Dell today announced results of the world’s first
gender-focused, global entrepreneurship index based on the Global
Entrepreneurship and Development Index (GEDI) at its Dell Women’s
Entrepreneur Network annual event.
The Gender-GEDI is the only global index to measure
high-potential female entrepreneurship based on individual
aspirations, business environments and entrepreneurial ecosystems.
High-potential women entrepreneurs are defined as “innovative,
market expanding and export oriented.”
The positive impact that female entrepreneurs can have on
countries with the foresight to empower them has been proven, and
includes increased job creation and the generation of wealth. Yet
most existing research in this field does not identify areas where
countries should concentrate their efforts to remove barriers to
female entrepreneurship such as access to the capital, technology,
networks and knowledge needed to start and grow a business. The
Gender-GEDI provides this unique contribution to understanding the
development of high-potential female entrepreneurs worldwide
supported by a diagnostic tool to help affect change.
Gender-GEDI is made up of 30 indicators and ranks 17 countries;
Australia, Brazil, China, Egypt, France, Germany, India, Japan,
Mexico, Morocco, Malaysia, Russia, South Africa, Turkey, Uganda,
United Kingdom and the United States. Top ranking countries scored
consistently well across a range of indices.
The U.S. scored high on indicators for good institutional
foundations and a strong entrepreneurial environment, placing it
No. 1 in the rankings. Other top-ranking countries include:
Australia (No. 2), Germany (No. 3), France (No. 4) and Mexico (No.
5). However, despite India’s recent economic surge, it ranked No.
16. Other rankings include Japan (12), Morocco (13), Brazil (14)
and Egypt (15), and Uganda (No. 17).
“Unleashing the power of female entrepreneurship can have a
dramatic effect on a country’s economy. The research clearly
supports the assertion that key things need to be fixed in order
for female entrepreneurship to survive and flourish,” said Karen
Quintos, chief marketing officer (CMO) and senior vice president,
Dell. “Increased access to knowledge, networks, capital and
technology are critical if countries are to empower female
entrepreneurship and create a culture of success.”
Index Highlights
- No single determinant of success
Top performing countries including the U.S. (No. 1) and Mexico
(No. 5) scored consistently well across a wide range of indices,
compared to low-performing countries, which were much more
inconsistent. For example, India (No. 16) scored relatively high
for "opportunity recognition," suggesting that the female
population recognizes good opportunities for businesses where they
live, but received low scores relating to "institutional
foundations," indicating that the women’s ability to act on those
perceived opportunities is limited.
- Economic development is not enough
Being strong in key areas such as legal rights, education and
access to finance do not automatically result in high-potential
female entrepreneurship. In some countries, the business
environment for success is right, but female entrepreneurship is
still low. This is often due to social and cultural norms that make
it less conducive for women to become entrepreneurs. Japan, the
U.K. and the U.S. are all high income countries but Japan has the
lowest percentage of female managers (9 percent) compared to the
U.S. (43 percent), leaving many women in Japan without the
experience and skills to start their own businesses. This is the
same for other low-performing countries: Turkey (10 percent), Egypt
(11 percent) and Morocco (13 percent).
- Lack of knowledge holds back business
growth
There is a trend among less educated females in developing
countries to take advantage of entrepreneurial opportunities, but
without education they lack the skills to move their businesses
beyond the micro level. With the exception of Japan (63 percent),
only a relatively small percentage of female business owners in the
low-performing countries are highly educated: Morocco (2 percent),
Brazil (12 percent), Uganda (7 percent).
- Access to finance is crucial
Few women have bank accounts in low-performing countries: Egypt
(7 percent), Uganda (15 percent), India (26 percent) and Morocco
(27 percent). This compares to almost 100 percent access in the
top-performing countries, other than Mexico (22 percent). However,
even in countries where access to a bank account is high, venture
capital funding is still low. For example, in the U.S. only 3-5
percent of venture financing goes to women-owned businesses.
- Effective networking can open
doors
Networking with other entrepreneurs and having access to the
Internet helps create opportunities for female entrepreneurs. In
particular, the Internet provides new ways of networking that
eliminate temporal and geographic, as well as gendered social
constraints, that can limit women’s access to information and
resources. In the U.K., 78 percent of Internet users are women,
compared with less than 7 percent in India and Uganda.
- Technology enables business growth
Technology is an essential component for fostering
high-potential female entrepreneurship. While research and
development does not guarantee successful growth, without
systematic research activity, new product development and future
growth will be inhibited. Turkey and Egypt scored very low in this
area while Japan and the U.S. scored highly. Technology has also
made it cheaper than ever to start a business and removes many of
the social and physical barriers women must overcome to start their
own businesses and connect with the resources they need.
Entrepreneurs need scalable technology solutions that enable them
to accelerate the growth of their business to succeed.
Despite ranking high on the Index, even top-performing countries
have room to improve before they can achieve parity across all
areas and fully unlock the contribution female entrepreneurs can
deliver. For example, France and the U.K. have much lower ratios of
female to male startups (48:100 and 46:100 respectively) than the
U.S. (71:100) and Australia (85:100) showing that a large gap of
"underutilized entrepreneurship potential" remains, and the U.S.
and U.K. need to improve the number of women graduating with
science degrees (41 percent and 37 percent respectively) in order
to prepare a larger pool of tech savvy high-potential female
entrepreneurs.
A lower relative GDP doesn’t dictate the success of women
entrepreneurs; some countries like Mexico (No. 5) ranked much
higher than others with a similar economic and cultural profile,
e.g. Brazil (No. 14), suggesting that improving access to resources
and providing a favorable business environment can have a major
impact.
This new Gender-GEDI research demonstrates that the determinants
of success for female entrepreneurship are not just personal
strengths and aspirations, but a result of the environment in which
they operate. By providing a cross-country comparison, the Index
helps countries identify where they can improve conditions to
encourage and support entrepreneurial success among women.
Additionally, the Index highlights critical gaps in the current
understanding of female entrepreneurship to provide the building
blocks for future research.
GENDER-GEDI Rankings
- USA
- Australia
- Germany
- France
- Mexico
- UK
- South Africa
- China
- Malaysia
- Russia
- Turkey
- Japan
- Morocco
- Brazil
- Egypt
- India
- Uganda
The executive summary and full report can be found at
dell.com/women.
About Dell Gender-GEDI Index
The index is made up of 30 indicators and ranks 17 countries
including: Australia, Brazil, China, Egypt, France, Germany, India,
Japan, Mexico, Morocco, Malaysia, Russia, South Africa, Turkey,
Uganda, United Kingdom and the United States.
The Index focuses on high potential female entrepreneurs who are
defined as "innovative, market-expanding and export-oriented." The
Index combines variables that measure agency and institutions in a
composite index in order to capture the multi-dimensional aspects
of female entrepreneurship development. Data comes from existing
internationally recognized sources such as the Global
Entrepreneurship Monitor (GEM), World Economic Forum (WEF), World
Bank, United Nations Educational, Scientific and Cultural
Organization (UNESCO), United Nations Development Programme (UNDP),
International Labour Organization (ILO), etc.
The GEDI Institute is a non-profit research and consulting firm
based in Washington, D.C. that assists governments, donor agencies,
foundations, international assistance providers, and global
companies expand economic opportunities for individuals, build
future markets for societies, and propel economic development for
nations. It uses an innovative methodology to advance
entrepreneurship, thereby accelerating economic growth.
About Dell
Dell Inc. (NASDAQ: DELL) listens to customers and delivers
innovative technology and services that give them the power to do
more. For more information, visit www.dell.com.
Methodology
The Gender GEDI Index's unique methodology brings together
variables that measure agency and institutions in a composite index
that highlight issues relevant for high potential female
entrepreneurship development and growth. Thirty individual-level
and institutional-level dimensions are paired together into 15
pillars that are further divided into three main sub-indices:
Entrepreneurial Environment, Entrepreneurial Eco-System and
Entrepreneurial Aspirations. Instead of weighting the variables,
the Gender-GEDI applies the novel Penalty for Bottleneck
methodology to the pillar scores so that the 'bottleneck' (i.e. the
pillar with the lowest score) penalizes the final country ranking
thus allowing for the inter-related nature of the pillars to affect
the final scores. This approach encourages countries to address
their weakest areas first since that improvement will have the
greatest effect on their final score.
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