The GEM Report on Women and Entrepreneurship in Chile - 2005/2006, led by Universidad del Desarrollo, shows that entrepreneurship among women has risen 68% in the last 3 years despite an adverse setting.  If this phenomenon continues, women could outnumber men in new enterprises by 2010.

Although Chilean women believe they have less opportunity to become entrepreneurs than men, they have nonetheless forcefully begun to start companies, and the rates of growth are nearly 20% annually, higher even than egalitarian developed countries like Germany or Spain. This is revealed in the Report on Women and Entrepreneurship in Chile - 2005/2006, prepared by Universidad del Desarrollo, launched on August 8^th at SOFOFA (National Industrial Chamber) Headquarters. 

This report constitutes the first detailed analysis of female entrepreneurship in Chile. The report is part of the Global Entrepreneurship Monitor, which is led by Babson College and the London Business School.

Today, it is estimated that there are 513,000 women entrepreneurs in Chile, equal to 33% of all entrepreneurs in the nation.  Three years ago the percentage was just 20%.

If the high growth rates persist, by 2010 female entrepreneurs will equal male entrepreneurs and create more than 50% of jobs in new enterprises in the country.

This growth has taken place in an adverse setting, according to those interviewed.  75% feel that in Chile, men and women do not receive equal exposure to good opportunities to create a new business or enterprise.  Nor do they see outside incentives, an opinion held by 63% of the interviewees, even though it is well-regarded socially to be an entrepreneur (a position shared by 71%).  67% believe that there are enough social services available in Chile for women to continue working, even after they have had children, but they may possibly not be within reach of the lower-income sectors, which is where entrepreneurship is fundamentally based on need.

Where women are equal to men is in readiness: 85% say they have the same level of knowledge and skills as men in beginning a business.

The report demonstrates that “the phenomenon of female entrepreneurship has become so relevant to the future of the country that it needs for the government to define appropriate state policies to reinforce it.”  In fact, “the importance of this phenomenon is confirmed by the quality of the new projects led by women that I have had the chance to analyze in depth,” says José Ernesto Amorós, professor and researcher for the Center for Entrepreneurship of Universidad del Desarrollo and GEM Chile Project Director. He added that “13% of women-run enterprises have high expectations of becoming large, which did not use to be the case.”  This can be attributed to “the profound progress in equal access by women to the Chilean educational system in the last 20 years, which has helped better incorporate the capabilities of women to the country’s development,” says Olga Pizarro, professor and researcher for the Center for Entrepreneurship of Universidad del Desarrollo and co-author of the report.

The study revealed important information on female entrepreneurship:

• They want to be entrepreneurs.  70% of those surveyed said that their principal reason for creating their enterprise was to find an attractive business niche. The remaining 30% said they needed to earn income to survive.  In general, Chile has grown in opportunity entrepreneurship, but women still number less than men because need entrepreneurship is stronger among them.
  
• It is good business to be an entrepreneur: 40% of women entrepreneurs earn income above the national average.  University-educated female entrepreneurs earn even better as 61% are ranked in the upper-third of the income strata.  This is in some way perceived by women entrepreneurs because 65% say that one of their reasons for setting up business was to increase their income.
  
• Women are largely focused on the sale of goods and services. 64% of female entrepreneurs in business 3.5 years or less are dedicated to end-consumer business (retail sales, restaurants, personal services, hotels, etc.) while this figure is 48% among men.
  
• They are prepared: More than one-half of female entrepreneurs have received some form of higher education.  25% have completed college and 26% have received professional training.
  
• They are more fearful, but they manage well: 27% of women entrepreneurs say that they fear failure while this occurs in only 22% of men.  It is notable that this did not keep them from beginning the enterprise.
  
• Family support. 61% of start-up female entrepreneurs are married or living with someone.  This figure rises to 70% among established women entrepreneurs, which is a sign of the family support that female entrepreneurship must have.

Study Data

The information was gathered through a survey of 2000 adults aged 18 to 64 who had a national representativeness and a margin of error of 2.5%.

The information was complemented by in-depth interviews of 50 experts, 17 of whom were female entrepreneurs.

National standardized data from the World Bank, the U.N., the IMF and venture capital associations were also used.

The same methodology and procedures were implemented in all 35 countries that participated in the study, which allows for valid comparisons.

What is GEM?

The Global Entrepreneurship Monitor, or GEM, is, thus far, the greatest international research effort to describe and analyze the entrepreneurship process in different countries.  This project is possible thanks to the support of the Babson College and London Business School, both leaders in entrepreneurship.

The Report on Women and Entrepreneurship in Chile - 2005/2006 is part of the general GEM project that is, in our country, the result of an alliance between Universidad del Desarrollo and Adolfo Ibañez, who have together developed the GEM 2005 Chile National Report.  This year, 35 countries participated in the GEM project.

The GEM Chile team is the first in the world, apart from the founding universities (London Business School and Babson College), to prepare a detailed report on female entrepreneurship.  The result is the Report on Women and Entrepreneurship in Chile - 2005/2006, prepared by Jose Ernesto Amorós (GEM Chile Project Coordinator) and Olga Pizarro Stepovic, both professors and researchers at the Center for Entrepreneurship of Universidad del Desarrollo.

This report has three main objectives:

1.         Compare entrepreneurship by women in Chile to that of the countries participating in the GEM.

2.         Describe and understand what the principal characteristics are of a female entrepreneur in the nation.

3.         Reflect on female entrepreneurship in Chile for the purpose of eventually designing practices and policies that encourage a greater involvement of women in entrepreneurship.

For more information, visit www.gemconsortium.org.