Gender and the growth and dynamics of microenterprises.

Abstract

This GEMINI report discusses the importance of incorporating a gender perspective in microenterprise development and growth-oriented strategies. It is argued that strategies should bridge growth- and gender-oriented approaches. Development should support and not subsidize womens enterprises in low- or no-growth subsectors. Development should identify interventions in female-dominated subsectors that will generate greater income and have growth potential. Development should promote strategies that make it easier for women entrepreneurs to shift from low-return subsectors into high-return and higher-potential subsectors. Research indicates that the number of female enterprises increases and the size of enterprises remains stable. The tendency is for women to diversify their economic activities rather than to specialize and grow larger. This report identifies some recommended strategies for promoting the growth of womens microenterprises and discusses issues in the implementation of strategies such as constraints diversification and incentives. This report offers hypotheses for research at the macrolevel the subsector level and the microlevel and discusses the policy implications. The appendices include a literature review methodology and census surveys. The dynamics of entrepreneurial behavior is modeled as moving from survival-oriented to security-oriented to growth-oriented to diversification to specialization. Low-return markets are those associated with home-based enterprises in traditional subsectors that are vulnerable to displacement and with low demand elasticities. Good potential markets have good demand elasticity such as in food distribution and processing and the garment trade. High-potential markets are export-oriented and have high demand elasticities such as horticulture tourist crafts garments and aquaculture.