND EDUCATION.pdf

Twice a Year Scientific Journal

ISSN 1821-1283

UDK 005.64:37:316.344.5

COBISS.SR-ID 157987852 PUBLISHER Institute of Economic Sciences, 12 Zmaj Jovina str., 11000 Belgrade, Serbia

FOR PUBLISHER Prof. dr Dejan Erić

EDITOR-IN-CHIEF Prof. dr Mirjana Radović-Marković

ASSOCIATE EDITORS Prof. dr LaWanna L. Blount, dr Antal Szabó, prof. dr Radmila Grozdanić, prof. dr Raghu Bir Bista, prof. dr Manuela Tvaronaviciene, dr Imani Silver Kyaruzi, prof. dr Dragos Simandan, Zsuzsanna Katalin Szabo

EDITORIAL BOARD Prof. Isiaka Esema, Pebble Hills University and Coordinator of International Community Education Association, Nigeria Chapter, Nigeria Mr Dušan Marković, Belgrade Business School and Akamai University, US Prof. dr Brenda Nelson-Porter, North Central University (NCU), US Prof. dr M. A. Omolaja, International College of Management and Technology, Nigeria Prof. Aldene Meis Mason, Faculty of Business Administration, University of Regina, Regina, Saskatchewan, Canada Dr Srdjan Redžepagić, Institute of Economic Sciences, Belgrade, Serbia Prof. dr Narendra Kumar Bishnoi, Haryana School of Business, Guru Jambheshwar University of Science & Technology, India Prof. dr Rula B. Quawas, Women’s Studies Center at the University, Jordan Prof. dr A. O Abari, Lagos State University, Nigeria Mr Elena Rizova, Faculty of Philosophy, Skopje, Macedonia Zsuzsanna Katalin Szabo, Dean of the Faculty of Economics, Law and Administrative Sciences of Petru Maior University of Tîrgu Mureş, Romania

LANGUAGE EDITOR Ena-Mary Ibeh

BUSINESS SECRETARY Aleksandar Zdravković, [email protected]

EDITORIAL OFFICE c/o Institute of Economic Sciences 12, Zmaj Jovina str., Belgrade, Serbia Tel. +381 11 2622-357; 2629-960; fax: +381 (11) 2181~471 [email protected] www.ien.bg.ac.rs/jwe

Copyright© 2009 by Institute of Economic Sciences Belgrade, All rights reserved.

Contents

The New Alternative Women’s Entrepreneurship Education: e-Learning and Virtual Universities....................................................................1

Mirjana Radović-Marković, Brenda Nelson-Porter, Muhammed Omolaja

The Position of Female Entrepreneurs in the European Union and Transition Countries ...................................................................................13

Merdža Handalić

The Strategy of Position as a Key to Success....................................................25 Mirjana Prljević

Factors Affecting Performance of Women Entrepreneurs .............................39 Ena-Mary Ibeh

Women in Bosnia and Herzegovina and Starting Their Own Business.........51 Munira Šestić

The Sustainability of Serbian Civil Society Organizations: Evidences and Remarks .....................................................................................60

Daniele Mezzana

The Universal Basic Education (UBE) Programme and Women Entrepreneurship in Science and Technology: a Catalyst for Enhancing Female Participation in National Development ............................72

J.B. Bilesanmi-Awoderu, O.O. Kalesanwo

Letter from the Editor-in-Chief Welcome to the first issue of the Journal of Women's Entrepreneurship and Education (JWE) in 2009. This is second annual Journal that I edited, but the first one which will be published in hard copy version. There is no doubt, that the progress made by women, in entrepreneurship activities around the world represent an important factor to be taken into consideration when studying economic development and social progress.

Namely, entrepreneurship represents an appropriate opportunity for women all over the world, as entrepreneurship responds flexibly to entry, change and innovation. Because that a lot of countries see women entrepreneurs in SMEs as a hope for providing new blood to the economy. At present, women represent more than one third of all people involved in entrepreneurship activities around the world. Different theoretical approaches to female entrepreneurship show that this field of research is considered very broad. According to different theoretical approaches are offered different perspectives through which we can expand and challenge our understanding of the women’s entrepreneurship and education. The most of them will be consider and discuss. JWE welcomes articles from academicians and professionals from all areas related to the outline. It is one of the first international Journal in this field of research. In addition, I expect that it will be also the first one which will appear on the ISI list among the world’s most prestigious scientific journals. The goal of this Journal is to offer more ways of encouraging entrepreneurship, including the role of the education system, developing positive attitudes and an active approach towards female entrepreneurship. Journal of Women's Entrepreneurship and Education is published two times a year, April and October. As founder and editor in chief I shall oversee all activities necessary to ensure that each issue of the Journal is released in a timely manner. I eagerly await your feedback on this year's Journal and your worth contribution with your articles. Sincerely, Prof. dr Mirjana Radović-Marković

The New Alternative Women’s Entrepreneurship Education: e-Learning and Virtual Universities

Mirjana Radović-Marković*, Brenda Nelson-Porter**, Muhammed Omolaja***

* Institute of Economic Sciences, Belgrade, Serbia

** Northcentral University, AZ, USA and founder of the Alumni Association Network (AAN), USA

*** International College of Management and Technology, Nigeria (ICMT International College), West Africa

A R T I C L E I N F O

Article history: Received 15 February 2009 Accepted 27 March 2009

JEL: A22, I20, L26

K E Y W O R D S: e-learning, women, female learners, virtual faculty, education, knowledge, entrepreneurship, motivation, Serbia

A B S T R A C T

Having in mind that due to fast changes in techniques and technology especially in the last decade of 20th century, new kinds of business and jobs emerged, the need for new knowledge became very clear. Accordingly, everywhere in the world the existing education system is being redefined, and educational programs that have to closely relate to practice are being improved. For that sake, “new schools for entrepreneurs and managers” are founded, which are based on modern programs and courses meant for various groups of businesspeople. Very popular are virtual faculties, which are founded all around the world and enable connection between businesspeople and business learners with lecturers from all around the world, no matter where they actually might reside. Participating in courses and testing via the Internet, essentially change previous way of gaining knowledge in classical classrooms. This way of learning contributes to fast information exchange, more access to the newest knowledge and experiences in this domain and save the time and

Journal of Women's Entrepreneurship and Education 1-2 (2009) 1-12 2

money. Thus, in this millennium the classic way of education will be slowly substituted with some other forms of education, in which learning from homes and offices with the help of computers, were true. Interactive education should provide a completely new dimension of gaining knowledge making learning faster and easier for those who attend certain courses. In this article the authors aimed to explain advantages and disadvantages of e-learning with a stress of special benefits for women. Additionally, presented are results of several researches relevant to the topic.

Introduction

It is well known that a correlation exists between entrepreneurship and economic performance. But entrepreneurship brings more than this correlation to our societies, because the science is also a vehicle for personal development. In spite of importance of entrepreneurship for personal and social development, all potentials are not fully being exploited particularly in the European Union (EU). The EU has failed to encourage an abundance people to become entrepreneurs. According to the Eurobarometar, although 47% of Europeans prefer self-employment, only 17% actually realise their ambitions (European Commission [EC], 2007). Regarding new entrepreneurial initiative, only 4% of Europeans state to be engaged in creating a business, and 29% of Europe’s SME declared growth as their main ambition (EC).

Europe, unlike the United States, suffers from low expansion rates after start-up. Europe’s untapped potential appears to derive from a complex set of mutually interacting framework conditions, attitudes, and skills. In this paper, however, priority will be given to virtual learning as a means to enhance entrepreneurship among women. In that context, entrepreneur’s skills will be defined, which should fulfil present and the future needs of our societies. This dilemma leads to the following central research questions:

a) How do we gain skills, which will meet new requirements of societies?

b) Is high quality traditional entrepreneurship education the most effective choice for obtaining new skills for entrepreneurs or necessary to foster alternative ways of education?

c) Which factors should become educational components to emphasize when devising an academic entrepreneurship program: perceptions, financial factors, productivity factors, product development, self-awareness, or self-motivation? Why?

M. Radović-Marković et al. / JWE 1-2 (2009) 1-12 3

d) If entrepreneurship in taught in an online learning environment, what evaluation tools or measures should academia use to determine or identify success factors or traits to becoming an entrepreneur?

The core of this paper is to address, inter alia, the above set of questions while particular emphasis will be given to the question of how women may acquire entrepreneurial education while not balancing both their jobs at work and at home.

Definition of Entrepreneurial Education

“Entrepreneurship development concerns the development of people's potential as a country's most valuable resource” (Kroon, De Klerk, Dippenaar, 2003, pp. 319-322). The process is an innovative and dynamic technique, which is also an important segment of economic growth. Entrepreneur is a catalytic agent of change, which generates employment opportunities for others. Therefore, paying attention to improving skills of entrepreneurs and their education is necessary to increase competencies. Considering the importance of education for entrepreneurs, recently it becomes evident that entrepreneurship is one of the fastest growing science in today’s undergraduate curricula in the United States and worldwide (Radović Marković, 2007a).

The 1990s saw the growth of entrepreneurship as a profession within business, and in that professional approach lies the secret benefit of entrepreneurship education--it helps decrease the chances of failure by stressing a consistent and proven set of practices. That idea of professionalizing the process of entrepreneurship is the other great commonality across all of modern entrepreneurship education. (“Entreprenuerial Education,” 2009, para. 2)

In the past 3 decades, formal programs (majors, minors, and certificates) in entrepreneurship have more than quadrupled, from 104 in 1975 to more than 500 in 2006 (“Entrepreneurship in American”). The development of courses in entrepreneurship has been exponential. Leaders in the field of entrepreneurship education recognized that there are many, many definitions of how entrepreneurship could and should be taught and much of performance depends on the level of education involved.

While many definitions of entrepreneurship and entrepreneurs exist, the following definition by Jeffrey Timmons (n.d.) of Babson College is


consistent with our belief that entrepreneurship involves more than just “starting businesses.” “Entrepreneurship is the ability to create and build something from practically nothing” (Timmons, Section 1). The science of entrepreneurship involve initiating, doing, achieving, and building an enterprise or organization, rather than just watching, analyzing or describing an entity. Entrepreneurship is the knack for sensing an opportunity where others see chaos, contradiction, and confusion. Though Entrepreneurship, the ability to build a “founding team” that complements self-efficiencies and talents becomes enhanced. It is the know-how to find, marshal, and control resources (often owned by others) and to ensure that funding is available when needed. Finally, entrepreneurship is the willingness to take calculated risks, both personal and financial, by performing at maximum capacity to get the odds in your favour (“Criteria for Youth,” n.d.).

Multifaceted Characteristics of Educational Programs

Proponents of educational technology for years have stated that faculties need to focus more on teaching “21st-century skills,” such as problem solving, critical thinking, and collaboration. The 21st century learners will need to meet the complex demands of the new economy and society in a globalized form (Radović Marković, 2006-2007). The workplace of tomorrow will increasingly require 21st century learners to work in teams, collaborating across companies, communities, and continents. Certain skills cannot be developed solely by simple multiple-choice exams. New education programmes for entrepreneurs must be based on exchanging good practice through studies and networks among strategic partners (researchers, entrepreneurs, financiers, advisors, policy-makers, and so forth).

To address individual needs of learners, attention must be paid to adaptability of the curriculum and the learning environment. A worthy institution views quality issues as primary and integral throughout the conceptual design of its education programs. True quality institutions, must govern their curriculum, instruction, and support services by policies and standards established to assure future success of the participants (Capogrossi, 2002). In many occasions, the assessment and examination vehicles have been evaluative measures of knowledge and competencies of learners measured against learning objectives derived from the needs of the


industry and professions. Successful institutions must design their learning objectives to serve the demonstrated needs of the desired student audience. The academic and professional needs of the student audience will be at the foundation of the curriculum, and the subject matter objectives will become the focus of quality control process (Capogrossi, 2007).

Gender and Distance Learning

The changes in women’s educational and career attainment may have multifaceted characteristics. Women might have increased their enrolment in colleges compared to men, but women may still differ in terms of the types of subjects in which they are enrolled. A study conducted by the World Bank has recently shown that if women in the field of agriculture had the same education as men did, the agricultural yield in developing countries would increase by 6 to 22% (Radović Marković, 2007b). This example, as well as other similar ones, gives every rightful reason to focus greater attention to further development of educational programs aimed at women, but also to enhancing contemporary technologies that will improve e-learning.

Distance learning is becoming increasingly attractive for women, as shown by some research studies. Namely, more than 60% of those over 25 years of age and female opt for this type of development and education in the world (Radović Marković, 2006a). The reason for this lies in the fact that this method of learning offers numerous advantages. Among the most prominent benefits, the following may be pointed out:

a) The flexibility of the learning process (learners study at the time most convenient to them).

b) Achieving a better balance between personal and other commitments (they may spend more time at home with their families).

c) Minimizing costs (both time and money savings are made). d) A deeper sense of self-fulfilment (acquiring relevant and useful

knowledge and achieving professional goals).

Furthermore, women at a certain age, over the age typical for learners (18-22 years of age), consider virtual classrooms to minimize the embarrassment and alienation factor (Capogrossi, 2002). In addition to these advantages provided to women by online studying, distance learning


also enables women to choose a certified course, offered by more than 90% of faculties in the world (Radović Marković, 2007b). Accordingly, women are given the opportunity of choosing some of the programs from a broader range, the ones that best suit their professional interests and goals, without the requirement to move geographically. In other words, women are no longer limited to the local educational institutions, but have at their disposal a more comprehensive choice of educational programs offered worldwide. Studying over the Internet enables women permanent development thus reducing the educational gap in comparison to men. At the same time, the social status and life quality of women are being improved. Higher qualifications enable women to contribute more to their community.

Advantages of Online Learning for Women

The Internet has extended many new opportunities to business-people both men and women. One such opportunity is the ability to complete programs online. Most universities, polytechnics, and other training providers are presently using study-away approach capitalizing on the online potentials of the Internet programs delivery as and when services are warranted. More and more, learners completing a traditional degree and people who want to expand their skill sets are reverting to online programs. The selection is partly due to convenience and effectiveness and partly because the programs as a whole are affordable. As with in any other program, a certificate is earned upon the successful completion of the program as well as an official transcript of academic record.

Online programs range from 1-hour courses on self-development to an entire doctoral degree program. The American Business Women Association (ABWA) in 2001, in accordance with its mission to help educate and train its members, views online classes and course-work as an effective option for women who desire to continue developing their business skills, and hence the association embarks on creation of more partnerships with quality companies that involve in online programs delivery. For instance, the association formed partnership with QuicKnowledge.com, which is offers discounts on all its courses to ABWA members. The association also consider all hours completed


through online courses as part of its Continuing Education Credit program (ABWA).

However, the most significant contribution of online programs particularly to women is having the opportunity to self-pace within a desired time frame. Through the online programs, learners can complete projects whether at work, home, or selected locations. On many occasions, a busy executive may not be able to leave the office, and yet, assignments, term papers and even research projects have to be finalized somehow; the magic of getting the assignments complete may be made possible through the online mode. Where programs are completely in online mode, all class lectures, assignments, tests and instructions are delivered through the Internet. Some programs have voice and/or video assisted delivery, and may also include PowerPoint and iPod presentations. That is the main reason that Internet service provider, a browser, and a computer with plenty of random access memory (RAM) are needed prior to an online course commencing to receive lectures from anywhere and any time.

According to Barbara Sleeper, on different occasions, learners do travel from one location to the other in the course of their programs; this may be some weeks or even months at a time so that learners create networks while continuing their studies (ABWA, 2001). Sleeper was an ABWA national member who served as 1987-1988 National Secretary, 1986-1987 District II Vice President, and was named one of the 1989-1990 Top Ten Business Women of ABWA. Sleeper is the Director of the MBA program at Dallas Baptist University, and has developed an online marketing course in consumer behaviour in support of his opinion and ideology (ABWA). Sleeper opined that for graduate programs, universities should transfer credits to and from one another on reciprocal credit recognition basis without experiencing resistance (ABWA). Hence, graduate learners should have the option to continue their education and not lose the hours of completed courses when transferring into another educational institution.

Methodologies and Findings

Serbia does not have extensive experience deploying online studies and virtual faculties. Forming an international learning network of women may enhance entrepreneurship opportunities in Serbia as well as in countries that are developing or in transition (Radović Marković, 2006b).


Because the functionality of the technologies and the benefits of virtual learning to learners and professors have been misunderstood, the entrepreneurial process although improved in Serbia has been impacted due to the lack of awareness (Radović Marković, 2006b). If Serbians or citizens of other nations become more familiar with the techniques, potential learners as well as educators may be able to effectively discern the pros and cons of how e-learning enhancing entrepreneurialship.

In a 2005-2006 mini-study conducted by Brigette's Technology Consulting and Research Firm, 4 female managers responded to how human progress is driven and measured. However, 2 female managers indicated that human progress could not be measured. Factors indicated as drivers and measurers of human progress included perceptions and acceptances of others, financial and productivity factors, and development of new products, which can be applied to technical and educational programs. A nurse manager reported, “Human progress is driven by self-awareness and self-motivation. To measure human progress is a subjective observation, not a reliable tool available yet.” Incorporating the factors into online educational curriculum may assist female learners with preparation to becoming successful entrepreneurs.

Professor Marković conducted a study in 2009 that aimed to measure the role of online learning and how much the process has been accepted among learners and entrepreneurs in Serbia. Marković interviewed and asked 54 participants (34 women and 20 men) between the ages of 18 and 30 the following associated subquestions:

a) What do you think about online learning? b) What do you think about virtual professors? c) What is the interaction between students, students and

professors? d) Does new technology isolate students from teachers? e) Do you prefer online learning than face-to-face? Why yes or

why not? f) Does gender matter in online learning for entrepreneurs? g) What are online learning outcomes vs. Face-to-Face?

Although the majority of participants (68%), think that online learning is great as an new alternative for learning, the great amount of participants (63%) are not familiar with online courses for entrepreneurs and are unsure how virtual faculties function. Although it is fair to state


that virtual learning will not obviously inspire every learner, it is fair to state that since a lack of knowledge exists concerning the process, most learner will consider the alternative as means to achieve knowledge in most subject areas thereby stimulating human progress.

Thirty percent of participants stated that lots of reasons exist for taking online courses. Low cost was a primary reason. Several participants (45%) proposed that women and elderly learners are more motivated to enroll in some online course because they are better at communicating online and scheduling their learning. Seventy percent of opined, “anytime, anyplace” nature of online learning suits female students more than male, whereby women are fitting their education in among their regular work. It is fair to conclude that women more so than men utilize management skills to complete their studies, driving human progress.

Although 50% of the participants do not desire to have discussions with other learners and professors who cannot be seen, most participants (95%) stated that computer literacy is the most significant for online studying. Although women choose some computing courses when offered in combination with other disciplines that emphasize social issues and computer applications, women think that online studying and virtual faculties are not so much popular in Serbia because of the lack of computer literacy, specially among women. It is fair to state that if women in Serbia as well as other nations are readily to enroll in virtual courses due to the low costs, women may not (a) readily participant in discussions due to computer literacy or (b) be open during discussions due to resistance, thereby, limiting human progress.

Conclusion and Recommendations

Open communication and management approaches will become the driving techniques to enhance learning skills in virtual environments, which will meet new requirements of societies. High quality traditional entrepreneurship education can be used as a means to obtain new skills for entrepreneurs or necessary to foster alternative ways of education for women in Serbia as well as other nations that does not support virtual learning. Self-motivation, as a means for women to acquire computer skills, seems to be the major educational components to emphasize when devising an academic entrepreneurship program. The percentage of female virtual learners who are motivated to become entrepreneurs and have


taking actions to becoming an entrepreneur should be used as evaluation tools or measures to determine or identify success factors of educational programs, particular in the study of entrepreneurships.

Further research may explore how and when online instruction is most effective for female learners who are entrepreneurs. For instance, additional investigation should describe motivational factors of female entrepreneurs learners in taking elective and required courses in traditional, online, and blended approaches that are team oriented, which minimize being alienated. Future research might also determine the effects of mandating computing courses in educational program as a prerequisite to other virtual courses, which may minimize embarrassment.

Summary

This paper dealt principally with merits of virtual learning particularly in regards to women after a brief discussion on the correlation between entrepreneurship and economic performance. The authors opined that entrepreneurship brings more than this correlation to 21st century societies, because the science is also a vehicle for personal development and human progress. In spite of importance of entrepreneurship for personal and social development, the authors agreed that all potentials are not fully being exploited particularly in the EU and other developing nations. With 30% of Europeans desiring to become entrepreneurs and not realizing their ambitions (EC, 2007), virtual learning is becoming a more popular topic as a means to stimulate awareness and motivation.

The paper went further to reveal that Europe, unlike the United States, suffers from low expansion rates after start-up. Europe’s untapped potential appears to derive from a complex set of mutually interacting framework conditions, behaviours, and skills. Giving priority to entrepreneurial skills among women provided insight on the techniques that are possibly needed to motivate women to master virtual learning and achieve entrepreneurial success. In that context, entrepreneurial skill was defined as those skills that should fulfil present and the future needs of the societies.

As part of two studies, the authors considered some pertinent questions including how to gain skills, which aimed to understand techniques that can be used to meet new requirements of societies and measure human progress. It was this question of “how” that formed the


core of this paper. The authors concluded that computer assisted learning (e-learning) through the Internet was the most significant mode of entrepreneurial education particularly for women in managerial positions who tend to be very busy like their men counterparts. In some European countries, such as Serbia, e-learning has evolved; therefore, the process is very difficult to consider its cons and pros in this country.

References

American Business Women Association (ABWA). (2001). The advantages of online learning. Women in Business, 53(6), 23-23.

Capogrossi, D. (2002). Assurance of academic excellence among nontraditional universities, Journal of Higher Education in Europe, 27(4), 481-490.

Capogrossi, D. (2007). Four keys for personalizing distance learning Gender and informal economy: Developing, developed and transition countries. Lagos, ICEA and PRENTICECONSULTS.

Criteria for youth entrepreneurship education. (n.d.). Retrieved January 30, 2009, from http://www.entre-ed.org/_entre/criteria.htm

Entrepreneurial education. (2009). Retrieved January 30, 2009, from http://en.wikipedia.org/wiki/Entrepreneurship_education

Entrepreneurship in American higher education. A report from the Kauffman Panel on Entrepreneurship Curriculum in Higher Education. (2006). Retrieved January 30, 2009, from http://www.kauffman.org/uploadedfiles/entrep_high_ed_report.pdf

European Commission (EC). (2007). Eurobarometer. Retrieved February 10, 2009, from http://ec.europa.eu/growthandjobs/european-dimension/200812-annual-progress-report/index_en.htm

Kroon, De Klerk, Dippenaar. (2003). Developing the next generation of potential entrepreneurs: co-operation between schools and businesses? South African Journal of Education, 23(4), 319-322.

Radović Marković, M. (2005). Women entrepreneurship and leaders abilities of women and their position in the business: A study of Serbia and Region. PCTE Journal of Business Management. Punjab College of Technical Education, India.

Radović-Marković, M. (2006a). Entrepreneurship-theoretical and practical guide on all aspects for starting up small business. Link group, Belgrade.

Radović Marković, M. (2006b). Women entrepreneurs and managers in Serbia. Retrieved March 27, 2009, from http://www.ien.bg.ac.yu/download/wp06-4.pdf

Radović Marković, M. (2006-2007). Managers and entrepreneurs skills as key contributors to SME success in the future business challenges. Serbian Journal of Management: An International Journal for Theory and Practice of Management Science. Bor, University of Belgrade, Technical faculty, Management Department, god. 2, br. 1, 93-99.


Radović Marković, M. (2007a). Entrepreneurship for women. Belgrade, Serbia: Magnus, 157.

Radović Marković, M. (2007b). Special benefits of E-learning for women: Sample of program entrepreneurship. ACHAKPA, Priscilla. Gender and informal Economy: Developing developed and transition countries, Lagos, ICEA and PRENTICECONSULT, 156-166.

Timmons, J. (n.d.). Entrepreneurship training and assistance. Retrieved January 30, 2009, from http://acec-al.org/enterpreneurship.php

The Position of Female Entrepreneurs in the European Union and Transition Countries

Merdža Handalić*

* Governance Accountability Project (GAP) BiH, GAP Office Tuzla, 75 000 Tuzla , email: [email protected]



JEL: B54, L26, 052

K E Y W O R D S: gender mainstreaming, female entrepreneurship

A B S T R A C T

In the European Union at the level of the European Commission the principle of gender equality, called gender mainstreaming, has been introduced in all areas of activities and policy. The term "gender mainstreaming" is the key and it has been accepted for the implementation of policies of gender equality in the EU Member States, that, according to the definition of the Council of Europe means reorganization, improvement, development and evaluation of political processes in a way that the perspective of gender equality is included in all policies at all levels and degrees, by the actors involved in political decision-making. Although women constitute the majority of the world's population, in the field of entrepreneurial activities they constitute the minority due to their socially, economically and politically inferior position with regard to men. Sex-related inequalities on the labor market and in entrepreneurial activities are connected to unequal educational and training opportunities which are further reflected to their choice of profession and possibilities for advancement. The change in social paradigms has radically altered the balance of powers between women and men in society at large, as well as in business. However, the fact is that there are fewer women entrepreneurs in relation to men. The aim of the paper is to identify the major obstacles encountered by women in a business. This paper also serves to support the entrepreneurship of women and to promote its development.


Gender Policy of the European Union and the Obligations of the Integration Countries

Anti-discrimination framework was established by the Convention for the Protection of Human Rights and Fundamental Freedoms in 1950.- EHCR, as well as a series of appropriate Protocols. Except Protocol no. 12, European Convention on Human Rights from 2000 came into force in 2005. It refers to the prohibition of discrimination on the basis of gender. Activities related to achieving actual gender equality have been determined also with other recommendations and resolutions. Starting from the importance of full political participation of women as a central part of policies of gender equality, The Committee of Ministers of the Council of Europe adopted Recommendation in 2003 on the well-balanced participation of women and men in political and public decision making1. Member States should encourage the promotion of balanced representation of women and men, publicly recognizing the equal sharing of decision-making powers between women and men with different origin and ages strengthens and enriches democracy. Also, Congress of Local and Regional Authorities of the Council of Europe especially emphasized importance of implementation of gender equality policies at the local level by adopting the Resolution 176 of 2004 on the introduction of the principles equal of gender at the local and regional level, based on the promotion strategy of equality of women and men in cities and regions. In addition to these basic documents, there is a series of directives, which also treated the equality of women and are one of the secondary legislation in the EU.

In accordance with the above Charter and Protocol, the European Commission was introduced the principle of gender equality in all areas of activities and policies. The term "gender mainstreaming" is the accepted term for the implementation of policies of gender equality in the EU Member States. Also, members of the EU adopt special measures or positive action measures such as legal policy measures, mandatory parental leave for both parents, equal measures of employment gender, etc.

1 Council of Europe: Recommendation of the Committee of Ministers to member states on

balanced participation of women and men in political and public decision making explanatory memorandum, (Strasbourg: Directorate General of Human Rights, 2003) 17-18

Medrža Handalić / JWE 1-2 (2009) 13-24 15

For the coming period, significant is document named "Roadmap for equality of women and men, 2006.-2010."2 adopted by the Council of Ministers of the EU in 2006, which sets out priority areas of work to accelerate the process of achieving real gender equality in Europe.

The following areas have been designated as a particulary important: ─ Achieving equal economic independence of women and men; ─ Increasing the compliance of work and private life; ─ Promotion of equal participation in decision-making; ─ Abolition of gender qualifying violence and trafficking in

persons; ─ The removal of gender stereotypes in society; ─ Promotion of gender equality outside the EU.

This roadmap is based on the Community Framework Strategy for achieving equality between women and men from previous period of 2001-2005 / 6, and their enforcement is an integral part of the Community. Economic independence is an important precondition for gender equality and the women rights respect. It is, therefore, a key challenge to include more women in the labor market in the EU. The EU has contributed to that development of policies through the promotion of the empowerment of women. This is part of a strategy for growth and jobs set up by the Heads of State and Government in Lisbon in 2000. The goal of this strategy is to have the European Union converted to a dynamic and competitive economic society which is capable of sustainable growth with more and better jobs and greater social cohesion. Further, the strategy entails full participation of women in economic life, with the encouragement of women to participate in the labor market, and achieve an employment rate of women to 60% in 2010.

In the European enlargement policy gender equality also occupies one of the main areas. Equality of women and men is common and one of the fundamental values of the EU Member States, ensured even in the provisions of the EU Treaty, which stipulates the promotion of gender equality as a permanent objective of the European Community in all its activities. Policies of the EU Member States in the field of Gender Equality, which obliges also the integration country, are contained in chapter’s common policies. The most important of those common EU 2 Commission Of The European Communities, A Roadmap for equality between women

and men 2006-2010, (Brussels: EUR-LEX, 2006), 3-9


policies in the area of equal opportunities between men and women are contained in Chapter 19 - Social policy and employment, Chapter 22 - Regional policy and coordination of structural instruments, and Chapter 23 - Judiciary and fundamental rights.

The level of alignment of legislation in transition countries, the European Commission estimated in its annual reports. Those countries are obliged to harmonize the provisions, for example, in connection with removing the excessive protection of women in terms of night work, heavy physical work, work underground etc. The attention should also be devited to deficiencies in terms of maternity leave, fees and excessive duration of maternity leave as well as all other difficulties faced by pregnant women and mothers of small children in the area of employment. Further, need to adapt the provisions in respect of the difference in the age as a margin of going to a pension for men and women employed in the police, army and civil service. For all these provisions, it is necessary to ensure appropriate measurement of statistical indicators, so in that sense, still need to adapt statistics. Regardless of these EU recommendations, the European Commission evaluated that the Action Plan for Gender Equality devoted insufficient attention and it expected to be greater influence to national policies to promote gender equality in the period of 2006 thru 2010, and implementation of equal opportunities policies.

In the period immediately after the war, to encourage women's start-up, Bosnia and Herzegovina has helped to include the equality of women in the legislature. Positive changes include the ratification of the Convention on the Elimination of All Forms of Discrimination against Women and the adoption of key laws on the rights of women, including the Law on Gender Equality, the Family Law and Law on Protection from Domestic Violence by B&H institutions. The condition that the third candidate on party lists during elections must be women helped empowerment of participation of women in politics. A similar situation is in other countries in the integration.

In the text below the analysis of female entrepreneurship in the world shows that there were a lot of work to do in regard to women's entrepreneurship to increase the benefit of women. There are a number of different organizations that are engaged in lobbying for gender equality.


Women's Entrepreneurship in Europe and in the World

According to the Global Entrepreneurship Monitor (GEM)3, entrepreneurs are the most important contributors to economic growth of lower medium-developed countries like those in Latin America and the Caribbean. In these countries the participation of women in the entrepreneurial population is two to three times higher than in most developed countries in the EU. On the other hand, the growing Eastern Europe have not yet developed a consciousness about female entrepreneurship which our neighborhood puts on the bottom scale of the participation of women among the owners of the company. According to GEM's study, countries with small or medium-low income per capita recorded greater entrepreneurial activity than the advanced countries. This is especially true in Latin America, which has the highest rate of women in entrepreneurship compared with all other countries. Research also highlights that advanced countries have a higher rate of male owner of the company. Only Japan and Peru had greater activity of women in the category of establishment of new enterprises in 2007. In Latin America, the rate of women entrepreneurs is 24%, and entrepreneurs with a longer work experience are only 57.1%.

As a rule, women are starting businesses in the service sectors which are most attractive for them around the world. Also, women, for example, keep companies much easier in developed countries, while keeping financial stability of business is more difficult in countries with lower GDP and a "lifetime" of women's enterprises is shorter. According to the age criteria, the usual age of the women who starts own business range from 25 to 34 years in less developed countries, and greater success and respect they can expect only from the age of 35 to 44 years. In developed countries the situation is worst; women choose to start with own business from age of 25 to 44 years, while the culmination of her career reaches only between the age of 35 and 54 year.

According to education criteria, women are far more educated in developed countries than their colleagues from countries with weaker GDP per capita although the level of education, most often, is not associated with the success of entrepreneurial ideas. When it comes to motivation, women are, regardless of the nation, less optimistic and less positive than 3 Bosma N. at al., Global Entrepreneurship Monitor, 2008 Executive Report, (Babson:

College Babson Park, MA US, 2008) 22-23


men when they start their own business. Also, women earn on average 15% less than men in the EU. Similar problem is with representation of women in leading positions (32%)4 regardless of what they, on average, have a better education than men have. Discomfiture is the fact that this percentage increased for 1% only in the last 5 years.

In Germany, for example, women earn 22% per hour on average less than men5. For this reason Germany is one of the EU country, which have a maximum difference in regard to income between the sexes. Only Estonia, Cyprus and Slovakia women reach equally high or even greater income. The reason for such large differences is that a large number of women work only half of the working hours in Germany. In this regard, the European Commission requires better solutions for harmonization of family and work, and increase number of women on leading positions. According to the reports of the European Commission, the employment of women is constantly increasing in the past few years. Part time work using every third woman, while only 8% of men are employed on this way. Employment rate of women with children is 62%, while in men, even 91%.

In the transition countries of Central and Eastern Europe, women has adverse economic status thanks to a reduced number of employees in the public sector, a higher rate of unemployment, greater job insecurity and poor system of social protection. In the process of transition from communist / socialist regimes and the centralized management of economy towards a free market economy most experiences have been negative. These effects include increasing poverty, insecurity, unemployment, crime and corruption, the disappearance of middle-class, arising new economic and political elite from the war profiteers and the former communist leader. Furthermore, expanding the gap between poor and rich and the registered unemployment rate is very high.

Equality of men and women in politics also in business was an important feature of all communist societies. Participation of women in the number of employed persons was much higher in comparison to other economies in the world, as well as their representation in professional and management bodies. Large number of women in political and scientific life 4 European Commission, Women and men in decision-making 2007 - Analysis of the

situation and trends (Luxemburg: Directorate General for Employment, Socila Affairs and Equal Opportunities, 2008) 35

5 Eurostat Site3-TGM Table, Gender pay gap in unadjusted form in % (Structure of Earnings Survey source – 2002 and 2006 onwards), (on line).


was one of the key arguments for the assertion of the equality of women in the communist system6. At present, transition period, there is still a tendency to equality between women and men considered to be inherent features of these societies, where gender as such is not considered important for social analysis at all. Any questions related to gender equality, which had been asking by economists and sociologists, were ignored. Such a trend is further supported by a strong tendency to favor different psychological explanations for the lack of women in management positions.

In Croatia, women constitute 52% of the total Croatian population; their share in employment is 45%, i.e. 52% in the public and 39% in the private sector. Women in the enterprise are represented with 30%, on managerial positions 27%, and only they were 19% in the supervisory boards of companies. Rate of women employees in the ‘gray’ economy is 65%, while the employment rate of female population on the basis of a contract for part time is even 86%.

In Bosnia and Herzegovina, the rate of women participation in the total number of employees is 43% which is extremely low compared with the global standard of 52.5%. Usual, they earn less than men and they are represented in the lowerer number in the enterprise. Women spend a less time in their business than men. More precisely, women entrepreneurs are working 29,2 hours per week, while men spend 46,9 hours. In 2007, female unemployment rate was 32.9% versus 26.7% of men. This rate is alarmingly high in the category of young women aged from 15 to 24 years, where the rate is 63.1%, compared with 55.6% of men in the same age categories.7

Gender inequality is very pronounced in the field of entrepreneurship in the Serbia also. According to the data that were published in the study, Women and Men in Serbia, published by the Republic Statistical Office of Serbia8 , there is an obvious disproportion by gender between employers and employees. In this regard, the ratio for women is 1 to 2, while for men is almost 1 to 1. Also, the number of women employers is less than half of

6 Metcalfe B. D. et al., Gender, Work and Equal Opportunities in Central and Eastern

Europe, Women In Management Review, 2005, 399 7 Agencija za statistiku Bosne i Hercegovine, Anketa o radnoj snazi, Tematski bilten,

(Sarajevo: 2008) 21, 24, 26 8 Republički zavod za statistiku Srbije, Žene i muškarci u Srbiji, (Beograd: Službeni

glasnik, 2008) 65


men from the same categories and that relationship in the last five years has not significantly changed, as the indicator of the lack of supporting female entrepreneurship in Serbia.

Further on, men and women are divided by profession, working hours, the level of position, industrial sector, employers, and other forms of contractual status. Women are, more often than men, employed in lower paid positions for which is creating a rational economic basis that women are responsible for unpaid housework, which puts them in a position of greater risk of poverty compared with men. In order to determine the gender differences in the conditions of work, the most important is to take into account the high degree of segregation in employment of men and women. Furthermore, the assessment of the impact of gender differences in policy should be conducted to ensure that the measures strengthen the equality of women and men. This direction should be used by the states of the EU and countries that want to be members when creating their strategy of equal opportunities for women and men.

Obstacles and Challenges of Female Entrepreneurship

The biggest obstacles and difficulties for the development of enterprises are located within the availability of financial resources, information, education and markets. The basic challenge is to effectively identify and resolve problems employed through the prioritization of the legislature and other public policies of the countries, and to implement the government measures. Similarly, it is important to develop the national strategy that will effectively confront the problems specific to equal opportunities, which requires the development of other social attitudes about gender and their inclusion in the structures, institutions and policies that relate to self-employment and small enterprise.

As mentioned in most Member States, accession countries, and all other countries in the world, the rate of participation of women in the labor market is lower and unemployment of women is higher than men. There are large number of cases where women had to choose: career or family. Previous analysis also shows that significantly more women are working on part time than men, and usually that is not their will. Many women have more qualifications than required by the position in which they work. Employers prefer to employ men because women are seen as work force that do not guarantee stability in the job, due to the fact that women have


traditionally been burdened by family and household obligations. Statistical data and reports do not treat women in the number of unemployment in his country, because women are not actively looking for a job, so most of this information is not true.

Also, it is important to note, that women are generally paid less than men. In many countries there are large differences in educational level and the amount of wages. All this have for result fewer pensions for women who, on average, live longer than men.

Bearing in mind the costs to start a business, the next problem is financial independence, so it must intensify efforts to improve access to finance. For women it will be more difficult to ensure the initial capital for the establishment of new businesses. This may be the reason why women often create new jobs in the service sector; in fact they create small businesses that need less initial capital. Women often cannot provide a guarantee for loans from their own property, so they are forced to hold to some form of self, i.e., using other sources of funding, such as savings, loans from family or friends, or micro-lending. Similar situation is in existing business, women are harder to reach new sources of funding because of difficulty of access to informal financial networks. Although it is considered that the existing business have easier access to bank loans, women often lack information about potential investors, support and understanding for their business ideas.

Successful stimulation of women's entrepreneurship can be achieved through:

─ Development of lobbying activities of women's professional and non-profit associations, which will be especially focused to create the legal framework in order to impact on the positive environment for faster development of female entrepreneurship;

─ Organize the exchange of experience between successful entrepreneurs and beginners, introducing mentoring and public presentations of their own experiences;

─ To provide a variety of programs supporting women's enterprises which provide training, education, subsidies for obtaining bank loans for starting business;

─ Encourage networking of women entrepreneurs with developing local and regional networks;

─ Provide free or subsidized consulting services of foreign or local consultants to entrepreneurs.


Countries, which have recognized the advantages of the development of female entrepreneurship, resources and opportunities that it provides for the overall social and economic development, successfully implemented all of these activities. However, the previously mentioned results of the reports show that there is still a lot to be done to improve women's entrepreneurship.

In the process of promoting and implementing policies of gender equality and empowerment of women, non-governmental organizations and networks play an important role and their actions and advocacy of public policy affecting the public and participate in proposing and / or solving particular problems. Strengthening civil society is a permanent goal and an imperative prerequisite for the advanced society in the field of human rights of women, what is extremely important to further improving the system of cooperation, coordination and partnership of NGOs with state institutions at national and local level. Although, in the last few years, the EU policy directed towards establishing the institutional framework and the promotion of inclusion principles of gender equality in different areas of policy within and outside the Union, it is evident that necessary to continue work on the development and strengthening of these institutions and forms for cooperation with a unified activity to more effective enforcement of legislation and implementation goals of EU and national policies. In order for such policies, and created measures and activities based on them can be really effective, it is essential to improve the collection system of statistical data, conducting research and gender analysis as well as the inclusion of the perspective of gender equality in the planning process, adoption and implementation of the budget.

Employment, in essence, has a double meaning: for workers it means income, building personal skills, work satisfaction, and social status, on the other hand, for society, it is the main source of prosperity. Therefore, the objectives of employment should have a significant place in making economic and social policy. Incompatibility of labor force availability in the labor market is widely diffused, particularly for women, because they are not included within. Many of the skills and knowledge of women have been outdated due to changes in the structure of production, developed technologies and new forms of work organization. Therefore, it is necessary to pre-skilled women with outdated skills and knowledge, because the new knowledge and skills are missing. Reform of the national educational system, especially in transition countries, has not progressed


enough to be flexible, or able to respond to changes in labor force for knowledge and skills. Because of this, the exchange of experiences and the organization of seminars by the well-organized enterprise network are essential.

Conclusion

Female entrepreneurs have a significant role in domestic and international economic scene at all, and represent a potential for development of the economy. In developed countries, women have special incentives and support for the development of their own entrepreneurship. For example, in addition to policies that apply, which protect women against discrimination and inequality, in these countries there are also many organizations and associations dealing with the issue of women and provide them with various forms of support.

In less developed countries and countries in transition, the situation is, however, different. Women are still not economically involved to the importance they deserve, and often, the initiative that they run on the face of economic, political or cultural barriers that discourage development of female entrepreneurship.

Pursuant to the importance of this segment for the development of entrepreneurship at all, and other obstacles that women face on the establishment of their own affairs, the European Union and the national economy should provide an adequate support to the development of female entrepreneurship. This is particularly relevant for countries in the process of integration where these barriers are particularly marked and there is no organized activity of business associations that support women and provide them the necessary support.

References

Agencija za statistiku Bosne i Hercegovine, Anketa o radnoj snazi, Tematski bilten, Sarajevo, 2008. Available from http://www.bhas.ba/ARHIVA/2008/TB/lfs/lfs-bh.pdf. Accessed 15 January 2009

Bosma Niels, Acs Zoltan J., Autio Erkko, Coduras Alicia, Levie Jonathan, Global Entrepreneurship Monitor, 2008 Executive Report, College Babson Park, MA US, Babson, 2008

Commission Of The European Communities, A Roadmap for equality between women and men 2006-2010, Brussels, 2006. Available from eur-lex, http://eur-


lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2006:0092:FIN:EN:DOC. Accessed 15 January 2009

Council of Europe: Recommendation of the Committee of Ministers to member states on balanced participation of women and men in political and public decision making explanatory memorandum, Directorate General of Human Rights, Strasbourg, 2003. Available from http://www.coe.int/T/E/Human_Rights/Equality/PDF_Rec(2003)03_E.pdf. Accessed 20 January 2009

European Commission, Women and men in decision-making 2007 - Analysis of the situation and trends. Report on line. Directorate General for Employment, Socila Affairs and Equal Opportunities, Office for Oficial Publications of the European Communities, Luxemburg, 2008. Available from http://ec.europa.eu/employment_social/publications/2008/ke8108186_en.pdf. Accessed 20 January 2009

Eurostat Site3-TGM Table (on line), Gender pay gap in unadjusted form in % (Structure of Earnings Survey source – 2002 and 2006 onwards) Available from: http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&plugin=1&language=en&pcode=tsiem040. Accessed 21 January 2009

Jalušič, Vlasta, Antic Milica, Women – Politic s- Equal opportunities, prospects for Gender Equality Politics in Central and Eastern Europe, Research for the project, Peace Institute Ljubljana, 2001. Available from: http://www.mirovni-institut.si/eng_html/articles/jalusic_antic.doc. Accesed 20 January 2009

Metcalfe Beverly Dawn and Afanassieva Marianne, (On line magazine) Gender, Work and Equal Opportunities in Central and Eastern Europe, Women in Management Review, Volume 20, Number 6, Emerald Group Publishing Limited, 2005, pg 397 - 411

Republički zavod za statistiku Srbije, Žene i muškarci u Srbiji, Službeni glasnik, Beograd, 2008.

The Strategy of Position as a Key to Success

Mirjana Prljević*

* “Menora Co. Consulting”, Paris, France



JEL: D4, L1, F1

K E Y W O R D S: strategy of positioning, marketing mix, unique selling proposition, Roland Garros

A B S T R A C T

In the beginning of the eighties when a kind of trade revolution began, there were first serious attempts to develop the strategy of positioning in trade. Practically, there were attempts to synthesize the differentiation strategy based on competition (the objective is to have more successful and profitable offer than the competitive one) and the segmentation strategy based on consumers (the objective is to create a unique package offer for a desired, target segment of consumers). The first attempts to theorize the concept of positioning in trade can be found ten years later after it developed among producers. Thus the emphasis in the positioning strategy of commercial enterprises is placed on the specific position directed at the specific competitors. With the development of the market, globalization and information revolution, commercial enterprises were increasingly growing, gaining strength and internationalizing their position. Traditional marketing strategies gain importance only when modified and adapted to local markets. The motto “Think globally, act locally” becomes more important with the development of a strategy which is unique in its structure - the strategy of positioning. “French Open”, a worldwide successful tennis tournament as one of the products of French Tennis Federation, is an example of profitable and well-done strategy of positioning.


Introduction

The fact that strategic positioning is much more present in life than it can be seen by mere observation is a reality. This is due to the fact that strategic positioning is not only important but crucial for success in the present-day context, not only for the success of a product, company, magazine, individual, but of a region and country as well. When I say success, I think of a long-term, stable success, the one which is secured, always growing and expanding, regularly supervised and controlled, success filled with imagination and work. Success for the future.

The most important lesson about marketing strategies is that marketing is not about satisfying consumers at any price. Marketing is about HOW to satisfy the consumer and make a profit. Therefore, a strategy, which originally means “the art of the general”, becomes a synonym for “an important means in your business, and not an objective”.

There are many definitions of marketing strategy. Two of them have made an impression on me as they are the most comprehensive and precise of all. “Marketing strategy reflects the company's best opinion as how it can most profitably apply its skills and resources in the market. It is inevitably broad in scope. The plan which stems from it will spell out action and timings and will contain the detailed contribution expected from each department. Thus marketing strategies are the means by which marketing objectives will be achieved and are generally concerned with the four major elements of marketing mix as follows: product, price, place and promotion. Formulating strategies is one of the most difficult parts of the entire marketing process. It sets the limit of success. Communicated to all management levels, it indicates what strengths are to be developed, what weaknesses are to be remedied and in what manner. Marketing strategies enable operating decisions to bring the company into the right relationship with the emerging pattern of marketing opportunities, which previous analysis has shown to offer the highest prospect of success.” (McDonald). And: “The concept of marketing strategy can be reduced to two important elements: deciding upon investment in market production, which covers production-market business strategy, investment intensity determined by the strategy and distribution of resources in a complex business system. This is how the sustainable comparative advantage is achieved in the market competition. This key concept implies clearly defined knowledge and abilities, means and resources, certain objectives,

Mirjana Prljević / JWE 1-2 (2009) 25-38 27

business policy in a certain area and the creation of conditions for synergy.” (Aaker)

What should definitely be taken into account when analyzing the term of marketing strategy is whether it can be applied in practice as only then does it confirm its positions? Therefore, you should remember: Marketing strategy is a process whereby an organization transforms its business objectives and business strategy into marketing activities and profit. Formula “3 x 3 = that’s you” means that you need to combine very seriously and carefully your marketing mix package, unique selling proposition and point-of sale material if you want to create a long term successful strategy of positioning. The strategy of positioning is defined at three levels:

─ At the level of product - guidelines are defined for an effective design of a product according to the dimensions consumers find relevant. Market research of a product is actually directed at identifying important dimensions by which consumers distinguish certain brands so the further development would improve the performances of your product.

─ At the level of marketing strategy - positioning represents the support for coordinating the entire marketing mix. By defining the existing and desired position, you determine the course of action for advertising campaigns, pricing policy and terms of payment, interior design of points of sale...

─ At the level of business unit - positioning requires that management provide adequate resources. In order to ensure successful positioning in the market, appropriate attention should be devoted to the implementation of the positioning strategy. In this sense, it is essential to provide necessary market research, resources within each individual instrument of the marketing mix, financial funds, as well as adequate organizational structure and atmosphere among the staff.

As a first conclusion, you must memorize a following: from a marketing point of view, positioning is a technique by which marketers try to create an image or identity for a product, brand or company. It is the “place” a product occupies in the given market as experienced or perceived by the target group.” Product positioning is an “image” in consumer's mind of your products or services. When you conclude what you want, you must define your business objectives on the long-term period. The strategy of


positioning itself is about defining the way and means to reach your objectives.

The Strategic Positioning: Yesterday, Today, Tomorrow

Strategic positioning today, when you are overwhelmed by tens of thousands different pieces of information from the very morning, when you wake up, until the moment when you have to decide on a holiday destination or university for your child or a new business partner. Strategic positioning is positioning at the level of consciousness. Nowadays, this is crucially important at every step you take or every choice you make during the day. In the world of positioning, it is said with good reason: “You become a winner by going with a winner.”

If you can understand that the strategy of positioning, i.e. the ways and means you need to accomplish assigned objectives or your plan and program, is not what you have done for your product or company but what you have done to the consumer’s mind about the perception of your product or company, you will be on the right track. Track to long-term success. Why? Well, because the ingredients are elements which are the same for all - the secret is in the recipe.

Yesterday In the beginning of the eighties when a kind of trade revolution

began, there were first serious attempts to develop the strategy of positioning in trade. Practically, there were attempts to synthesize the differentiation strategy based on competition (the objective is to have more successful and profitable offer than the competitive one) and the segmentation strategy based on consumers (the objective is to create a unique package offer for a desired, target segment of consumers).

The first attempts to theorize the concept of positioning in trade can be found ten years later after it developed among producers. Thus the emphasis in the positioning strategy of commercial enterprises is placed on the specific position directed at the specific competitors. At the same time, attempts are made to overtake the market of the main competitors with a so-called special offer. The special offer, as an expression of a developed sales-political activity of commercial enterprises, can be seen in the structure of product and service portfolio, as well as in so-called special manifestations, terms of sale, brands and the like.


With the development of the market, globalization and information revolution, commercial enterprises were increasingly growing, gaining strength and internationalizing their position. Traditional marketing strategies gain importance only when modified and adapted to local markets. The motto “Think globally, act locally” becomes more important with the development of a strategy which is unique in its structure - the strategy of positioning.

Positioning is a marketing strategy that simultaneously starts from consumer analysis and competition analysis. The aim is to examine the consumers and determine the characteristics of the offer that enable the most favourable position of your enterprise in relation to the competition. Positioning, as a concept, was created as a result of natural evolution and contains previous knowledge but also a new idea how the knowledge should be applied.

Tomorrow As long as a marketing strategist carefully listens to consumers and

provides everything they want, there will be progress. Difficulties occur when you have to determine what consumers want. This should be simple, but it is not. Markets are more and more saturated, competition is bigger so organizations try to take a special, protected position, which will enable them to defend the area where they make profit. Therefore, it is not enough to know what consumers want, but WHAT EXACTLY they want. For a strategist, change is now a factor number one. The speed at which changes occur nowadays is huge. It seems to us that we have not become accustomed to something and yet we have to provide something new. And nowhere are changes so striking as in the market.

Strategists have to predict future needs of the consumer if they want their organization to survive. However, the phenomenon of fast changes and uncertainties is often explained as the end of one cycle and the beginning of the new one. Therefore, here is a piece of advice: keep listening carefully to the market!

It is very important that a strategist - consultant or manager – is aware of global events, trends in the world and their region, cash flows as well as local business policies. According to many economic analysts, the present day situation is as follows:

─ it seems that many fundamental changes are under way in the world.


─ in the “new age” or in the period of “falling line”, as value attitudes of an individual show, it is more important to satisfy spiritual needs than physical needs.

─ in the period after the Second World War, a need for logical, rational was emphasized more than ever. The main emphasis is on the technology and truth of “scientific methods”.

─ in this age of technology and mechanics, many of us have lost a sense of the emotional and the intuitive, which is an important component of human spirit.

Although there is not a sure way to achieve success in those new and unknown markets, there are several lessons of experts - strategists:

─ Sudden and frequent radical changes depreciate the experience we have. This means that organizations which were successful in the past, in the then circumstances cannot expect to achieve results in the future using the same technique. Unfortunately, many theories on business are just a schematic diagram of the former positive experience. Therefore, you should perceive the main business activities, such as strategy and planning, in new light and reexamine their value.

─ Among the first authors who realized the necessity of changes in the attitude to the issues of strategy was Mintzberg, who says that strictly defined and systematic way of developing the entire business corps and marketing strategy is no longer acceptable in the conditions of more adaptable and fluid present day markets. He also says that such a way is acceptable only in the conditions of stable markets, so when fast changes occur, more effective are « necessary strategies », which are actually the formulation of the real situation in the market. He differentiates between the « strategy of sustaining », which refers more to sustaining in stable than in changeable conditions, and the « craft strategy », which is designed by combining strictly defined necessary strategies and enables you to find true balance between controlled and more adaptable behaviour.

─ A possible solution could be to determine the general direction which should be taken. You should start from the objective and the strategy, which are specific enough to indicate what an organization should focus on, and yet loose enough to enable maneuvering in changeable conditions.


From A to Z in Strategic Positioning Process

Research of the market is a key starting activity in designing a successful strategy of positioning. What is important to realize is that a marketing strategist does not

have to be completely versed in the mechanism and techniques of contemporary market research, but it is necessary for a strategy that an expert has a clear idea of what can and cannot be achieved by research. The difference between the terms «data» and «information» is even more significant. Data is basically the raw material for research of the market. On the other hand, information is best described as something that eases the receiver's uncertainty (about something). It is very important to differentiate between the two since all available data about the market or market activities is of no use to a market strategy. Only by collecting practical and important information can you reduce doubts and uncertainty to a minimum and make practical and effective plans for the future.

The Process of Research of the Market means research in five stages: defining the goal or the problem of research, elaboration of the research plan, data collection, data analysis and overview of the findings, and define them as a portfolio that will form the basis for your future strategy of positioning.

Marketing package offer is a basic result or product of a marketing strategy. The dosage and use of certain elements of the familiar ‘4 + 2 = 6P’

marketing mix model is of crucial importance for long-term and stable strategic positioning (by professor Kotler, these are: product, price, promotion, placement, public opinion and policy). This is due to the fact that positioning is the perception of the consumer’s or customer’s consciousness in relation to the given category.

In the last ten years, I have added and practically used in my work the seventh element or “7P = personality” in addition to the above-mentioned marketing mix elements. It simply proved that if the strategy of positioning is not conceptualized by the principle “from micro to macro” and “7P” model, in a long-term perspective, its implementation can be brought into question. In fact, it is very important to define personality as a group of the creator’s characteristics (the originator of a concept) to the final personality of consumers, customers, buyers or citizens. This is due to the fact that everything about strategic positioning begins and ends at the


level of human consciousness: words, colors, tastes, scents, music…all this serves the purpose of advancing sales.

I would like to underline that analyzing production and sales strategies of positioning of world leaders, you come to a conclusion that non-material or intangible aspect, i.e. product value, is increasingly emphasized. Thus when buying a product, you acquire status, acquire a new philosophy of life, entertainment or socializing, create a style of dressing or consuming and so forth. Various elements of the marketing mix and marketing management – product policy, pricing policy, promotion and placement policy – are marketing policies that a strategist should combine into a solid whole before implementing them in the market. An important strategic aspect of the package is to enable all elements to be together and appear acceptable from the consumer's viewpoint.

USP is the essence of your strategy of positioning. It is a marketing message that should provide the consumer with the

answer to the question: Why should I buy your products and not your competitors’ products ? Or: Why should I do business with you and not with your competitor? You should bear in mind that, as practice shows, a company can have several USPs for more different portfolios. The company then makes sure that one, unique or top USP is a message that in the best way explains to the consumer or business partner that working with you or buying your products is something special.

There are several characteristics of USP you should bear in mind when formulating your USP:

1. It is one sentence. 2. It should be legible and understandable. 3. It should be correct and plausible. 4. In that sentence, there is always only one word that emphasizes

the uniqueness of your offer, way of business or a certain product.

Before defining of the USP, you should analyze the current situation in the market in the following way:

1. Focus on niches, i.e. find and clearly define the target group you are addressing. The question you should ask yourself is: What exactly do you sell or offer?

2. Fill in the gap in the market, i.e. do an analysis to determine which segment of the offer is not covered by competitors


and highlight it in your USP. 3. Concentrate on the aspect of “satisfaction from using a product

or service”. 4. Point out how your products or services can solve a «problem»

or satisfy a «need» of consumers of a specific target group. 5. You must analyze what the competition is doing in the market. 6. Tell the consumers or users of your services how they benefit

from you, that is from using your products. 7. Make your USP «measurable». Time and price are two

measurable « qualities » of an offer. Pay attention to them. There are two important benefits that you yourself make by clearly

and precisely defining your USP: first, it clearly distinguishes you from the competition in the eyes of both present and potential consumers or users of your services, and secondly, it makes your team focus on keeping the promises given through the USP by helping it to improve its internal performances, i.e. resources.

POSM or Point-of-Sale material as a third part of 3 x3 formula of strategic positioning. It has a very important role in the implementation of the strategy of

positioning, especially in the first phase, i.e. in the phase of presentation of a new product. For positioning strategists, POSM is of great importance for two reasons: firstly, it costs and secondly, you should know when and how much to “dose” it. From the aspect of its purpose, POSM is divided into several groups:

1. Classic POSM: business cards, envelopes, memos, flyers, posters, key-rings, pens...

2. Standard promotional POSM: T-shirts, caps, bags, glasses, umbrellas...

3. Exclusive POSM: leather agendas, sets, wine, champagne, typical strong drinks in exclusive packaging, sometimes combined with certain delicacies, vases of special glass...

4. Specialized POSM: tents, presentation boards, CDs in special packaging and with special content, compasses...

5. VIP POSM: a range of selected, often unique, exclusively made series of promotional material (clothes, sports clothes, jewelry and the like) which is worn by exclusive promoters purposely selected.


The higher quality and cost of making POS material, the more important its role becomes and vice versa. They range from the classic and standard ones, whose aim is to make consumers remember the name of a company or product, to exclusive and specialized POSM, which should make a member of target group see the quality of service offered by the company, its significance in the market...Therefore, all who deal with designing and/or implementing the strategy of positioning at local level should specify which type of standard POS material is the most acceptable for target audience of the local market. As POS material burdens the price of a product, it should be dealt with in a calculated way. Its role in USP is combined, that is in a package with other more important advantages that a company point out as its “uniqueness of the offer”. POS material is not only a display material, it is much more than that. You should know that for some campaigns, POSM is designed by the whole teams of professional groups: psychologists, designers, music editors, photographers...

If you do not have a strategy which is clear, specific, realistic and, above all, applicable to your enterprise or product, you become a ship without a rudder. Even the weakest of winds can blow you away from your goal.

“French Open”, a Worldwide Successful Case

Thus the example I want to give as one of the most representative in the world of sport strategic positioning is a story that started with a visionary – Jean-Rene Lacoste, the most famous French tennis player ever. He was one of the four French musketeers with whom the saga called Roland Garros tennis tournament or the French Open began. It did begin as a personal vision, but it was continued and maintained by the whole French tennis federation and the state of France. Yes, the Roland Garros tennis tournament is a story about a successful strategy of positioning and it is set in the country known for centuries by perfumes, cheese, wine and the city of Paris. Still, the last week of May and the first week of June are noted down as important dates in many calendars.

Why is the strategic positioning of the French Tennis Federation so successful? So successful that one of the four world Grand Slam tournaments has the annual income which is a business secret. Because its destiny was settled 100, or more precisely, 80 years ago, when the stadium


for the future was being built and France began to realize the importance of sport and sports tourism in the positioning of its name in the world map of interest.

The secret of success is certainly in the following: ─ Tradition based on two personal names: Roland Garros, the

famous French pilot who was the first make a non-stop flight over the Mediterranean and Jean-Rene Lacoste, a tennis player who created one of the most influential and most expensive sports brands - Lacoste. To cherish the traditional values of sport, health and life vitality is what the French consider a true success.

─ ‘2Q+1C’ expertise of the top management portfolio: Quality + Quantity + Continuity

─ Famous sponsor pool: BNP Paribas Bank (30 years), Peugeot (25 years), Perrier, IBM, FedEx, Nescafe, Moet & Chadron Champagne, …

─ Press committee: the press committee, comprising ten members of the French Sport Journalists Federation (USJSF) elected each year during the tournament by the entire press body, examines accreditation requests and ensures a well-run press operation.

─ One of the biggest media department in the world of sport: 3,000 media representatives

─ Point-of-sale material: brilliantly designed and adapted to all types of purchasing power. It turned a small “corner” shop from the beginning of the eighties into a real supermarket selling RG1 branded products. All the sponsors and partners of the FFT2 participate each year with newly designed collections especially made for the RG tournament.

─ Tenniseum - the first class multimedia museum and the first of its kind in the world. It stretches over 2,200 m sq and comprises: an exhibition hall, multimedia centre, two halls for theme exhibitions and a media library. Each year, exhibitions are adapted to the celebration of an event, jubilee, IT achievements or players themselves.

1 Abbreviation for Roland Garros 2 Abbreviation for Fédération Française de Tennis (French Tennis Federation)


─ Special qualities: the Clay Court + Tennis ball especially designed for Roland Garros to be faster. Since 1981, three trophies have been awarded each year to the players during the Roland Garros tournament: the Prix Orange (Orange Prize), awarded by spectators to the most sportsmanlike player, the Prix Citron (Lemon Prize), awarded by both spectators and the journalists' association to the player with the strongest character and personality and the Prix Bourgeon (Bud Prize), given by journalists to the tennis player revelation of the year.

─ Focus on continually innovative refreshing solutions in all fields by the government and top management. This year, when the Forum in Davos was concluded with the words: The Green is Gold, a special attention has been devoted to recycling old tennis balls that will no longer be used. A specially designed recycling machine was installed at the very Roland Garros stadium, which marked a new, green era of French tennis.

─ Complete and comprehensive structuralization of not only players’ base and sponsor pool but of visitors - spectators and media support as well. Crucial step, strategists would say.

─ Fight against Ambush marketing: The most important legal team in the French and perhaps one of the greatest in the European world of sports, is the very legal team of the French Tennis Federation, headed by Rhadames Killy, which achieves enviable results fighting against the expansion of Ambush Marketing. Their example as well as the methodology they apply encourage other organizers of big sports events (e.g. Tour d’France) to prevent illegal campaigns of those brands which do not want to pay for advertising but are very interested in advertising themselves and making profit through the Tournament. This is a very important activity which requires the coordination of legal and top management in order to give results.

─ Woman’s Play Support program which proffer a possibility and chance to woman, ex-tennis player, to be active and after professional tennis carrier. Sometimes they choose to be a part of FFT “Extra-Talented group” as a coach, sometimes to work with children, sometimes they choose to be a press consultant in the Media department.


M&P Formula of Success 1

Media and Partner Pool combination is the first secret formula for the long-term success of the Roland Garros strategy.

Some of the partners have supported the Tournament for more than 30 years and each year media partners expand the RG offer to wider audience. There is something for everyone in the Two-Weekly Offer:

─ Thirteen hospitality areas, available on a daily basis or for the whole fortnight

─ Daily hospitality areas: the Open Club, the Slam, the Grand Slam, Salon Mousquetaires, Salon Paris, Tenniseum Breakfast. These are all “à la carte” offers, leaving you free to choose which days and how many guests you wish to invite. The daily hospitality areas are your chance to enjoy the French Open to the full while still being free to choose what you want and when you want it

─ Hospitality areas for the whole fortnight: the Village, N’1 Court, N’2 Court, the Executive Club, the Circle, Gallery B. These areas are highly exclusive and much sought after, and perfect for companies to entertain their guests in a luxury setting throughout the whole two weeks of the tournament.

M&P Formula of Success 2

Media and Players combination is the second secret formula for successful strategic positioning. Why? Because viewers like when famous people report from sports events as they color them with their charisma and success. Thus, the doors of the 2008 RG were open to many former sportists who would, either as professional consultants or commentators of their national TV stations, liven up the broadcast: Arancha Sanchez, Justin Henin, Bjorn Borg and others. The most successful was certainly Mats Wilander, who was engaged by the French TV station, TF 2/3 and whose 30-minute long reports from the French Open were broadcast by Eurosport itself. At the end of every day, there was professional interpretation of the Roland Garros events called “Gem, Set, Mats”, which proved to be brilliant and increased the ratings by 40%. Now, more and more tennis players are willing to try themselves in this kind of professional continuation of their careers (naturally, no longer as tennis players but as


active media partners). This is again something introduced in the world of tennis by the Roland Garros management.

Another brilliantly designed post-play program for players and media makes it possible for many players and journalists to enjoy their stay in Paris after a strenuous and quite demanding play i.e. work program. Karaoke, multimedia museum presentations, ingenious fashion show, group visits to cult French castles and restaurants - all this is dedicated to his majesty, the Player.

This is perhaps why the secret of the French Open tournament is so seductive, always in harmony with everyone, with its goal set high and the strategy which tends to win over and over with its methodology.

References

Kotler. P. (2001), “Kotler on Marketing”, The Free Press, Glasgow, 170pp Hooley G., Saunders J., Piercy N., (2004) “Marketing Strategy and Competitive

Positioning”, Prentice Hall, London, 327pp McCormak H.M. (1993), “What They Don’t Teach You at Harvard Business School”,

Grmec, Belgrade, 11pp Morcom D. (2004), “Find your USP and stand out from the Crowd”, Bizpep, 233pp Moore G. (1998), “Inside the tornado”, Capstone, Chichester, 180pp Ries A., Trout J., (2001) “Positioning, The Battle for your mind”, McGraw-Hill,

145pp French Tennis Federation, (2008), Press Catalogue

Factors Affecting Performance of Women Entrepreneurs

Ena-Mary Ibeh *

* MA student in USA since 2008



JEL: B54, L26, J7

K E Y W O R D S: entrepreneurship, business strategy, informal sector, women, developed countries, developing countries

A B S T R A C T

Entrepreneurship is the assumption of risk and responsibility in designing and implementing a business strategy or starting a business. It is common in all societies and is usually embarked upon by choice or as a last resort in economic hardship. Entrepreneurship is usually part of the informal sector in both developed and developing countries and the success rate of gender in this arm of business is dependent on a variety of factors. There are similarities in gender performance between different economies but also stark differences in their cultural and socio-economic environment.

Introduction

Background to Entrepreneurship and the Informal Sector The informal sector (IS) is the portion of a country that lies outside

of any formal regulatory environment and activities are rarely reflected in official statistics on economic activity. IS covers a wide range of labour


market activities that combine two groups of different nature.1 On one hand, the informal sector is formed by the coping behaviour of individuals and families in economic environments where earning opportunities are scarce. On the other hand, the informal sector is a product of rational behaviour of entrepreneurs that desire to escape state regulations (The World Bank Group 2007). The majority of informal economy workers are women thus policies and developments affecting the informal economy have a gendered effect.

Poverty traps women in multiple layers of discrimination and hinders their ability to claim their rights. Not only do women bear a disproportionate burden of the world's poverty, but in some cases, globalization has widened the gap, with women losing more than their share of jobs, benefits and labour rights.2 For countries to successfully achieve the MDGs by 2015, they must tackle MDG #3, because gender equality and women empowerment in society is essential in addressing environmental, economic and societal problems and the exclusion of gender in policy creation can seriously damage the efficacy of the MDG implementation.

Gender Entrepreneurship in Developed and Developing Countries

The IS plays an important and controversial role by reducing unemployment and underemployment but in many cases jobs are low-paid and job security is poor. Size of the IS varies from 4-6% in developed countries to >50% in developing countries. IS size and role in the economy increases during economic downturn and periods of economic adjustment and transition (World Bank Group 2007).

The ILO international symposium on the informal sector in 1999 proposed that the informal sector workforce can be categorised into three broad groups namely:

─ owner-employers of micro-enterprises, which employ a few paid workers;

1 Ibeh, E.M. (2007) Difference between informal sector in developing, developed and

economies in transition. In Mirjana Radovic (Ed.) Gender and Informal Economy: Case of Africa, developing, developed and transition countries (p 62).

2 UNIFEM/Gender issues/Women, Poverty & Economics

Ena-Mary Ibeh / JWE 1-2 (2009) 39-50 41

─ own- account workers, who work alone or with the help of unpaid workers and,

─ Dependent workers, paid or unpaid (The World Bank Group 2007).

On an international scale, women-owned firms comprise 25-33% of businesses in the formal economy and according to the U.S. Census Bureau of 2001, women are starting businesses at unprecedented rates and the majority are married with children3.

Women are active in micro and small-scale enterprises (MSEs) but they face particular problems and challenges in developing their businesses. In addition to those problems faced by all small-scale entrepreneurs, it is commonly asserted that women frequently face gender bias in the socio-economic environment in which they operate. They face additional or at least different social, cultural, educational and technological challenges than men when it comes to establishing and developing their enterprises, and accessing economic resources (Mayoux, 2001). Furthermore, it is recognized that women in most societies carry the added burden of family and domestic responsibilities, and this has a limiting impact upon their ability to generate income outside of the home.

These problems are usually endemic in developing economies which often lack gender-sensitive policies and possess highly gendered sectors, dominated solely by males. On the contrary, this does not seem to be the case in developed economies. There are five theoretical perspectives explaining gender entrepreneurial performance and these are:

─ Motivations and goals ─ Social learning (entrepreneurial socialisation) ─ Network affiliation (contacts and membership in organisations) ─ Human capital (educational level, business skills). ─ Environmental influences (location, sectoral participation and

socio-political variables). (Source: Lerner and Hisrich (1997))

Another perspective exists as a contributing factor to gender entrepreneurship where it is prevalent in the developed world. This factor is ethnicity, and how it affects gender entrepreneurship in Black America. Ethnicity can be defined as an affiliation resulting from racial or cultural

3 In Journal of Small Business Management, Vol. 41


ties.4 America is a nation richly diverse in ethnicities and it can boast of possessing every major nationality and tongue.

Out of these, African-Americans constitute a large part of the society due to their long and well documented fight for equality from the slave trade to the Civil Rights era. As of July 1, 2007, African-Americans make up 40.7million (13.5%)5 of a total US population of 303,824,6406 and yet their conditions, although vastly improved over the centuries, have remained relatively similar to pre-Civil Rights era in terms of urban poverty and unemployment. They own 5% of American companies but receive <0.5% of the revenue and face fewer opportunities and more challenges than other American ethnicities.7 This is because not many companies embrace supplier diversity and make it a point to purchase from African-American entrepreneurs. Also there is an unspoken ‘perception of incompetence’8 bias that works against Black businesses as they are incorrectly assumed to possess lower professional standards. Until this perception changes, Black businesses will continue to face a bleak future in the business world.

In the United States, black-owned businesses are 20% more likely to fail within their first four years than white-owned businesses are. Black-owned businesses also tend to start with less capital, and are four times more likely to be denied credit than white-owned firms. In addition, African-Americans are less likely to benefit from the multigenerational family and social ties that so often lead to business partnerships among white-owned firms in this country.9

In these times of recession, socially marginalised groups of society are feeling the crunch, none more than the African-American society. In the best of times, many African American communities are forced to tolerate levels of unemployment unseen in other ethnic communities and in 2007, their unemployment rate was 8.3% and it is expected to rise as the recession continues. Gender entrepreneurial response to joblessness is usually swift as the women long ago found a way to combat long-term

4 The freedictionary.com 5 Infoplease: African Americans by the numbers: From the US Census Bureau. 6 CIA Factbook 7 Charity Guide: African-American Entrepreneurs 8 Ibid 9 Ibid

Ena-Mary Ibeh / JWE 1-2 (2009) 39-50 43

unemployment by engaging themselves in the personal services sector of the informal economy, such as running beauty salons.

In addition, Black women are starting businesses at a faster rate in America which is surprisingly in contrast with their ethnicity as a historical limiting factor. There are 917,000 female-owned firms in America and 95,000 are Black-owned compared to 200,000 Hispanic-owned and 319,000 Asian-owned.10

Businesses owned by women are the fastest-growing sector of new ventures. Nearly half of all privately held firms in 2004 were at least 50% owned by women, according to the National Foundation for Women Business Owners. Between 1997 and 2004, the number of businesses owned by women grew by almost 20%, compared with only a 9% increase overall. But even in these favourable climes, studies have shown that women receive less funding than men from investors-but that is because they ask for it less, the majority preferring to borrow from friends and family11.

In the UK, The Prince’s Trust, a charity organisation set up by the Prince of Wales, is dedicated to helping young people between ages 14-30 by giving them practical and financial support through business programmes, development awards and community cash awards at very low interest rates (The Prince’s Trust). Although not gender-specific, many of the benefiting individuals are young single women with small children and they have set up lucrative business enterprises countrywide. The Trust has gone a long way in addressing unemployment and social exclusion of poor and non-formally trained individuals, especially female.

In Israel, research carried out by Lerner and Hisrich on the effects of these perspectives on gender showed that network affiliation, motivation, human capital, and environmental factors affected different aspects of performance, whereas social learning had no significant effect on performance outcomes. Network affiliation was significantly related to profitability, and the use of outside advisors also was related to revenue. In contrast, participation in multiple networks was negatively related to revenue, income, and size of the business.

Although Israeli women are highly educated (51% possess degrees), analyses of human capital variables showed mixed results. Consistent with

10 US Census Bureau 2009 Statistical Abstract 11 Journal of Business Venturing, Vol.22, Issue 4


prior research findings, previous experience in the industry had a direct and significant effect on performance whereas previous salaried employment and involvement in the creation of a business were significantly correlated with sales and number of employees. The age of the women’s children was significantly related to profitability as majority of female Israeli entrepreneurs are married and became entrepreneurs after their children were grown.

In developing countries, women’s limited networks reinforce their isolation as entrepreneurs and reduce their scope and opportunities for building personal and business know-how and accessing other physical and financial assets. In Nigeria for example, micro-finance and community banks are present to aid small and medium-scale enterprises (SMEs) and MSEs but these entities charge such exorbitant interest rates and demand expensive collateral that many prefer to borrow from family than risk repossession in the event of any potential repayment default.

Most middle-class women in developing sub-Saharan African countries engage in ‘suitcase trade’ whereby they travel to America, Europe and Asia to purchase clothes, fabrics and household items for sale back in their respective countries. This trade is either done wholly or is used to supplement unreliable income from the formal sector and capital raised is usually from personal savings or family contributions12 and repayments are not always instantaneous because of the culture of buying on credit and owing for those purchases.

Socio-cultural issues play a part in limiting gender entrepreneurship amongst these middle-class women because although most are educated to high-school or University levels, they are usually regarded with suspicion if they engage in entrepreneurship without the presence of their spouses and very many are offered no credit, when they do ask for it, initially and are asked to return with their spouses for approval.

Bangladesh is one of the world’s poorest nations and gender entrepreneurship there is no easy task as women possess little education and scant business skills. Nevertheless, many social and operational constraints continue to restrict women from starting and running economic enterprises. Gender based problems are severe for women entrepreneurs

12 Ibeh, E.M. (2007) Difference between informal sector in developing, developed and

economies in transition. In Mirjana Radovic (Ed.) Gender and Informal Economy: Case of Africa, developing, developed and transition countries (p 62).

Ena-Mary Ibeh / JWE 1-2 (2009) 39-50 45

where social customs and norms influence their choice of trades, mobility, support and costs of operations13.

The gender-based constraints faced by women relate to legal, social, financial, market, infrastructure, information and management capacity. Banks and other financial institutions generally prefer large enterprise clients because of the lower transaction costs and greater availability of collateral. SMEs also fall outside the reach of both microfinance and institutional schemes, and are thus compelled to depend more on informal sources of funds at much higher interest rates. Since women entrepreneurs mainly concentrate on SMEs, they are relatively more adversely affected14.

The bureaucratic impediments disproportionately affect women-run businesses. Some trades owned by women are to operate within specific times as clients are also women. Inadequate infrastructure has an additional impact on women entrepreneurs as their mobility and operations are dependent on specific time due to security, family and/or religious considerations. Women entrepreneurs are likely to suffer more than other businesses from the poor quality of energy supply, as they lack resources to make independent provision for alternative energy supplies and due to security considerations women have to incur higher costs for transportation for procurement and marketing15.

Bangladesh is also home to the Nobel Prize-winning Grameen Bank. Founded in 1976 by Professor Mohammed Yunus, it was initially launched as an action research project to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor in the village of Jobra. Today it is present in 83,566 villages. Grameen Bank is owned by the rural poor whom it serves and borrowers of the Bank own 90% of its shares, while the remaining 10% is owned by the government16.

Grameen Bank methodology is the reverse of conventional banking because it is collateral-free, and where conventional banking is owned by the rich, generally men, Grameen Bank is owned by poor women. Microcredit loans are focused on the poorest of the poor with loan conditionality particularly suited to them which include very small loans given without any collateral, loans repayable in weekly installments spread 13 Asian Development Bank 14 Ibid 15 Ibid 16 Grameen Bank


over a year and eligibility for a subsequent loan depends upon repayment of first loan, amongst others.

As the general credit programme gathers momentum and the borrowers become familiar with credit discipline, other loan programmes are introduced to meet growing socio-economic development needs of the clientele. Besides housing, such programmes include:

1. Credit for building sanitary latrines. 2. Credit for installation of tube-wells that supply drinking water

and irrigation for kitchen gardens. 3. Credit for seasonal cultivation to buy agricultural inputs. 4. Loan for leasing equipment / machinery, for example, cell

phones. 5. Finance projects undertaken by the entire family of a seasoned

borrower. (Source: Grameen Bank)

The total number of borrowers is 7.67 million and 97% of them are women17.

Grameen Bank has helped in lifting women out of the clutches of extreme poverty into self-sustainability and these women have become equal breadwinners in their families, either supplementing their spouse’s income or in most cases, earning more than their spouses. In turn, it becomes a cause and effect situation because these uneducated mothers pay for their daughters’ education (as very few poor families educate the girl-child) as they refuse to let them live the same lives as they have.

Women are the vanguard of entrepreneurial activity in the developing world and they engage mostly in enterprises like petty trading, fruits and vegetable vending, mobile canteens and mobile phone recharge cards vending. In the case of Nigeria, indigenous and multinational telecoms companies present in the country aid gender entrepreneurship by providing the equipment and accessories, at affordable rates, necessary for business start-up.

In the developed world, gender entrepreneurship can be split into ethnicity, as many ethnic nationalities run businesses focusing on the vending of certain items or services to members of their own ethnic community. This may be out of choice but is usually done to combat a

17 Ibid

Ena-Mary Ibeh / JWE 1-2 (2009) 39-50 47

period of unemployment, thus turning out to become a permanent source of income.

Performance Factors Affecting Gender in Africa

The global economic meltdown has been making headline news for months now and while a lot has been heard about financial troubles in large auto companies and multi-national corporations, gender impacts of this crisis has been scarce reported in the media. In both developing and developed countries, many women have taken the role of primary breadwinner as the men have become redundant as a result of the crisis.

This is the case in Africa, where the aforementioned theoretical perspectives also affect gender but in varying ways to their counterparts in developed countries and these are:

1. Women are poor, have few if any of their own assets, and have limited means of accessing such resources from others. Women entrepreneurs usually start enterprises with minimal assets – be they social, human, financial, physical or natural.

2. Women have low levels of formal education at best, but are more likely to have had no formal education, to be illiterate and in general have limited human assets. Generally women’s levels of education are lower than men’s and the few girls who are educated are steered towards subjects preparing them for reproductive and domestic life rather than entrepreneurship.

3. Women have limited or no experience of formal employment and business. Previous studies have shown women in enterprise as having limited business and managerial experience prior to start-up. This is derived from the fact that they are concentrated in lower paid, lower status employment (both formal and informal) that does not support and enable them to build skills through experience.

4. Women have limited business-related networks. This factor is closely associated with their lack of formal employment and business experience, together with constraints placed on their mobility and ability to interact with other business people (mostly men) arising from culture/religion and motherhood responsibilities.


5. Women are not positively motivated towards business ownership. The reason for this negative attitude is that women have generally embarked into business by default. They have started enterprises when no other options were available to them in order to alleviate their poverty, rather than purposely pursing business ownership by choice. (Source: Mayoux 2001)

In addition, women’s enterprises are frequently in sectors or of a scale that are not counted, or deemed worthy of tracking by researchers. Hence women tend to be shown as under-represented as owners in the MSE sector (Zewde 2002).

This is the picture of women entrepreneurs that currently exists for Africa and it is skewed because most government industry data collection programmes rarely categorise their data according to sex thus stereotyping African gender entrepreneurs as poor and illiterate. Most African countries with high levels of University trained individuals (both men and women) are largely liberal when it comes to women-run businesses but credit facilities are not. Even still, most women are financed by their wealthy spouses in business start-up. For example, the major successfully women-run and owned businesses in Nigeria are restaurant franchises which are spread countrywide, beauty salons, clothing stores and supermarkets and they have high profit turnovers as their main clientele are women with high disposable income.

Conclusion

It is interesting to note that the African Development Bank at its Annual Meeting in Addis Ababa, Ethiopia in June 2003, held its first workshop on African Women Entrepreneurs (AWE), and placed the emphasis clearly on growth-oriented women entrepreneurs, thus helping to shake off the less entrepreneurial images18. However, the above negative profiles tend to be the dominant stereotypes of African female entrepreneurs that emerge from research, based largely on information from independent studies and other African demographic studies profiling gender entrepreneurship.

In conclusion, the difference between gender performance in both developing and developed countries is the presence of network affiliation 18 Series on Women’s Entrepreneurship Development and Gender Equality - WEDGE

Ena-Mary Ibeh / JWE 1-2 (2009) 39-50 49

and the possession of human capital. Entrepreneurship is “necessity-driven” in developing economies but “opportunity-driven” in developed economies where there are soft loans and credit facilities for business start-up; but the fact still remains that women in all economies remain somewhat marginalised in embarking into business.

References

Asian Development Bank (2009) Second National Women SME Entrepreneurial Conference 2008. Retrieved February 11th, 2009, from http://www.adb.org/Documents/Speeches/2008/sp2008005.asp

Becker-Blease, J.R. and Sohl, J.E. (2006) Do women-owned businesses have equal access to angel capital? Journal of Business Venturing, Vol 22, Issue 4. Elsevier Inc [Online]. Available at http://www.sciencedirect.com/science (Retrieved February 11th, 2009).

Charity Guide (2006-07) Support African-American Entrepreneurs: Buy from Black-owned businesses. Retrieved February 11th, 2009, from http://www.charityguide.org/diversity/

CIA (2008) US Population. Retrieved February 11th, 2009, from https://www.cia.gov/library/publications/the-world-factbook/print/us.html

Grameen Bank (2008) A Short History of Grameen Bank. Retrieved February 11th, 2009, from http://www.grameen-info.org/index.php?option=com_content&task=view&id=24&Itemid=127

Ibeh, E.M. (2007) Difference between informal sector in developing, developed and economies in transition. In Mirjana Radovic (Ed.) Gender and Informal Economy: Case of Africa, developing, developed and transition countries (p 62).

Infoplease (2007) African-American by the Numbers. Retrieved February 11th, 2009, from http://www.infoplease.com/spot/bhmcensus1.html

Lerner, M., Brush, C., and Hisrich, R. (1997) Israeli women entrepreneurs: An examination of factors affecting performance. Journal of Business Venturing, Vol 12, Issue 4. Science Direct [Online]. Available at http://www.sciencedirect.com/science (Retrieved January 31st, 2009).

Mayoux, Linda (2001): “Jobs, Gender and Small Enterprises: Getting the Policy Environment Right”, IFP/SEED-WEDGE Working Paper No. 15, ILO, Geneva. In Series on Women’s Entrepreneurship Development and Gender Equality — WEDGE (2004) The Challenges of Growing Small Businesses: Insights from Women Entrepreneurs in Africa, SEED Working Paper No.47. Retrieved February 11th, 2009, from http://www.ilo.org/dyn/empent/docs/F756421966/WP47-2004.pdf

Schindehutte, M., Morris, M. And Brennan, C. (2003) Entrepreneurs and Motherhood: Impacts on Their Children in South Africa and the United States.


Journal of Small Business Management, Vol.41. questia [Online]. Available at http://www.questia.com/googleScholar.qst?docId=5000607439 (Retrieved February 11th, 2009)

Series on Women’s Entrepreneurship Development and Gender Equality — WEDGE (2004) The Challenges of Growing Small Businesses: Insights from Women Entrepreneurs in Africa, SEED Working Paper No.47. Retrieved February 11th, 2009, from http://www.ilo.org/dyn/empent/docs/F756421966/WP47-2004.pdf

The Free Dictionary (2009) Ethnicity. Retrieved February 11th, 2009, from http://www.thefreedictionary.com/ethnicity

The World Bank Group (2007) Concept of the Informal Sector. Retrieved February 11th, 2009, from http://www.web.worldbank.org

UNIFEM: Gender Issues: Women, Poverty and Economics. Reducing Women’s Poverty and Exclusion. Retrieved February 11th, 2009, from http://www.unifem.org/gender_issues/women_poverty_economics/at_a_glance.php

US Census Bureau 2009 Statistical Abstract (2009) Business Enterprise: Women and Minority-owned businesses. Retrieved February 11th, 2009, from http://www.census.gov/compendia/statab/cats/business_enterprise/women_and_minorityowned_businesses.html

Zewde & Associates (2002), Jobs, Gender and Small Enterprises in Africa: Women Entrepreneurs in Ethiopia.

A Preliminary Report, Geneva: ILO, IFP/SEED-WEDGE, October. In Series on Women’s Entrepreneurship Development and Gender Equality — WEDGE (2004) The Challenges of Growing Small Businesses: Insights from Women Entrepreneurs in Africa, SEED Working Paper No.47. Retrieved February 11th, 2009, from http://www.ilo.org/dyn/empent/docs/F756421966/WP47-2004.pdf

Women in Bosnia and Herzegovina and Starting Their Own Business

Munira Šestić*

* Sarajevo School of Business, Sarajevo, Bosnia and Herzegovina


Article history: Received 11 March 2009 Accepted 27 March 2009

JEL: B54, J64, L26, I2

K E Y W O R D S: women, unemployment, solving existential problems, starting their own business, education

A B S T R A C T

This paper gives a comparative overview of the increased willingness of women in Bosnia and Herzegovina to start their own business, on a turnover from the 20th in the 21st century. There are presented the current state of unemployment of women, as well as their educational structure depending whether or not they are ready to start their own business. Alongside there are results of target researches, which lists the reasons why a number of women are not ready to start your own business.

Introduction

Women are important, but "unrecognized" forces in the economy of Bosnia and Herzegovina. In the years after the war, despite the positive legal and political change in favor of women, the fact is that women are still "vulnerable" in its economic status comparing to men.

In Bosnia and Herzegovina, women have significantly lower participation in the labor force of only 35.6%, compared with a global


average 52.5%1; It can be said that they are "suffering" from high rates of unemployment and earn on average less than men2.

The fact is that women in a small number choose to start their own business.3 According to the results of research from 2007. (2007, Labor Force Survey) only 22.6% of people employed in Bosnia and Herzegovina are self-employed; of this number 26.9% are women. According to the research, at the same time, women make up 69.3% so called “unpaid family workers”.

However, here are listed basic statistical data, but in most domestic and foreign institutions and organizations it is very difficult to obtain information related to the socio - economic status of the female population of Bosnia and Herzegovina. From that very reason, it was difficult in one place to present and objectively assess the willingness of women in Bosnia and Herzegovina to start his own business and how this change over the years.

Women and Unemployment

Entrepreneurship creates jobs, which is very important in a country with high unemployment as in case of Bosnia and Herzegovina. Since the Bosnia and Herzegovina has the lowest share of female labor force in South Eastern Europe4, women's entrepreneurship may provide significant opportunities up to certain preconditions.

Table 1.5 Participation of women in the population of Bosnia and Herzegovina

- Expressed in thousands

Total population Working age Force employed Women 1.645 1.371 317

% 51,2 51,7 35,6 1 IFC, MI-BOSPO (2008), “Voices of Women Entrepreneurs in Bosnia and Herzegovina”,

Washington, USA, pg.6. 2 Ibid. 3 Ibid. 4 World Economic Forum, (2007); US Census Bureau, Yemtsov i Tiongston, 2008. 5 Agencija za statistiku Bosne i Hercegovine, (2008), “Anketa o radnoj snazi 2008“,

Sarajevo.

Munira Šestić / JWE 1-2 (2009) 51-59 53

The fact is that of the total registered unemployed, a higher percentage is in the female population. All this happens as a consequence post-transition and socialist heritage, but also as a consequence of the general subordinar position of women in Bosnia and Herzegovina during the war 1992-1995.

Table 2.6 Gender structure of unemployment

Total number: Unemployed Unemployment rate in % Women 244.096 50,9

Men 235.200 49,1 Total 479.296 100

Even when employed, women are earning significantly less than

men. Women’s income are much lower than male colleagues in both Bosnia and Herzegovina’s entities.7 In the U.S., for example, employed women earn on average, 77 cents for every dollar that men employees earn. However, the data in Bosnia and Herzegovina have shown much greater gap between women and men.

Table 3.8 The structure of employment - Expressed in thousands

Employed Self-employed Helping members Women 230 54 33

Total 654 197 48 % 35,6 27,4 68,9

Data from 2005. show that women in a smaller entity of Bosnia and

Herzegovina, Republika Srpska, monthly earn less income when employed: U.S. $ 48, compared with U.S. $ 116 for men. In the Federation, second entity of Bosnia and Herzegovina, women's average monthly 6 Agencija za statistiku Bosne i Hercegovine, (16.01.2009.), “Registrovana nezaposlenost

u novembru 2008. godine”, Issue no.11 7 DFID, (2005),”Labor and Social Policy in Bosnia and Herzegovina: The Development

of Polices and Measures of Social Mitigation. Living in BiH: Panel Study, Wave 4 Report”, Bosnia and Herzegovina Council of Ministers, Sarajevo.

8 Agencija za statistiku Bosne i Hercegovine, (2008), “Anketa o radnoj snazi 2008“, Sarajevo.


income was higher in 2005. year amounted to U.S. $ 104, compared with U.S. $ 157 for men employees. The specified difference in earnings can be justified partly by the reason that women are less time volume employed, but may also be associated with the fact that women are mostly employed in occupations which are paid less.

Women in Bosnia and Herzegovina and Starting Their Own Business on the Crossing of the 20th in the 21st Century

The reasons for starting a business can be different from pure intuitions, motives to have more freedom in the earnings until the necessity for self-employment, if there are conditions.9 When we have in mind the economic situation in Bosnia and Herzegovina at the moment, the last reason gained in significance.

There is willingness to start their own business among the female population in Bosnia and Herzegovina, mainly as a way of solving their own existence and way of dealing with existential issues.

Table 4. STAR Research 2002. The question of whether to start your own business?10

Yes 255 59,58No 170 39,72I do not know 3 0,70Total 428 100

In relation to the STAR research from 1998.11, when over 18% of

women reported to the willingness of entrepreneurs, we can say that it made significant progress. Even 16.67% of women respondents from the STAR pilot research in 2002. is in the capacity of private entrepreneurs and have the possibility of opening new jobs.12 9 Dostić, Prof. dr. Milenko, (2002), “Management of small and medium entreprises”,

Sarajevo School of Business, Sarajevo, pages 57-59,. 10 STAR Pilot Istraživanje, (2003), „Socio – ekonomski status žena“, Sarajevo. 11 STAR Istraživanje, (november 1998.) „Žene u ekonomiji: Danas i sutra, socio-

ekonomski status žena u BIH“, (Research conducted by Prism Research), Sarajevo. 12 STAR Istraživanje, (2003), “Socio – ekonomski status žena u BiH”, Sarajevo.


Displaying 1. Willingness to launch their own business, Socio - economic status of women in BiH, STAR Research 2002. year

34,1

6,5

0,6

22,4

8,8 8,2

21,2

4,1

0

5

10

15

20

25

30

35

40

1

I am not sure that I could doitIt is not woman's job

I do not know how mysurronding would accept itI do not have money forstarting investmentI do not have enoughknowledge and informationHusband/Male in my familywould not agreee with thatSomething else

I do not know/No anwer

Increase in the percentage of women willing to start their own business, it can be interpreted in the light of the overall economic situation in Bosnia and Herzegovina. Since unemployment represents one of the biggest problems of Bosnia and Herzegovina, in women, regardless of level of education, increases the willingness to start their own business as a possible way of solving economic problems.

Pilot study survey, on the willingness of women to start their own businesses in MCO organization "Women for Women", was organized in 2006. (Survey period of 23.10-01.11.2006). Respondents were female members of the joint household of 18 years and upward. Researches are carried out in three regions of Bosnia-Herzegovina: Banja Luka, Mostar and Sarajevo.


It is necessary to point out that the survey was followed by additional problems:

─ Lack of central gender database, ─ Lack of uniform statistical data, ─ Lack of state jurisdiction in the area of economic, social and

cultural rights, etc. In Bosnia and Herzegovina, there is a very strong connection

between the social roles of women, the education and occupations.13 For this reason it is very important to present following view, which compares the level of education are willingness to start own business.

Displaying 2.

a) Table. Comparation overview of education and willingness to launch own business, research, "Women for Women", 2006.

Education Yes No No school 1,96 12,35

Not completed elementary school 8,63 22,35 Elementary school 13,73 19,41

Not completed secondary school 14,12 12,94 Secondary school 40,00 22,35

Faculty 21,57 10,59 Total 100% 100%

b) Picture. Willingness to launch own business, research,

"Women for Women", 2006.

0,70%

39,70%

59,60%

Yes No I don't know/No answer

13 Agencija za ravnopravnost spolova BiH, (2009), Bosanskohercegovački Gender

Akcioni plan, Poglavlje VI, page 2.


Data of willingness of women to start own business in comparation to their education, presented by research from the STAR 2002. and compared to the STAR research from 1998.14, register increased willingness to start own business among women who have primary and secondary education, while at the same time register decreased percentage among women who have higher education. Thus 1998. 6.1% of women with a primary education and 24.9% with secondary education, declared willingness to start a business, and 28.4% with a completed university degree.

In the group of women who were negatively expressed in connection with the willingness to start a business, it is not difficult to establish a connection with the level of education.15 Lack of education, knowledge, information, and etc. impact them to distrust their own abilities on the one hand, and creates objective difficulties on the other side. Therefore, it is close to half of women that said that they do not have security in their ability, knowledge, or that do not have the information needed to start independent businesses / uncertainty to be 34.12% and that do not have enough knowledge and information, 8.82%.

The reasons that we can subsume under the patriarchal power and that are limit the willingness of women to start businesses we have in 15.30% respondent: this is when business is presented as something that is off from the domain of women's activities (this is not women's work 6.8%) and rejection of such actions by the male members of the family (8.24%).

Conclusion

What can be concluded from the given data is that women in Bosnia and Herzegovina mostly are not highly educated. Often, this is the reason why they can not easily find jobs, but they are more and more willing to create jobs. Data show a trend of growth in the previous period, speaking in support of such claims.

We can say that the inclusion of women in the sphere of private entrepreneurship in Bosnia and Herzegovina is a consequence, on the one hand, huge unemployment and the desire to provide their own existence, 14 STAR Istraživanje, (november 1998.)„Žene u ekonomiji: Danas i sutra, socio-

ekonomski status žena u BIH“, (Research conducted by Prism Research), Sarajevo. 15 Marković Radović Prof. dr. Mirjana, (2005), „Žene i mali biznis“, Poslovni biro,

Beograd, pages 54 – 56.


and on the other hand, efforts to try the business world and implement their ideas.

Considering that the increasing willingness of women to turn to entrepreneurship, in a situation when a vacancy or new position comes almost five hundredths of unemployed, we need to think about further education and business training of such women. Since the major increase is recorded in women with secondary and lower education, it would be very reasonable to give them the knowledge of business skills which would ensure the increase of ability of their business success, and, on the other hand, reduce the risk of possible business failure. It would be possible, through targeted specialized business education seminars and educational workshops, which would make a lot to training women in various spheres and types of businesses.

In this regard, the initial activities were made, at least formally. Already mentioned the Gender Action Plan set the goals that connect three concepts: entrepreneurs, women, and government held activities. In this regard, in a period of two years from the adoption of the Gender Action Plan set the following goals:16

─ Conduct research on the possibility of self-employment of women in Bosnia and Herzegovina,

─ Develop a strategy for women to utilize planned programs to support entrepreneurship,

─ Strengthen the capacities of women entrepreneurs through education in companies,

─ Initiate making decision, that at least 30% of users of credit markets that are launched by Government are women entrepreneurs, etc.

References

Dostić Prof. dr. Milenko, (2002), “Menadžment malih i srednjih preduzeća”, Ekonomski fakultet Sarajevo, Sarajevo,

Marković, Radović Prof. dr. Mirjana Radović Marković, (2005), „Žene i mali biznis“, Poslovni biro, Beograd,

IFC, MI-BOSPO, (May, 2008), “Voices of Women Entrepreneurs in Bosnia and Herzegovina”, Washington, USA,

16 Agencija za ravnopravnost spolova BiH, (2009), „Bosanskohercegovački Gender

Akcioni plan“, Poglavlje VI, Sarajevo, page 28.


World Economic Forum, (2007).; US Census Bureau, (2008), Yemtsov and Tiongston,

Agencija za statistiku Bosne i Hercegovine, (2008), “Anketa o radnoj snazi 2008“, Sarajevo,

Agencija za statistiku Bosne i Hercegovine, (16.01.2009.) “Registrovana nezaposlenost u novembru 2008. godine”, Issue no.11,

DFID, (2005), ”Labor and Social Policy in Bosnia and Herzegovina: The Development of Polices and Measures of Social Mitigation. Living in BiH: Panel Study, Wave 4 Report”, Bosnia and Herzegovina Council of Ministers, Sarajevo.

STAR Istraživanje, (November, 1998), „Žene u ekonomiji: Danas i sutra, socio-ekonomski status žena u BIH“, (Research conducted by Prism Research), Sarajevo,

STAR Istraživanje, (2003) „Socio – ekonomski status žena u BiH”, Sarajevo, Agencija za ravnopravnost spolova BiH, (2009), „Bosanskohercegovački Gender

Akcioni plan“, Poglavlje VI, Sarajevo.

The Sustainability of Serbian Civil Society Organizations: Evidences and Remarks

Daniele Mezzana*

* Associazione di ricerca e formazione in Roma (CERFE), Italy


Article history: Received 21 March 2009 Accepted 7 April 2009

JEL: K4, N44

K E Y W O R D S: sustainability, civil society organizations, obstacles, legal framework, social regimes

A B S T R A C T

This article try to analyze the question of sustainability of Serbian civil society organizations (CSOs) on the basis of a research carried out by CERFE about juridical and non-juridical obstacles for CSOs. As the study highlights, CSOs: still face difficulties in obtaining real recognition of certain fundamental human and juridical rights; still do not have full self-governance; have several problems in professional identity, as regards knowledge and operative capacities; have an inadequate image and poorly recognised public role; face serious problems of sustainability. These last problems deals with such aspects as whether CSOs have the possibility to conduct certain economic activities, their taxation treatment, their opportunity to access credit, the way to obtain government funding and funds from abroad, tax incentives for individuals and firms wishing to make donations to CSOs, and more besides. On the basis of the research results, at least 5 types of “social regimes” can be identified, concerning: the production of appropriate knowledge about CSOs situations; the capacity building of CSOs; the legislative reform concerning the economic and financial aspects of CSOs life; the public communication about CSOs; the awareness-raising of political society about the CSOs problems and opportunities.

Daniele Mezzana / JWE 1-2 (2009) 60-71 61

The PRAVOK Project

Crucial obstacles for the civil society organizations (CSO) all over the world are those to the life and growth of CSOs as regards economic and financial activities, resources, and tax benefits, thus affecting the sustainability (Moore 2005; Salamon, Sokolowski, List 2003; Cacace M., Quaranta G., Quinti G. 2002; Irish, Simon 1999; Barbetta 1999). Even some studies carried out in Serbia have underlined that many problems the CSOs are coping with have to do with the limited sources of finance available, among others due to the dependency from the decreasing financial commitment of foreign donors, the modest funding by the state and private sector, the low capacity in fund raising, several legal problems concerning taxation and economic activities (FENS 2006; Golubović, Bullain, 2006; USAID 2006).

This article try to analyze the question of sustainability of Serbian CSOs on the basis of a research carried out by CERFE, within the framework of a broader project envisaging assistance to the institutions concerned of the Government of Serbia in order to facilitate citizens’ participation by creating favourable legislative frameworks1. The project was conventionally referred to by the term “PRAVOK” (from Pravni okvir, the Serbian expression for “legislative framework”). The project has been granted by the Italian Ministry of Foreign Affairs – Directorate General for Cooperation and Development. The PRAVOK project was organised as an integrated itinerary including research, training and public communication activities, from 2006 to 20082.

As many studies conducted over the last few years show, despite the start up of forms of cooperation between state and civil society and the fact that important service, information and legal assistance structures have been set up within the associations sector, there is for several aspects a weakening of civic participation, and most CSOs in Serbia today face many problems that hinder their full participation in public governance (ARGUMENT 2006; Civic Initiatives 2005; Dereta 2004; NGO Policy

1 The web site of PRAVOK project is: www.pravok.org 2 The project was conducted in partnership with the European Center for Not-for- Profit

Law (ECNL), and with the cooperation of the Associazione italiana dei comuni, delle provincie, delle regioni e delle altre comunità (AICCRE), the Association of local democracy agencies (ALDA), the Standing conference of towns and municipalities of Serbia (SKGO), and the municipalities of Subotica and Kragujevac.


Group 2001). These problems concern aspects such as knowledge and skills, public image, the available structures and resources, and inter-organisational coordination. Some of these difficulties depend on the environment these organisations operate in and, in particular, on the juridical structures whose context they work in. A notable obstacle for civil society development in Serbia has been the non adaptation of the legal framework of reference for CSOs that is still fragmented and weak (Paunović 2006; SKGO 2006; Golubovic, Paunovic, 2004; Kovačević Vučo, Milenković 2004), even if this difficulty should be partly overcome, by some new laws recently submitted to the Parliament. Some of these problems have to do with the CSOs sustainability, as the research carried out by CERFE in Serbia has shown.

The Map of Obstacles and the Guidelines

The research was focused on the drafting of a map of the juridical and non-juridical obstacles to the emergence and operative capacity of civil society. The map was drafted first by analysing the existing literature and documentation in order to create an international inventory of obstacles (both juridical and non-juridical ones) that are potentially present, in that they have been found in other countries (thus a “virtual” map of obstacles, because it has still not been verified locally), and comparing this “virtual” map with the specific reality of Serbia in order to produce a “real” map of the obstacles found in this country; this took place by consulting 53 leaders of CSOs working in Serbia and 7 Serbian experts in the legal, administrative and political fields. The map of obstacles concerning Serbia includes 120 obstacles.

The research results formed the basis for drafting the “Guidelines on the management of the juridical and non-juridical obstacles for civil society” (Mezzana, Bormioli, Cacace 2008)3, addressed to national and international public, private and non-profit organisations interested in carrying out initiatives aimed at removing the existing obstacles to the activation of civil society organisations.

As the study and the Guidelines highlights, CSOs:

3 The Guidelines have been presented and discussed in Belgrade on December 16th 2008,

within the framework of a seminar at Institute of Economic Sciences (IES). The Guidelines can be downloaded at: www.pravok.org


─ still face difficulties in obtaining real recognition of certain fundamental human and juridical rights;

─ face serious problems of sustainability driving many of them to limits of subsistence;

─ still do not have full self-governance; ─ have several problems in professional identity, as regards

knowledge and operative capacities; ─ have an inadequate image and poorly recognised public role.

In essence, what appears to emerge from all this is that CSOs still do not have a socially and publicly recognised “place”, so to speak, in the Serbian context. Hence, there is no full interpretation and adequate legitimisation of their existence, and of their work, that can lay the foundations for drafting legislation, strategies and policies.

We can now underline some of the findings of the research concerning namely the sustainability problems.

These problems deals with such aspects as whether CSOs have the possibility to conduct certain economic activities, their taxation treatment (also with respect to other organisations), their opportunity to access credit, the way to obtain government funding and funds from abroad, tax incentives for individuals and firms wishing to make donations to CSOs, and more besides. It should be recalled that as many as 9 obstacles concerning these aspects rank among the top 20 obstacles identified by the CERFE research.

The set of sustainability problems both juridical and non-juridical obstacles, specifically referring to some political and cultural aspects. The set consists of the following obstacles.

OBSTACLES ABOUT SUSTAINABILITY OF SERBIAN CIVIL SOCIETY ORGANIZATIONS

Juridical obstacles ─ Disparity between the framework regulation and tax law in

defining Public Benefit Organisation (PBO) (i.e. activities deemed for public benefit)

─ Lack of standardisation in dealing with PBOs in relation to the different organisational forms adopted

─ Lack of clarity of the definition of “economic activity of CSOs”


─ Uncertainty as to the possibility of conducting certain economic activities

─ No distinction, for tax purposes, between occasional economic activities and on-going ones

─ Low threshold of tax-exempt income generated from CSO’s economic activities

─ Difficulties in obtaining credit ─ Fundraisers’ need to meet complex legal criteria which sometimes

come from different levels of authority ─ Prohibition for foundations financed by private enterprises to do

fundraising or to ask for donations ─ Prohibition or restrictions on government funding ─ Lack of transparency of government funding ─ Existence of laws that create difficulties and restrictions for

accessing foreign funds ─ Difficulties in exchanging currencies at real market rates ─ Lack of tax incentives for individuals making donations to CSOs ─ Few tax incentives for firms making donations to CSOs ─ Insufficient tax benefits for CSOs ─ Existence of CSO tax reporting standards of the same level of for-

profit enterprises ─ The need for a formal procedure before the administrative

authorities in order to enjoy tax benefits, despite there being a legal exemption system

─ Impossibility for CSOs to apply for tax exemptions before some years have elapsed since the start of their activities

─ The need to renew the status of tax-exempt organisation every few years

─ Taxation of CSO real estate property ─ Lack of public policy instruments (public funds, for instance) to

mitigate the burden VAT imposes on non profit entities engaged in activities deemed for public benefit

─ Lack or ineffectiveness of a tax system favorable to CSOs for customs duties

─ Lack or insufficiency of the inheritance tax exemption system for CSOs

─ Difficulty for governmental bodies to make fund transfers in favour of CSOs


Non-juridical obstacles ─ Poor development of individual philanthropy and lack of

donations for the CSO sector ─ Widespread expectations of receiving free services from CSOs ─ Government inertia in accessing European Union funds ─ No government policy for enhancing the non-profit sector’s

capacity to access European Union funds ─ Lack of transparency in commissions charged with distributing

public funds to CSOs ─ Inadequacy of CSO quality evaluation systems ─ Unfair competition by CSOs financed by governmental or

municipal agencies ─ Lack of transparency in public contracting procedures ─ Delays in public administration payments to CSOs ─ Bureaucratic dysfunctions in handling European funds ─ Occasional nature of private sector contributions ─ Excessive structural and financial fragility of the non-profit sector ─ Insufficiency of self-financing mechanisms ─ Conflicts of interest for advocacy organisations that receive public

funding ─ Gradual withdrawal of foreign funds Source: CERFE 2008

The Current Situation and Open Issues

The existence of serious problems of sustainability for Serbian CSOs clearly emerges from the analysis of the obstacle map drafted on the basis of the research carried out by CERFE. The map analytically shows what the various kinds of impediments are in this sphere.

On the whole, the obstacles linked to this aspect firstly show the difficulty of CSOs to operate in the economic space. This difficulty emerges in many obstacles (see the above list) which highlights the existence of restrictions to CSOs’ economic activities and the resulting difficulty in generating income for the organisation’s operations and for its staff.

There is also a significant problem of lack of confidence and lack of recognition regarding CSOs. On the economic and financial side, this problem is seen through things like:


─ the difficulties in obtaining credit; ─ the lack of tax exemptions and facilitations for CSOs, both

Serbian and foreign ones; ─ the poor clarity of public financing procedures for CSOs.

The lack of confidence often comes about in forms of conflict or competition between CSOs and other public or private actors. This can occur through such things as:

─ the procedural obstacles to financing; ─ the poor transparency of fund allocation criteria; ─ the presence of forms of explicit blockage of financial

provisions in favour of CSOs; ─ the presence of forms of unfair competition in public

competitions.

There is a strong problem of competition also within the CSO sector itself, in which the study found a great perception of disparity in fund access, such as between large and small organisations, between those closer to political centres and those less so, or between organisations based in Belgrade or in other large cities compared to those operating in small towns.

One need hardly say that all this makes for considerable risk for the very survival of CSOs – even the most important ones. The possibility of a prolonged interruption (or great downsizing) of activities, or closure, is something very real for many organisations.

All this may lead to stress, demoralisation and demotivation for CSOs. However, there are signs, albeit contradictory ones, of change in relations between CSOs and fundraising that can deeply affect the way CSOs can guarantee their sustainability:

─ the existence of good practices of cooperation between the public and non-profit sector, and the resulting ways of CSO financing, such as in the case of governmental programmes for combating poverty;

─ forms of operative convergence between political leaders and CSOs that can also thus generate funding opportunities;

─ the emergence of a new generation of CSOs that are more careful of strategic aspects of sustainability.


New practices are also emerging, especially as regards “corporate social responsibility” (CSR) (Mezzana, Mastropietro 2004; Parodi Luna 1999). In this field, there is an initial spreading of theories and practices linked to CSR, also due to drives on the part of international and foreign organisations, and multinationals as well as CSOs and their networks, such as Civic Initiatives, FENS or the Balkan Community Initiative Fund (Belgrade NGO Center 2008). However, CSR is only slowly and very unevenly spreading. In this context, the study found:

─ the persistence of a culture still linked to state intervention and thus poorly inclined to considering private initiatives favourably;

─ the entrepreneurs’ poor awareness of the role of CSOs and the resulting tendency to finance just sporting and cultural initiatives rather than CSO activities themselves;

─ private firms’ lack of confidence in CSOs’ operative capacities; ─ the tendency for firms to associate their image to success

themes rather than to those of support to marginal people (the main activity of many CSOs);

─ the lack of tax incentives.

Underlying the CSOs difficulties in sustainability are particularly some elements of a juridical nature:

─ the lack of legislation (such as tax incentives for CSOs and for donors, or the attribution of PBO status);

─ the existence of restrictive legislation on such things as the possibility to carry on certain economic activities or to transfer government funds to CSOs;

─ legislative uncertainty on aspects such as the definition of economic activity applicable to CSOs;

─ the lack of CSO classification criteria in order to provide funding.

Here, too, the reasons underlying the obstacles in this field include a history, albeit a recent one, characterised by mutual suspicion or forms of conflict between state actors and civil society ones.

To this may be added the existence of inadequate cultural and professional models – inside some contexts, both as regards public administration and CSOs – for dealing with the need to financially support


civil society, and that are characterised by a certain degree of self-referencing. In this regard, the respondents stressed the following aspects.

• As regards public administration: ─ the existence of a public “machine” that is still backward and

little inclined to relations with external actors like CSOs; ─ public administration’s poor support in enabling CSOs to

access European funds; ─ the lack of formalised criteria for evaluating the quality of

CSO activities in order to take public funding decisions.

• As regards CSOs: ─ the attitude of many CSOs to attribute to external subjects the

responsibility of solving their own financing problems; ─ the little interest of many CSOs to have relations with public

administration. To this must be added, as already mentioned, the poor dissemination

of a donor culture (see above). The situation appears aggravated also by the gradual withdrawal of

international donors, which is driving CSOs towards new forms of financing compared to the ones they were used to. This is a serious problem – at least until such time as an appropriate system of financing by also local actors comes into operation.

Some “Social Regimes”

On the basis of the research results reported above, at least 5 types of “social regimes” (d’Andrea L., Quaranta G. 1996) can be identified. In particular, the research tried to identify some “dangers”, that is, the facts underlying the obstacles or clusters of obstacles, like the ones depicted before. We call “social regime”, in this case, the set of laws, institutions and policies that as a whole increase the capacity to handle the various dangers. These social regimes are the ways to turn these dangers into “risks”, that is, dangers made known, predictable and manageable in some way.

These social regimes, in the case of Serbian CSOs sustainability, could be: the production and management of appropriate knowledge about CSOs situations; the capacity building of CSOs; the legislative reform concerning the economic and financial aspects of CSOs life; the public


communication about CSOs; the awareness-raising of political society about the CSOs problems and opportunities. The five social regimes could be entail several kind of actions like the following ones.

I. Knowledge (i.e. promoting studies on CSOs sustainability at a local level; creating portals and websites on CSOs sustainability; creating networks for promoting information exchange on civil society’s sustainability, etc.).

II. Capacity building (i.e. promoting courses on CSO management and development; promoting courses on fund raising; organising courses on Euro-project designing; favoring contacts and international visits for CSO and public administration actors; facilitating CSO and public administration access to counseling and networking services, etc., etc.).

III. Legislative reform (i.e. promoting a favorable legal framework for endowments and foundations; promoting a favorable legal framework for voluntary organizations; broadening the definition of public benefit activities; creating incentives for firms that support CSOs; abolishing taxes on donations, etc.).

IV. Public communication (i.e. promoting public initiatives in the territory in order to enhance citizens’ knowledge of CSOs; promoting communication campaigns on CSOs; promoting competitions and prizes for CSOs; disseminating information on relations between CSOs and the private sector; promoting information channels and awareness-raising on CSOs for credit sector actors, etc.).

V. Awareness-raising of political society (i.e. organising seminars and meetings on civil society geared to political actors at national and local level; creating government interfaces with CSOs about the problems of sustainability; setting up local interfaces between local public administrations and CSOs; favoring the implementation of local partnerships, etc.).

The discussion, elaboration and implementation of these, and possible further, social regimes could be a useful way to cope with the several problems connected to sustainability of civil social organizations in Serbia.


References

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Barbetta G.P. (2000), Il settore non profit italiano. Occupazione, welfare, finanziamento e regolazione, Bologna: Il Mulino

Belgrade NGO Center (2008), «Corporate Social Responsibility. New challenges for businesses», in eObserver, May 2008, Vol. 3

Cacace M., Quaranta G., Quinti G. (2002), Marcos legales para el desarrollo de la sociedad civil en Latino América, Rome: CERFE

Civic Initiatives (2005), NGO Sector in Serbia, Belgrade: Civic Initiatives Dereta M. (2004), Dugo a površno, Belgrade: VREME d’Andrea L., Quaranta G. (1996), Civil society and risk. Contribution for a general

theory, Paper presented at Workshop CERFE-Amsterdam School of Social Research, Amsterdam, February 26

FENS (2006), Vesti: civilni sektor - polozaj i perspektive, Belgrade: FENS Golubović D., Bullain N. (2006), Perspective on Regulatory Issues for Social

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The Universal Basic Education (UBE) Programme and Women Entrepreneurship in Science and Technology: a Catalyst for Enhancing Female Participation in National Development

J.B. Bilesanmi-Awoderu*, O.O. Kalesanwo**

* Department of Curriculum Studies and Instructional Technology, Faculty of Education, Olabisi Onabanjo University, Ago-iwoye, Ogun State, Nigeria, e-mail: [email protected]

** Department of Sports Sciences and Health Education, Facultz of Education, Olabisi Onabanjo University, Ago-iwoye, Ogun State, Nigeria, e-mail: [email protected]


Article history: Received 18 December 2008 Accepted 10 April 2009

JEL: I2, L26, 01

K E Y W O R D S: entrepreneurship, women entrepreneurship, women scientists, socio-cultural perspectives, Nigeria

A B S T R A C T

This paper discussed how UBE programme could be used to promote women entrepreneurship in science and technology with the resultant effect of enhance female scientists’ participation in National development in Nigeria. Relevant literature on – UBE programme, Entrepreneurship, women entrepreneurship and women scientists were thoroughly reviewed. Militating factors against women scientists’ entrepreneurship in Nigeria were established. Based on these factors, suggestions for encouraging and promoting women scientists’ entrepreneurship were suggested. Amongst are: encouragement of female education in science and technology, socio-cultural perspectives, proper networking of successful women in science and technology in order to serve as mentor to others.

J.B. Bilesanmi-Awoderu, O.O. Kalesanwo / JWE 1-2 (2009) 72-87 73

Introduction

The idea of UBE started from the world conference on Education For All (EFA) which was held in Jomtian, Thailand from 5th-9th March, 1990. The conference was organized by the World Bank, UNDP, UNESCO and UNICEF; came up with a document entitled “World Declaration on Education for ALL and Framework for Action to meet Basic Learning Needs”. Since this placement became a sort of blueprint for all countries of the world, Nigeria cannot afford to be an on-looker. Hence, in Nigeria, the Universal Basic Education (UBE) programme was launched formally by the President, Chief Olusegun Obasanjo on 30th September, 1999. The programme is expected to be universal, free and compulsory in Public Primary and Junior Secondary Schools. UBE (2004) documented that UBE programme is a-nine year basic educational programme which has the intention of eradicating illiteracy, ignorance and poverty as well as stimulating and accelerating national development, political consciousness and national integration. Tahir (2002) opines that the overall aim of UBE is to make basic education accessible to all target groups.

Oyewobi (2000) viewed the UBE programme as a double-edged-sword which in the first instance is directed towards producing qualified boys and girls who are capable of going to higher Schools and Colleges to be trained for various services that the Country needs for development. In another token, he also submitted that it could be seen as a programme designed to help those who could not go to Higher Schools and Colleges to become good and intelligent citizens who would assist in developing the communities. According to Okiy (2004) the introduction to UBE programme is seen as a catalyst which will result in greater female participation in National development. She went further to opine that the scheme sets out specifically to redress the gender imbalance which has been evident in the Nigerian educational landscape.

The objectives of the UBE programme are as presented: 1. Developing in the entire citizenry a strong consciousness for

education and strong commitment to the vigorous promotion. 2. The provision of free universal basic education for every

Nigerian child of school going age. 3. Reducing drastically the incidence of dropout from the formal

school system (through improved relevance, quality, and efficiency).


4. Catering for the learning needs of young persons who, for one reason or another, have had to interrupt their schooling through appropriate forms of complementary approaches to the provision and promotion for life-long learning.

The factors for ensuring the achievement of the objectives are as follows:

a) Public enlightenment and social mobilization, for full community involvement.

b) Data collection and analysis. c) Planning, monitoring, evaluation. d) Teachers: their recruitment, education, training, retraining,

motivation. e) Infrastructural facilities. f) Enriched curricular g) Textbooks and instructional materials. h) Improved funding and, i) Management of the entire process.

Justifying the need for basic education, Denga (2000) opines that basic education goes beyond literacy and numeracy. He further states that it embraces all kinds of basic knowledge and skills necessary for an individual to live a useful and contended life. Hence, he suggested that children must be encouraged to develop a scientific outlook and rudimentary understanding of the natural and social environment.

The role of women in National development cannot be over-emphasized. Also, the place of science and technology is central to National advancement. No doubt, a country’s level of Scientific and Technological advancement dictates the life style and future of her citizenry. This assertion made Wambusu (2005) to opine that science-led development is one of the major strategies in the war against what seems to be the African region’s endless hunger, poverty and ill-health. In addition, increased focus on formal and informal education, new technology, empowerment of women, gender and sustainable development will undoubtedly bring the developing world closer to the developed world and reduce the huge economic gap (Naugah 2003).

The role of Science in the advancement of human beings in issues relating to public health, water, infrastructure, energy, food, security, environment and development is a prominent one. It stands to reason


therefore that as the world’s development becomes increasingly driven by and the pace also dictated by Science and Technology, no country can afford to be passive, Nigeria inclusive, Standing on the premise that the National Policy on Education (FGN 2004:30) which is the major education policy in Nigeria provides for every citizen irrespective of sex, age, race, religion and location to have an intellectual understanding of the increasing complexity of Science and Technology, coupled with the fact that women constitute more than half of the world population (UNICEF 1998). It is therefore imperative that such a formidable group be fully integrated in the moving wheel of high technology (Bilesanmi-Awoderu 2005). The focus of the society then should involve development that would take into consideration all segments of the population, women inclusive.

Women as a person and also as an agent of development has as much right to Science and Technology as the man. In line with this, UNESCO (1995) has documented the paramount and urgent need for education girls/women in African Countries. It is in this context that promoting women’s role in Science and Technology with a view to empowering them and promoting entrepreneurial development for women scientists, engineers and technologists becomes a big issue. The UNIDO’s regional typology studies on the role of women in manufacturing have revealed empirical evidence that women’s paid employment and, in particular, their participation in Industrial department, improves their quality of life, literacy and life expectancy, while decreasing their fertility rate. Remunerative employment opportunities as well as entrepreneurship also enable women to fight poverty. (UNIDO, 2001).

The Concept of Entrepreneurship

Entrepreneurship is the practice of starting new organizations, particularly new businesses. Entrepreneurship is often a difficult undertaking, as a majority of new business fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started (en.wikipedia.org/wiki/Entrepreneurship). Entrepreneurship can also be shortly defined as the willingness to take the risks involved in starting and managing a business. www.turnerlearning.com/efts/bball/econglos.htm. In the same vein, an except from the web page: http://bus.colorado.edu/faculty/meyer/6700syl.htm, documents that the


Entrepreneurship Center at Miami University of Ohio defines Entrepreneurship as the process of identifying, developing, and bringing a vision to life. The vision in this context may be an innovative idea, an opportunity or simply a better way to do something. The end result of this process is therefore the creation of a new venture, formed under conditions of risk and considerable uncertainty.

According to Di-Masi (2002), considerable effort has gone into trying to understand the psychological and sociological wellsprings of entrepreneurship. These studies noted some common characteristics among entrepreneurs with respect to need for achievement, perceived locus of control, orientation toward intuitive rather than sensate thinking, and risk-taking propensity. In addition, many have commented upon the common, but not universal, thread of childhood deprivation, minority group membership and early adolescent economic experiences as ty-pifying the entrepreneur.

Still on the uniqueness/qualities of entrepreneurs, Di-Mass (2002) listed the following as characteristics of the entrepreneurs:

─ Self-confident and multi-skilled. The person who can ‘make the product, market it and count the money, but above all they have the confidence that lets them move comfortably through unchartered water’.

─ Confident in the face of difficulties and discouraging circumstances.

─ Innovative skills. Not an “inventor” in the traditional sense but one who is able to carve out a new niche in the market place, often invisible to others.

─ Result-oriented. To be successful requires the drive that only comes from setting goals and targets and getting pleasure from achieving them.

─ A risk-taker. To succeed means taking measured risks. Often the successful entrepreneur exhibits and increment approach to risk taking, at each stage exposing him/herself to only a limited, measured amount of personal risk and moving from one stage to another as each decision is proved.

─ Total commitment. Hard work, energy and single-mindedness are essential elements in the entrepreneurial profile.

Classification of Enterprises is based on the kind or scale of activity and income:


a) Survival enterprise (mostly for poor and low income women) generally involved in traditional business activity at the survival level: these could include handcrafts, food-processing, tailoring, vending, etc. for this reason some people do not consider these women to be “entrepreneurial”.

b) Micro enterprise (mostly for poor, low and middle income women).

c) Small enterprise (mostly for middle and higher-middle income women) (ILO 2002).

Women Entrepreneurship

Women entrepreneurship is a contemporary issue of international concern. This is borne out of the fact that women empowerment is central to human development and National advancement. Ensuring or enhancing women empowerment is the business of everybody in the society. Empowerment of women entails a process of building their resource capability and skills for leadership-rights and meaningful participation in all spheres of the society (Erinosho 2005). Women entrepreneurs represent a group of women who have broken away from the beaten track and are exploring new avenues of economic participation. (Dhameja, 2002). He further advanced reasoning for women to run organized enterprises as their skill and knowledge, their talents and abilities in business and compelling desire of wanting to do something positive. Hence, if women are not marginalized and as much are actively involved in the mainstream of the National economy, it is likely that the economy becomes more stable and buoyant and consequently reduces much witnessed current economic problems.

The need to develop women’s entrepreneurship was emphasized in Beijing (1995) at the fourth World Conference on Women. The objectives are to:

─ Increase the participation of women in Industry and all other sectors, particularly in the non-traditional areas, through access to advanced technologies.

─ Promote, support and strengthen female entrepreneurship development.

─ Encourage investments in environmentally safe products and in environmentally sound and productive agricultural, fisheries commercial and industrial activities and technologies; and


─ Strengthen training opportunities for women.

However, United Nations Economic Commission for Europe (2003) reported that women entrepreneurs are less numerous than men. That is, only 9% of employed women are entrepreneur, in the Czech Republic as compared to 8.8% of men. The situation is similar in Hungary (women 9.6% and men 18%) as well as Romania ,through the proportion of self-employed women is higher due to the larger share of self-employed in agriculture (women – 17.4% and men – 32.6%). The gender gap in entrepreneurship is even higher in Shovakia and Slovenia where women’s share is respectively 4.1% (men – 10.9%) and 6.5% (men – 15.3%). Most scientists during their formal training. (http://westorg/aboutWEST/) Women Entrepreneurs in Science and Technology (WEST) organization, an organization for women in science and technology documents the following as its vision:

─ Women in science and technology should become influential role models and learn to improve the worldwide problems of poverty, health and economic growth.

─ Women have demonstrated their competence in science and technology but lack recognition and influence proportional to their talents and achievements.

─ West provides women and men an opportunity to leave a legacy by connecting others who are invested in sharing their expertise to improve the status of women create a more egalitarian world.

The mission of Women Entrepreneurs in Science and Technology is to advance women in science and technology to achieve successful recognition as contributors and leaders through entrepreneurial thinking. This is clearly stated as:

─ Women who develop entrepreneurial skills are better suited to positions of leadership and impact.

─ Women in science and technology who develop entrepreneurial thinking will be to better align their talents with business requirements to improve business performance.

─ Women can apply entrepreneurial thinking to the company environment to become intrapreneurial leader (who increase business, profits, revenue and the creation of products).

─ Women who think entrepreneurially can become better scientists and engineers.


Every nation has her teething problems in the implementation of UBE. Some of these problems have almost defied solutions in our educational system.

Denga (2003) acknowledged that the following problems bedeviled the 9 year UBE programme in Nigeria: Inappropriate funding. Irregular payment of Teachers’ salaries, Provision and maintenance of infrastructural facilities like buildings, equipment and instructional materials, poor supervision and monitoring of the programme, no clear-cut of investment on the part of the parents, private schools and dearth of statistics on children’s enrolment, number of teachers etc.

He then proffered the following as solutions to the problems: ─ Provision of appropriate data banks for effective planning. ─ Provision of guidance services to both the students and their

parents for behavioural change of attitudes towards government/public schools.

─ Government to encourage healthy partnership between them and other educational agencies in order to tackle educational funding.

─ UBE should adopt a two-fold approach i.e one for school-age children and street children and the other phase for adult literacy and continuing education to acquire and develop basic skills in family management, civic participation and citizenship education.

─ Educational experts, government educational institutions and non-government educational agencies should sensitize and encourage government and private sectors to demand commitment and sincerity of purpose in the implementation of the UBE so that old educational problems will not appear as new problems again.

UBE and Women Entrepreneurship in Science and Technology

The UBE is a scheme which is expected to keep girls in school compulsorily for nine years with an attendant prosecution for parents and or guardians who flouts the law. The girls would then have an equal opportunity for access and participation as the boys in principle and practice. The UBE is also expected to be free; hence, girls who would have hitherto been denied access for financial incapabilities would have the


opportunity of schooling. With the UBE programme in full swing and properly implemented, it is expected that Nigeria’s literacy rate estimated to be 52 percents by Babalola (2000) in Eya (2000) would increase. This expectation informed the submission of Eva (2000) where he posited that since the UBE programme is an expression of the strong desire of government to reinforce participatory democracy in Nigeria by raising the level of awareness and general education of the entire citizenry female exclusive, everything necessary should be done for the successful implementation of the programme.

The focus on Universal Basic Education therefore, as a potent factor for encouraging women entrepreneurship especially in science and technology with a view to making it a catalyst for enhancing female participation in National development can be said to be worthwhile. This is borne out of the fact that females could better be encouraged right from the primary through junior secondary school so that proper monitoring, mentoring and mainstreaming could be done with a resultant effect of more females being involved in schooling and even more so, opting for the sciences and consequently being involved in women entrepreneurship in Science and Technology. This is our thesis.

Factors Discouraging Women Scientist’ Entrepreneurship

These factors are discussed in this paper as they relate to societal norms, funding, lack of information, low skill acquisition, lack of mentors, lack of supporting networks and low level of encouragement from spouses and families. These factors include:

a) Socio-cultural factor: A major point to note here is the fact that in Nigeria, many women during the socialization process were not given enough opportunity, freedom and wherewithal to develop adequate and appropriate skills that can enable them have entrepreneurial competency. This is essentially inherent in the much created gender-related limitations which has the tendency to relegate women/females to the background.

b) Finance: Poor finances and lack of adequate funds for starting enterprises are a serious problem to women entrepreneurs. Women generally are poor for lack of funds and as such do not have enough financial backing to start a good business or sustain an existing one. In this context, Carter (2000) in the web page:


http://curopa.eu.int/comm/enterprise/entrepreneurship/craft/craft-studies/documents/womenentrepreneurs.pdf identified four areas of financing that previous researches have noted can pose particular problem for women to be that women are disadvantaged in their ability to raise start-up finance: guarantees required for external finance may be beyond the scope of most women’s personal assets and credit track record, once a business is established, finance may be more difficult for female entrepreneurs to raise than for their male counterparts, because of the greater difficulties that women face in penetrating informal financial networks and the relationship between female entrepreneurs and bankers may suffer from sexual stereotyping and discrimination. As such, majority of women business owners rely to a significant extent on self-generated finance during the start up period of their business.

c) Lack/Poor Access to Market Information: Usually educated women are not many in Nigeria. Literacy level is still at the low rate in the country. As such, many market information that could have been beneficial and in essence enhance better productivity elude the women. Most are ignorant of market trends concerning costing, pricing etc and consequently could not benefit maximally from readings of price movements and fluctuations.

d) Lack/Poor Technological Know-how: Low educational status of most women does not allow very many of them to have the opportunity of being technologically sound. Many technical skills that could hitherto have assisted to ensure successful enterprise and appropriate production techniques and product diversification are not possessed by many women. For this reason, it is almost impossible for them to be relevant in the current technological changes and the globalization of production.

e) Poor Networking/Linkage: Women are not properly connected. Many as noted earlier are poor, uneducated and unconnected. As such, good networking or linkage for support services even when available may be beyond the reach of the women.

f) Mainstreaming into Arts-related courses/paucity of Women Scientists Entrepreneurs: During schooling, many girls were


not encouraged into the sciences for reasons ranging from perception of sciences as male’s domain, teachers attitude, societal belief and students’ lack of interest. As such, not many of Women Scientists’ could be produced. This consequently would in turn decrease the number of Women Scientists engaging in establishing business/enterprises as entrepreneurs.

g) Fear of losing out: In Nigeria, women are largely responsible for household keeps such as food, water, clothing and often times their children’s education. As such they are usually afraid to invest their hard earned and much needed income into businesses or enterprises for fear of failure.

h) Unfavourable conditions/policies: It is obvious that many of the conditions for obtaining loans do not necessarily favour women. The conditions are usually stricter for women than for men. This indicates gender discrimination in possession of capital for establishing enterprises/businesses. Even when policies are formulated to disabuse this gender differences, the effect in practice is yet to be noticed. This view is documented by UNIDO 2001 where it was recorded that even in Mali, women entrepreneurs are faced with strong barriers to enterprise development in the prevailing laws and regulations. It further noted that obtaining licenses, registering the business in their own name, and applying for loans were nightmares they had to live with.

i) Lack of Mentors: It is pertinent to note that women have not gotten many mentors that they could look up to in the area of entrepreneurship. As such, they have constraints venturing into areas that they do not know familiar females that have succeeded along that line. In the words of WEST, Woman Scientists lack business issues in their industries and also they do not have easy access to mentors and role models.

j) Lack/Low level of encouragement from spouses: Men, generally enjoy to be the breadwinner of the household. They most of the time would not want their wives to be economically buoyant and independent. As such, they are not likely to encourage their wives to start businesses/enterprises that may make them economically buoyant.


Suggestions for Encouraging or Promoting Women Scientists’ Entrepreneurship

Against this backdrop, the paper offers suggestions for encouraging and promoting Women Scientists’ entrepreneurship with a view to enhancing female participation in National development. These are presented based on previous report, research findings, and suggestions of notable researchers. Specifically, UNIDO 2001 and ILO (2002) documented essential suggestions for encouraging women entrepreneurs. The investigators contend that all things being equal, the suggestions could be of great importance in the Nigerian context. The suggestions are as presented

a) Social Cultural Prospects: With the Universal Basic Education and other various intervention strategies being put in place by all the three tiers of government, to educate parents and the society at large, it is expected that enabling environment would be provided for both sexes so that during socialization process, there would be no gender gaps created. Male and female alike would be given the opportunity to acquire needed skills for entrepreneurial competency.

b) Female Awareness Campaign and Sensitization Workshops/Seminars: There is an urgent need for awareness and sensitization workshops to be organized by Women organizations, Associations, Government Gender Agencies and Units, Non-governmental Agencies and Allied organizations to educate the Women Scientists’ entrepreneurs of the new opportunities/developments at hand that could enable them overcome constraints and enhance the starting business/enterprise. Such examples could be got from organizations such as Women Entrepreneurs in Science and Technology (WEST) which is an organization for women in science and technology who want to become innovative leaders in their professions and enhance their career development. It promotes women with role models, programs and a community that provides opportunities for learning while fostering an entrepreneurial mindset. As a solution strategy, thinking take risks, learn how to solve problems in compelling new ways and led others to success. In specific terms, the Federal Government


of Nigeria should adopt an entrepreneurial culture among potential women and entrepreneurs and among youth in general, as the future entrepreneurs.

c) Improvement in the Policy/legal frame-work: There is the urgent need to improve on the existing policies and legal framework in a manner that would practically reach a satisfactory level so as to encourage the female entrepreneurs. For instance, The UNIDO (2001) teams have observed that although most governments have been introducing new gender-specific laws of a general nature, gender issues were not considered in all the other laws of relevance to women’s entrepreneurship development. It has also been observed that many support institutions were not aware of the gender-specific constraints of women entrepreneurs and therefore unable to address them adequately when providing the necessary services.

d) Encouraging Female Education in Science and Technology: More females should be encouraged to study Science and Technology in Schools and Colleges. With this, they could gain access to know-how, technologies, appropriate and adequate skills, training to upgrade their technical capabilities and their entrepreneurial and business skills whether in artisan production or in high-tech industries.

e) Encouraging Women Scientists’ Networking: Women Scientists have to be encouraged to be appropriately connected. Networking is vital to the women’s ability to access information, technology, markets and raw materials relevant to the development, sustainability or expansion of their business. As such, women networking Nationality and Internationally should be adequately facilitated. Successful Women Scientists’ entrepreneurs should be encouraged to share their experiences, counsel on problems and encourage on prospects with up-coming women scientists.

f) Fund/Finance: The Federal Government of Nigeria should provide adequate funds in form of soft loans for prospective Women Scientists’ entrepreneurs to start-up business/enterprises and or progress in their business. She can borrow a leaf from what obtains in Sweden who created a regional resources centres for women finance by the Swedish Business, Development, Agency, which is a ProWomen


Member. The Centre aim to make women’s competence more visible in society, to help them set up business and in particular to increase their participation in the labour force in non-traditional, high-tech fields.

http:90i.cordis.in/article.cfm?article=1039&lang=En.

Conclusion

In this paper, an attempt has been made to highlight the need for women entrepreneurs in Science and Technology in Nigeria with a view to providing this through effective implementation of the UBE programme. It has been documented that if women are not marginalized and as such are actively involved in the mainstream of the National economy, it is likely that the economy becomes more stable and buoyant and consequently reduce much witnessed current problems. However, the factors discouraging women entrepreneurship in Nigeria are discussed. These factors include socio-cultural factor, finance, lack/poor access to market information; lack/poor technological know how, poor networking/linkage. Other are mainstreaming into arts related courses, fear of losing out, unfavourable conditions, lack of mentors and lack/how level of encouragement form spouses.

Against this backdrop, this paper offers suggestions for encouraging and promoting Women Scientists’ entrepreneurship. These include socio-cultural prospect, female awareness campaign and sensitization workshops, improvement in the policy/legal framework, encouraging female education in Science and Technology and provision of adequate fund. In addition, networking should be encouraged where in successful Women Scientists’ entrepreneurs could share their experiences, counsel on problems and encourage on prospects. It can therefore be projected that if the UBE programme is well implemented with all the solutions suggested taken and effected, it is possible for Nigeria and indeed Africa to achieve basic education for all as a reality and not a myth and even moreso, for women especially in the area of women entrepreneurship in Science and Technology and consequent higher participation in National development.


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CIP – Каталогизација у публикацији Народна библиотека Србије, Београд 33 JOURNAL of Women's Entrepreneurship and Education : twice a Year Scientific Journal / Editor-in-Chief Mirjana Radović-Marković. - 2009, No. 1/2 - Belgrade (Zmaj Jovina 12) : Institute of Economic Sciences, 2009-. - 25 cm Polugodišnje ISSN 1821-1283 = Journal of Women’s Entrepreneurship and Education CIBISS.SR-ID 157987852