Avainsana-arkisto: female entrepreneurs

Women can change the entrepreneurial scenario in the Nordics: for better

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Women sitting in tables and discussing.

Mira Valkjärvi (left), Heli Salmela and Maria Miller are discussing about sustainable development goals in Gengreen´s kickoff meeting. Photo: Heidi Väliaho.

In the Nordic countries, there’s a rising focus on entrepreneurship, fostering the growth of new national ecosystems. Despite recent efforts to support female entrepreneurs, a noticeable gender gap persists. In Finland, only 34% of entrepreneurs are women, while in Sweden, the figure is 23%. Additionally, industries remain heavily gendered.

According to studies female entrepreneurs are lacking capital and technical assistance. They have fewer role models and smaller networks. Because entrepreneurship predominantly can be considered masculine phenomenon women are having hard time to find their place in the field. Women experience more discrimination, and they are the ones who bear the costs of parenthood.

How to bridge the gender gap in entrepreneurship, how to create mechanisms and tools to support female entrepreneurs? These were the main topics at the center of the discussion which took place in Seinäjoki on the 11th of April 2024.

Researchers and developers from the Interreg Aurora sponsored GENGREEN project met in Skaalamo, a new start up facility established by Into Seinäjoki.  Skaalaamo will be, starting from May 2024, the physical place where regional entrepreneurs can meet, get trained, participate to workshops and events and exchange ideas and practices.

Discussion and debate were bustling. Mutual understanding among developers and researchers was that there is a strong need for safe places where female entrepreneurs can start to find their capabilities and flourish, but also where they can strengthen their resilience, acquire news skills and networking activities.

In the meeting it was decided that for the coming years these kinds of places will be launched in the form of Living Labs in South Ostrobothnia, Central Ostrobothnia, Lapland, Kirkenes and Norrbotten. The aim of the facilities is to provide knowledge, tools and networks for the women green entrepreneurs and tackle the society-related issues they face. Also, the Living Labs will provide an opportunity for stronger, cross-border networks.

Various studies show that women outperform environmental, social and governance metrics and they can create sustainable solutions that serve better to other women. That is the reason why especially green female entrepreneurship is needed and worth of extra support.

Silvia Gaiani, Ada Trogen and Hannele Suvanto

Writers are working in GENGREEN project which aims at supporting green (female) entrepreneurship, specifically micro and small/medium size enterprises, in South and Central Ostrobothnia, Lapland, Norrbotten, Troms and Finnmark through several activities.

GENGREEN @ Facebook (group)
GENGREEN @ LinkedIn (group)

The Female Entrepreneurship Dilemma in Finland

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Silvia Gaiani, Senior Researcher.

The fear of failure prevents women from becoming entrepreneurs.

The Ministry of Economic Affairs and Employment –  in its Finland’s vision for 2030 – stresses the importance of entrepreneurship. The proposal envisions Finland as a society with strong and growth-oriented entrepreneurial and start-up culture, where the occupation is highly valued. The government’s primary task is described as “to ensure a safe and market-based foundation for all entrepreneurs”. (Sipilä et al. 2021, 12–14.)

So, what is current status of entrepreneurship in the country? According to Statistic of Finland, in March 2023 the number of registered new enterprises in Finland was 13,954. Compared to the corresponding period of the year before, the number of registrations went up by 4%. Of the registered enterprises 5,237 were limited companies and 8,577 were natural persons.

However, despite the fact that the number of entrepreneurs has increased, the striking data is that only 20% of them are women. One of the possible reason for that emerges in the last GEM report (Global Entrepreneurship Monitor) about Finnish entrepreneurship.

2,000 Finns were interviewed regarding entrepreneurship themes. Finland has the 16th best entrepreneurship conditions for women at global level, but the fear of failure prevents women from becoming entrepreneurs. 53% of men, but only 32% of women think that they have the required knowledge and skills to start a new business.

The figure below shows these differences at regional (NUTS3) level. In South Karelia and South Savo more than 60% of adults think they have the required skills and knowledge to start a business, whereas in Southwest Finland and Päijät-Häme only about 40% of adults thought this. Fear of failure is high in South Ostrobothnia (55%) and North Savo (61%). Regions with fewer than 30 respondents were excluded from the map.

Figure 1. –  Differences in skills and knowledge to start a business at regional level in Finland

A figure where is compared do people feel they have the required knowledge and skills to start a business. Comparison has been done between Finnish regions. In South Karelia and South Savo more than 60% of adults think they have the required skills and knowledge to start a business, whereas in Southwest Finland and Päijät-Häme only about 40% of adults thought this. Fear of failure is high in South Ostrobothnia (55%) and North Savo (61%).

Source: https://www.gemconsortium.org/file/open?fileId=51137 (page 25)

The background variables for Finland show a significant gender gap: the fear diminished slightly with greater age, but region, education, and household income had little impact on the fear of failure as the table below shows.

Figure 2. Fear of failure would prevent starting a business in different respondents groups

Figure shows variables on how fear of failure would prevent starting a business. The fear diminished slightly with greater age, but region, education, and household income had little impact on the fear of failure. Women's fear of failure is significantly higher than men's.

Source: https://www.gemconsortium.org/file/open?fileId=51137 (page 28)

According to the same study, female entrepreneurs have smaller networks than male entrepreneurs do, leaving women at a disadvantage. Hence, the importance of providing opportunities to form relationships and network is of pivotal importance.

A study carried out by Nordic Innovation and the Nordic working group as part of the Nordic Female Entrepreneurship initiative, running from 2018 -2021, has highlighted other important measures to support women entrepreneurs. Among them the needs to establish female mentoring schemes and networks, to increase female entrepreneurs’ access to capital and to remove competitive disadvantages in industries where women often operate as entrepreneurs.

“Despite the fact that the number of entrepreneurs has increased, the striking data is that only 20% of them are women.”

As a researcher on food entrepreneurship, for me a central question is: how can academia produce and support women entrepreneurs? Are mentoring and extensive outreach enough? If more university-based programs could follow steps to support women entrepreneurs, would gender disparities in Finnish (and global) entrepreneurism be better address?

To this regard, Ruralia Institute has recently taken a responsibility. Starting from January 2024 it will be the academic institution leading the GENGREEN project, a pioneering initiative involving 9 organizations from Finland, Sweden and Norway and financed by Interreg Aurora programme.

Aim of the project will be to develop a cross-border program for green entrepreneurial training directed to women at different stages in their entrepreneurial path.

The project will represent a testfield for Ruralia’s third mission and will reinforce the university’s constant effort to promote more linkages with society.

Silvia Gaiani is a senior researcher at Ruralia Institute where she leads a long term research on The role of food innovation and entrepreneurship in transition to sustainability. She is also involved in EU, national and regional projects on sustainable food systems.

Resources:

– Sipilä, J., Aminoff, P., Aho, KJ., Hasu, J., Ikäheimo, J., Lounasmeri, S. & Mäkynen, J. 2021. Visio 2030 Kohti vastuullista ja osaavaa omistajayhteiskuntaa. Työ- ja elinkeinoministeriö. Available at http://urn.fi/URN:ISBN:978- 952-327-689-5

– Statistics of Finland. Registered new enterprises numbered 13,954 in January to March 2023. Available at: https://www.stat.fi/en/publication/cl89trjnvs1k70avyy4xep0h3

– Global Entrepreneurship Monitor 2021/2022 Finnish report. Available at: https://www.gemconsortium.org/report/global-entrepreneurship-monitor-20212022-finnish-report

Nordic innovation, 2020,  Female Entrepreneurship In The Nordics 2020 – A comparative study. Available at: https://www.menon.no/wp-content/uploads/2020-Female-entrepreneurship.pdf