Will female entrepreneurship be a source of Malta's economic growth?

Malta seems to lack objective public studies in female entrepreneurship. Nevertheless, it appears that today there are more female entrepreneurs than ever before. Maltese female entrepreneurs seem to largely concentrate in service-related industries. In the meantime, while the number of female entrepreneurs is increasing, there seem to be various difficulties that female entrepreneurs have to face.

Certain businesswomen made a success in their careers despite the added difficulties they face due to gender-related problems, which may have an impact on the success of the business. According to Cohen (1997), such difficulties include hurdles in obtaining finance, insufficient managerial experience and a range of domestic pressures and expectations.

To a certain extent, one may relate such difficulties also to the Maltese experience. Due to certain persistent circumstances, both genders seem to face a number of difficulties in establishing and running a business in Malta.

However, these difficulties tend to be more significant for female entrepreneurs. This situation could be attributed to various factors, such as information gaps, lack of contacts and difficulties in access to networking.

Worst of all, however, might be gender discrimination and possibly stereotypes. The Malta Association of Women in Business tries to help women overcome some of these difficulties. However, one questions whether the work of one association is actually enough.

One of the main problems that women in business face is definitely linked to the need to strike a reconciling balance between their home and work responsibilities.

This is particularly so when they have children to take care of. Various researches abroad suggest that the absence or presence of children is rightly a high influential factor as regards women in business. Possibly, this could be one of the main differences between the way men and women approach entrepreneurship. The evidence that emerges from many research studies shows that the male proprietor rarely contributes towards the running of the home and family. Cohen and other researchers argue that this leads to a significant difference between male and female owned/managed firms.

There is also considerable evidence that many male-owned businesses would not survive without the frequently unpaid contribution of wives, both at home and in business.

Some countries seem to be trying to solve similar gender-related problems. An amazing case is that of Belgium. They have available what is known as the 'Flying entrepreneurs' who could replace you during your absence on, say, maternity leave. This is only one of the various national measures available to support female entrepreneurs in EU countries.

Another significant difference between man and woman entrepreneurs seems to be self-confidence. Evidence seems to suggest that women sometimes have the tendency to discredit their own abilities, to have lower expectations of themselves and to attribute business success to factors other than their own talents. This is not to suggest that men do not suffer from lack of confidence or self-esteem, but research suggests that women are more likely to face such difficulties than men.

In terms of education, foreign research findings indicate that men in business are more likely to hold some form of professional qualifications.

The level of education in Malta has increased a lot over the past years and many women have now a high level of education. However, how many of these women do actually use this qualification to set up their own business?

There seems to be the same problem with the men. However, in my opinion, the problem seems to be bigger in the case of women. Moreover, evidence suggests that women are more likely to hold an arts degree than a science or technical-related degree, such as engineering. This seems to be a case in point in Malta. In other countries, the situation seems to be slightly changing. Is the same thing picking up in Malta?

Despite various difficulties, the strides certain female entrepreneurs have made in today's world are remarkable. In other countries, female entrepreneurs are succeeding in record numbers. This seems to be attributed to the fact that they are rejecting the business-as-usual attitude, and are breaking down barriers with their entrepreneurial innovation, determination and drive.

One thing that strikes me is that, generally speaking, female entrepreneurs seem to be more at ease working in a consensus- building team environment. They also often offer higher wages along with certain benefits such as flexitime. This may be due to the fact they are in a better position to understand the pressures other women face.

Women seem to succeed more often because they take all the time they need in planning their business, analysing their markets and projecting their financial details before the launching. Furthermore, they see to it that the business grows in a more pragmatic manner after start-up.

This leads to their business decisions being more sound and focused as opposed to the experience of various male counter- parts. Typically, as opposed to certain men, women accept their business background shortcomings and seek education, training and advice before taking the leap.

Research conducted in Australia in 2000 reported that women are more likely than men to rely on information and advice.

In Malta we have seen that the 'consulting' mentality is still relatively weak, as not all businessmen understand the advantages of independent advisory services. Businesswomen could lead the way towards a change in our business mentality in favour of an ever more healthy and professional business environment.

Despite the increasing number of female entrepreneurs in Malta, we seem not to be doing enough in order to eliminate the barriers that these women still face.

Women could offer a potential source of economic growth as well as for the creation of new jobs and other business opportunities. However, they need to be encouraged and supported.

An example of what can be done is that of the US-based Wells Fargo Bank. This bank established a women's loan programme, aimed at lending $10 billion over 10 years to women business proprietors.

On their part, research companies could engage in conducting studies on this sector, and other businesses could use their findings in formulating their marketing strategies.

Despite all the difficulties, I am sure Maltese women will move ahead in the business world and will somewhat change the business environment in Malta.

Maltese women have enough skills and will-power to look forward and reap success.

Mr Buttigieg MBA (Warwick) FCCA MIM is director, Erremme Business Advisers.

erremme@global.net.mt