Research Paper on Barriers To Entrepreneurship – Any entrepreneurial activity is based on the legal framework that reveals clear property rights. The sound legal framework is the key to encouraging innovations by the business owners and make investments and growth possible. However, women face many legal obstacles such as formal restrictions on women to open bank accounts and access credit and inheritance laws favoring sons. Also, property rights fail to protect women’s ownership and divorce rights assign the assets to husbands. Thus, legal differences between men and women are one of the reasons that restrict the economic opportunities of women. In case of lower gender parity, fewer women are able to participate in the ownership of businesses.
Business owners need to have strong critical thinking skills that are developed from a strong foundation of education as it provides an understanding of planning, management, and accounting.
A major challenge for women business owners is the disparity in education levels based on gender. The less educated women are less likely to start their own business and thus survival rates of women with lower levels of education are also lesser.
Barriers To Entrepreneurship
In order to start the business, microeconomic conditions play an important role. A strong physical and virtual infrastructure, a strong system for patent protection, limited corruption and low costs for business start-up act are found to be supportive and critical of the sound business environment.
However, microeconomic conditions are not equally beneficial for men and women. Women lag in adoption of technology because of high costs for acquiring and maintaining it and also because of lack of information and training.
Thus, women are unable to expand their businesses as they do not adopt business technologies such as existing accounting or distribution systems that make it possible to handle high turnover.
Roles
Roles of men and women are defined in terms of social conventions that influence household, work life as well as society. Women are severely affected by these conventions in the countries where they are expected to bear the responsibility of married life as well as the general welfare of the family.
Given the situation, women are unable to start and expand the business as they cannot dedicate enough amount of time to businesses. They also have limited mobility and they are inclined to invest these profits back into the families implying less capital available to reinvest in the business.
