It is paramount to take into account the role of women, if Europe aims at becoming the most dynamic and competitive knowledge-based society in the world. Figures show that there is a large unused potential with regards female entrepreneurship, which if encouraged can fuel substantial economic growth in Europe. Additionally, it is believed that female entrepreneurship can have beneficial spillover effects on other areas of society as well.
A few years ago Eurochambres, the association of European Chambers of Commerce and Industry, undertook a survey on women entrepreneurs carried out in the frame of the project “Women in Business and in Decision-Making”. The main aim of the survey was to find out what problems hinder female entrepreneurs in Europe to do business or take their business to the next level. The main findings in that survey seem to be applicable still today.
According to the results of the survey, the typical European female entrepreneur was educated, ran a micro enterprise, and had a husband and children but no help at home. Interestingly, according to this study, the Maltese females ran more small (ca. 65 per cent) than micro (ca. 35 per cent) enterprises in contrast with the other countries in the survey; all Maltese had tertiary education, which only corresponded with the Hungarian scenario from all the other countries that participated; and all Maltese female entrepreneurs had children however only half of them had a partner but, strikingly, all Maltese respondents declared to have help at home. All Maltese female entrepreneurs stated to work more than 48 hours on their business, unlike other countries where a good share participated in business with reduced hours. Interesting to read is that most of the Maltese entrepreneurs inherited their business, in contrast to other European counterparts, who mainly created their own business. It transpires from this benchmark exercise that Maltese female entrepreneurs should be considered in their own right, as the Maltese cultural background seems to influence how they run their business.
Nonetheless, the Maltese state of affairs seem to concur with the general survey results which stated that the main problems female entrepreneurs face were financial questions and combining work and family. In the daily running of the businesses, these problems appear to remain, liquidities and financial issues being a major concern, as well as the reconciliation of work and family.
In 2008 the European Commission undertook a study on women innovators and entrepreneurship which showed that women’s obstacles to innovative entrepreneurship can be subdivided in three main areas:
1. Contextual obstacles: educational choices, traditional views and stereotypes about women, science and innovation.
2. Economic obstacles: innovation sector requiring substantial investment and women being seen less credible financially than men
3. Soft obstacles: lack of access to technical scientific and general business networks, lack of business training, role models and entrepreneurship skills.
In the current economic scenario the European Commission would like to see more European entrepreneurs, and in this respect aims at encouraging more women to follow through on their entrepreneurial ideas and set up a business. Additionally the EU pledged to create an environment in which those women who do run a small business can grow their firms with fewer
obstacles.
The Commission has already opened a Women’s Entrepreneurship Portal, with links to contacts, events and networking opportunities within and between Member States, and launched the European Network to Promote Women’s Entrepreneurship (WES), which brings together government representatives from 30 European countries to provide advice, support and information for female entrepreneurs, helping them to raise their profile and expand their businesses.
Notwithstanding the increase in European women entrepreneurs in the past 10 years, the Commission aims at improving the female entrepreneurship rate and is keen on finding ways to overcome the, mainly cultural, barriers that women find when trying to set up a business. The Commission estimates that currently women entrepreneurs in Europe are only 30 per cent of all entrepreneurs and that women constitute a mere 34.4 per cent of self-employed.
Network of Female Entrepreneurship Ambassadors
The Commission is seeking to promote female entrepreneurship and create a business environment that facilitates the creation and development of women-led companies, supporting in the implementation of the Small Business Act which aims to “create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is
rewarded”.
In 2008 the European Network of Female Entrepreneurship Ambassadors was inaugurated in Stockholm, Sweden. There 130 successful European businesswomen kicked off a campaign to encourage more women to become entrepreneurs and start their own companies. The Commission issued a call for projects and under this first call, successful applications were received from Denmark, France, Germany, Iceland, Ireland, Italy, Norway, Poland, Slovakia and Sweden. In late 2009 the European Commission issued a second call to extend the geographical coverage of this European Network.
The call aims at boosting the rate of female entrepreneurial activity across the EU by creating a network to inspire women of all ages (including women in active life as well as students) to become entrepreneurs and to set up their own businesses. Female Entrepreneurship Ambassadors will help raise confidence in setting up and creating successful businesses. They will be role models to inspire other women to become entrepreneurs by “telling their personal success story”. The call is addressed to local business support organisations that will, as a consortium, set up one network in Malta and bring together successful entrepreneurs across Europe that will work locally and nationally to inspire and encourage women to recognise that entrepreneurship could be a career path for them.
What actions are being
funded?
Actions that are being funded are projects clearly aimed at boosting the rate of female entrepreneurship activity. Proposals need to present potential “ambassadors” and the envisaged target groups. These “ambassadors” will participate in conferences, workshops, discussion fora and other public events, aimed at promoting female entrepreneurship among women. Different stakeholder organisations may apply but all partners together shall form one consortium (national network) per country. Projects will be run by those specific consortia. The maximum duration is 24 months but continuation after the projects should be ensured and clearly addressed in the proposal.
Once the consortium applies and is selected for funding, the agreement is signed coming July. The project will kick-off in August. Between August and September the “ambassadors” will be selected by the consortium and in November 2010 the network can start operating.
The budget for this call is approximately EUR545,000. The average co-funding per project is estimated to be EUR50,000 and EU co-funding is up to 50 per cent of the total eligible costs. The Commission hopes to co-fund 10 national projects with an average of 10 female entrepreneurship “ambassadors” per
network.
Costs that can be co-funded under this call are the cost of staff assigned to the action/project; travel and subsistence allowances for staff taking part in the project (for meetings, European conferences, etc.); equipment (new or second-hand) purchased for the project; costs of consumables and supplies; subcontracting up to 10 per cent; and eligible indirect costs (administrative costs) with a flat-rate of up to seven per cent. It is important to keep in mind that ambassadors are not paid (only travel and subsistence costs) and that contribution in kind is not eligible.
Applications must be submitted by a legal entity (public or private) whose core activity is in the field of fostering, promoting and/or supporting entrepreneurship. Projects shall be run by specific consortia made up of a minimum of two partner organisations for the purpose of this Call: a national consortium made of partner organisations from the same country. However, under specific circumstances, for example in the case of small Member States, a transnational consortium is acceptable. The deadline for application is 12 March. It is also important to note that the call will be complemented in 2010 with a mentoring scheme to assist women entrepreneurs, in which consortiums to this call could consider participating, particularly in view to satisfy the criteria of sustaining the network after the project.
More information about this call, links to the submission set as well as links to the studies, surveys and portals mentioned in this article, can be found on: www.cipmalta.com
Mr Alvarez forms part of the CIP Malta National Contact Point, which was set up within the auspices of Malta Invest Management Co. Ltd (Mimcol), a government-owned consulting agency falling under the responsibility of the Ministry for Finance, the Economy and Investment.
