What drives women out of Entrepreneurship? The joint role of culture and access to finance

Abstract

This paper seeks to explore the barriers women entrepreneurs encounter in developing countries. Extending beyond qualitative assessment, the paper explores the magnitude of cultural practices and other factor that impact on the development of female entrepreneurship. The paper reviews existing literature on women entrepreneurship, focusing on the major impediments that curtail women entrepreneurship in developing countries. The paper reports on empirical evidence drawn from the review of literature on women entrepreneurship. A total of 13 published articles were reviewed forming the basis of the paper. Evidence from the reviewed articles reveal that cultural practices in developing countries play a major role in driving women out of entrepreneurship and by extension curtailing on their development. Women in developing countries are disadvantaged by their lower levels of financial literacy and awareness. Access barriers to financial resources are significant. Women entrepreneurs are still to overcome key challenges like access to training in trade issues, operations management and marketing, as well as access to good mentors and mentorship programs. Based on the reviewed literature, practical implication for policy makers include; the pressing need to develop a legal framework to protect female entrepreneurship, capacity building programs for potential entrepreneurs, holistic training for potential women entrepreneurs and most importantly, a creation and provision of credit facility dedicated to women entrepreneurs.