Exposure to Entrepreneurship for Girls at an Early Age Could Alter Their Trajectory Significantly
A groundbreaking study has revealed that early exposure to entrepreneurs can significantly influence the likelihood of women pursuing entrepreneurship and the success of their businesses. The research, led by Maddalena Ronchi, Mikkel Mertz, and Viola Salvestrini, explores the factors that might encourage female entrepreneurship and their potential impact on the economy.
The study, which included over 780,000 individuals from 1,564 schools in Denmark, focused on students' interactions with entrepreneurs between the ages of 13 to 16. This period, significant in the Danish educational system, was found to be crucial in shaping future career choices.
The results suggest that early exposure helps reduce barriers women face in entrepreneurship, such as raising awareness of entrepreneurship as a viable career path and equipping girls with sector-specific knowledge and skills. On average, businesses launched by women with early exposure to entrepreneurs had more employees and lasted longer, and employed a much higher share of women and employees working part-time.
Girls who had an entrepreneur parent were as much as 59.3% more likely to become an entrepreneur by age 35. Moreover, girls who had early exposure to entrepreneurs and then pursued their own entrepreneurial ambitions went on to create more-successful and more-women-friendly companies than the average entrepreneur.
The businesses of women who had early exposure to entrepreneurs outperformed those launched by men and women who did not have this early exposure. This performance advantage can be attributed to a blend of personal drive, education, customer orientation, organizational culture, supportive ecosystems, and prudent financial strategies.
The study also highlighted several factors influencing women's pursuit of entrepreneurship. Passion and desire for control, education and skills, fear of debt and financial barriers, reskilling and training, and work-life balance & multitasking were identified as key drivers.
In terms of the success of women-owned businesses, entrepreneur characteristics, customer focus, company attributes, government and environmental support, innovative and balanced approach, strategic growth & risk management, and fundraising and financing emerged as critical factors.
Successful women entrepreneurs often exhibit habits such as intentionality, self-care, clear goal-setting, and continuous learning, contributing to their business longevity and growth.
The combined effects of early exposure to entrepreneurs can increase girls' likelihood of entering entrepreneurship and their improved performance once they do. In Denmark, compulsory schooling ends at 16, and this is a critical juncture for teenagers to make decisions about their future education and career paths.
Girls with early exposure to entrepreneurs were more likely to pursue vocational education and less likely to be employed in low-paying jobs. The impact of having a female peer with an entrepreneur parent amounts to 6.5% of the increase that having an entrepreneur parent has on the likelihood of launching a business.
The findings have major implications not just for individual women but for society as a whole, as entrepreneurs create jobs that are important for the economy. Exposure to entrepreneurs as teenagers can increase the likelihood that a girl will continue her education and reduce her risk of holding low-wage jobs throughout her working years.
- The study proves that exposure to entrepreneurs during health-and-wellness classes, such as personal-growth or career-development sessions at school, could significantly increase the likelihood of women pursuing entrepreneurship and the success of their small-businesses.
- Entrepreneurship education in the science classroom could be instrumental in equipping girls with sector-specific knowledge and skills, reducing barriers they face in entrepreneurship and ultimately leading to more women-friendly companies.
- In line with the study, funding their education-and-self-development through Finance and Business could be essential for girls to overcome financial barriers and succeed as entrepreneurs.
- Women-owned businesses focused on health-and-wellness, women's health, and other areas of entrepreneurship could benefit from strategic alliances with the finance sector to ensure their prudent financial strategies and long-term success.
- To further encourage female entrepreneurship, students could participate in small-business workshops, fostering an environment of entrepreneurship that emphasizes the importance of intentionality, self-care, goal-setting, continuous learning, and organizational culture. This holistic approach to education would empower girls to become empowered entrepreneurs for a winning tomorrow.
