BARRIERS TO FEMALE ENTREPRENEURSHIP: THE EXPERIENCE OF PUERTO RICO

Barriers to female entrepreneurship: the experience of Puerto rico



Barriers to female entrepreneurship: the experience of Puerto rico

Introduction

The topic of women entrepreneurs in Puerto rico has attracted a considerable amount of academic attention in recent years. Indeed, it is fast becoming a primary focus for scholars, practitioners, and policy makers worldwide who work in the field of small business management and entrepreneurship. Generally speaking, women entrepreneurs in Puerto rico have been in the minority in comparison to their male counterparts and are still the largest underrepresented group in entrepreneurship. For example, despite the fact that women make up half of the Puerto rico population, less than one third of all businesses in Puerto rico are female-led. However, it is now widely accepted that women as entrepreneurs make a valuable contribution to national economies around the world in terms of job creation, economic growth, and wealth generation. Contrary to traditional perceptions about women entrepreneurs in Puerto rico starting mainly small and home-based enterprises, it has also been reported that women are now leading the so-called “new economy companies,” with success in high technology, life sciences, and professional services. Thus, the need to increase their participation in the enterprise arena is becoming more important to future economic growth.

Research on women's entrepreneurship has developed significantly in recent years. According to S. Carter and Shaw (2006), the field of women's entrepreneurship has moved away from purely exploratory and descriptive studies, characterized by the earlier literature, toward developing stronger evidence bases that report the actual experiences of women's enterprise in international contexts along with a more sophisticated understanding of complex issues (see, e.g., Carter, Henry, Ó Cinnéide, & Johnston, 2006). This chapter discusses the main themes on women's entrepreneurship, as characterized by the extant literature in this field. It begins with a consideration of the underrepresentation of women in entrepreneurship globally and makes the economic case for encouraging more women to become entrepreneurs. The chapter then discusses the definitional issues associated with the topic, illustrating how these can restrict the scope for robust comparative studies and impact on research findings. Some trends in women's entrepreneurship internationally are then considered, drawing mainly on the work of the Global Entrepreneurship Monitor (GEM) and the Diana Project.1 Some of the key characteristics of women entrepreneurs in Puerto rico are then discussed, including their motivations for becoming entrepreneurs, their education and work experience, and their levels of confidence and their risk orientation. A major theme in the literature on women's entrepreneurship has been the barriers and challenges they face in their efforts to engage in entrepreneurship. Under this heading, the discussion covers the traditional role of women and their networking practices, access to finance, the tendency to undercapitalize their business, and growth perceptions.

The latter part of the chapter deals with policy and support for women's entrepreneurship and indicates the future direction of the field, with some suggestions for further research. The chapter closes with a ...