Activity 3.6b Decision making in the Economy: Small Scale and Family owned

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1 FACILITATION GUIDELINES: DEVELOPING GENDER STATISTICS Activity 3.6b Decision making in the Economy: Small Scale and Family owned OBJECTIVE PARTICIPANTS TIME ROOM SET-UP SUPPLIES This activity will allow participants to have a better view on what needs to be changed in their respective country in order to introduce gender statistics in order to collect gender-sensitive data on small scale businesses 8-40, in teams of 4-5 participants 105 minutes 5 minutes explaining activity/forming teams 5 minutes guessing Romania gender statistics data 5 minutes results and prize to winning team 10 minutes gender analysis reading 25 minutes answering questions on gender analysis 10 minutes reading DOSME case study 25 minutes answering questions on case study 20 minutes reporting out Tables with 4-5 chairs per table Flip charts, paper and pencils on all tables PREPARATION Have the Romania Case Study, the gender-analysis and the DOSME questionnaire ready Have the prizes ready FLOW - The facilitator forms teams of 4-5 participants - The facilitator asks the teams to come up with a guess of the gender statistics on decision makers in small scale / family run businesses in Romania: What was in 1995 and 1997 the percentage of women and men founder/manager of small scale or family businesses in Romania? - The teams need to agree internally on one set of numbers (e.g. 20%women, 80%men) and write their guess on a piece of paper with their team letter. - The facilitator collects the papers and, once she/he has all the papers, puts the answers on a flip chart. - The team with the numbers closest to the actual data wins - The facilitator hands out a little prize to the winning team. - The facilitator makes the point that this kind of data may not yet exist in their respective country/countries. - The facilitator hands out the results of the gender-analysis carried out on successful entrepreneurs in small scale business in selected European countries. - The team are asked to discuss the following questions: o What is the most important result that highlights gender differences? o What is the value added of gender analysis in understanding the success in small business? o Would this type of analysis be useful for your countries?

2 o Are there additional aspects that would be relevant for a gender-analysis of small business in your countries? - The facilitator hands out the DOSME questionnaire - The facilitator asks each team to examine the DOSME questionnaire and discuss the following questions: o Are the questions useful in determining gender issues for small businesses? o Would you add or change any questions? o Do you think they would work in your country? o What are the steps that should be undertaken in order to implement the questionnaire? - The teams report out their findings to the rest of the group.

3 Activity 3.6b Results for Romania Distribution of active enterprises by sex of the founder/manager (%) Trend analysis: All enterprises surveyed in 1995 and in situation 1997 situation Country Male Female Male Female Albania Bulgaria Czech Rep Estonia Hungary Latvia Lithuania Poland Romania Slovakia Slovenia Note: The table covers the subset of sole proprietors and partnerships. The question concerned was not asked in questionnaire C. The trend analysis is based on the assumption that the founder/manager has not been changed. Source: Eurostat, CEC.

4 Activity 3.6b Gender analysis of The Profile of the successful entrepreneur Eurostat Statistics in Focus 29/2006 Do enterprises fair better in the hands of men rather than women, or vice-versa? To shed more light on gender as a possible key factor in business success, the motivations for starting up, the start-up difficulties encountered and the judgement of profitability are looked at more closely. The motivations for start-up are analysed for the average of the available countries and by country. Readers should note that in the Factors of Business Success (FOBS) survey, 28% of entrepreneurs were women and 72% were men. In order to establish to what extent the FOBS survey reflects the working population, Figure 9 compares the proportion of women in the FOBS survey with the share in the working population. When comparing the FOBS survey with the Labour force survey (LFS), readers should note that they are based on different populations. While the FOBS survey questions businesses, the LFS draws its data from households. Moreover, while in the LFS 43% of respondents are women, in the FOBS survey this is only 28%. On average, to be my own boss is the main motivation for most entrepreneurs, while the second one is to make more money. Behind this country average however, to be my own boss was the first choice for the Czech Republic, Estonia, France, Italy, Latvia and Lithuania, while for Portugal, Slovenia, Slovakia, Bulgaria and Romania, to make more money was deemed as being the most important. In Luxembourg however, entrepreneurs cited to work as subcontractor for my former employer as their first choice. When it comes to the second choice, there is slightly more diversity in entrepreneurs choice: to make more money (Estonia, Italy, Latvia and Lithuania), to be my own boss (Denmark, Austria and Slovakia), new challenges (Czech Republic, France, Portugal, Sweden and Slovenia). Exceptions to this were Luxembourg with age of children and Bulgaria to avoid unemployment. Whereas the start-up motivations new challenges and to be my own boss give similar percentages for male and female founders for the motivation to make more money there are in many countries significant differences between men and women. In eleven out of fifteen countries the share of women is lower than the share of men. As shown in Figure 11, shares of men and women vary between NACE activities. Whereas NACE Section F Construction is clearly a male domain (96.1%), women would seem to prefer starting up their own business in Hotels and restaurants (NACE Section H, 43.2%), where they are however a minority as well. For both groups, the first three motivations are the desire to be my own boss (F: 73.6%, M: 75.7%), the prospect of making more money (F: 70.6%, M: 73.4%) and the desire for new challenges (F: 67.2%, M: 8.0%). Looking at some of the other motivations, for women, the motivations to avoid unemployment, to combine work and private life and the age of the children would seem to be more important than for men. By contrast, for men, to get away from an unsatisfactory work situation is more important than to combine work and private life. Whereas the age of children comes 10th place out of 13, this motivation is for men ranks last-but one. Table 2 shows that more men than women assess their enterprises as innovative, with the exception of Italy, Luxembourg and Sweden. In the cases where more women than men assess their enterprises as innovative, innovation is mostly related to the marketing domain (Denmark, Italy, Luxembourg, Austria, Portugal, Slovenia, Sweden, and Bulgaria). With the exception of Luxembourg, men dominate strongly the process innovation; this

5 means the technical aspect of innovation. Among the difficulties encountered by entrepreneurs starting up, do men and women cite one or the other more often? As shown in Figure 12, for women contacts with customers is the first difficulty (60.5%) and the second one is administrative problems (60.2%), whereas for men administrative problems (64.4%) ranges first followed by contacts with customers (61.5%). Differences between both groups are rather small but men cite more often outstanding invoices, finding suitable personnel and information technology as start-up difficulties. Alone as entrepreneur, pricing goods, finding premises, finding suppliers and backing from family were mentioned slightly more frequently by women. Do men and women assess the current profitability of their enterprise differently? It would seem that men are slightly more positive (Figures 13a and 13b). Asked to rate the profitability of their enterprise, 31.3% of women considered it was good, which was less than the share of men (37%). By contrast, a greater share of women (26.9 %) believed that profitability was poor (men: 18.9%). Even if for both genders, the share of entrepreneurs rating profitability as either barely sufficient or poor is higher than those rating it as either very good or good, men would seem to be more optimistic.

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9 Activity 3.6b DOSME QUESTIONNAIRE - Starting and development conditions The following questionnaire on the Demography of Small and Medium-Sized Enterprises (DOSME) project was sent to a sample of new enterprises appearing to start their activities in These businesses were identified from registrations with administrative sources. The survey was carried out in twelve countries; Albania, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia and The former Yugoslav Republic of Macedonia. The questionnaire collected data about the business, and about the person who started it, including the gender of that person. The results were published, and are available on the Internet. The relevant part of the questionnaire for the purpose of this activity is part III (highlighted in the text). Statistical institute Statutory inquiry Name of respondent: Signature: Date of return : Enterprise identifier in the panel: ccxx y zzzzz Name and postal address for mailing (use of window envelope)

10 I - Identification of your enterprise We know your enterprise as: Is it correct? if not please mark corrections Name Yes No Address.... Yes No Identification number.. Yes No Telephone..... Yes No Fax.... Yes No Let us be sure Is the above name the trading name by which your enterprise is known by its clients? if not indicate it Yes No What is the actual legal form of your enterprise? Sole proprietor 1 Partnership 2 Public enterprise 3 Co-operative 4 Joint stock company 5 Limited liability company 6 Joint venture 7 Other Specify... 8 II - Current position of your enterprise 1) Is your enterprise currently active (at beginning of September 1999)? Yes No if Yes please go to table 3) if No complete table 2) below and stop where activity has ceased and will not restart 2) If not currently active Activity never started and will not start 1 Activity not yet started 2 Only seasonal activity carried out 3 Activity has ceased and will restart after some months 4 Activity has ceased and will not restart 5 If ceased : Date activity ceased [_!_] 19 [_!_] If definitely ceased, reason for cessation : - Sold to 1 - Merged with 2 - Closed down 3 - In bankruptcy 4 - In liquidation 5

11 - Other Specify. Is the cessation : - Voluntary 1 - Forced 2 6 3) If your enterprise is a Joint stock company or Limited liability company Does it own more than 30% of the capital of any other company? Yes No Does any other national company own more than 30% of the capital? Yes No Do foreign companies own part of the capital? Yes No if yes, all together they own up to and including 30% 1 from 30% to 50% 2 more than 50% 3 4) The activities are carried out in number of permanent fixed locations [_!_!_!_] 5) How many people actually work in the enterprise (approximately without checking accounts) Owners and family members (not on the payroll) Employed on basis of full-time labour contract Employed on basis of part-time labour contract Employed on civil contract Subcontracted labour Others Specify. [_!_] [_!_!_!_!_] [_!_!_] [_!_!_] [_!_!_] [_!_]

12 6) Which of the following words characterises best your main activity? Tick one box Agriculture 1 Installation 7 Social services 13 Fishing 2 Insurance 8 Real estate 14 Construction 3 Manufacturing 9 Restaurant 15 Extraction 4 Maintenance or repair 10 Retail trade 16 Finance 5 Services mainly for private persons 11 Wholesale trade 17 Hotel 6 Services mainly for enterprises 12 Transport 18 None of these 19 7) Give the name of the 3 main products or services associated with then main activity of your enterprise ) Describe briefly the activities carried out (if more than one please underline the most important).... 9) Evolution of activity Are the activities the same as at the time your business started? Yes No Do you intend to carry through major changes in the production of goods and services in the next half year? Yes No 10) Does your enterprise keep double entry accounts Yes No Who is the bookkeeper? Tick one box only Your self 1 Partner or family member 2 One of the employees 3 An external specialist 4

13 III - Starting and development conditions 11) Please answer only for the sole proprietor or main partner in a partnership Sex Male 1 Year of birth Female 2 19 [_!_] Educational level Primary 1 Occupation before entering this enterprise: Basic vocational 2 Secondary technical 3 Other secondary 4 University or equivalent degree 5 Other post secondary education 6 Farmer 1 Craftsman 2 Technical profession 3 Salesman 4 Office clerk 5 Manager in a private enterprise 6 Manager in public service 7 Student 8 Inactive 9 Other Specify.. 10 Do you carry out your activity from your home address? Yes No Do you have another job outside the enterprise? Yes No 12) When was your enterprise officially registered in the trade register [_!_] month 19 [_!_] year 13) When did your enterprise start its activity (Can be before or after registration) [_!_] 19 [_!_] 14) Your enterprise was created By privatisation or purchase of part of a former state enterprise 1 By change of legal form of a former state enterprise 2 By change of legal form of an enterprise that you already own 3 By acquisition of a former private enterprise 4 By merging of several private enterprises 5 By splitting a former private enterprise 6 It is a newly created enterprise 7

14 By splitting of a former co-operative property 8 In an other way Specify ) What is the source of the capital you needed to start your enterprise? (in approximate percentages) Savings of partner or manager...% Loans from relatives...% Loans from your former employer...% Bank loans...% Public subsidies...% Other...% Specify 16) Has your enterprise invested or does it intend to invest in capital equipment or buildings in 1999? Yes No 17) Does your enterprise find it difficult to sell its products or services? Yes No If yes, why? Your clients have no resources to finance their needs Yes No Too many competitors in the market Yes No Competitors cut their prices Yes No You are not sufficiently known Yes No Your marketing service is not sufficiently developed Yes No Other Yes No Specify 18) Does your enterprise have difficulties in developing its business activity? Yes No If yes, why? Lack of technology Yes No Lack of funds Yes No Non- or late paying customers Yes No Limited access to credit Yes No Lack of raw material Yes No Limited access to trained workers Yes No Other Yes No Specify

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