Massive untapped potential: new approach to fast-track rise of female entrepreneurs.

The number of female entrepreneurs in the Netherlands is currently showing near-zero growth, according to a new report published by ABN AMRO. Despite rising numbers in certain sectors, women still account for only 37 per cent of all Dutch entrepreneurs. Gerarda Westerhuis, sector economist at ABN AMRO, invites us to approach the issue from a different angle, focusing on untapped potential. Westerhuis emphasises that we need to look beyond the differences between men and women and become more aware of the diversity among female entrepreneurs.

'We shouldn't stay hung up on the differences between men and women in the entrepreneurial space,' says Gerarda Westerhuis, sector economist retail & leisure at ABN AMRO. 'That actually perpetuates inequality. The figures highlight the structural challenges that women face and scare many of them off.' With Selin Dilli of the University of Utrecht, Westerhuis is investigating why the percentage of female entrepreneurs is growing so slowly.

Untapped potential

The sector economist advocates a sector-based approach to promote gender equality in entrepreneurship and highlight the importance of female entrepreneurs. 'It starts with acknowledging that the needs and challenges of female entrepreneurs vary widely, depending on the sector they're active in. The obstacles that women run up against in technology, like access to education, financing and networks, are very different from the ones faced by women in commerce,' Westerhuis observes. 'By focusing on successes and learnings, we can unlock massive untapped potential.' An earlier report published by ABN AMRO and McKinsey revealed that offering better support to female entrepreneurs can inject the Dutch economy with a whopping 139 billion euros in extra gross added value.

While in 2010, 32 percent of all entrepreneurs were women, in 2023 this was 37 percent. Undeniably higher, but if we zoom in, we see that the uptrend has levelled off in recent years. The number of women starting a business remains far lower than the number of men, flatlining at around 37 percent. 'If we go on like this, the number of female entrepreneurs isn't going to rise in the next decade either,' Westerhuis warns.

Differences between sectors

There are considerable differences between sectors when it comes to the presence of female entrepreneurs. Heading the ranking is the sector 'other services', which includes hairdressers and beauticians. In this sector, 77 per cent of entrepreneurs are women. Next in ranking are healthcare & wellbeing, education, culture, sports & leisure, hospitality and specialist business services. At the bottom of the list is mining, with only 5 percent female entrepreneurs. Elsewhere, subsectors such as veterinary services, chemicals, food & beverages, leather & shoes and travel show surprising growth.

A tailored approach, Westerhuis believes, should focus not only on economic success, but also on the social and sustainability impact of smaller companies and self-employed women. Supporting these entrepreneurs will help to achieve social goals that are good for both the government and business.

Removing obstacles

'Female entrepreneurs are a diverse group, and their challenges must be addressed within their specific contexts. Highlighting successful sectors is useful, but to provide truly effective support it's just as important to identify the unique obstacles and needs within each sector,' Westerhuis points out. 'There are some good examples of government programmes in individual sectors, such as farming and culture. They can serve as a blueprint for new initiatives.'

Chantal Korteweg, Director of Inclusive Banking at ABN AMRO, appreciates the insights provided by the new report. As the initiator of Code V, an alliance of 84 influential public and private-sector organisations committed to promoting equal entrepreneurial opportunities for women, she emphasises the necessity of a collective approach. 'This report makes it very clear that becoming an entrepreneur is not simply a matter of individual choice, but relies heavily on the ecosystem created by the business community and the government. It's crucial to build that entrepreneurial ecosystem together, if we want to offer women equal opportunities. There are some successes worth celebrating, but overall there's still a lot to be done. Within Code V, we're working our socks off to make equal opportunities happen.'

(C) 2024 Electronic News Publishing, source ENP Newswire