WOMEN ENTREPRENEURSHIP IN MONTENEGRO WOMEN ENTREPRENEURSHIP IN MONTENEGRO DECEMBER 2011. 1 . This research

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  • WOMEN ENTREPRENEURSHIP IN MONTENEGRO

    Government of Montenegro

    Ministry for Human and Minority

    Rights

    vladimir.djuraskovic Typewritten text This document has been produced with the financial assistance of the European Union

  • WOMEN ENTREPRENEURSHIP IN MONTENEGRO DECEMBER

    2011.

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    This research was conducted by Ipsos Strategic Marketing for Gender Equality

    Program IPA 2010, which is implemented in partnership by Delegation of the

    European Union in Montenegro, the Ministry for Human and Minority Rights

    and UNDP in Montenegro.

    The views and opinions expressed in this study do not necessarily coincide with

    the views and opinions of the partners in the Program.

  • WOMEN ENTREPRENEURSHIP IN MONTENEGRO DECEMBER

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    Table of contents I Introduction 3

    II Legal and strategic background 6

    2.1. International standards and initiatives ...................................................................................................................................................................... 6

    2.2. National normative and institutional framework .................................................................................................................................................... 10

    2.3. Examples of good practice ....................................................................................................................................................................................... 30

    III Demography and previous experience 32

    3.1 Demography ............................................................................................................................................................................................................. 32

    3.2 Previous experience ................................................................................................................................................................................................. 34

    IV Obstacles 38

    4.1 Impact of gender roles on women entrepreneurship ............................................................................................................................................... 38

    4.2 Starting a new business ............................................................................................................................................................................................ 47

    4.3 Inhibiting factors....................................................................................................................................................................................................... 49

    4.4 The initial source of funds ........................................................................................................................................................................................ 53

    4.5 Establishing and registering enterprises ................................................................................................................................................................... 56

    V Motives of potential women entrepreneurs and stimulating measures 57

    5.1 Motives of potential entrepreneurs ......................................................................................................................................................................... 57

    5.2 Stimulating measures ............................................................................................................................................................................................... 61

    VI Challenges of women entrepreneurship 68

    6.1 Market lack of saturation and innovativeness .......................................................................................................................................................... 68

    6.2 Aspirations and objectives ........................................................................................................................................................................................ 75

    VII Evaluation of educational programs for development of entrepreneurship 79

    VIII Conclusions and recommendations 85

    8.1 Conclusions ............................................................................................................................................................................................................... 85

    8.2 Recommendations .................................................................................................................................................................................................... 92

    IX BASIC METHODOLOGICAL NOTES 98

    9.1. Overview of methodology ....................................................................................................................................................................................... 98

    9.2. F2F methodology ..................................................................................................................................................................................................... 99

    9.3. In-depth interview methodology ........................................................................................................................................................................... 103

    9.4. Desk survey ........................................................................................................................................................................................................... 105

  • WOMEN ENTREPRENEURSHIP IN MONTENEGRO DECEMBER

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    I Introduction

    Professor Jeffry A. Timmons defines entrepreneurship as a process in which something is developed

    from almost nothing. Woman entrepreneur is a person who, in the process of identifying opportunities,

    raising funds for its realization and distribution of new value takes risks in money, time and

    reputation.

    The first association of women entrepreneurs was founded in 1945 by Yvonne Foinant in France. After

    that FCEM (Femmes Chef d'Enterprises) grew from French association to worldwide alliance of women

    entrepreneurs with 30 member countries. The first scientific work which drew attention to increasing

    trend of this kind of entrepreneurship was done in 1976, and published in American magazine ''Journal

    of Contemporary Business''.

    Most countries are characterized by low percentage of women entrepreneurs compared to male

    entrepreneurs. Nevertheless, there are some countries in which women entrepreneurship is the most

    dynamic segment of economic activity:

     USA: women own 38 % of all companies (8 million companies), which employ 27,5 million people and make $ 3.6 trillion of annual sale

     Japan: 23 % of private companies were founded by women

     China: women founded more than 25 % of enterprises in 1978

     Germany: More than 1/3 of all new businesses since 1990, with more than 1 million jobs were founded by women

     Hungary: Since 1990 women founded more than 40 % of all new businesses

     European Union: 1/3 of new companies are founded by women.

    The emergence and development of women entrepreneurship in the past 20 years has been closely

    associated with the process of equalizing men's and women's rights and democratization of society as a

    whole. However, despite the overall democratization of society, in the past 10 years, Montenegro was

    characterized by a transition period followed by smaller scale of production, accelerated privatization

    and transformation of business organizations. All this has led to increase of unemployment, sudden

    impoverishment of the entire social layers, and change of lifestyle for men and women, Statistical data

    indicate that women are somewhat more vulnerable than men, primarily in terms of unemployment,

    but also in terms of poverty, particularly in case of single mothers. Such economic conditions lead to

    perception of entrepreneurship as an important way of earning income through self-employment.

    Montenegro is characterized by an unequal position of women in exercising their economic and social

    rights. Despite the fact that an increasing percentage of women acquire higher education, the status of

    women in the labour market is worse than the status of male population, especially in terms of

    availability of managerial functions, particularly in the fields of politics and self-employment.

    Nevertheless, the legislative and strategic documents that Montenegro has made in recent years

    provide a good basis for solution to these problems.

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    Gender Equality Program IPA 2010, implemented by the UNDP Office in Montenegro, together with the

    Ministry for Human and Minority Rights and Delegation of the European Union represents continuation

    of legislative activities and strategies in the field of gender equality. This program aims to help

    establishing in the next three years a sustainable and effective system of measures in three areas in

    Montenegro:

     Reduction of domestic violence and protecting victims;

     Political strengthening of women and

     Economic stren