In this paper, we address the need to further conceptualize high impact (HI) female entrepreneurship exploring the existing literature and adapting the 2012 World Development Report framework and index model to create a basis for internationally comparative quantitative analysis. We incorporate a review of the existing literature on female entrepreneurship identifying the issues that seem to affect HI female entrepreneurship and identify the National Systems of Entrepreneurship approach as important for HI female entrepreneurship development . In addition, we compare and contrast the existing indices that measure entrepreneurship development in general and female entrepreneurship in particular. Finally, we propose the most suitable approach for developing a comprehensive quantitative model for studying HI female entrepreneurship.

1. Female Entrepreneurs
that Dream Big:
Conceptualizing High Impact Female
Entrepreneurship for Internationally Comparative
Quantitative Analysis
Ruta Aidis,
Center for Entrepreneurship and Public Policy
(CEPP)
George Mason University
Center for
Entrepreneurship and
Public Policy (CEPP)
R. Aidis - ICSB - Wash DC - 2012 1

2. Objectives
1. Characteristics of High Impact (HI) Female
Entrepreneurship – Should we pick winners?
2. Present the 2012 WDR Framework – is it
useful for studying HI female
entrepreneurship?
3. Discuss HI female entrepreneurship - what
has been done, what needs to be done so far
4. Propose a strategy to move forward
R. Aidis - ICSB - Wash DC - 2012 2

3. Are female entrepreneurs really
different from male entrepreneurs?
It Depends….
• Concentrated in service sector
• Necessity based
• Use less capital
• Traditional female roles may undermine self-
efficacy
• Marriage and children increase female rate of
self-employment
R. Aidis - ICSB - Wash DC - 2012 3

4. High Impact Entrepreneurship
• 4% of small firms generated 60% of all new jobs
in the US economy from 1988 – 1992
• From 1994 – 2006, firms with <20 employees
represented 93.8% of the high-impact firms and
33.5% of job growth
In sum, HI entrepreneurs are important for
economic growth!!
Source: (Acs & Mueller 2008)
R. Aidis - ICSB - Wash DC - 2012 4

5. Less HI female entrepreneurship =
global economic loss
Misallocating women’s skills and talents comes at a
large (and rising) economic cost (WB WDR 2012)
However Economic Growth does not necessarily
increase Gender Equality
• Economic growth can
– Perpetuate gender stereotypes
– Reinforce occupational segregation
– Maintain unequal access to endowments
R. Aidis - ICSB - Wash DC - 2012 5

6. Comparative studies on HI female
entrepreneurship
Estrin & Mickiewicz (2011) – GEM Data – 55 countries (2001-2006)
• High aspiration female entrepreneurs impediments: large state
sector size
• Where female freedom of movement is restricted
• Childcare seems less of an issue
Kelley et al (2010) – GEM Data, 18 countries (2008 – 2010)
• Highest level of high aspiration female entrepreneurs in efficiency-
driven countries
• Female growth aspirations (20+) highest in Saudi Arabia
• In Israel, female entrepreneurs growth aspirations 1/3 less than
male entrepreneurs
R. Aidis - ICSB - Wash DC - 2012 6

7. Defining HI entrepreneurship
According to Growth Aspirations (GEM)
• 5+ employees in the next 5 years
• 20+ employees in the next 5 years
According to Employment & Sales (Acs 2008)
• Employment Growth Qualifier (EGQ): absolute & percentage
change
• Sales doubled in 4 years
A broader definition used by the Global Entrepreneurship and
Development Index (Acs & Szerb 2012):
• Growth-oriented, market expanding, export-inclined and innovative
businesses
R. Aidis - ICSB - Wash DC - 2012 7

8. 2012 World Development Report
Framework
Informal
Institutions
Economic
Opportuni
ties
Household
Endow
Agency ments
Markets
Formal
Institutions
R. Aidis - ICSB - Wash DC - 2012 8

9. 2012 World Development Report
Framework
Informal
Institutions
Economic
Opportuni
ties
Household
Endow
Agency ments
Markets
Formal
Institutions
GENDER EQUALITY
R. Aidis - ICSB - Wash DC - 2012 9

10. The Household Unit:
dreams and decision making
DREAM
DREAM
Household
R. Aidis - ICSB - Wash DC - 2012 10

11. But what about single childless
women?
In 2003, a U.S. Census study found that a record 19% of U.S.
women age 40–44 did not have children
R. Aidis - ICSB - Wash DC - 2012 11

12. National Systems of Entrepreneurship
• The importance of cultivating female
entrepreneurial eco-systems as a strategy for
fostering HI female entrepreneurship
R. Aidis - ICSB - Wash DC - 2012 12

13. What are potentially important issues
affecting HI female entrepreneurs
globally
• Access to resources: land, credit, inheritance,
financing
• The importance of role models/media image
• Access to education
• Access to networks
• Time Use & Care responsibilities: Childcare –
necessary but not sufficient
• Labor force segregation
R. Aidis - ICSB - Wash DC - 2012 13

14. Some data sets that include high-
impact female entrepreneurship
Comparative Data Limited coverage
• Global • GenderClir (USAID)
Entrepreneurship • GOWE (ILO)
Monitor (GEM)
R. Aidis - ICSB - Wash DC - 2012 14

15. 4) Proposed framework :
Adapting the Global Entrepreneurship and
Development Index (GEDI) Approach which:
– Combines both individual-level and institutional-
level data;
– Includes the novel Penalty for Bottleneck
methodology;
– Indentifies a country’s strengths and weaknesses;
– Ranks countries according to their relative scores;
– Indicates which improvements would have the
biggest effect on increasing a country’s
entrepreneurial performance.
R. Aidis - ICSB - Wash DC - 2012 15

16. GEDI’s structure
3 sub-indices/ 14 pillars/ 28 variables
Sub-index 1: Sub-index 2: Sub-index 3:
Entrepreneurial Attitudes Entrepreneurial Activity Entrepreneurial Aspiration
Pillar 1: Cultural Support Pillar 6: Competition Pillar 10: Risk Capital
•CARSTAT •COMPET •INFINV
•CORRUPTION •MARKDOM •VENTCAP
P2: Networking P7: Quality of Human Resources P 11: Internationalization
•KNOWENT •HIGHEDUC •EXPORT
•INTERNETUSAGE •STAFFTRAIN •GLOB
P12: High Growth
P3: Non Fear of Failure P8: Technology Sector
•GAZELLE
•NONFEAR •TECHSET
•BUSS STRATEGY
•BUSINESS RISK •TECHABSORP
P13: Process Innovation
P4: Start up Skills P9: Opportunity Start up
•NEWT
•SKILL •TEAOPPORT
•GERD
•EDUCPOSTSEC •FREEDOM
P14: Product Innovation
P5: Opportunity Perception
•NEWP
•OPPORTUNITY
•TECHTRANSFER
•MARKETAGGLOM
R. Aidis - ICSB - Wash DC - 2012 16

17. Global Entrepreneurship and
Development Index (GEDI) coverage
• 2011: 71 countries
• 2012: 79 countries
• 2013 (forthcoming): 118 countries
R. Aidis - ICSB - Wash DC - 2012 17

18. GEDI: Identifies a country’s relative strengths and weaknesses
for productive entrepreneurship development
OPORTUNITY_PERCEPTIO OPORTUNITY_PERCEPTIO
N N
RISK_CAPITAL .5000 STARTUP_SKILLS 1.0000
RISK_CAPITAL STARTUP_SKILLS
.9000
.4000 .8000
INTERNATIONALIZATION
.3000
NONFEAR_OF_FAILURE
INTERNATIONALIZATION .7000 NONFEAR_OF_FAILURE
.6000
.2000 .5000
.4000
HIGH_GROWTH .1000 NETWORKING
HIGH_GROWTH
.3000 NETWORKING
.2000
.0000 .1000
.0000
NEW_TECHNOLOGY CULTURAL_SUPPORT
NEW_TECHNOLOGY CULTURAL_SUPPORT
NEW_PRODUCT OPPORTUNITY_STARTUP
NEW_PRODUCT OPPORTUNITY_STARTUP
COMPETITION TECH_SECTOR
QUALITY_OF_HUMAN_R COMPETITION TECH_SECTOR
ESOURCE QUALITY_OF_HUMAN_RE
SOURCE
OPORTUNITY_PERCEPTION OPORTUNITY_PERCEPTIO
1.0000 N
RISK_CAPITAL STARTUP_SKILLS .7000
RISK_CAPITAL STARTUP_SKILLS
.8000 .6000
INTERNATIONALIZATION
.6000
NONFEAR_OF_FAILURE
INTERNATIONALIZATION
.5000 NONFEAR_OF_FAILURE
.4000
.4000 .3000
HIGH_GROWTH
.2000 NETWORKING HIGH_GROWTH .2000 NETWORKING
.1000
.0000 .0000
NEW_TECHNOLOGY CULTURAL_SUPPORT NEW_TECHNOLOGY CULTURAL_SUPPORT
NEW_PRODUCT OPPORTUNITY_STARTUP NEW_PRODUCT OPPORTUNITY_STARTUP
COMPETITION TECH_SECTOR COMPETITION TECH_SECTOR
QUALITY_OF_HUMAN_RES R. Aidis - ICSB - Wash DC - 2012 QUALITY_OF_HUMAN_RE 18
OURCE SOURCE

19. GEDI provides clear country and regional
rankings
Top
Top Third
Top Half GEDI 2013 Index
Bottom Half
Bottom Third
country
Bottom rankings
Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score Rank Country GDPPC Score
1 United States $47,184 0.67 25 Estonia $20,033 0.41 49 Bulgaria $13,780 0.31 73 Moldova $3,087 0.22 97 Honduras $3,890 0.15
2 Sweden $38,947 0.63 26 Cyprus $25,299 0.40 50 Romania $14,287 0.30 74 Morocco $4,668 0.22 98 Kenya $1,635 0.15
3 Denmark $39,558 0.63 27 Spain $32,070 0.39 51 Barbados $19,252 0.30 75 Jamaica $7,839 0.21 99 Cameroon $2,264 0.14
4 Australia $39,407 0.62 28 Bahrain $25,799 0.38 52 Peru $9,470 0.29 76 Indonesia $4,293 0.21 100 Angola $6,035 0.14
5 Canada $38,915 0.59 29 Saudi Arabia $22,545 0.38 53 South Africa $10,486 0.29 77 Kazakhstan $12,050 0.21 101 Guatemala $4,740 0.14
6 Netherlands $42,475 0.58 30 Oman $26,554 0.37 54 Lebanon $13,948 0.28 78 Nigeria $2,363 0.21 102 Benin $1,576 0.14
7 Iceland $34,949 0.57 31 Lithuania $18,184 0.37 55 Tunisia $8,524 0.27 79 Ukraine $6,658 0.21 103 Rwanda $1,155 0.14
8 Switzerland $46,215 0.56 32 Poland $19,747 0.37 56 Malaysia $14,591 0.27 80 Serbia $11,488 0.20 104 Pakistan $2,674 0.14
9 Taiwan $37,931 0.55 33 Slovakia $23,897 0.36 57 Macedonia $11,072 0.27 81 Syria $5,248 0.20 105 Gambia $1,400 0.13
10 Norway $56,894 0.55 34 Hungary $20,307 0.35 58 Argentina $15,893 0.26 82 Paraguay $5,152 0.19 106 Tanzania $1,423 0.13
11 France $33,820 0.53 35 Japan $33,994 0.35 59 China $7,536 0.26 83 Egypt $6,281 0.19 107 Uganda $1,263 0.12
12 Belgium $37,448 0.53 36 Latvia $16,312 0.35 60 Panama $13,877 0.26 84 Bolivia $4,816 0.19 108 Madagascar $961 0.12
13 Singapore $57,505 0.53 37 Italy $31,555 0.34 61 Botswana $13,786 0.26 85 Ecuador $8,105 0.18 109 Mali $1,057 0.12
14 United Kingdom $35,860 0.52 38 Hong Kong $46,157 0.34 62 Mexico $14,566 0.26 86 Iran $11,467 0.18 110 Côte d’Ivoire $1,885 0.12
15 Germany $37,591 0.51 39 Uruguay $14,277 0.34 63 Brunei $49,494 0.26 87 Venezuela $11,956 0.18 111 Malawi $876 0.11
16 Finland $36,660 0.50 40 Portugal $25,573 0.34 64 Thailand $8,490 0.24 88 Bosnia and Herzegovina $8,750 0.18 112 Belize $6,566 0.11
17 Ireland $39,727 0.50 41 Croatia $19,516 0.34 65 Jordan $5,706 0.24 89 India $3,586 0.18 113 Burkina Faso $1,247 0.11
18 Puerto Rico $16,300 0.49 42 Czech $30,728 0.34 66 Costa Rica $11,351 0.23 90 Algeria $8,322 0.18 114 Ethiopia $1,033 0.10
19 Austria $39,698 0.49 43 Korea $29,004 0.34 67 Namibia $6,426 0.23 91 Philippines $3,940 0.17 115 Mauritania $1,930 0.10
20 Israel $28,546 0.47 44 Kuwait $52,657 0.33 68 Dominican Republic $9,280 0.23 92 El Salvador $6,692 0.17 116 Bangladesh $1,643 0.09
21 Chile $15,044 0.45 45 Turkey $15,340 0.32 69 Russia $19,840 0.23 93 Ghana $1,625 0.16 117 Burundi $405 0.08
22 Qatar $80,229 0.45 46 Montenegro $12,676 0.32
23 Slovenia $27,556 0.43 47 Greece $28,154 0.31
R. Aidis - ICSB - Wash DC0.22 94
70 Trinidad and Tobago $25,539 0.22
71 Albania $8,817
- 201295
Swaziland
Senegal
$5,033 0.16
$1,917 0.16
118 Chad $1,360 0.07
19
24 UAE $38,089 0.42 48 Colombia $9,392 0.31 72 Brazil $11,127 0.22 96 Zambia $1,550 0.15

20. Concluding remarks
• In order to cultivate female HI firms, a healthy, female
entrepreneurship eco-system is a necessary condition.
• Economic growth is not enough to increase gender equality
which allows for a healthy female entrepreneurship eco-
system to develop
• A household focus incorporates the complexities of the
decision making process for HI female entrepreneurs
• There is a need for an understanding of HI female
entrepreneurship levels that incorporates individual and
institutional level data
• More and better data are needed; Cross country
comparative data is critical !!
• The Global Entrepreneurship and Development Index
(GEDI) provides an excellent framework for the
development of an index measuring HI female
entrepreneurship on a worldwide scale
R. Aidis - ICSB - Wash DC - 2012 20