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Chapter 2: Impact Of Female Entrepreneurship On The Economy

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CHAPTER 2 – IMPACT ON THE ECONOMY
2. Impact of women entrepreneurship on the economy
The impact that female entrepreneurship has had on the economy as well as on the social structure of the country is ample, and includes both subjective and objective aspects. Any country with high rate of entrepreneurship benefits from an economic as well as social growth. Among some of the advantages is job creation, which is especially important in the dynamic corporate world of today where there is high job insecurity. There have been thousands of lay off as a result of the financial crisis, and many of the unemployed have turned towards entrepreneurship and setting up their own businesses in order to create income for themselves. As a result, entrepreneurs …show more content…

Moreover, women also tend to start smaller ventures, which is a constraint in terms of securing financial assistance. It was also noted that the rate of investment of these women is minimal. The low rate of investment means that no matter how well women were doing in their start-ups as a percentage of their investment, and no matter how robust the return on investment for their business was, the absolute amount of return would be small. This would discourage the professional investors from offering financial assistance, as the return would be too small to warrant such an …show more content…

GDP growth rates. World Bank. In 1990’s, India grew by 5 % while China’s growth was approximately 4 %. South Africa, Russia and Brazil’s growth rate is negative during the same period. In return, Russia attends approximately 10 % growth in 2000. The highest growth rates in the group have been reached by China in 1992 and in 2007 where growth was nearly 14 %. It can also be seen that China has had the highest growth rates in the group, and it was only in one year (1999) that India was able to surpass the growth rate in China only by a small margin (World Bank, 2015).
These results indicate that high female participation has led China to achieve higher growth rates as compared to all the other BRICs nations. The historical background of female participation rate is a notable fact which supports the close relationship between female labor participation and economic potential of the country. However, this comparison has limitations as increases and decreases in GDP might not solely be caused by changes in females’ participation rates in the labor

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