European Programmes

In an environment of very low female business ownership (12% compared to 37% in the US and 27% in the EU), two out of three women entrepreneurs in Cyprus start up their business already in their twenties. The main influencing factor behind this decision is the desire for control and decision-making. In addition, four in ten women set up a company without having had any previous employment, which would allow them to gather experience and (a part of) the starting capital. Hence, we observe that women are driven towards developing entrepreneurial activity; their inexperience and lack of relevant studies (only 2% have a background in business administration/ economics), however, is likely to turn their efforts to a ‘hit or miss'. What is, therefore, needed is a special program to enable women, the country's ‘untapped' resources, to develop enterprising activity by providing them with guidance and financial support in order to capitalize upon their drive for entrepreneurship. After all, the financial conditions of one in three of the respondents improved as a result of their entrepreneurial activity.

It is not surprising that 39% started up their company without previous employment as a means of gathering (a part of) the starting capital, since 40% faced no financial impediments at the onset of their business unit and an additional 50% possessed the necessary collaterals for a personal loan while the rest used either their own savings or had financial support from their family. The question then would be: “What about all other women who did not have adequate starting capital or did not fulfil the collateral criteria for a loan?” They were simply unable to invest in their entrepreneurial ideas. Women business owners stated clearly that what is mostly needed in order for women to be motivated to start up their own business is financial support.

Almost all women-owned businesses (99%) are microenterprises while 69% of women entrepreneurs are merely self-employed, particularly women with primary education (85%). This means that 31% generated employment. Investing on average 50 to 60 hours per week in their company, they can be classified as full-time entrepreneurs. The main form of business ownership is that of sole proprietorship (85%), which allows complete control. Furthermore, there is strong segmentation in traditionally ‘female' activity sectors: the clothing and shoe industry, the medical and paramedical professions, the kiosks and mini markets, the trade of gifts, hairdressers and florists. Moreover, 96% of women-owned businesses do business only in their local community or town.

Obviously, due to the burden of their multiple roles, women business owners tend to think ‘small', i.e. with a limited vision for growth. This mentality leaves them more often than not indifferent towards upgrading their skills and knowledge, let alone those of their employees'. Working in such an environment is not conductive to the employees' professional development. Therefore, motivated and better-qualified personnel probably decide against being employed by women-owned companies with the abovementioned characteristics. Employing less qualified/motivated employees has a negative impact on the performance of the company and slows down or hinders its development.

The oxymoron is that although 64% of women entrepreneurs never attend seminars or workshops to improve their skills and knowledge, they do realize their deficiencies. For instance, 88% never use the Internet. They further acknowledge the need to be trained in marketing, sales, computers, and finance. Moreover, half of them seem to be pessimistic and uninformed as to the EU environment they will be soon competing in.

In the creation of a program to enhance women's entrepreneurship, financial support is by far the strongest concern. Other concerns recorded were: family-friendly opening hours, counseling/ access to information/ furthering education, and childcare support. We can also add the reconciliation of entrepreneurial activity and family life as well as the need for mentoring and role models.

Motivating educated (preferably experienced) women to choose the uncertainty of developing enterprising activity over the security of a monthly salary (particularly in the public or banking sector) needs careful consideration. When designing a program to strengthen female entrepreneurial activity, policy makers could take into account the following recommended actions resulting from the findings of this research as well as from good practices in other countries.