According to a recent study released by the Global Entrepreneurship Monitor (GEM), an international research consortium which measures entrepreneurial activity of individuals in 59 countries, Pakistani men hold a more positive attitude towards entrepreneurship than their female counterparts.
It says the established business ownership (EBO) rate for male entrepreneurs in Pakistan is almost nine times that of the female EBO rate.
Similarly, the total early-stage entrepreneurial activity (TEA) rate – which is the sum of the nascent entrepreneurship rate and the new business-manager rate – of male entrepreneurs is more than four times that of the female entrepreneurs. The gender gap in the country is significantly higher than other countries with comparable economic conditions.
“I think women are as ambitious as men, but they probably have a different set of priorities. Women face greater hurdles in striking the right work-life balance since they have so many more responsibilities vis-a-vis their families,” said Sadia Khan, a Yale-educated businesswoman who has previously worked for the government.
Interestingly, the research reveals that female participation in entrepreneurship varies significantly across different economies, but is nearly always less than that of men.
In some high-income countries, such as South Korea, Norway, Ireland, the Netherlands and the United Kingdom, men are around twice likely to be entrepreneurially active than women. On the other hand, the study says, a narrower gender gap in entrepreneurship was reported in Australia, Belgium, Italy, Switzerland and the United States.
“At the end of the day, women have to decide whether the payoff in terms of remuneration and job fulfilment is enough to offset the sacrifices they have to make in fulfilling their family obligations. Most men in our society don’t have to face this trade-off,” Khan said.
Talking to The Express Tribune, president of the recently launched Karachi chapter of the Organisation of Pakistani Entrepreneurs of North America (OPEN), Zakiuddin Ahmed, said cultural and social norms were more negative for entrepreneurship in Pakistan than other countries with similar economic conditions.
He said the executive committee of the Karachi chapter of the non-profit organisation, which has over 3,000 entrepreneurs as members in Boston, New York, Silicon Valley, Washington DC, Houston, Chicago and Atlanta, was expected to have at least 30% female representation.
According to Rubina Rasheed, owner and managing director of Primedia Inc, a Karachi-based marketing company, trends are changing with time, as more women are starting their businesses now. “Challenging economic times mean husbands now realise the importance of supplementary income that their wives can bring in.”
Her observation is along the lines of the GEM report, which says the predominant motive for pursuing entrepreneurial activity in Pakistan is to increase income (38%) and, to a much lesser degree, acquire independence (2.8%).
As for attitudes towards entrepreneurship in the entrepreneurially inactive population, the report says male respondents were more aware of someone who had started a business in the last two years than their female counterparts. It can be said that men can find a higher number of start-up opportunities and be better equipped with the knowledge to start a new business than women because of their exposure to the business world.
“Women didn’t even have their chambers of commerce and industry until very recently. Even now, many banks don’t cooperate with women entrepreneurs. But gradually women are getting stronger. We now have our own chambers and can push for our demands collectively,” Rasheed said.
Published in The Express Tribune, January 4th, 2012.
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