PROMOTING WOMEN ENTREPRENEURS in Ireland FRESH THINKING ON EMPLOYMENT SOLUTIONS
Fianna Fรกil Policy Paper prepared by Senator Mary White Seanad ร ireann Spokesperson for Jobs, Enterprise & Innovation
Endorsed by Fianna Fรกil Parliamentary Party
My passionate belief in the potential of Irish women entrepreneurs is grounded in my own experience as an entrepreneur. In 1986, when Ireland was also in a deep recession, I attended, as a local resident, a community initiative in Dundrum, Co Dublin to encourage job creating enterprises in our area. I met Connie Doody there who had started making gourmet handmade chocolates in her home. We went on to jointly establish Lir Chocolates with the primary aim of creating jobs as a response to the recession. I saw at first-hand the impact getting a job has on a young person. It is a matter of great pride to both of us that Lir Chocolates at its headquarters in Navan, more than 25 years later, employs approximately 250 people and exports over â‚Ź20 million a year.
SECTION 1:
Introduction
2
SECTION 2:
Entrepreneurial women in Ireland: the current situation
4
Table of Contents
SECTION 3:
Why so few women entrepreneurs?
7
SECTION 4:
Lessons from the International Community
9
SECTION 5:
The Policy response so far in Ireland
11
SECTION 6:
Fianna Fรกil Recommends
13
SECTION 7:
Conclusions
21
ENTREPRENEURIAL WOMEN IN IRELAND
The time has come to shoot for our ‘North Star’ - Senator Mary White
Section 1:
Introduction The greatest social, economic and political challenge in Ireland today is that of offering the realistic prospect of employment to close to 300,000 people now unemployed in our country and to the half a million students now in our secondary schools and third level colleges. All of us must surely redouble our efforts and initiatives to create jobs in order to bring hope to our currently unemployed fellow citizens and the job seekers who are graduating from our schools and colleges. The time has come to shoot for our ‘North Star’ by mobilising more imaginatively for job creation our greatest underused pool of resources and talents - that of the entrepreneurial potential of women in Ireland. The capabilities of women remain underutilised in Ireland as in the majority of countries in the European Union - whether in the boardroom or in the stream of new growth enterprises. This despite the high educational attainments of Irishwomen - 53.1% of women in Ireland aged 25-34 hold a third level qualification.1
No country can achieve its full economic potential when women are left out or left behind - Hillary Clinton, 2013
Ireland should promote female entrepreneurial ventures in the same imaginative way that inspired Ireland’s success in promoting foreign direct investment. Broadband, internet access and the growth in online commerce and communications make it easier for Irish women - no matter what part of Ireland they live in - to participate as entrepreneurs in the global economy.
ENTREPRENEURIAL WOMEN IN IRELAND
Senator Hillary Clinton and Senator Mary White at Dublin Chamber of Commerce Event.
In today’s world, it is of utmost importance to take advantage of the global marketplace and for small and medium enterprises (SME’s) to internationalise and create jobs with more speed than has been traditional. Today’s technologies allow for affordable transportation and cost efficient communication components that permit budding business ventures to thrive. Cheap airfares and innovations such as Skype and expanded use of email technologies have fostered a business environment in which, as Liam Shanahan of Peachseed says, “the whole world is now just a mouse click away.” The conventional rule of conquering the home market first and then the international market no longer applies. In April 2013, Hillary Clinton told the Women in the World Summit in Washington D.C. that “no country can achieve its full economic potential when women are left out or left behind.” Like Hillary, Sheryl Sandberg, the Chief Operating Officer of Facebook has struck a chord with women worldwide in her book, Lean-In: Women, Work and the Will to Lead (2013). Her book encourages women to “lean into your career” and states that the “good news is that not only can women have both families and careers... they can thrive while doing so.” She urges “more men to become part of the solution by supporting women in the workplace and at home.”
1 Men and Women in work, Central Statistics Office, 2011. http://www.cso.ie/en/media/csoie/releasespublications/documents/otherrelease s/2011/Women%20and%20Men%20in%20Ireland%202011.pdf
Fianna Fรกil firmly believes that more Irish women will respond enthusiastically to the human need for jobs for our young people - their sons and daughters as well as all those on the dole queues, if given more encouragement and support which specifically recognises the barriers and fears they face in becoming entrepreneurs. This Fianna Fรกil Policy Paper recognises the initiatives already in place to encourage more women entrepreneurs, particularly the measures taken by Enterprise Ireland.
My passionate belief in the potential of women in enterprise is grounded in my own experience as an entrepreneur
There are now more role models of successful Irish women entrepreneurs in all business sectors than in the last major recession in the 1980s. This paper sets out proposals for new pathways to enterprise for more women which should make it easier for them to set out on the journey of setting up a new business or becoming directly involved in the development of an existing one. The end result will be more jobs and more spending in shops and cafes in their communities. Many of the proposals apply equally to men, for example, those relating to the lack of support for selfemployed entrepreneurs in the social welfare and tax codes. We believe therefore that this Policy Paper will also resonate as relevant to male entrepreneurs. The ambition of this Policy Paper, namely a surge in women in business, will be greatly helped in most cases by a supportive male, whether that be a father, a spouse or a partner.
Senator Mary White July 2013
ENTREPRENEURIAL WOMEN IN IRELAND
Section 2:
Entrepreneurial women in Ireland: the current situation Entrepreneurship is recognised both nationally and internationally as a key driver of economic growth, playing a critical role in creating employment and fostering innovation. Entrepreneurs are therefore a vital component of economic development, as they possess the skills necessary to turn a dream into reality, by positively influencing the long-term strength of an economy. Entrepreneurs are the most powerful drivers of economic growth and job creation. Essentially they are creators of the industries of the future. In the USA, research has highlighted that virtually all net new jobs are created by companies in their first five years of existence and more specifically by startups in their very first year.2 Ireland faces unprecedented challenges in relation to the number of people unemployed. Enhancing entrepreneurship offers a significant opportunity for job creation. The Government’s 2013 Action Plan for Jobs recognises that entrepreneurship and assisting indigenous businesses to grow play a crucial role in creating jobs in the Irish economy. While the commitment of Action 184 of the Plan to “implement a range of Female Entrepreneurship initiatives in 2013� is welcome, there is little substance in that Plan to underpin it. Women entrepreneurs have the capacity to become key drivers of economic growth and national competitiveness (European Commission, 2013).3 Increasing the number of women entrepreneurs in Ireland would add jobs, both for men and for women, and will make a significant contribution to economic recovery.
2 Mitchell, Lesa. (2011) Overcoming the Gender Gap: Women Entrepreneurs as Economic Drivers. Available at SSRN: http://ssrn.com/abstract=1934906 or http://dx.doi.org/10.2139/ssrn.1934906 3 European Commission, 2013 http://ec.europa.eu/enterprise/policies/sme/promotingentrepreneurship/index_en.htm Published on 11/01/2013
ENTREPRENEURIAL WOMEN IN IRELAND
Additionally, at times of high unemployment, women-owned businesses can make a key contribution to household incomes and thus economic growth as a whole. The Global Entrepreneurship Monitor report on women in entrepreneurship (GEM, 2010) confirms that in most countries across the world, including Ireland, entrepreneurship is predominately a male activity. International studies show that women entrepreneurs are lagging significantly behind their male counterparts and Ireland reflects this international trend with women early stage entrepreneurs in Ireland outnumbered 2.5 times to 1 by men. However the Gem 2012 Report for Ireland highlights a particularly encouraging improvement in relation to early stage female entrepreneurs. The Ratio of men to women early stage entrepreneurs has improved from 2.5:1 in 2011 to 2.1:1 in 2012. Ireland also fares badly compared with other countries. In the EU 15 this ratio is 1.9:1, whereas the male dominance is down to 1.5:1 for Germany and Belgium.
Table 1: Men vs. Women: Early Stage Entrepreneurs4 Country
Men (% of male adult population)
Women (% of female adult population)
Ratio Men: Women
USA
14.3
10.4
1.4:1
Germany
6.7
4.5
1.5:1
Belgium
6.9
4.5
1.5:1
Australia
12.6
8.4
1.5:1
Sweden
7.1
4.5
1.6:1
Spain
7.1
4.5
1.6:1
Greece
10.1
5.8
1.7:1
Netherlands
10.4
6.0
1.7:1
Slovenia
4.6
2.7
1.7:1
United Kingdom
9.3
5.2
1.8:1
EU 15 AVERAGE
8.4
4.5
1.9:1
Hungary
8.3
4.4
1.9:1
FINLAND
8.1
4.3
1.9:1
EU 27 AVERAGE
10.1
5.1
2:1
Portugal
10.5
4.7
2.2:1
Denmark
6.3
2.9
2.2:1
Norway
9.6
4.2
2.3:1
Slovakia
20.3
8.1
2.5:1
IRELAND
10.3
4.2
2.5:1
Poland
13.1
5.1
2.6:1
Czech Republic
11
4.2
2.6:1
France
8.6
3.0
2.9:1
(Early stage entrepreneurs: the percentage of the working age population both about to start an entrepreneurial activity or have started one in a maximum of 3 years).
4
Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM appendix.
ENTREPRENEURIAL WOMEN IN IRELAND
Within the EU 27, only Poland, the Czech Republic and France have lower rates than Ireland of women early entrepreneurs compared to their male counterparts. In examining the sectors where women are involved in entrepreneurship, female business activity is confined in the main to what are viewed as ‘feminised’ occupational industry sectors.5 Traditionally in Ireland, women-led businesses have low costs of entry, low growth potential and the female entrepreneur tends to self-finance the business.6 These types of business include areas such as: Personal Care Hairdressing Beauty Consulting
Moreover, a higher proportion of women (51%) than men (35%) expect to trade solely on the domestic market and do not expect to generate international sales (GEM Ireland Report, 2011). For many women entrepreneurs it is easier and cheaper to set up a business in the service sector, where a significant number of the start-ups are home-based with low technology and low capital investment.
Table 2: Ratio of Men to Women Amongst Early Entrepreneurs in Age Group 7
Catering Services Business Services Training and Development Recruitment Areas
Within the EU 27, only Poland, Czech Republic and France have lower rates than Ireland of women early entrepreneurs compared to their male counterparts
These enterprises are of course highly commendable. The choice for these sectors would appear to be influenced by the prior work experience of the women in question. Business ventures in these sectors are in the main outside those eligible for financial support from State agencies as they serve local Irish markets.
5 Henry, C. and Johnston, K. (2003) State of the Art of Women’s Entrepreneurship in Ireland: Access to Financing and Financing Strategies, Centre for Entrepreneurship Research, Dundalk Institute of Technology. 6 Sinnott, E. (2008) An Exploration of Female Undergraduates’ Attitudes Towards and Perceptions of Entrepreneurship. Unpublished thesis, Centre for Entrepreneurship, Waterford Institute of Technology. 7 Source: Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM section 3-Women an Untapped Source of Entrepreneurial Potential?
ENTREPRENEURIAL WOMEN IN IRELAND
Age Group
Ratio Men: Women
18-24
1.6 : 1
25-34
2.7 : 1
35-44
2.5 : 1
45-54
2.5 : 1
Recent data (Table 2) shows that the ratio of men to women early stage entrepreneurs is much lower and more balanced in the younger age group of 18-24 years: 1:6 to 1 as compared to 2:5 to 1 for all age groups. The GEM report suggests that this better ratio for the younger women and the worse ratio for the over 25 groups may be due to the age at which women choose to start a family, and as a result, they either leave or absent themselves from the business entrepreneurial area. In Ireland, women across all age cohorts, all income categories and all educational levels, display lower rates of early stage entrepreneurial activity compared to their male counterparts. It is of concern that the low levels of women-led enterprises exist against a backdrop where female education standards are higher than men. Female participation rates in the labour force have increased significantly during the last decade and a high proportion of the female population exist in the age cohort at which entrepreneurial activity is most likely to occur (25-44 years).
Section 3:
Why so few women entrepreneurs in Ireland? Women entrepreneurs face different obstacles when starting-up and running a business.8 It appears that women who give up a normal job to establish their own businesses generally experience considerable barriers in building their businesses. Women, for example, continue to lag behind men in acquiring and building the substantial cash reserves necessary to finance a new business venture. Raising funds to start their own business continues to be a greater challenge for women. Research has also identified that a key issue experienced by women when starting a business venture centres on their ‘traditional’ familial responsibilities. The work-family management strategies chosen by women entrepreneurs have been identified as a significant determinant of venture growth by women.9 Conversely, the increased flexibility offered by working for oneself has been identified as a key motivation for female business ownership. This flexibility has however also been identified as a double edged sword, as family commitments can lead to reduced working hours in the enterprises, which can be detrimental to business success.10
Women in Ireland who express strong self belief in their ability to successfully start and run a new business are ten times more likely to be an early stage entrepreneur than those without this self-belief
The difference in confidence levels between male and female entrepreneurs in Ireland has been highlighted by the Global Entrepreneurship Monitor (GEM) Ireland 2011 report as important in understanding entrepreneurial behaviour. In particular, the report found that ‘self-confidence in own skills’ to successfully start and manage a business is higher amongst men than women (55% and 36% respectively).11 Given that women in Ireland who express strong self belief in their ability to successfully start and run a new business are ten times more likely to be an early stage entrepreneur than those without this self-belief, self-confidence has an important role to play in the numbers of women starting new ventures. Additionally, fear of failure as an inhibitor to business start-up is more prevalent amongst women (46%) in Ireland than it is among men (37%). This fear of failure is clearly a significant issue for women as a gender, as it is reported more frequently among women than it is among men in most countries. Growth aspirations are also of consequence here. In 2011, there were nine times more male than female early stage entrepreneurs who had significant growth ambitions for their new business, in that they expected to employ twenty or more employees within five years.
8
See, e.g., O.Bekh, ETF Women’s Entrepreneurship Development, Policy Brief (2012); A. Lesina, F. Lotti, ‘Do Women Pay More Credit? Evidence from Italy’, NBER Working Paper (2008); ‘women in business and decisionmaking’, Eurochambres (2004). 9
Shelton, L. M. (2006) Female Entrepreneurs, Work-Family Conflict, and Venture Performance: New Insights into the Work-Family Interface, Journal of Small Business Management, 44(2), 285-297. 10
Eastwood, T. (2004) Women Entrepreneurs - Issues and Barriers: A Regional, National and International Perspective, Exemplas Holdings Ltd., available at http://www.microfinancegateway.org/gm/document1.9.27314/30247_file_26.pdf
11
Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM section 3-Women an Untapped Source of Entrepreneurial Potential?
ENTREPRENEURIAL WOMEN IN IRELAND
The Global Entrepreneurship Monitor (GEM) highlights that there are a number of other challenges facing women entrepreneurs. They base these challenges on international comparison. These challenges include:12 Being risk averse Having lower ambition for their enterprises Having lack of knowledge in information technology Having a lack of business skills Having lack of self confidence in their own skills Being less adept at networking Having few role models
In Ireland male early stage entrepreneurs out number female entrepreneurs by 2.5:1
Enterprise Ireland also find that:
Initiatives targeted at women entrepreneurs do work Women entrepreneurs do not seek support in the same fashion as male entrepreneurs Women entrepreneurs work well in teams Continued support of female networks is necessary.
12
Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM section 3-Women an Untapped Source of Entrepreneurial Potential?
ENTREPRENEURIAL WOMEN IN IRELAND
In Ireland, male early stage entrepreneurs outnumber female entrepreneurs by 2.5:1. While greater parity between early stage male and female entrepreneurs has been reached in many countries, this is not the case in Ireland. This Fianna Fรกil Policy Paper now considers the lessons from other countries that have successfully achieved higher levels of female entrepreneurship.
Section 4:
Lessons from the International Community Government Initiatives in both the United States and Finland illustrate a long established commitment to promote women entrepreneurs. They reinforce the right of women to enjoy an agreeable balance between their entrepreneurial aspirations and family roles - a right which men have traditionally had.
The United States of America The United States is the country most often cited as the one in which positive action was taken early. In 1977 President Carter initiated the Presidential Task Force on Women Business Owners to create a more equal environment for women entrepreneurs.
Reinforce the right of women to enjoy an agreeable balance between their entrepreneurial aspirations and family roles
Initiatives such as this have helped to remove some of the barriers that women face when entering the working world and have helped to foster an appealing environment for women entrepreneurs. Continuous and many years of positive action have been manifested in legislative measures and a wide range of federal, state, and local programmes, which have greatly increased women’s participation in entrepreneurial activity. From 2001 to 2007, the number of women owned businesses in the United States increased by 20.1%.13 13
"Women-Owned Businesses." National Women's Business Council, Web. <http://www.nwbc.gov/facts/women-owned-businesses>
14
“About Office of Women Business Ownership.” U.S. Small Business Administration, web. <http://www.sba.gov/about-officescontent/1/2895%29./about-us/6733>
15
“Who We Are.” National Women’s Business Council, Web. <http://www.nwbc.gov/about-the-nwbc>
16
"Women-Owned Businesses." National Women's Business Council, Web. <http://www.nwbc.gov/facts/women-owned-businesses>
The ratio of men to women early stage entrepreneurs in the US at 1.4 : 1 (Section 2, Table 1) represents the lowest ratio and most favourable for women of all the countries mentioned by the Global Entrepreneurship Monitor (GEM) Report. There has been increased recognition of the economic and social importance of women’s enterprise and a sustained level of interest in developing policies and frameworks to support its growth. In the United States, there are several organisations and agencies with the mission of promoting women entrepreneurs in America. In 1979, the Office of Women’s Business Ownership was established by the Small Business Administration’s Office (SBA). It’s mission statement is to “establish and oversee a network of Women’s Business Centers (WBCs) throughout the United States and its territories.”14 These centers offer women opportunities to access business training, capital, and marketing opportunities. In addition, the SBA provides financial resources to many small businesses in the USA. In 2009, 1,230 microloans worth a total of 13.8 million USD were administered by SBA intermediaries -51% of the recipients of these loans were women owned businesses. In addition, the National Women’s Business Council (NWBC), established by the Women’s Business Ownership Act of 1988 is “a non-partisan federal advisory council created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners.”15 It places emphasis on research into issues that women business owners face as well as providing a forum for the discussion of how to better the position of women business owners in the USA. There are 7.8 million women owned businesses in the US according to the 2007 census. The top industries among these firms include administrative services, educational services, waste management, remediation services, retail trade, as well as arts, entertainment, and recreation.16
ENTREPRENEURIAL WOMEN IN IRELAND
Finland The Finnish government established the Women’s Enterprise Agency in 1996 to encourage and support women to become entrepreneurs. Cost-free advice has been provided to women from all over Finland with courses such as introduction to entrepreneurship information events three month courses on entrepreneurship. The project has also had success with group mentoring, particularly to migrant workers. The Finnish agency focuses on the development of networking and mentoring groups for women. Recognising that women are more hesitant than men to start a business, it set up the “entrepreneur to entrepreneur” model which provides expert mentoring to start-up and medium enterprises (SMEs) promoted by women. The Finland Women’s Enterprise Agency Mentoring Programme has been so successful that it received the European Commission Enterprise Award in 2009. The European Commission has highlighted the Finnish Women’s Enterprise Agency as a model of best practice in the European Union in promoting women’s entrepreneurship. The program stresses the importance of networking among other women entrepreneurs so it may inspire and help other aspiring women entrepreneurs. As evidenced in Table 1, Finland maintains a men:women ratio of 1.9:1 which compares favourably with Ireland’s 2.5:1 ratio.
17
“Entrepreneurship 2020 Action Plan - Reigniting the entrepreneurial spirit in Europe” The European Commission Action Plan on Entrepreneurship. Jan 2013.
ENTREPRENEURIAL WOMEN IN IRELAND
The European Commission “Entrepreneurship 2020 Action Plan Reigniting the entrepreneurial spirit in Europe”17 This Report highlights the challenges faced by the European economy today and offers suggestions to spark entrepreneurial ventures. Since 2008 the European economy has suffered the economic and financial effects of the “most severe economic crisis it has seen in 50 years.” Before the crisis, there is no doubt that Europe faced various obstacles to achieve “competitiveness and growth.” These obstacles were, according to the EU Commission, primarily fostered by the European culture “that does not recognise or reward entrepreneurial endeavours enough and does not celebrate the successful entrepreneurs, as role models who create jobs and income.” The Commission Action Plan devotes little attention to women entrepreneurs. It notes that women constitute 52% of the total European population but only one third of the self-employed or of all business starters in the EU. In recent years the Commission has inaugurated a number of modest steps to promote female enterprise: In 2009, it inaugurated the European Network of Female Entrepreneurship Ambassadors. In 2011, it inaugurated the European Network of Mentors for Female Entrepreneurs. The co-ordinator in Ireland for both networks is Carol Brady at the Galway Chamber of Commerce. There are 10 Irish based Ambassadors listed and 14 Mentors. The European Commission launched the European Network to Promote Women’s Entrepreneurship (WES). Ireland is represented on this Network by Enterprise Ireland. The weakness and lack of commitment by the Commission in its Action Plan to 2020 is shown in its one commitment to bring the current Ambassador and Mentor networks on-line in 2013-2015 so as to deepen their offer and expand their reach.
Section 5:
The Policy response so far in Ireland Enterprise Ireland together with the City and County Enterprise Boards provide the Stateâ&#x20AC;&#x2122;s services for women in enterprise. The key programme of Enterprise Ireland to support start up and early stage companies with the greatest growth potential is the High Potential Start-Up programme (HPSU) where qualifying companies are expected to have a product or service with export and global market potential.
Unfortunately, the share of women led enterprises approved under this programme has only been in the range of 7%-11% in recent years.
Table 3: High Potential Start-Ups (HPSU) Approvals of Women led Enterprises 18
Year
HPSU Approvals
Women Led Enterprises
Percentage of all Approvals Led by Women
2012
97
8
8.2
2011
93
7
7.5
2010
80
8
10
2009
73
8
11
2008
71
5
7
18
Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM section 3-Women an Untapped Source of Entrepreneurial Potential.
ENTREPRENEURIAL WOMEN IN IRELAND
Table 4: Participation in the Enterprise Ireland Competitive Start Fund Year
Applicants
Female
Approvals
Female
2011/2012
724
9%
85
8%
The manager of Enterprise Ireland’s Women’s Entrepreneurship Initiative, Jean O’Sullivan, recently stated at the Global Cartier Women’s Initiative Awards and the Global Women’s Forum on February 7th, 2013, “Enterprise Ireland’s challenge is to put the spotlight on Irish women and their tremendous entrepreneurial capability. The challenge now is not only to get more women to start new businesses, but to encourage more of them to start innovative businesses focused on exports, growth and job creation.”
The challenge now is not only to get more women to start new businesses, but to encourage more of them to start innovative businesses focused on exports, growth and job creation
In accordance with the Government’s Action Plan for Jobs 2012, Enterprise Ireland launched two financial schemes in 2012 specifically focused on women led early stage start-up companies. The aim of the two schemes was to boost the number of innovative, export oriented businesses being set up and led by women entrepreneurs.
ENTREPRENEURIAL WOMEN IN IRELAND
First, in June 2012 the Competitive Feasibility Fund of €350,000 for Women Entrepreneurs was announced to assist women led start up companies investigate the viability of a new growth orientated business proposition in manufacturing and internationally traded services which can succeed in global markets. This fund attracted over 120 applications and 20 women led businesses received feasibility grants. Second, in October 2012 the Competitive Start Fund for Female Entrepreneurs was launched. This was a €500,000 Competitive Start Fund for Female Entrepreneurs aimed at stimulating high potential women-led business start-ups. This fund was open to women-led start-ups in manufacturing and Internationally Traded Services including internet, games, apps, cloud computing, enterprise software, life sciences, food, consumer products, medical devices and e-Health. The fund attracted over 80 applications and 10 equity investments of €50,000 were awarded for a 10% equity stake in the company. These two schemes resulted in an additional 30 women becoming Enterprise Ireland clients and accessing support. Given the schemes successes, in 2013 they will be offered again with €250,000 for the Competitive Feasibility Fund and €500,000 for the Competitive Start Fund. The positive response of women to these two funds demonstrates that women do respond enthusiastically to enterprise initiatives specifically designed for and geared to them. Fianna Fáil commends these initiatives.
Section 6:
Fianna Fáil Recommends
A National Office for Women in Enterprise. Fianna Fáil recommends the establishment of a separate National Office for Women in Enterprise similar to the US and Finland. This Office will encourage and promote women entrepreneurs in Ireland with the objective of raising the start-up rate of women enterprises. We RECOMMEND that the National Office should be established within Enterprise Ireland, building on the Women Enterprise Unit already in operation. The Office ideally will have a woman director, allocated staff and a defined budget within the Enterprise Ireland budget. Such a dedicated, visible National Office for Women in Enterprise will demonstrate a clear focus on the importance of dedicated resources for the development and growth of women entrepreneurs. The National Office will provide training and assistance for women entrepreneurs and would identify specific incentives to encourage more women to get involved in entrepreneurship.
We RECOMMEND that the proposed National Office for Women in Enterprise would be replicated in the proposed Local Enterprise Offices (LEOs) at county or possibly regional level. A regional model would involve cities and neighbouring counties pooling their expertise in providing a specialist approach to female entrepreneurship. These Women in Enterprise Units would seek to ensure a friendly and encouraging response to enquiries from women and promote female enterprise in every county and city in co-operation with the National Office in Enterprise Ireland.
We RECOMMEND that the key financial organisations relevant to funding potential women entrepreneurs have a woman dedicated to interfacing with potential women start up entrepreneurs including: • The 3 main banks at central and regional levels • Seed capital funds • Microfinance Ireland We commend the initiative of Ulster Bank in launching Business Women Can in conjunction with smallbusinesscan.com. Business Women Can reaches out to and supports women in business in commercial and not-for-profit organisations. The bank has appointed 17 internal ambassadors to become champions of the initiative.
Women friendly sources of funding. Access to finance was singled out as the most frequent constraint for new entrepreneurs in the Global Entrepreneurship Monitor Reports (GEM, 2011).19 Two new funding mechanisms have been introduced in the past year: Microfinance Ireland (MFI) provides loans of up to €25,000 to new and existing micro-enterprises with less than 10 people Credit Guarantee scheme which provides partial guarantees for bank lending to SMEs. As these schemes are just commencing, it is too early to assess their effectiveness for SMEs generally, never mind the success which female entrepreneurs may have in accessing their funds. The establishment of the Small Business Finance website (www.smallbusinessfinance.ie) jointly by the Irish Banking Federation and Chambers Ireland will bring transparency and greater knowledge of finance sources to all SMEs but will be of particular benefit to female entrepreneurs.
19
Entrepreneurship in Ireland 2011. The Annual Report for Ireland, GEM section 3 - Women an Untapped Source of Entrepreneurial Potential.
ENTREPRENEURIAL WOMEN IN IRELAND
Fianna Fáil RECOMMEND that there should be adequate and transparent budgets for enterprise support schemes in the new Local Enterprise Offices (LEOs) at city and county level. Potential women entrepreneurs will in the first instance look to the new LEOs in their county or city for a range of advisory and financial supports. However, the funding allocated in recent years to their predecessors, County and City Enterprise Boards, has been woefully inadequate with funds allocated for the year in many cases fully committed by mid-year. Funds allocated to the Local Enterprise Offices (LEOs) should be sufficient to meet the demands of local entrepreneurs including women, demands which should be encouraged in the interests of job creation.
We RECOMMEND that TWO Competitive Feasibility Funds for Female Entrepreneurs be introduced annually with a fund of €350,000 each. And, TWO Competitive Start Up Funds for Female Entrepreneurs of €500,000 each be made available by Enterprise Ireland each year. This should encourage greater women participation in entrepreneurship and hence greater job creation.
On the other hand, women have high participation and achievements in education today and are capable of success in a wide range of modern technology enterprises. In addition, the ability to develop web and internet based enterprises in any location in Ireland and the potential to achieve international online sales opens up the range of growth business where women can be successful exporting entrepreneurs. We RECOMMEND that special training programmes in on-line marketing and sales be targeted at women entrepreneurs to encourage international sales. Programmes to encourage women in enterprise, operated by State or business organisations should specifically encourage women to have the confidence to engage in a broader range of business aimed at getting customers in export markets and internationalisation. Such business sectors to include: • Speciality Foods • Internet and Cloud based businesses • Development of Apps particularly for smartphones • Enterprise Software • e-Health
Greater women participation in Growth Enterprises.
We RECOMMEND specific encouragement to women to engage in more growth potential enterprises. Traditionally, women have tended to engage in enterprises for the local or Irish market and requiring little initial finance. While a proportion of these have evolved to export markets, the potential of the domestic market enterprises is limited. While all enterprises should be applauded, new business startups entirely dependent on the Irish market can be very volatile because of the dependence on this relatively small market.
Affordable air travel, transport links, communication links such as Skype and expanded use of the internet has helped entrepreneurs to become more competitive globally. Access to the Enterprise Ireland International Office Network in over 60 countries provides the ideal platform for women entrepreneurs to rapidly expand on an international scale. Enterprise Ireland can support internationalisation by: • Providing international market intelligence and market entry know-how • Assisting in introduction to buyers • Identifying potential customers • Assessing competition • Facilitating trade events and trade fairs. We RECOMMEND internationalising of new enterprises sooner rather than later for faster company growth and to create more employment. The conventional rule of conquering the home market first and then the international market no longer applies.
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Encouraging a Team approach by Women Entrepreneurs. Professor Thomas Cooney of the Dublin Institute of Technology has stated that, according to academic literature, firms founded by entrepreneurial teams are more likely to be fast growth than firms founded by an individual. His own research, Fast Growth Firms and Entrepreneurial Teams (2010) highlighted the characteristics of sharing and inclusiveness in fast growth firms which he suggests come more naturally in firms founded by teams as opposed to firms founded by an individual. Fiona Leahy, Business Adviser and Trading Coordinator of the Kerry Enterprise Board describes the business networks run by the County and City Enterprise Boards and their annual National Enterprise Day event with over 300 women as opportunities to stimulate latent entrepreneurial potential and to meet likeminded entrepreneurial women. These events encourage successful female entrepreneurs to share their experiences and tips for success. Similarly, the networks operate as a business support network for all female entrepreneurs. Members can use the networks to promote their business, create alliances with other members, learn new skills, get help from members in challenges that they may face in their business, all while increasing their contacts to encourage business development. We RECOMMEND Enterprise Ireland, Bord Bia and County and City Enterprise Boards encourage women entrepreneurs to share ideas, support each other and take a team approach to the establishment of new enterprises rather than going solo. A team approach is more likely to lead to success and also helps overcome the fears which women entrepreneurs frequently cite as barriers. Such a team approach will be based on nurturing rather than coercion.
The Need for more support for Childcare Provision.
Even now in the early 21st century, care responsibilities continue to fall disproportionately on women. In the context of promoting women entrepreneurs some commentators have identified childcare as a key obstacle for women’s involvement in entrepreneurship. CSO statistics highlight that while women begin their working life with higher participation rates than men, this participation drops drastically when they have children.20 This is partly attributable to the fact that childcare costs in Ireland are one of the highest in Europe. There are numerous studies which demonstrate the high costs in Ireland. For example, a study in developed countries by the OECD (Gender Brief 2012) estimated that childcare costs in Ireland absorb 29% of net family income more than double the OECD average of 13% and the third most expensive behind the UK and Switzerland. Indeed, these costs may well rise further following the RTE Prime Time investigation revealing poor practices in the crèches involved. Higher levels of training and pay for staff will be needed to improve care and practices. The free pre-school year in the Early Childhood Care and Education Programme (ECCE) introduced in Ireland in 2010 brings participation rates in State funded pre-school in the year before Junior Infants to 93%. Improving the standard of care and the educational content in the free preschool year should be part of the evolution of this programme. The provision of out of school childcare services is recognized as an important complementary service in other countries. In the UK, they refer to “Wraparound” services (breakfast clubs, 2-3 pm clubs, after school clubs, and holiday schemes) which are provided in primary schools or in partnership with primary schools.
20
Central Statistics Office (July 2012), Profile 3 At Work.
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The National Women’s Council of Ireland (NWCI) has called for this ECCE free pre-school year to be extended to a second year and have identified the neglected issue of out-of-school childcare provision as a barrier to women’s employment. This also applies to female engagement in entrepreneurship. The NWCI has also called for a universal and subsidised extended Out-of-School Care service for five to fourteen year olds to be introduced on an incremental basis. They propose that places should be provided for all eligible five and six year olds in year 1 and extended by each age group per annum up to 10 year olds and incrementally so all eligible 13 and 14 year olds are included in the following years. We recognise that improving and extending childcare and providing out-of-school hours care for working mothers including female entrepreneurs requires more public funding. However, we favour setting out a series of progressive steps for improved childcare provision to be achieved as public finances improve. In some instances, such as the provision of out-ofschool services, a willingness to be imaginative and achieve a co-operation between primary schools and the community may be as important as money. We as a nation need to have a shared vision for the care and education of our children. We RECOMMEND • That the quality of care and educational experience in the free pre-school year be improved through training of staff and management. • Extending the free pre-school year for a further year to children aged 3 years. • An imaginative approach to the provision of out-of-school hours services (as in the Wraparound services in the UK) in partnership with primary schools and the community. • That cognisant of financial constraints on the State at present, that an incremental approach to the provision of State subsidised Out-of-School care services for five to fourteen year olds and the extension of the pre-school service to another year so as to facilitate the growth of female enterprise in Ireland be considered.
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Sharing Maternity Leave with Fathers. Maternity leave has been extended considerably in Ireland over the past 20 years. Currently, women are entitled to 26 paid weeks and an optional 16 weeks unpaid maternity leave. Yet, the feasibility of a female entrepreneur leaving her own business for such an extended period of time is questionable. Under the current State benefit maternity leave system, only the mother is allowed to avail of the payment. The current State system, does not allow women to transfer part of their paid maternity leave to the father so that he could share in caring for the baby. If such a partial transfer was possible it could allow women entrepreneurs a degree of control and flexibility over the time they decide to take off after the birth of their baby.
We RECOMMEND the current maternity leave scheme should be amended to enable a woman to transfer a portion of her maternity leave and benefits to the father of the child. Such flexibility in the maternal leave scheme would allow women entrepreneurs to devote more time to their enterprises. It would also have the added impact of enabling fathers to have a more ‘hands on’ opportunity in the rearing of their children and underpinning the concept of a shared responsibility for the care of children. (See Appendix 1 for Fianna Fáil Parental Leave Bill 2013.) Fianna Fáil acknowledges the indication that the Government is to “accept the principle of the Bill” as conveyed by Minister of State Kathleen Lynch T.D. on the occasion of the introduction of the Bill in Seanad Éireann on 10 July 2013. The Minister’s commitment to “return with amendments to the Bill in the first quarter of 2014” is most welcome.
Removing State biases against the Self Employed - men and women. There are numerous laws and regulations in Ireland which carry an inbuilt bias against the self-employed. The most objectionable aspect is the lack of access to social welfare support for the Irish man or woman who starts a business and employs people but who may have to cease trading due to the severe impact of the economic recession/slowdown since 2008. If the business ceases trading, the employees rightly can access social welfare support but the entrepreneur who created or developed the business is left to fend for themselves. The Government have prevaricated in their response to this acute issue. The Action Plan for Jobs 2013 is to “consider options to extending benefit cover to the self-employed based on the recommendations of a working group on the issue”. (Action 176) There is no timeline for any action on this issue and the Progress report for the first quarter of 2013 omits any reference to this pressing issue. Such a bias runs through a range of Irish laws and reflects a suspicious and hostile attitude in the ideology of the State toward the self employed business sector.
We RECOMMEND: • Access to social welfare support for entrepreneurs. Fianna Fáil leader Micheál Martin TD stated at the Ard Fheis in April 2013, that for a start, people who take risks starting a business should have access to welfare payments if their business fails. Such a scheme should be introduced as a matter of urgency. It may require a marginal increase in the general level of PRSI contributions. • Maternity leave for the Self Employed. A discrepancy exists in the way in which the state has set out qualification conditions for Maternity Leave between self-employed women and employees. A woman entrepreneur must have 52 weeks of PRSI contributions paid in the relevant tax year, as opposed to a minimum of 39 weeks for an employee. The result is that it is a much more difficult choice for those women who work for themselves to meet the criteria set out for this benefit. Additionally, self-employed women have to apply for this benefit 12 weeks before the intended start date of the leave, while employees only have to give six weeks’ notice. These issues facing women entrepreneurs should be addressed to provide parity between women employees and women entrepreneurs. • That the qualifying weeks in terms of PRSI payments to qualify for Maternity leave should be the same for women entrepreneurs as for women employees (39 weeks compared with the current 52 weeks for entrepreneurs) and that the advance notice should also be similar (6 weeks instead of the current 12 week requirement for entrepreneurs).
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They aim to empower young people to develop their own abilities and attributes, to think for themselves, to make things happen and to contribute to their community and society. They develop increased self-confidence, self-reliance, resilience and a greater capacity to take charge of their lives. It’s what happy, thriving societies need. Their purpose is to enable young people to involve themselves consciously and actively in their development and in the development of society.
Encouraging Women Entrepreneurs at all levels of education. There are many excellent initiatives being taken at all levels of education to encourage enterprise and innovation. Some examples include: • Biz Kids: Biz Kids is “the place where kids teach kids about money and business.” The aim of this program is to educate the youth about topics such as entrepreneurship, financial markets and planning, personal finances, and saving. • The Student Enterprise Awards: Promoted by the County and City Enterprise Boards, have a participation of some 20,000 second level students. • Sean Lemass Awards: The top 3 winners of the Student Enterprise Awards and 3 winners of Mini Company projects are presented with this Award, introduced in 2010. The award was developed to raise the profile of enterprise in schools with the intention that it would be a regular event. • The Young Entrepreneur Programme (YEP): Pioneered by entrepreneur Jerry Kennelly in the Mid West region involving Tralee IT, University of Limerick, secondary schools and Shannon Development. A key part of the approach was a boot camp programme allowing the students to hear from and interface with entrepreneurs. Over the past seven years, 3,400 students from Kerry have participated in the YEP. He said that from 2014 on, YEP organisers have been forced to cut back the programme and replace it with an online programme and 2 day boot camp. • The Coder Dojo: This initiative involves parents and IT experts in local communities organising out of school hours training and experience for second level students in learning about coding and programming. • Foróige: This Network for Teaching Entrepreneurship (NFTE) engages young adults throughout Ireland in a range of practical enterprise experiences. Foróige is a highly successful youth organisation that has been working with young people since 1952. They currently work with 1 in 8 young people in Ireland.
Fianna Fáil will ENCOURAGE and SUPPORT the current range of enterprise learning initiatives, including at least one work experience, at all levels of education and will through the proposed Office of Women in Enterprise foster special emphasis on female participation including, where advantageous, special classes, programmes or awards for girls.
Fianna Fáil will incorporate Entrepreneurship learning modules in the curriculum right from primary, through second and third level education
The European Commission 2020 Action PlanReigniting the Entrepreneurial Spirit in Europe supports such a move when it recommends, “that the key competence ‘entrepreneurship’ is embedded into curricula across primary, secondary, vocational, higher and adult education before the end of 2015” in addition to “one practical entrepreneurial experience before leaving compulsory education.”21 Such a move is reflected in the views of Loman O’Byrne, chairman of the Student Enterprise Awards when he states that “entrepreneurship must go on the formal school curriculum because we have gone about as far as we can with the current extracurricular voluntary model.” 21
The European Commission 2020 Action Plan - Reigniting the Entrepreneurial Spirit in Europe, Jan 2013. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0795:FIN:en:PDF
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Enhancing enterprise via role models and networking. There are numerous ways to foster the image and attraction of enterprise for females and encourage greater participation by women in a wide range of growth enterprises.
• European Women in Business (EWIB): European Women in Business looks to recognize “the changing culture of business” and assist women of many ages and fields in their business aspirations. In addition, EWIB promotes a healthy work/life balance amongst women entrepreneurs.
Fianna Fáil RECOMMEND the provision by Enterprise Ireland and Bord Bia of women internships, placements and bursaries abroad with firms in growing markets so as to familiarise themselves with international markets and business networks.
• Women’s Executive Network (WXN): The Women’s Executive Network is “dedicated to the advancement and recognition of executiveminded women in the workplace.” The Network is one of the largest communities of female entrepreneurs across Canada and Ireland. They stress not only networking opportunities, but the use of a mentoring program as well.
We encourage Ernst & Young Ireland to introduce in Ireland the programme they have In the United States. ‘Entrepreneurial Winning Women’ is a leadership program that selects a group of highpotential women entrepreneurs whose businesses show real potential and supports them in their business ventures. We acknowledge and support the positive role of various women networks in encouraging confidence and business contacts for female entrepreneurs. For example: • Network Ireland: Network Ireland looks to increase networking opportunities of women in Ireland as well as to “promote women as worthy contributors to the Irish economy and decision-making bodies.”
We will support programmes such as “Going for Growth,” founded by Paula Fitzsimons, founder and managing director of Fitzsimons Consulting as well as the national coordinator of GEM. Programmes such as this are aimed specifically at existing female led enterprises with the aspiration to expand significantly. Through the use of ‘roundtable’ conversations, female entrepreneurs are able to access female enterprise support groups. Entrepreneurs are also mentored by other very successful female entrepreneurs to grow their businesses. Going for Growth was selected to represent Ireland in the Investing in Skills Category of the European Enterprise Awards 2011.
• Women in Business NI: Women in Business NI hosts various networking events in Northern Ireland monthly on a wide variety of topics to teach and inspire women entrepreneurs to have a positive impact on the economy. • Women in Technology and Science (WITS): Women in Technology and Science is a special organization “for women in science, technology, engineering and mathematics (STEM).” Like many other organizations that focus on networking, WITS helps women in these fields make connections and learn from one another. WITS specifically “was one of the first initiatives aimed at increasing the number of women on boards.”
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Seniors: Encouraging Women at Every Stage of Life. Success can begin at any and every stage of life. Studies have shown that successful women entrepreneurs start their businesses as a second or third profession. Many women have experienced a considerable amount of dissatisfaction in their previous careers dealing with corporate politics while attempting to climb the corporate ladder. Additionally, most women are still primarily responsible for childcare and elder care in their families. This multi-tasking and juggling of responsibilities should be highlighted as valuable transferable skills. Research conducted with Canadian small business owners reported that ‘seniorpreneurs’ (small business owners over the age of 55) are a key driver of small business growth. In Ireland, measures that promote this goal have included events such as the National 50+ Enterprise Day, sponsored by the County & City Enterprise Board. The event advocates effective strategies for managing small businesses as well as providing a support group for those individuals 50+ aspiring to enter into the business world.
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We RECOMMEND: • That women in middle management and Irish women who have been out of the workforce for various reasons should be specifically encouraged to become entrepreneurs. • That senior women entrepreneurs who have pioneered or expanded enterprises be invited to participate in networks and become mentors to less experienced women. We commend the work of the organisation, Senior Enterprise and the County and City Enterprise Boards, which encourages seniors to enter back into the work force, either through establishing their own businesses or partnering with younger individuals. The seniors thus provide a wealth of information and experience to younger entrepreneurs.
Section 7:
Conclusion The lack of female entrepreneurs in Ireland is not a ‘women’s’ problem, to be solved for the benefit of women and to address issues of equality. It is a national problem that affects the economic growth and development of our country. In fostering women entrepreneurs it is important to apply a holistic approach and work on a number of key supporting factors simultaneously, for example, providing better access to finance, targeted entrepreneurship and training and the development of networks of entrepreneurs. It is also necessary to create a favourable environment by fighting stereotypes and changing perceptions and enabling a better work-life balance for women entrepreneurs. Research carried out by Ernst & Young with 685 business leaders worldwide, in an attempt to fathom the nature/nurture debate in relation to entrepreneurs, found that while there may be no ‘entrepreneur gene’, entrepreneurs share core characteristics including vision, drive and the ability to recognise opportunity.
In order to achieve the economic expansion we all seek, we need to unlock a vital source of growth that can power our economies in the decades to come. This vital source of growth is women
The Global Entrepreneurship Monitor (GEM 2012) Report for Ireland states that the proportion of people in Ireland who are early stage entrepreneurs has fallen to 6.1% in 2012 from 7.3% in 2011 and Ireland’s ranking against other countries has declined. Ireland is now ranked 18th among the 34 OECD countries and 14th of the EU-27 countries. However, the report also highlights a particularly encouraging improvement in relation to early stage women entrepreneurs. The ratio of men to women early stage entrepreneurs has improved from 2.5:1 in 2011 to 2.1:1 in 2012. Dan O’Brien in the economics section of The Irish Times July 12, 2013 “Cultural change required to spark entrepreneurial spirit. If there is a killer fact that illustrates the inherent weakness of indigenous business it is that Irish companies account for a mere 10 percent of the economy’s exports. It is unique among OECD economies for indigenous companies to export so little. Without the foreign-owned sector, Ireland would be the most closed economy in the developed world and would almost certainly be among the poorest countries in Western Europe.” As I have said in the introduction, the time has come to shoot for our ‘North Star’ by mobilising more imaginatively for job creation our greatest underused pool of resources and talents - that of the entrepreneurial potential of women in Ireland.
Stimulating women entrepreneurship contributes to both economic and social inclusion. The persistence of gender inequalities, to some degree in all parts of the world, means that women remain an untapped economic resource and under-utilised economic asset. Hillary Clinton advised that ‘in order to achieve the economic expansion we all seek, we need to unlock a vital source of growth that can power our economies in the decades to come. This vital source of growth is women’.
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Appendix 1
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Acknowledgements Dr. Margaret Linehan, Cork Institute of Technology. Dr. Christine Cross, Kemmy Business School, University of Limerick. Enterprise Ireland. Bord Bia - Irish Food Board. Councillor Peter Savage, Louth County Council. Ms. Annette McGonagle, Scoil Mhuire Buncrana Student Trade Fair 2011. Councillor James Gill, Buncrana Town Council. Councillor Rena Donaghey, Donegal County Council. Ms. Angela Cope, MBA Mayo County Childcare Committee. Ms. Claire O'Keeffe, Succession Ireland. Dr. Catherine Lynch, Library and Research Service, Houses of the Oireachtas. Councillor Jim O’Callaghan, SC Dublin Bay South. Ms. Anne O’Mahony, Department of Education & Skills. Ms. Rita Guinan, CEO North Tipperary Enterprise Board. Ms. Fiona Leahy, Business Advisor & Training Co-ordinator, Kerry County Enterprise Board. Mr. Loman O'Byrne, CEO South Dublin County Enterprise Board. Ms. Maria Doherty, Fórige NFTE Programme Manager. Mr. Laurence McCormack, Office of Senator Mary White, Leinster House. Ms. Kate Moran, Intern for the Office of Senator Mary White, Boston College '15. Ms. Annie Brady, BA MEconSc MLIS PDE. Senator Mary White, The White Report, “A new approach to childcare”, November 2006.
Notes:
Fianna Fรกil Policy Paper prepared by Senator Mary White Seanad ร ireann Spokesperson for Jobs, Enterprise & Innovation
Endorsed by Fianna Fรกil Parliamentary Party Tel: 01 618 3820 Email: mwhite@oireachtas.ie 0612