Women Entrepreneurs: A Comparison of International Small Business Owners in Poland and the Czech Republic

Journal of International Entrepreneurship 2, 61–87, 2004C© 2004 Kluwer Academic Publishers. Manufactured in The Netherlands.

Women Entrepreneurs: A Comparison ofInternational Small Business Owners in Polandand the Czech Republic∗

TERRI R. LITUCHY [email protected] University, John Molson School of Business, 1455 de Maisonneuve Blvd West, Montreal, QC H3G1M8 Canada

MARTHA A. REAVLEY [email protected] of Windsor, Odette School of Business, 401 Sunset Ave, Windsor, Ontario, Canada N9B 3P4

Abstract. Women entrepreneurs from two Central European countries with relatively new market econom-ies were interviewed for this research. The authors describe the experiences and motivation of these womeninternational business owners and compare them to the literature on women entrepreneurs in North America.Cross-culturally, women entrepreneurs share many of the same motivations for starting a business, and expe-rience similar challenges to making their enterprises successful. North American models of entrepreneurshipare also examined. The findings suggest a universal model for entrepreneurship. Suggestions for governmentpolicies are put forward. Managerial and theoretical implications are also presented and new directions forresearch on women entrepreneurs are suggested.

Keywords: women in international business, international entrepreneurship, Central Europe

Introduction

In many newly industrialized countries and economies in transition, small and mediumbusinesses account for a significant portion of the labour force as well as gross nationalproduct. Around the globe, including central and eastern Europe as well as SoutheastAsia, women are starting and operating their own businesses in record numbers. TheCanadian example typifies this emerging trend. According to the report of The PrimeMinister’s Task Force on Women Entrepreneurs, there are more than 821,000 womenentrepreneurs in Canada. The number of women entrepreneurs grew by 8% between1996 and 2001, compared with a 0.6% increase for men. Between 1981 and 2001, thenumber of women entrepreneurs in Canada increased by 208%, compared with a 38%increase for men.

While Canadian women make up a larger share of the self-employed than in anyother country, the Canadian trend toward women outpacing men in business startups

∗An earlier version of this paper was presented at the McGill University International EntrepreneurshipConference, September 2002. CIDA (through CCMS), providing some funding for this research to bothauthors; while FCAR and Concordia University provided partial funding to the first author.

62 LITUCHY AND REAVLEY

is representative of the trend, internationally (Prime Minister’s Task Force on WomenEntrepreneurs, 2003; Capowski, 1992; Chandler and Murphy, 1994; Economist, 1996).Many of these entrepreneurs are involved in international businesses (Knight, 2000).Still others need assistance in becoming truly international entrepreneurs.

Since 1989, many women in Central and Eastern Europe have been starting their ownsmall businesses, many of them are international in scope. This paper explores womenentrepreneurs in the Czech Republic and Poland. One objective of this research isto compare women entrepreneurs in these countries to each other and to the NorthAmerican literature as to the successes and challenges they face. Another objective isto test three models of entrepreneurship found in the western literature.

The democratization of Central and Eastern Europe brought with it a new economicforce—the female entrepreneur—and has enabled her to start, own, and manage a sig-nificant number of small businesses. These SMEs have played a significant role in formerplanned-economies in Central Europe (Arendarski et al., 1994; Ivy, 1996). They areconsidered critical engines of economic growth and stability for these transformingeconomies. Along with Slovakia and Hungary, Poland and the Czech Republic com-prise the “Visegrad” countries. These countries will enter the European Union in Mayof 2004 and, as such, will be faced with even greater amounts of Western competi-tion. There can be no doubt that the changes that have affected the economies of theVisegrad nations over the past ten plus years have been sweeping and fundamental.The period has seen the rise of an entrepreneurial class the likes of which has not beenexperienced in these countries before. “The creation of entrepreneurs is fundamentalto the entire process of transition” (Forst, 1996). While entrepreneurship is viewed asa key element in economic development and fundamental to the successful transitionof these economies, the cultural context and history of free enterprise in these nationsmay also affect the nature and extent of entrepreneurial motivations for both men andwomen (Fogel and Zapalska, 2001).

While most Western researchers point to the similarities between Poland and theCzech Republic and their differences from the West, others have identified distinctand subtle differences between these two Central European neighbors in their historyand culture that may impact national entrepreneurial potential (Mueller and Goic,2002). Historically, private enterprises have emerged in Poland in times of politicalunrest. Usually, these new firms were repressed when stability returned. This patternalso held true in the socialist era (Zapalska, 1997). For the most part, private enter-prise in Poland began developing in earnest after the dramatic electoral defeat of thecommunists in June of 1989. Immediately thereafter, entrepreneurs emerged. Manywomen who lost their jobs in state-run businesses, and others who had eked out liv-ings from underground private enterprises, took up the gauntlet of private businessownership.

Small businesses account for the majority of firms in Poland (Reed, 2001a). In the1990s, over 2 million SMEs were created in Poland. These businesses have generatedover one half of Poland’s economic output (Reed, 2001b) and account for over 30%of GDP (Euro-East, 2000). According to Matusiak (2003), since 1990, Poland has had64 business incubators that have helped to create over 1075 firms and over 6500 jobs.

WOMEN ENTREPRENEURS 63

To improve enterprise development and the economy, Poland has implemented legaland regulatory changes, including changes in the tax system, lowering labor costs andrevising labor standards (Reed, 2001a).

The Velvet Revolution (November, 1989) marked the beginning of a transition toa free-market economy and privatization for the Czech Republic. Many small andmedium sized enterprises (SMEs) have been started since then and women own orare partners in a significant number. SMEs (companies with less than 250 employees)employed almost 60% of employees in the Czech Republic in 2001 (Access CzechRepublic Business Bulletin, 2002a, p. 4). One sign of Czech support for SMEs is thatover 50% of Czechs prefer shopping in small stores (Access Czech Republic BusinessBulletin, 2002b, p. 1). While the domestic economy of the Czech Republic grew fasteroverall than the economy in EU countries in the first half of 2003, it is expected togrow slower than Poland according to one estimate of the International MonetaryFund (Access Czech Republic Business Bulletin, 2003, p. 15).

The conditions in Poland and the Czech Republic at the beginning of their transitionphases were different and these differences may explain some of the differences in theoverall economic performance of the two countries, in general, and entrepreneurialactivities, in particular. For example, Poland already had a tradition of some legalprivate enterprises, while the Czech Republic did not (Forst, 1996; Huntington, 1996).Poland’s history of private enterprise, albeit modest, may mean that entrepreneurshipis, in general, a more acceptable endeavor. “The longer a free market economy exits,the more time for entrepreneurial role models to emerge” (Mueller and Goic, 2002).Within the Polish context, there may be more entrepreneurial role models to mentorthe burgeoning entrepreneurial class and support them through the difficult first yearsof operation, thus contributing to their success.

Little research, however, has been published on privatization and entrepreneurshipin Central and Eastern European countries, especially about women business owners.There is a great need to understand and analyze the factors contributing to the successof entrepreneurial women in these countries and the roles these businesses can play inoverall economic growth of their home countries. Small businesses owned by femaleentrepreneurs in Poland and the Czech Republic can contribute to economic progressand the successful and full transition of these countries. Many of these businesses are in-ternational in scope, which creates additional difficulties for those managers who mustdeal with people from other cultures. SMEs, however, generate a significant amount ofinternational trade in many countries and are viewed as major tools for economic devel-opment and stability (Knight, 2000; Ivy, 1996). International entrepreneurial efforts caninvigorate local economies as well as contributing to the long-term success of the SMEitself. However, women-owned small businesses lack resources and face problems thatlarger firms do not encounter. The lack of resources, international clients/customersand suppliers, and the impending entrance into the European Union may bring addedpressures for the women entrepreneur. In addition, the successful women entrepreneurin the Czech Republic and Poland can be an important mentor, role model, and advisorto other women considering to start businesses throughout Eastern Europe and theformer Communist Block.


An objective of this research is to explore the challenges and keys to success suchas the traits, decision making and leadership styles, business knowledge and skills andability to obtain financing, of women entrepreneurs in these countries in transition.Previous research on entrepreneurship in Central and Eastern Europe has found thatthe understanding of ‘markets’ and ‘price’ was limited and that training was necessary(Dickinson, 2000; Fogel and Zapalska, 2001; Kmetz, 1992). Under a central planningeconomy, there was no need for finance or marketing functions in organizations (New-man and Nollen, 1992). This changed after 1989. While there are a few case studiesand papers on training programs published (Dana, 1992; Forst, 1996; Fulop, 1995;Hisrich and Fulop, 1995; Kmetz, 1992; McCarthy et al., 1997; Newman and Nollen,1992), most of this research did not investigate issues related specifically to womenentrepreneurs nor examine whether or not Western models of entrepreneurship couldbe applied to these countries. One exception is the research by Zapalska (1997) whofound that overall there were no significant differences in traits of successes possessedby Polish men and women entrepreneurs. Furthermore, Bliss and Garratt (2001) statedthat women have not benefited from Poland’s economic reforms equally with men asthey still receive little government support and are perceived as different from maleentrepreneurs.

An understanding of who entrepreneurs are, their needs and motivations and whatsustains them is key to the development of a cogent set of policies to assist these majoreconomic contributors. “Small-scale entrepreneurs can be the main agent of changein an economy thanks to the dynamism of their simple and flexible structures andthe driving force of the entrepreneurs themselves” (Ivy, 1978, 1996). Therefore, it isimperative to fully comprehend who the business owners are and how their activitiescan best be supported and promoted.

Many researchers have examined the differences between male and female entre-preneurs in the United States. They have found differences in demographics; personalitycharacteristics and traits (Hisrich and Brush, 1983; Schwartz, 1979); education andexperience (Birley et al., 1987; Buttner and Rosen, 1988; Hisrich and Brush, 1983); andin obtaining finances (Brush, 1992). Schein and her colleagues have found differences inthe perceived characteristics of successful men and women in different cultures (Scheinet al., 1996).

As stated above, one objective of this paper is to examine the traits and characteristicsof women entrepreneurs in the Czech Republic and Poland. Yet, as with leadershiptheory, explanations of entrepreneurship are incomplete if they rest solely on who theentrepreneur is and do not probe their behaviours as an explanation of their businesssuccess or failure.

Although women entrepreneurs tend to be well educated, they frequently lack busi-ness education and training (Brush, 1992; Lituchy et al., 2003). They may also havedifficulty accessing useful and user-friendly information about management, account-ing, marketing and finance (Buttner and Rose, 1988; Hisrich and Brush, 1987).

An additional goal of this research is to extend our understanding of the Cen-tral European woman entrepreneur by analyzing motivational factors—the relationaland the intrinsic versus financial goal explanations of entrepreneurship—and testing


the explanatory value of “Western” models of entrepreneurship on Central Europeanwomen entrepreneurs.

The significance of our findings relates to how to help Central European women en-trepreneurs be successful. What should governments, small business assistance agenciesand small business trainers do to have the greatest positive impact for these womenand their firms? What policy alternatives can be implemented to assist and help growthe businesses of these women? If the characteristics, motivation and behaviours ofCentral European women entrepreneurs are significantly different from those of west-ern entrepreneurs, this will point to a need to specifically design and tailor businessassistance programs to this population. Perhaps traditional western forms of training,education and support are irrelevant in the Central European context.

Entrepreneurial motivations

Relational theory. Buttner (2001) found that relational theory is useful in identify-ing the leadership and management styles of women entrepreneurs. Relational theoryexamines the skills and practices that female entrepreneurs use in a variety of organisa-tional settings, particularly when working with employees and clients (Buttner, 2001).Women engage in various activities that make them successful businesswomen. Theirsuccess in business is not based on the male standards of organisational relationships(Acker, 1992). Women have redefined the values and skills necessary to run a successfulbusiness from one of masculinity to one that reflects them by blending the private andthe public sphere and have adopted the relational approach in their work with theiremployees and clients (Davis, 1973; Acker, 1992).

According to Relational Theory, one’s sense of self and worth develops from one’sability to make and maintain connections with others (Buttner, 2001). The theory buildson the definition of “outcome” by including outcomes embedded in others (Buttner,2001). Women entrepreneurs, and women in general, tend to make decisions basedon how those decisions influence and affect the other people involved in the situation(Buttner, 2001). Such relational practices and activities can enhance effectiveness inorganisations (Buttner, 2001). It is enhanced because these entrepreneurial firms haveused the way they communicate to establish a new way to conduct business (Irelandet al., 2001). They have turned the old business model on its head and challenged theexisting rules (Ireland et al., 2001). This has led to the development of new businessmodels that have created new competitive life in women owned and operated businessesfirms (Ireland et al., 2001).

Intrinsic versus financial goals. As women entrepreneurs tend to use a relational ap-proach to management and leadership, one might argue that their business concernsand goals are mainly intrinsic and not financial. Brush (1992), Cuba et al. (1983), andRosa et al. (1994), all find that women tend to pursue intrinsic goals rather than fi-nancial goals. Women rank self-fulfillment as a top reason for becoming self employed(Moore and Buttner, 1997). They are also concerned with customer satisfaction andsocial responsibility (Chaganti and Parasuraman, 1996). The work of Godfrey (1995)


showed that women are less concerned with profits than male small business own-ers. Women are generally more concerned with community and associate the idea ofsuccess with individual achievement. Another study found that women are more con-cerned than men about relationships with clients and suppliers and with the welfareand happiness of their employees (Esters, 1997).

Western models of entrepreneurship

Another objective of the present study is to test Western theories of entrepreneurshipin Central European cultures. There are three models that will be examined here: theEnvironmental Approach, the Traits Approach, and the Behavioral Approach. For themost part, these approaches are the result of research in the US and Western Europe.

Environmental approach. The Environmental Approach argues that the entrepreneurmay have either a role model (parent or spouse with business experience) or a rejectionmodel. The rejection model states that the entrepreneur is motivated to start his/herown business because he/she was rejected by the family, work, or society (Ibrahim,1995). Rejection may also be described as a “push factor” that results from a perceptionof limited opportunities for advancement, job frustration, boredom, or an unreasonableboss (Buttner, 1997; Hisrich and Brush, 1987). Many North American women oftendecide to create their own businesses as a consequence of discriminatory treatment inwork organizations (Buttner, 1997; Capowski, 1992). They may hit the “glass ceiling”that stops them from reaching the top positions in organizations. Starting a businessmay provide a level of personal success unavailable to them as employees. The “rejectionmodel” best describes the motivations of those women who become entrepreneurs inreaction to workplace discrimination.

Early female entrants into entrepreneurship in Central Europe may have followed therejection model not so much as a result of discrimination but because of unemployment.From the perspective of the women of the Visegrad region, privatization meant massivejob loss. Huge numbers of highly educated, well-trained women found themselvesunemployed. Women were often the first to be laid off and found few reasonable-paying alternatives in the private sector (Grapard, 1997). “Many private employersavoided hiring Polish women due to the more costly benefits associated with lengthymaternity leave, sick-child leave, and other “pro-family” policies (Bliss and Garrat,2001, p. 337).

Traits approach. A second approach to entrepreneurship is the Traits Approach(Ibrahim, 1995; McClelland, 1987). In North America, for example, most entrepreneursdisplay similar key “traits,” such as the following: high need for achievement, risk-taking, tolerance of ambiguity, creativity intuition, flexibility, high need for autonomy,self-confidence, internal locus of control, adaptability, dominance, low need for con-formity, commitment, pro-activity, and sense of observation.

Studies in the US have found that women and men may have similar personality traits(Hisrich and Brush, 1986; Schein et al., 1996; Schwartz, 1979). One characteristic that


is not included in the traits approach, but which has been found to be important, ishumor (Graham and Duncan, 1995; Lituchy et al., 2003). Graham and Duncan (1995)stated, “Good humor helps tremendously when you have just taken the giant step ofopening your own law firm.” Therefore, in this paper, humor will be considered alongwith the other traits.

Behavioral approach. The Behavioral Approach (Ibrahim and Goodwin, 1986) de-scribes the managerial skills and competencies entrepreneurs should have and use intheir small businesses. These include strategic niche or distinctive competencies, cashflow management, strategic planning, accounting and record keeping, marketing, net-working, and delegating. Previous research in the United States has found that womenhave more difficulties than men in obtaining capital (Schwartz, 1979) and lack expe-rience in management, marketing, advertising, accounting, and finance (Buttner andMoore, 1997; Brush, 1992; Hisrich and Brush, 1985).

Research questions

Based on previous (Western and Eastern) literature, the following research questionswere developed to serve as the foundation for the interviews: What is their definitionof success? What types of business and personal problems have they encountered andto what extent has being female played a role in those problems? How do they describetheir decision-making and leadership styles? And, what, if any, business training oreducation did they receive and how would they assess the impact of such training?Also based on the literature, further questions were developed to ask the Czech andPolish entrepreneurs about their small businesses. These questions focused on start-upissues, the effects of globalization, and successes and failures.

Method

Six Czech and eight Polish women entrepreneurs participated in this study. Polishwomen entrepreneurs were invited to participate through contacts with the WarsawChamber of Commerce. In the Czech Republic, the Czech Business and ProfessionalWomen’s Association (APM) was first contacted for help in locating entrepreneurialwomen. The Chamber and Association assisted the researchers in contacting potentialcandidates for the interviews. Women were chosen to participate based on: owning asmall international business; industry (service vs. manufacturing); location—capitalcity (Prague, Warsaw) vs. other areas; and ability to meet with the researchers at amutually convenient time.

Also, for the Czech women, selection was based on whether or not they participatedin a small business training program offered through the APM. The APM programwas supported by USAID with courses in The Czech Republic followed by a summerin the United States where the women shadowed American entrepreneurs. To test therole of formal business training, the Czech sample was divided between a group of


women who received the APM training and a group who did not. The results for thesetwo Czech sub-samples were compared to those of the Polish participants who had not(as a group) completed a program similar to that offered by the APM.

Similar to research in this area conducted in other countries (McCarthy et al.,1997; Pellegrino and Reece, 1982), the case study method was employed for the pur-pose of data collection. A bilingual research assistant conducted structured interviewsin Czech or Polish. The interviews were tape recorded with the permission of theinterviewees.

Structured, open-ended questions were used as the primary data-gathering instru-ment. The interview was divided into five parts. In the first part of the interview, eachparticipant was asked to provide demographic information. In the second part of theinterview, each participant was asked to give a brief history of her business and toexplain why she decided to start her own business; what problems she faced at thestart-up stage; and what she most enjoys about being in business.

In the third part of the interview, each participant provided further background infor-mation on her business, including type, year registered, ownership, products/services,customers, competition, size, and growth in sales, and number of employees. In partfour of the interview, each participant was asked open-ended questions about the suc-cesses and challenges she faced. Specifically, she was asked to describe any problems shehad encountered in several business management areas, including finance, marketing,technology, production, managing people, and government regulations. Each womanwas also asked to identify the decision making style she used and to summarize whatit means to her to be a woman in business. Finally, each entrepreneur was asked todiscuss her plans for the future.

The interview tapes were transcribed and translated into English by bilingual researchassistants.

The researchers coded the transcripts following the methods described by Yin (1984)and Miles and Huberman (1984). Transcripts were then analyzed and coded by two ofthe researchers, individually, for each dimension of the three models of entrepreneur-ship. Next, the researchers compared results. Inter-rater reliability ranged from 85%–98% for each of the women in the study. The researchers then reviewed any differencesand came to an agreement on each of these items.

Results

This is an exploratory study and, as such, the qualitative results of the interviews aredescribed below.

Demographics. Demographic information of the entrepreneurs interviewed ispresented below. Names of the women who participated in this study have beenchanged to protect their anonymity (see Table 1 for a summary of demographicinformation). Fictitious names are used here in alphabetical order for the readers’convenience.


Tabl

e1.

Dem

ogra

phic

s.

Pre

viou

sY

ear

busi

ness

Nam

eT

ype

ofbu

sine

sses

tabl

ishe

dL

ocat

ion

expe

rien

ceE

duca

tion

Oth

erw

ork

expe

rien

ce

Cze

chA

naT

rave

lage

ncy

1993

Pra

gue

Yes

Uni

vers

ity

Psy

chol

ogy

Tra

nsla

tor

Bea

taIm

port

/mar

ket

rese

arch

1990

Pra

gue

No

Uni

vers

ity

Eco

nom

ics

Tra

nsla

tor

Cat

arin

aT

rave

lage

ncy

1993

Pra

gue

No

Hig

hSc

hool

Adm

inis

trat

orSc

hool

Dan

aA

dver

tisi

ngag

ency

1996

Pra

gue

No

Uni

vers

ity

Jour

nalis

mJo

urna

list

Wri

ter

Eva

Per

sonn

el-c

onsu

ltin

gfir

m19

96P

ilzen

No

Uni

vers

ity

Eco

nom

ics

Adm

inis

trat

orT

exti

leF

irm

Fri

eda

Per

sonn

el-c

onsu

ltin

gfir

m19

92P

ilzen

No

Uni

vers

ity

Eco

nom

ics

Bus

Dri

ver

Pol

and

Alin

aP

rodu

cetr

avel

/tou

rist

clot

hes

1990

War

saw

No

Uni

vers

ity

Che

mis

try

Res

earc

her

atst

ate

Inst

itut

e15

year

sB

iela

nB

ar19

93C

zwar

ocho

wa

Yes

Pri

mar

y20

year

sC

hoin

ska

Bea

uty

salo

n&

fitne

ssce

nter

1992

Joze

fow

(sub

.Y

esU

nive

rsit

yA

gric

ultu

re25

year

sof

War

saw

)D

ofia

Bak

ery

1991

Stub

no(n

ear

No

Voc

atio

nalK

nitt

ing

Kni

tter

atst

ate

fact

ory

Prz

emys

l)9

year

sE

wa

Pub

lishi

ngho

use

1990

War

saw

No

Uni

vers

ity

Tea

chin

g9

year

sG

awor

Dan

ce&

mod

elsc

hool

1990

Swid

nica

No

Col

lege

Tea

chin

gP

rofe

ssio

nalD

ance

rat

stat

eth

eate

rIn

gaP

rodu

cech

ildre

n’s

good

s19

93W

arsa

wY

esU

nive

rsit

yO

wne

dE

lect

roni

cstr

adin

gfir

m15

year

sIz

abel

aP

rodu

cew

omen

’scl

othe

s19

89C

zest

ocho

wa

No

Die

tary

Col

lege

Die

tary

Spec

ialis

tat

stat

eho

spit

al17

year

s


The Czech entrepreneurs were all very well educated; most of them held master’sdegrees. Most of them were currently married (or had been married) and several hadchildren. All but one of the Polish women had a university education, but these degreeswhere most often not in a field related to their small business. Most of the Polish werealso married or divorced.

Almost all of the women were involved in some aspect of international business.The Czech women’s businesses were all in the service sector, whereas half of the Pol-ish entrepreneurs owned manufacturing companies. Most of the women started theirbusinesses in the late 1980s or early 1990s. More details on these women and thesebusinesses are described below.

Czech entrepreneur Ana worked as a translator and interpreter immediately follow-ing the revolution. In 1993, she decided to open her own travel agency in Prague. Sheparticipated in the business skills training program in the United States in the summerof 1996. Entrepreneur Beata opened an import company in Prague in 1990 and builther organization into a highly respected market research firm. She also attended thesame training program as Ana in 1996. Entrepreneur Catarina started a travel agencyin Prague. She had been in business for five years. She did not attend the trainingprogram. Entrepreneur Dana started an advertising agency in Prague in April 1996.She did not participate in the training program. Entrepreneur Eva was from Pilzen.After she participated in the training program in the United States (Summer, 1995),she decided to start her own personnel-consulting firm (January, 1996). EntrepreneurFrieda was also from Pilzen. She had owned a personnel-consulting firm since 1992and attended the training program in 1996.

Polish entrepreneur Alina was from Warsaw. She was single and had worked as achemistry researcher at a state-owned scientific institute for 15 years. She had beenan avid mountain climber and decided to start a company to import the equipment,clothes, and shoes that she needed since they were not available in Poland at thattime. Entrepreneur Bielan had 20 years experience as the manager of a stated-ownedcanteen in a factory, the owner of a grocery shop, and a producer of plastic toysbefore she opened her bar with her two sons in 1993. Entrepreneur Choinska openeda beauty parlor and fitness center in her home in 1992 after her divorce. She was fromJozefow, an affluent suburb of Warsaw. Entrepreneur Dofia was from Stubno nearPrzemysl. After losing her job as a knitter at the factory, her father suggested thatshe start a bakery since she was “an excellent home baker.” Her education was in anunrelated field. She had attended a vocational school for knitting. Entrepreneur Ewawas from Warsaw. When her second child was born with Down’s syndrome, she starteda publishing business to keep her mind off of her problems as well as to publish specialtybooks for children and parents. Entrepreneur Gawor was from Swidnica. After losingher job as a professional dancer for the state-owned theater, and becoming divorced,she decided to open her own school of dance. Entrepreneur Inga had spent time inIndia with her father, a diplomat, where she ran an electronics trading company. Whenshe returned to Poland, she decided to open another business to produce children’sgoods, such as bath hammocks. Entrepreneur Izabela was from Czestochowa where she


decided to produce women’s clothes in her home “when the new economic system wasintroduced.”

Defining success. All of the Czech entrepreneurs defined success in terms of the num-ber of clients or projects they had and the extent to which the business attracted inter-national clients and customers. Ana and Frieda talked about important clients fromJapan or Russia. Ana, for example, talked about her major Russian and Polish clientsand her network of contacts. Frieda stated, “I consider what we did for them a bigjob and also a big success.” She also stated that the training program in the UnitedStates contributed to her success by changing her management style and increasing hercustomer satisfaction. Although Dana had been in business only a short time, she mea-sured success through the growing public awareness of her business and the increasingnumber of clients. Catarina defined success in terms of both the increasing number ofclients and the formation of long-term relationships with them.

For Beata, success was defined more personally. While she was extremely proud ofher business accomplishments, these achievements were tempered by a sense that shewas personally unfulfilled. Dana, the owner of the advertising agency, also felt thatbusiness success came at personal cost.

In Poland, entrepreneur Alina defined success as surviving and expanding the busi-ness. After a difficult first three or four years, she bought a company car, invested in anice promotional brochure, and advertised in specialized magazines. Because of thesethings, as well as the quality of her products, she became well known in the market.Entrepreneur Bielan stated that her most important successes were a very profitablebusiness, good organization, and no stress. Entrepreneur Choinska defined success ashaving her permanent clients visiting her fitness center every day as well as a specialatmosphere that made the clients feel at home.

Managing to keep her bakery running during difficult times was one of the successesmentioned by entrepreneur Dofia. She also mentioned expanding the business andworking with her wonderful children, who were good workers and businesspeople.Entrepreneur Ewa stated that she was “happy that thousands of children (similar to myown), their parents, and teachers use my books.” She gets a lot of thank-you letters fromall over Poland. For Ewa, success is “also a profitable business so I can hire specialists(even from abroad) for the rehabilitation of my daughter.” Ewa also established thefirst Polish association of parents having children with Down’s syndrome.

Entrepreneur Gawor mentioned “financial success as well as self-realization.” Sheloves dancing and “enjoys teaching young children this beautiful profession.” En-trepreneur Inga stated, “I am making good money. I am also proud that I am produc-ing something that helps mothers and their children.” Entrepreneur Izabela had noexperience in producing clothes when she started her company. She stated, “The greatsuccess is that the firm is still in the market despite very strong competition.”

Most of the Polish entrepreneurs mentioned financial success, while the Czechs didnot, perhaps because they are at different stages of capitalistic development or becauseof cultural differences.


Business and/or gender-related problems. The second part of the interview addressedthe types of business and personal problems faced by the female entrepreneurs. Mostof the women were concerned with how to start a business, where to get funding, howto find clients or customers, and whom to hire.

Czech entrepreneur Ana said she faced problems every day. However, her greatestconcern was finding the right people. She needed employees with English and Germanlanguage skills, and high professional standards to work with foreign customers. Peoplewith these skills are in great demand in the Czech Republic. They are difficult to recruitand expensive to maintain. Small businesses find themselves competing with largemultinational organizations for the same talent.

Beata was the owner of one of the first private businesses to open in Prague afterthe revolution. At that time, many Western nations offered a variety of financial andtechnical support to the “new capitalists.” As a result, she did not have many problems:“When I started my business the advantage was that everything was new . . . I benefitedfrom people helping me.”

By comparison, Eva, who had just recently started her business, said that she facedbureaucratic barriers and little useful support from Czech government agencies. Theinternational aid that had benefited early entrants into business was no longer available.The location of the various agencies also proved to be a problem for her: “It takes alot of time to go from one office to another . . . and I discovered that there is not muchgovernment support for small businesses.” Catarina too had problems at first. She wasuncertain how to start her business, where to find clients, and what to offer them interms of price versus quality. Frieda needed start-up money and was not sure how todeal with international competition, and hiring and managing the right people.

Many of Czech entrepreneurs had Human Resources Management problems. Thismay reflect the stresses of coping with a transitional economy that places new empha-sis on such factors as individual initiative and the need to reconfigure the employee-employer relationship. The Polish entrepreneurs also had human resource problems.The Polish bakery owners summed up the challenges this way:

Managing people was the most difficult obstacle in my business. Many times I hadto change workers, train them and give special bonuses to make them work. It wasvery difficult to motivate them to work harder than they used to work for the state-owned bakeries. Young bakers, just after school, had no experience, and this is soimportant in this production process. Those who were good often got better jobs inbigger towns.

Alina was a partner in what she called a tourist equipment company. When newregulations allowed people to start business without government permission, her com-pany was able to produce rain gear for hikers and mountain climbers. However, theregulations and practices at banks posed challenges. “Very often,” Alina complained,“you have to wait three weeks to get money from your own account from the bankdown the street.” In addition, there was no way to get a loan in 1990, and she didnot have enough collateral. Alina also found it extremely difficult to find qualified and


dedicated workers. She explained, “We lost a lot of money because of the poor qualityof their work.”

Entrepreneur Bielan did not have many difficulties. Since she was in business withother family members, they had enough savings to invest their own money, and theydid not have to hire any workers. They worked in two shifts, “so we have plenty oftime for our private lives.” The challenges faced by entrepreneur Choinska includedmarketing and competition. In regard to marketing, she said, “It was the weakest partof my business . . . . I did not realize how important it was for business and I did notknow how to do it.” Also, when she started her beauty salon and fitness center, shewas the only one offering these types of services. “Now there are four similar centersin this suburb of Warsaw; I have to compete with them.”

Entrepreneur Dofia worked as a knitter and now owns a bakery. She felt she hada “lack of experience, knowledge, and money” when she first started her business.“Government requirements for safety and health protection are too high; there are toomany inspections and unclear regulations which make each inspection appear to bethe last one for the business.” Dofia also stated that she cried when the bank askedher to prepare a business plan, because she did not know what it was. There were “toomany requirements from banks to get credit.” When she finally got a line of credit,“The inflation rate was so high that the interest was twice as high at the loan itself and Iwas sure that would be the end of my business. But the bread became very well knownat the same time, and I had permanent clients who helped me with paying back theloan.”

Entrepreneur Ewa also had challenges with finances. “There was no possibility ofgetting a loan for a publishing house business,” she explained. “Banks were not sureabout the profitability of such a business, so I had to start with importing clothes tomake money.” Entrepreneur Inga could not get bank financing either. She said, “Itried to get business loans several times. Banks asked me to prepare all documentation,which took a lot of my time and effort. And I didn’t get any loan from them, mainlybecause I lacked a safety certificate for my product.”

Entrepreneur Izabela’s challenges were different. The main problems she mentionedwere finding the right clients when she first started her business and the current com-petition. Entrepreneur Gawor did not feel she had many challenges when starting herdance school since parents are interested in their children’s futures and are willing toinvest in them.

Decision-making and leadership styles. The women were asked to describe theirdecision-making and leadership styles. Although the Czech women are the sole ownersof their businesses, most say they consult others when making decisions. Ana said thatshe knows the importance of having good staff. Although she makes her own decisions,she discusses things with other people. Still, her leadership style is best described as au-tocratic. Beata is more consultative. She stated, “We discuss and exchange ideas. I lovethe brainstorming process, but I make the decision.” Catarina is also consultative. Forexample, she often consults her twenty-eight-year-old son before she makes a decision:“I am not very well educated in management, so whatever I do, I do intuitively. I would


like to take some managerial courses, but if the need for decisions arises, I often firstthink a lot about it and then discuss it with my son. Then we come to a conclusion.”

Dana is autocratic. She makes all of the decisions herself. When she is unsure ofherself, she said, she sometimes consults others, but she makes the final decisionsherself. Eva sometimes discusses or consults with employees; then she chooses what isbest for her business. Frieda is also somewhat autocratic. She said, “I make all of thedecisions.”

In Poland, Entrepreneurs Choinska, Dofia, and Inga made all of the decisions them-selves. The others—Alina, Bielan, Ewa, Gawor, and Izabela—consulted a family mem-ber or a partner. Entrepreneur Bielan said that her oldest son made technical decisions.Izabela stated that she and her husband often quarreled, because she is more spon-taneous in decision making while her husband “thinks in a more logical way.” Alinasaid that she and her partner tried to make decisions together but that “he is betterin technical matters, and I am better in all kinds of negotiations with suppliers andclients, as well as in dealing with the bank and treasury department.”

Overall, the Czech and Polish entrepreneurs always made the final decisions and maybe characterized as strong, somewhat autocratic leaders. This leadership style is oftenprevalent among entrepreneurs, particularly those with relatively small businesses inthe early stages of development. It may cause difficulties for the businesses and theentrepreneurs themselves as the businesses grow.

Impact of business education/training. The four Czech women who participated in theAPM business-training program in the US felt that they benefited significantly fromthe experience. They felt they had a much better idea of how to run a business; howto obtain loans; and how to select, train, and motivate employees. For example, whenasked about the problems she faced, Beata could not recall any:

Right now, I cannot think of any problems. I would say that I studied a lot andlearned. The training helped me to look at the company in different ways, to see howmarketing works, how you should prepare your offers, what you should discuss withclients.

In Poland, the women entrepreneurs did not have such training programs. Some ofthe Polish women had previous business education and experience while others werewell educated in other, un-related fields. Entrepreneur Alina had a university degree inchemistry and 15 years experience as a researcher at a state-owned scientific institute.It was not her education, however, but her personal interest in mountain climbing thatgot her into the sports clothing business.

Although Entrepreneur Bielan completed primary school only, she has over 20 yearsexperience in state-owned and private businesses, including managing a canteen andowning a grocery store before she opened the bar. Entrepreneur Choinska has a univer-sity degree in agriculture. Before starting her own business, she worked with her fatherin his greenhouses and flower shop. Entrepreneur Dofia went to vocational school


for knitting, a skill not at all related to becoming a baker and running a bakery. En-trepreneur Ewa has a university degree. She taught and worked one year as a librarianat a primary school before her second child was born and she went into the publishingbusiness.

Entrepreneur Gawor had a college degree in teaching, but after she graduated shebecame a professional dancer at the state-owned theater. She did not have any businessexperience when she started her school of dance. Entrepreneur Inga also had a uni-versity degree and owned an electronics trading company in India before returning toPoland and manufacturing baby products. Entrepreneur Izabela went to dietary collegeand was a dietary specialist at a state-owned hospital before opening her own business.She had no experience in producing women’s clothing. None of the Polish womenhad any formal business or economics education or training. Entrepreneurs Inga andBielan were the only women to have had owned their own businesses in the past.

Environmental approach

As mentioned above, the environmental approach refers to having a role model orbeing rejected by society. In the Czech Republic, both Ana and Beata had role modelswho owned their own businesses. Entrepreneur Ana stated, “My grand-father was awholesaler, and my father has a building company . . . There were always stories inthe family and it was very interesting and tempting.” Dana and Eva felt rejected fromwork. Eva stated, “In practice, there is discrimination in the jobs for women. It isdifficult for an older woman to find a job.” Catarina and Frieda did not fit into any ofthe environmental approach models. They did not have role models nor did they feelrejected by society.

Several of the Polish women fit the environmental approach to entrepreneurship.Entrepreneurs Bielan and Gawor lost their jobs. Entrepreneurs Choinska, Dofia, andInga had fathers who were their role models. Their fathers had owned small businesses.Entrepreneur Izabela’s role model was her husband. The only two who do not fit thisapproach are Entrepreneurs Alina and Ewa.

Traits approach

Traits refer to the characteristics of the entrepreneurs (see Tables 2–4). In the CzechRepublic, Ana was seen as having each of the key traits listed earlier except for high needfor individuality and autonomy, internal locus of control, and low need to conform(which were not representative of her at all). The traits that best describe Ana areflexibility, sense of observation, self-confidence, and a high need for achievement.

Beata demonstrated high self-confidence and risk-taking traits. Her intuition didnot play a significant role in her business decision-making. Every other trait was codedat least once. Catarina’s traits included a high need for achievement, risk-taking, in-tuition, and flexibility. Catarina also alluded to individuality and autonomy. Danawas high in creativity and in the need for individuality and autonomy. Risk-taking,


Table 2. Czech entrepreneurs traits approach.

Ana Beata Catarina Dana Eva Frieda

N achievement ∗∗ ∗ ∗∗∗ ∗∗∗Risk taking ∗∗∗ ∗∗∗ ∗ ∗Ambiguity ∗ ∗Creativity ∗ ∗∗∗ ∗∗∗Intuition ∗∗∗ ∗Flexibility ∗∗∗ ∗ ∗∗∗ ∗ ∗∗∗N autonomy ∗ ∗ ∗∗∗ ∗ ∗Self-confidence ∗∗ ∗∗∗ ∗Internal LOC ∗Adaptability ∗ ∗ ∗∗∗Dominance ∗ ∗ ∗ ∗Low N conformity ∗ ∗Commitment ∗ * ∗Pro-activity ∗ ∗ ∗∗∗ ∗Sense of observation ∗∗∗ ∗ ∗Sense of humor ∗ ∗ ∗ ∗ ∗ ∗

∗∗∗: highly descriptive, ∗∗: descriptive, *: somewhat descriptive.

Table 3. Polish entrepreneurs traits approach.

Alina Bielan Choinska Dofia Ewa Gawor Inga Izabela

N achievement ∗∗ ∗ ∗ ∗ ∗∗ ∗∗∗ ∗∗∗ ∗∗∗Risk taking ∗ ∗∗ ∗∗ ∗∗ ∗∗ ∗∗∗ ∗∗∗ ∗∗∗Ambiguity ∗ ∗ ∗ ∗ ∗Creativity ∗∗ ∗ ∗∗∗ ∗∗∗ ∗∗∗Intuition ∗ ∗∗∗ ∗∗∗ ∗∗∗Flexibility ∗∗ ∗∗ ∗ ∗ ∗∗∗ ∗∗∗ ∗∗∗N autonomy ∗∗ ∗∗ ∗∗∗ ∗∗∗ ∗∗∗Self-confidence ∗ ∗∗ ∗ ∗∗ ∗∗∗ ∗∗∗ ∗∗∗Internal LOC ∗ ∗ ∗ ∗ ∗ ∗Adaptability ∗ ∗ ∗∗∗ ∗∗ ∗∗∗ ∗∗∗ ∗∗Dominance ∗ ∗ ∗ ∗ ∗ ∗ ∗Low N conformity ∗ ∗ ∗ ∗ ∗ ∗ ∗Commitment ∗ ∗ ∗ ∗ ∗ ∗ ∗Pro-activity ∗ ∗ ∗ ∗∗∗ ∗∗∗ ∗∗Sense of observation ∗ ∗∗ ∗ ∗ ∗ ∗∗∗ ∗∗∗ ∗∗Sense of humor ∗∗ ∗∗ ∗∗ ∗∗ ∗∗ ∗∗ ∗∗ ∗∗

∗∗∗: highly descriptive, **: descriptive, *: somewhat descriptive.

intuition, flexibility, adapting to change, dominance, commitment, pro-activity, senseof observation, and a low need to conform were also mentioned.

Flexibility, creativity, adapting to change and pro-activity were the traits used mostoften to describe Eva. She also made reference to tolerance for ambiguity, a high


Table 4. Comparison of Czech and Polish women traits approach to entrepreneurship.

Czech Poland

Traits approach No. of women Range No. of women Range

N achievement 4 0–5 8 1–5Risk taking 4 0–5 6 0–5Ambiguity 2 0–1 4 0–1Creativity 3 0–5 6 0–5Intuition 2 0–5 5 0–5Flexibility 5 0–5 4 0–5N autonomy 5 0–5 5 0-5Self-confidence 3 0–5 6 0–5Internal LOC 1 0–1 3 0–1Adaptability 3 0–5 6 0–5Dominance 4 0–1 5 0–1Low N conformity 2 0–1 6 0–1Commitment 3 0–1 6 0–1Pro-activity 4 0–5 6 0–5Sense of observation 3 0–5 5 0–5Sense of humor 6 1–2 6 1–2

need for individuality and autonomy, and dominance. Finally, Frieda demonstrated ahigh need for achievement. She also has risk-taking, a high need for individuality andautonomy, self-confidence, dominance, commitment, and pro-activity traits.

As a group, the Polish women exhibited creativity, intuition, self-confidence andflexibility. These traits were particularly strong in terms of the nature of the businessventures chosen and how these women dealt with competition. Polish intervieweesexpressed a moderate to high need for achievement. They were committed to grow-ing the businesses and spoke of plans for product, service, and market expansion.Gawor, the dance and modeling school owner, expressed pride at “winning over thecompetition.” Overcoming competition was also a theme for Izabela. Alina, the touristclothing/mountain gear manufacturer, discussed plans to double her market share byexpanding production volume and the distribution network. Dofia’s bakery businesshad expanded dramatically since its inception and she spoke of future plans for moregrowth.

As entrepreneurs in emerging-market economies, all of the Polish women showed amoderate to high propensity for risk taking. Each operated in a business environmentwith very limited information about most aspects of business. The Polish respondentswere willing to risk all they had for business success. All except one had very limitedresources to invest in their businesses at start-up. In one instance, in order to financeher tourist clothing/mountain gear enterprise, Alina sold her refrigerator.

As one would expect from those who are entering uncharted economic environments,the Polish respondents exhibited a high tolerance for ambiguity. Often, these womenfaced problems with the clarification of complicated government regulations. Predicting


competition was extremely difficult for most, particularly for those entrepreneurs facinginternational competition.

Behavioral approach

The behavioural approach examines the business behaviours utilized by the entrepren-eurs (see Tables 5–7).

All the Czech entrepreneurs had strategic niches, strong marketing skills, delegationskills, and humor. Ana and Eva mentioned all of the management skills more thanonce during the interviews. For the Czech women, the least mentioned skills were cashflow management and strategic planning.

The Polish entrepreneurs were concerned with achieving and maintaining a strategicniche in their respective markets. Several mentioned problems with managing people.Many believed that their gender exacerbated these problems. The larger enterprises (thebakery and the dance/modelling school) had problems finding qualified workers. Noneof the Polish entrepreneurs had very strong marketing skills and several expressed adesire to improve in this area. This may be indicative of their lack of formal businesstraining and underestimating the significance of Human Resources Management poli-cies and practices. Advertising, sales, and marketing strategy were central concerns.

Table 5. Czech entrepreneurs behavioral approach.

Ana Beata Catarina Dana Eva Frieda

Strategic Niche ∗ ∗ ∗ ∗ ∗ ∗Cash flow ∗ ∗Strategic plan ∗ ∗Accounting ∗ ∗Marketing ∗ ∗ ∗ ∗ ∗ ∗Networking ∗ ∗Delegating ∗ ∗ ∗ ∗ ∗ ∗


Table 6. Polish entrepreneurs behavioral approach.

Alina Bielan Choinska Dofia Ewa Gawor Inga Izabela

Strategic Niche ∗∗ ∗∗ ∗∗∗ ∗∗ ∗∗ ∗∗ ∗Cash flow ∗∗ ∗Strategic plan ∗∗ ∗∗∗ ∗∗∗Accounting ∗ ∗∗Marketing ∗∗∗ ∗∗ ∗∗∗ ∗ ∗∗∗ ∗∗∗Networking ∗∗∗ ∗ ∗ ∗Delegating ∗∗∗ ∗∗∗ ∗∗ ∗∗∗ ∗



Table 7. Comparison of Czech and Polish women behavioral approach toentrepreneurship.

Czech Poland

Behavioral approach No. of women Range No. of women Range

Strategic Niche 6 0–3 7 0–3Cash flow 2 0–3 2 0–2Strategic plan 2 0–3 3 0–3Accounting 2 0–3 2 0–2Marketing 6 1–3 6 0–3Networking 3 0–3 4 0–3Delegating 6 1–3 5 0–3

None of women mentioned cash flow management as a particularly difficult aspect oftheir businesses. However, several believed that their ability to survive and grow thebusinesses were dependent upon obtaining more capital. They noted that, in general,banks were reluctant to lend money to their businesses.

Summary and discussion

Challenges and opportunities

The Czech and Polish women in this study had similar obstacles and opportunities tothose faced by female entrepreneurs in North America (Pellegrino and Reece, 1982).The obstacles for women include: where to find start-up capital; how to attract business;and how to hire, train, motivate, and retain good employees. The opportunities includenew employment challenges as economic, social, and political conditions change. Theseobstacles and opportunities for women are similar to those reported in research inthe United States and Canada (Prime Minister’s Task Force of Women Entrepreneurs,2003; Brush, 1992; Hisrich and Brush, 1987; Schwartz, 1979). For example, the observedlack of strategic planning is consistent with North American small businesses that alsodo not do much strategic planning. Furthermore, cash flow management was not a skillthese women possessed. Some of the problems faced by the Czech and Polish womenmay be explained by the fact that they are from a country emerging from a centrallyplanned economy where such financial tools were irrelevant (Ivy, 1996).

The Czech women defined success in terms of the number of clients. While many ofthe Polish women also mentioned the number of clients, their key measure of successwas financial. All the women found starting their businesses a big challenge. The biggestchallenges or concerns included where to get funding, how to find clients/customers,and whom to hire. Many Czech and Polish women had problems with human resources.Consistent with research in North America and Central and Eastern European coun-tries, this study found that the Polish entrepreneurs experienced difficulties gettingloans from banks.


The Czech women often consulted others when making decisions because they didnot feel they had the knowledge or skills to act on their own. All of the women fromeach country could be characterized as strong, somewhat autocratic leaders, much likeentrepreneurs in the United States, especially in the early stages of their business. Thevast majority of the women interviewed sought to find and maintain a strategic nichefor their businesses.

Some of the Czech women expressed frustration with managing people, but thosewomen who participated in the training program were more successful entrepreneursthan those who did not. In economies that have not historically encouraged workerempowerment, there is a need to teach state-of-the-art human resources principles andpractices. This was a particular source of frustration for the Polish entrepreneurs. In themanufacturing enterprises, all the entrepreneurs had difficulty attracting and retainingqualified workers who were quality oriented. Most of the women have resorted tofamily, where possible, to avoid difficult human resources issues. This is a stopgapmeasure that will not sustain firm growth.

Western models of entrepreneurship

The Czech and Polish women interviewed in this study are not very different fromentrepreneurs in North America or other Central and Eastern European countries(Hisrich and Fulop, 1994; McCarthy et al., 1997) based on the traits, environmental,or behavioral approaches.

Polish and Czech women expressed a high need for achievement. All the respondentsscored relatively high on risk taking, self-confidence, pro-activity, and commitment,which are typical characteristics of entrepreneurs. This is similar to previous researchin Poland. From a list of managerial characteristics, Zapalska (1997) found men andwomen entrepreneurs in Poland to be similar. Masculine characteristics dominated—aggressiveness, determination, strong leadership, etc.

Two Czech women and three Polish women had role models. Two other Czech andtwo other Polish entrepreneurs felt rejected from previous jobs. This provides supportfor the environmental approach to entrepreneurship (Ibrahim, 1995).

Education and training

Consistent with previous research (Zapalska, 1997), the women entrepreneurs tend tobe well educated. However, they often lack specific business education and training(Brush, 1992; Hisrich and Fulop, 1994). These skills deficits may form barriers to theirsuccess. Where business-training programs are unavailable, the woman entrepreneurmay have no way to acquire the necessary business knowledge, which further reduces herchances of success. This poses significant problems for entrepreneurs in both countriesand these problems will only be exacerbated by entry into the EU. With EU entry,entrepreneurs will face new regulatory environments and competition.


None of the Polish entrepreneurs had any business or economic education or training.Four of the six Czech women interviewed participated in a small business-trainingprogram. These women felt that they benefited significantly from the program. Forexample, they stated that they had learned how to run a business more effectively, howto obtain loans, and vital Human Resources Management skills. The Czech women whoshadowed entrepreneurs in the United States seemed to have a better understandingof basic business principles and how to apply these skills to their companies thanthe women who did not receive the training. Business skills training programs wouldbe beneficial to all entrepreneurs, whether female or male, in transition economies.Indeed, Polish entrepreneurs cited their lack of training as a major barrier to success.The difficulty in writing a business plans to attain banks loans meant that a number oftheir businesses were undercapitalized at start-up.

Gender issues

Interestingly, none of the Czech women felt that gender was a significant barrier tosuccess, nor did they believe that it played an important role in the way they were treatedby financial institutions, customers, or suppliers. Indeed, more than one respondentfelt that being a woman was helpful to her business. This is also true for the Polishwomen, for the most part. However, in one instance, a Polish entrepreneur felt that inmaking contracts she had not been respected because she was a woman. Therefore, sheallowed her older son to take on this task.

The social and cultural roles played by women may place an additional burden onthem (Capowski, 1992; Stoner et al., 1990). They often must continue to perform thelion’s share of household duties while simultaneously operating as business owners.Women must juggle the roles of wife, mother, daughter and businesswoman. How wellwomen perform the balancing act and how much support they receive from friends andrelatives can be key determinants of the success or failure of their enterprises. Whilemost of the women interviewed had strong personal support networks and employedrelatives in their businesses, dependence on the kindness of family and friends is a weakand limiting human resources strategy.

Government policies

The critical importance of access to low cost loans and training in cash managementcannot be overstated (Arendarski et al., 1994; Carlsson and Mudambi, 2003). Certainly,traditional banks have a role to play in investing in these SMEs. Policies should notdiscriminate against women and, in general, procedures and approval processes forattaining low interest credit, letters of credit and other types of bridging financingand other credit instruments need to be made easier and decisions need to make ina more timely fashion. The flexibility advantage of SMEs is lost if bankers tie updecision making in long multi-step processes and procedures. Bankers have a majorrole to play in assisting entrepreneurs in the Visegrad counties as alternative lending


sources (Venture Capitalists, investment bankers and underwriters) still play only aminor role (Carlsson and Mudambi, 2003). The need for entrepreneurs to have close,positive relationships with bankers will only increase in the coming years. Bankingregulations need to change as do the attitudes of bankers towards entrepreneurs, ingeneral, and women entrepreneurs, in particular. Women entrepreneurs need to knowhow to approach the financing challenge. Many of the entrepreneurs in this study hadnot yet moved beyond the stage of personally financing their operations. This will needto change if these businesses are to grow. They will need a deeper and more advancedknowledge of all aspects of business.

Government policy should support training and retraining programs geared to up-grading and maintaining a high-quality human resource pool for SMEs. Upon enteringthe EU, competition for qualified human resources will only intensify the problemsthese women entrepreneurs have already experienced. In addition, business trainingprograms need to focus on the effective management of human resources and introducenew leadership and motivation paradigms that will assist these women in maximizingthe utility of their work forces and support her transition into western markets.

One major factor when selling into established EU markets will be product qualityand standardization (DeFillippi, 1995). In the West, this is typically managed throughcertification programs such as the ISO standards. The need for such certification willfirst be felt by manufacturing entities and thus quality issues may hit the Polish womenentrepreneurs harder as more of them were engaged in manufacturing. Governmentassistance in the form of training in ISO standards and low or no interest loans toupgrade equipment, processes and procedures and human resources will be needed.

While some of the entrepreneurs had formed businesses that were international fromthe onset or “born global” others served only the domestic market. SME owners inthe Czech Republic and Poland will need training and education on the market op-portunities that lie beyond their borders to the West. Government funded trade showsin Western markets may be helpful to some extent. However, Canadian research sug-gests that women entrepreneurs benefit least from these types of ventures. Women areleast likely to participate due to the direct costs of joining international trade mis-sions and the indirect costs of leaving their families (Reavley et al., 2003). New virtualapproaches to international marketing may serve women better. Internet systems, web-sites and web-based trade shows can better serve the needs of women entrepreneurs.The effectiveness of these systems is, of course, dependent on connectivity issues andthe existence of shared language for conducting business.

The Czech and Polish governments must continue their efforts to improve com-munication infrastructure, reduce costs, and increase accessibility. Special programscan be established in introduce and/or upgrade computer technology for SMEs andthe population, in general. These programs could serve the basic business educationneeds of established entrepreneurs and “budding” entrepreneurs, as well as openingnew markets to those who are taking their businesses international. Easy-access, low-cost, self-paced, interactive modules for business training could be developed and madeavailable not only in urban areas but in the less densely populated rural areas wherepeople are the least likely to benefit from the coming economic changes.


The significance of small businesses to the economic growth of these countries isanother reason why the success of women entrepreneurs is so important. Governmentsneed to make it easier for women to borrow money and need to provide assistancesuch as that of the Small Business Administration in the US. Assistance by developed-country governments or international organizations, such as CIDA, or the USAIDtraining program provided to the Czech women entrepreneurs can also make a notabledifference as to the success or failure of these businesses. Equally important, is thatentrepreneurs need to have easy, ready access to this training whether it is virtual orface-to-face. The services that do exist tend to be fragmented and not well publicized(Ivy, 1996). The services need to be available where the entrepreneurs are and theentrepreneurs need to be made aware of what those services can provide to them.Ready access to information in high traffic areas—tax offices; post offices; shoppingareas; internet—could markedly raise the awareness and use of small business supports.

For women wishing to start their own new ventures in Poland or the Czech Republic,the results of this research offer some insights to what they can expect and how theymight avoid or overcome early failure. First, they should acquire as much knowledgeas possible about running a small business. They should understand that the search forwhat they need may be challenging and time consuming. The process can be made easierif they network with established SME owners. Secondly, when seeking financing, theywill need to have a cogent business plan. They need to learn the language of the lendersand express their plans in terms that make sense to financial institutions. Thirdly, theyshould prepare for the human resources issues they will inevitably confront. How willthey attract and retain qualified workers as competition in labor markets heat up? Howwill they motivate employees with very different sets of values based on the workers’past experiences with socialism? To what extent does the female entrepreneur’s businessand management style lend itself to entry and success in Western markets? Finally, thereare a number of more personal issues with which the entrepreneur must contend. Howwill they balance work and family commitments? What type of support network canshe depend upon? What are the personal costs she is willing to pay for business success?

Limitations and future research

This exploratory study, like all research, has its limitations. The sample is small andfocuses primarily on women in service industries. For the most part, participants weredrawn from urban areas. The experience of rural women entrepreneurs may be signifi-cantly different and needs investigation. The data are enriched, however, by comparingwomen in two countries with different histories of embracing free enterprise and thosewith business training with those without business training. The study is also strength-ened because of the diverse experience, training and skills that the women interviewedbrought to their entrepreneurial projects.

Future research may examine how women compare to male entrepreneurs in the samebusinesses; how women entrepreneurs fare over a longer time frame; and how Polishand Czech entrepreneurs compare with those from other Central or Eastern European


countries (see for example, Zapalska, 1997). There is a great need for research to focusspecifically on women who are taking their businesses international. What are thespecific problems that they encounter? Are there certain forms or types of enterprisesthat are better suited to EU markets? Does size matter? Which factors differentiatethose who take their businesses international successfully from those who focus onlyon their domestic market? Are their different strategies that are more appropriate toservice versus manufacturing entities when entering international markets?

Conclusion

This paper provides support towards a universal model of entrepreneurship. The traits,environmental, and behavioral approaches used in North America seem to adequatelydescribe these women small business owners in the Czech Republic and Poland. Thisconsistency supports other research that shows that people in the same professions (e.g.,engineers and nurses) have more similarities than differences across cultures (Baba et al.,1998; Lituchy and Kittireungcharn, 1998). This may be true of entrepreneurs as well(Lituchy et al., 2002, 2003). The researchers, however, thought the traits model wasmissing an important trait: humor. In several studies, for example, humor has beenrelated to effective entrepreneurs and leaders, successful negotiations, and decreasedstress (Avolio et al., 1999; Graham and Duncan, 1995; Gunn, 2002; Lituchy et al.,2002, 2003). Humor was considered along with the other traits, and shown to bean important variable. Furthermore, the behavioural approach does not adequatelyacknowledge general business/management skills, general human resources skills, andcommunication skills and therefore should be revised.

Further cross-cultural examination of the experiences, traits, attitudes, and behaviorsof successful female entrepreneurs is an important avenue for academic research in boththe entrepreneurship and women-in-management fields. This research, which shouldbe extended, has particularly important implications for training women entrepreneursin developing countries.

Just as small business has been a significant engine of growth in the West, so have smallbusinesses in Poland and The Czech Republic. These successful women entrepreneurswill be important mentors, role models, and advisors to other women consideringstarting their own businesses.

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Documents

Women Entrepreneurs: A Comparison of International Small Business Owners in Poland and the Czech Republic