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Women entrepreneurs in sub-SaharanAfrica: An institutional theory analysisfrom a social marketing point of viewLyn S. Amine a & Karin M. Staub aa Department of Marketing , Saint Louis University , St. Louis, USAPublished online: 26 Mar 2009.
To cite this article: Lyn S. Amine & Karin M. Staub (2009) Women entrepreneurs in sub-SaharanAfrica: An institutional theory analysis from a social marketing point of view, Entrepreneurship &Regional Development: An International Journal, 21:2, 183-211, DOI: 10.1080/08985620802182144
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Entrepreneurship & Regional DevelopmentVol. 21, No. 2, March 2009, 183–211
Women entrepreneurs in sub-Saharan Africa: An institutional
theory analysis from a social marketing point of view
Lyn S. Amine* and Karin M. Staub
Department of Marketing, Saint Louis University, St. Louis, USA
This paper takes an international marketing (IM) approach to the study ofwomen entrepreneurs (WEs) in sub-Saharan Africa by examining factors inthe environments in which WEs operate. The goal is to understand betterhow environmental barriers of many types impact the efforts of WEs.Using institutional theory-driven analysis, findings from a wide range ofliterature are integrated, with special attention to issues of the sociallegitimacy of women as entrepreneurs. Results of this study demonstratethat WEs in sub-Saharan Africa face a daunting array of challenges arisingfrom the socio-cultural, economic, legal, political, and technologicalenvironments in which they live. Moreover, unfavourable conditions inlocal regulatory, normative, and cognitive systems place additional burdenson women who desire to become entrepreneurs or to expand anentrepreneurial business. In order to address these gender-specificproblems, social marketing is recommended with the goals of (1) changingsocial beliefs, attitudes and behaviours that negatively affect Wes, and (2)improving conditions in institutional systems and market environments.Recommendations in the paper suggest how to bring about changes inattitudes towards women, work and their independent enterprise. Inconclusion, directions for future scholarly research are identified.
Keywords: women entrepreneurs; sub-Saharan Africa; market environ-ment; institutional theory; social marketing
1. Introduction
The award of the 2006 Nobel Peace Prize to Mohamed Yunus of Bangladesh, for hisfounding of the Grameen Bank and work on poverty reduction through micro-loansto women, focused the attention of scholars in international business on the role ofwomen entrepreneurs (hereafter referred to as WEs) in developing country markets.Similarly, the work of international marketing scholar C.K. Prahalad and hiscolleagues Stuart Hart and Ted London has drawn attention to the needs of the fourbillion poor consumers at the ‘bottom of the pyramid’ (BOP) of the world’spopulation. Yet despite these important reasons for interest, international business(IB) scholars have not paid much attention to issues affecting the success of WEs inBOP markets in Africa. This neglect contrasts markedly with the large body ofknowledge generated by researchers in the fields of development studies, anthro-pology and donor studies. Thus, a need exists to examine WEs in Africa from abusiness point of view.
*Corresponding author. Email: [email protected]
ISSN 0898–5626 print/ISSN 1464–5114 online
� 2009 Taylor & Francis
DOI: 10.1080/08985620802182144
http://www.informaworld.com
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In this paper this goal is accomplished not by revisiting knowledge from the well-
developed field of international development and donor studies, but by applying thetheory of institutional analysis from a social marketing point of view. Institutional
theory is borrowed from the IB field which includes international management,entrepreneurship, regional studies, and international marketing. A marketing
perspective is particularly appropriate in this study because marketers pay specific
attention to the analysis and management of environmental factors which shapebeliefs, attitudes, and behaviours in given populations.
As a sub-discipline of marketing, social marketing uses communication
strategies to bring about voluntary changes in beliefs, attitudes, and behavioursthat will contribute to improved quality of life. Thus, socially desirable outcomes
can be accomplished by targeting tailored messages to specific audiences, using acombination of economic, communication, and educational strategies (see Kotler,
Roberto, and Lee 2002 for a full discussion of social marketing). The goals of
social marketing campaigns may include encouraging a target audience to accepta new belief or behaviour, reject a potential belief or behaviour, modify a current
belief or behaviour, or abandon an old belief or behaviour. This study will showthat many beliefs, attitudes, and behaviours across sub-Saharan Africa need to
change in order for WEs to become widely successful and will recommend
appropriate strategies.A classic example of effective social marketing is Nelson Mandela’s ‘46664 – It’s
in our hands campaign’, designed to fight HIV/AIDS through fundraising and
awareness programmes conducted in 2003, 2005, and 2007 (www.46664.com). Thiscampaign, with its first public concert of celebrity entertainers held in South Africa,
was supported by distribution of informational leaflets, product samples (condoms)and personal involvement items (red ribbons). In addition, members of the public
were invited to post inspirational messages on MTV Networks International’s own
website for its Staying alive campaign. This campaign is funded by MTV’s parentcompany Viacom, the Kaiser Family Foundation, the Bill and Melinda Gates
Foundation, the Mel Karmazin Foundation, and Sumner Redstone. These examplesdemonstrate the effectiveness of social marketing, both in changing public opinion
and behaviour and in bringing together a wide range of concerned parties to improve
quality of life in Africa.Following Fick’s (2002) argument that there is no single Africa and that countries
in Africa should be grouped into more meaningful segments, this study focuses only
on sub-Saharan Africa as a regional group. This regional approach ensures a level ofmarket homogeneity among countries selected for study1 and facilitates inter-
country comparisons of conditions affecting WEs. Thus, respecting the criterion ofmarket homogeneity, Arab countries of North Africa are excluded from study, due
to their ethnic and cultural differences from sub-Saharan African markets (McElwee
and Al-Riyami 2003). Similarly, wherever possible South Africa is excluded becauseconditions in that country differ notably from other sub-Saharan countries.
Other issues of homogeneity relate to women themselves as subjects for analysis
and comparison. Three levels of similarity or difference should be considered. First,no matter where women live, they experience similar types of role complexity,
especially when combining the roles of working wife and mother. Second, no matterwhere women live, they encounter similar problems when trying to get started as
entrepreneurs or when trying to expand their business activities. Third, in contrast to
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male entrepreneurs, women entrepreneurs face unique challenges arising from thelocal domestic market environment in which they must operate. It is these differencesarising from the specific social and market environments in which WEs operate thatare the subject of investigation in this study (not differences between womenthemselves, their roles or their personal experiences).
If entrepreneurship is accepted as a key driver of economic growth and anessential component of national development, then a better understanding is neededof those factors which promote or inhibit women’s entrepreneurship in sub-SaharanAfrica. Two questions are of principal interest in this study: under what conditionsdo women become entrepreneurs in sub-Saharan Africa, and what types ofenvironmental barriers must they face and overcome?
In order to address these research questions, two basic assumptions are made: (1)that encouraging more women to become entrepreneurs is socially and economicallydesirable; and (2) that encouragement of WEs will lead to increased employment andgreater economic activity. We recognize of course that ‘more is not always better’,insofar as not all individuals who want to start a business are capable of doing so,nor are they necessarily able to run a business successfully. Large numbers of failedstart-ups in world markets attest to the fact that ambition must be tempered byability and is always helped immeasurably by good luck. Moreover, many womenwork in small- and medium-sized family enterprises, the growth and development ofwhich are often constrained by social attitudes and environmental barriers. Thus, theworking premises in this paper are that WEs can play a valuable role in the economicgrowth of the sub-Saharan region, if environmental barriers to their success areremoved. As O’Neill and Viljoen (2001, 37) stated: ‘The availability of entrepreneursmay be considered the most important prerequisite for economic development in acountry’. Fick (2002) agreed, observing that in Africa there ‘is no shortage ofentrepreneurs’.
The rest of the paper proceeds as follows: section 2 presents a brief socio-economic profile of sub-Saharan Africa, highlighting the business conditions inwhich WEs operate. Section 3 presents a review of the literature on challenges thatWEs face in developing market environments. Section 4 deepens our understandingof barriers affecting WEs in sub-Saharan Africa by means of an institutional theory-driven analysis, followed in section 5 by an examination of issues surrounding thesocial legitimacy of WEs. Recommendations for action using social marketing areformulated in section 6 because WEs and their small family enterprises need social‘room to grow’. The paper concludes in section 7 with discussion of avenues forfurther research.
2. A socio-economic profile of sub-Saharan markets
In order to emphasize an international marketing view of environmental factors,Figure 1 presents a simplified version of a well-known environmental model (firstdeveloped in the 1980s by Philip Cateora). Figure 1 draws attention to the manyvariables in the domestic market environment that WEs must manage effectively,in order to start or expand a business. The effects on WEs of factors such as culturalforces, legal forces, lack of basic infrastructure, lack of technology, economicproblems such as unemployment, and challenges from ethnically-based competition,will be addressed throughout the paper.
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In order to understand the nature of WEs’ experience in sub-Saharan Africa,it is necessary first to understand the socio-economic context in which they liveand work. Table 1 presents comparative data for sub-Saharan Africa as a regionand for four selected nations. We chose not to present data for all 47 countries inthe sub-Saharan African region, preferring a simpler approach to countrycomparisons based on an illustrative sample of only four nations. These wereselected on a convenience basis to represent the geographic poles of the region,namely Nigeria in the west, the Central African Republic (CAR) in the centre,Kenya in the east, and Botswana in the south of the region. Our goal is todemonstrate both similarities and differences in the experiences of WEs trying tooperate in the region. Thus Table 1 presents detailed information about (1)general living conditions and women’s status in the region, and (2) business tasksassociated with entrepreneurship.
Further references to the data presented in Table 1 will made throughout thepaper.
An explanatory note on our research methodology is required here. In trying toassemble relevant statistical data from secondary sources for this profile, weencountered considerable difficulties with incomplete, out-of-date, or missing data.Even in publications produced by leading international agencies such as the WorldBank, UNESCO (2005), UN, and the CIA (2007), statistics for Africanmarkets proved to be inadequate for the purposes of this study. Items of interestcould not be documented across comparable time periods for all 47 countries in the
Domestic marketenvironment
(uncontrollablevariables)
Company decisions(controllable variables)
PriceProduct
Promotion Channelsof distribution
Research
Level of technology
Structure ofdistribution
Political/legalforces
Economic forces
Competitive forces
Geographyand
infrastructure
Culturalforces
Figure 1. A model of variables affecting the marketing environment of women entrepreneurs.Source: Adapted from Cateora and Graham (2007).
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sub-Saharan region. In addition, we were not able to subtract data for South Africafrom regional statistics. In the face of such challenges, we propose that the forcedinclusion of aggregate statistics that include South Africa still holds value insofar asit sets up benchmarks for the region, even though it inflates statistics for the region as
Table 1. Comparative socio-economic and business-related data (2005/2006).
Sub-AfricaSaharan Nigeria
CentralRepublicAfrican Kenya Botswana
PeoplePopulation, total (in million) 725 128 3.98 33.46 1.76Population growth (annual%) 2 2 1 2 �0.04Life expectancy at birth, total (years) 46 44 39 48 35Fertility rate, total (births per woman) 5 6 5 5 3School enrollment, primary (% net) N/A 60 N/A 76 82School enrollment, secondary (% net) N/A 27 N/A 40 61School enrollment, tertiary (% gross) N/A 10 N/A 3 6Literacy rate, adult total (% of peopleages 15 and above) N/A 67 49 74 79
Literacy rate among women (%) N/A 60 34 70 82
Economy
GNI per cap (Atlas method: current US$) 606 430 310 480 4380Agriculture, value added (% of GDP) 16 17 56 27 3Services, value added (% of GDP) 52 26 23 56 46Industry, value added (% of GDP) 31 57 22 17 51
Global links
Foreign direct investment, net inflows(BoP, current US$, in millions) 11,275 1,874 -12.7 46 4646
Official development assistance andofficial aid (current US$, in millions) 26,004 573 104 635 39
States and markets
Fixed line and mobile phone subscribers(per 1,000 people) 84 79 18 85 396
Internet users (per 1,000 people) 19 14 2 45 34Personal computers (per 1,000 people) 15 7 3 13 45
Starting a business
Procedures (number) N/A 9 10 13 11Time (days) N/A 43 14 54 108Cost (% of income per capita) N/A 54 209 46 10Min. capital (% of income per capita) N/A 29 554 0 0
Dealing with licensesProcedures (number) N/A 16 21 11 24Time (days) N/A 465 245 170 169Cost (% of income per capita) N/A 238 301 37 457
Registering property
Procedures (number) N/A 16 3 8 4Time (days) N/A 80 69 73 30Cost (% of property value) N/A 21 11 4 4
Sources: Compiled from the CIA World Factbook 2007; UNESCO 2005; World Bank 2007a,2007b.
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a whole. Clearly, national governments and international agencies need to devotemuch more attention to documenting and reporting national economic activity in theregion in a more timely and analytically useful manner than is presently the case.
2.1. General living conditions and women’s status in the region
Table 1 shows that sub-Saharan Africa has one of the fastest growing populations inthe world (2%). High fertility rates of five or six births per woman have importantpersonal consequences for women who are trying to start or operate their ownbusiness. Repeated pregnancies may hinder pursuit of a business outside the home orpreclude work entirely, due to ill health. Once a woman has several children, her daysmay be taken up entirely with their care, further precluding the possibility ofentrepreneurial work, whether inside or outside the home. We note here that AIDSin Africa has resulted in many women becoming responsible not only for their ownchildren but also for one or more children who have lost parents to the disease.
In urban areas, some men may be available to help out with domestic chores, dueto their own unemployment and decreasing real incomes in some formal sector jobs.(See Otunga, Opata, and Muyia [2001] for further discussion of unemploymentissues.) However, in patriarchal rural societies, division of labour is still largelydetermined by gender, with women typically receiving little assistance from theirspouse. This leaves little discretionary time for regular economic activity. Moreover,in communities where children are regarded as insurance against incapacity or needin old age, large families of young children constitute a physical and emotionalburden on women in their prime years of potential entrepreneurial activity.
In contrast to the high rate of population growth across the region as a whole(2%), Botswana is a special case because its population is shrinking (�0.04%) due tothe ravages of HIV/AIDS. In some communities, members of the next generationhave been entirely wiped out, raising concerns about future economic growth of thatnation. Premature deaths of both adults and their children are major social andeconomic problems, creating extra burdens for those women who are still able towork (as mentioned above with regard to child care).
2.2. Business conditions associated with entrepreneurship in sub-Saharan Africa
Over 70% of Africans live in rural areas and depend predominantly on agriculturefor their survival. More than 40% in poverty, while 218 million people live inextreme poverty (see Rural poverty portal 2007). Table 1 shows extremely low levelsof gross national income (GNI) per capita for three of the sample nations (exceptBotswana), as well as clear differences in these nations’ economic success(measured as a percentage of GDP). For example, Central African Republic(CAR) relies heavily on economic value-added derived from agriculture (56% ofGDP). This contrasts with Kenya’s service industries which are flourishing in boththe private and public sectors (56% of GDP), and Nigeria’s active manufacturing,mining, and oil drilling activities (57% of GDP). While progress towards economicdevelopment is being made across the region, with economic growth averagingabout 5% in 2005, Table 1 shows that rates of foreign direct investment varywidely between the four nations. Indeed, the FDI rate for CAR diminished in2005–2006 (–US$12.7 million). According to the World Bank (2007a), foreign
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investors remain wary of Africa due to political instability, continuing concernsabout governance issues, and slow economic progress.
Table 1 also presents data on activities that affect both men’s and women’sefforts to become entrepreneurs (World Bank 2007a, 2007b). These include the cost,time and effort required in 2006 to start a new business legally, to deal withapplications for licences, and to complete procedures necessary for registeringproperty. To put these numbers in perspective, The Economist (2007a) reported thatit now takes less than 10 days to start a business in Singapore (ranked number oneoverall in the World Bank’s annual survey), compared to 155 days in the Congo(ranked lowest in the survey). Notably Kenya was cited in the report as having madegreat strides, ranking in the top ten worldwide for progress.
Clearly any African entrepreneur who elects to register a business legally must bevery determined in order to complete this process. In the case of women, if they arealso responsible for children and housework, they may simply not have the time orthe energy required to establish a business legally. In contrast, many small businessesowners operate successfully outside the modern legal framework, conforming to adifferent set of traditional rules that are much easier to navigate. They pay forlicences to operate as informal entities, rather than paying formal taxes to operate asbusinesses. Persistence of this dual system is a consequence of history, as traditionallocal business systems competed with or were replaced by the modern legal systemsintroduced by former colonial powers.
Table 2 provides data for the period 1995–2003 describing characteristics offemale employment in sub-Saharan Africa. As with Table 1, we had difficulty inassembling data from the World Bank (2007b) and the United Nations’ Humandevelopment report (2006) because much of women’s economic activity is either notreported at all or reported in a manner designed to serve political rather thanstatistical purposes. This results in both under- and over-statement of fact.Moreover, incomplete and missing data render meaningful analysis difficult.Finally, our forced use of multiple sources and data for different time periodsmeans that comparisons between countries have to be made with caution.
With these provisos, we note from Table 2 that almost two-thirds (63%) ofall women aged 15 years or more in sub-Saharan Africa are active in the economy.In general, men’s economic participation rate in industry is double or nearly triplethat of women in the three countries for which data are available (Kenya, Botswana,and Nigeria). In contrast, women’s involvement in services surpasses that of men inall three countries, reaching 87% in Nigeria. Despite these positive indicators ofwomen’s involvement in the work force, women remain seriously underpaid,compared to men in similar employment.
3. Challenges facing women as entrepreneurs in developing market environments: A
review of the literature
In all countries of the world, women continue to be primary caregivers for theirchildren and family dependents, even if they work outside the home. In developingcountries in particular, many women also operate as the family’s sole breadwinner,seeking paid employment outside the home or starting their own businesses.According to annual surveys by the Global Entrepreneurship Monitor Consortium(GEM 2005), the economic contribution of women workers is very considerable in
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sub-Saharan Africa, where many women form the backbone of their nation’s
economy. Yet this vital economic contribution often goes unmeasured or unreported
by governments – a fact that complicated this study, particularly with regard to
development of Tables 1 and 2.Early research in the field of entrepreneurship focused on trait theory, in search
of specific personal characteristics that might predispose individuals for success in
business (see for example DeCarlo and Lyons 1979). However, the current
consensus is that trait theory alone is inadequate to account for the multiplicity of
factors associated with successful entrepreneurship by both men and women.
Research now focuses on study of external environmental factors, recognizing that
market conditions exert far greater influence on the decision to become an
entrepreneur than personal characteristics alone (Shapero 1985; Scherer et al.
1989). This trend provides further support for the environmental marketing
approach adopted in this study.Starting a business is difficult under the best of circumstances and is made even
more difficult in sub-Saharan Africa by complex environmental factors. With regard
to transitional and developing economies, Smallbone and Welter (2001, 261)
gloomily described the external environment as ‘hostile in social, economic, and
political terms’. In this study, we argue that clear identification and progressive
reduction of such barriers will be a positive step forward, encouraging more women
to become entrepreneurs in sub-Saharan Africa and better supporting those who
already operate as entrepreneurs, thereby reducing their risk of failure.
Table 2. Characteristics of female employment (1995–2003)1.
Sub-SaharanAfrica Nigeria CAR2 Kenya Botswana
Female economic activity3
(index for 1990, aged 15þ)96 95 99 93 80
Female economic activity rate(as percent of women aged 15þ)
63 46 70 69 45
Female economic activity rate(as percent of male rate aged 15þ)
73 54 79 78 67
Female estimated earned income (PPP US$) n/a4 669 836 1037 5322Male rate (PPP US$) n/a 1628 1367 1242 14 738Female employment/agriculture (%) n/a 2 n/a 16 17Male rate (%) n/a 4 n/a 20 22Female employment/industry (%) n/a 11 n/a 10 14Male rate (%) n/a 30 n/a 23 26Female employment/services (%) n/a 87 n/a 75 67Male rate (%) n/a 67 n/a 57 51
Notes: 1Multiple sources and time periods are reflected in this table so comparisons betweencountries are made with caution.2CAR – Central African Republic.3Economic activity is defined as ‘the share of the population ages 15 and older who supply, orare available to supply, labor for the production of goods and services’.4Missing data are not available (n/a).Sources: Compiled by the authors from United Nations (2006) and World Bank (2007b).
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3.1. Entrepreneurship and ethnicity
Some researchers have investigated differences among entrepreneurs postulated to beassociated with ethnicity (see for example Watson and Simpson 1978; DeCarlo andLyons 1979; and Enz, Dollinger, and Daily 1990). However, the lack of specificity offindings from this stream of research means that we cannot draw any conclusionsabout ethnicity and entrepreneurship that might be of direct use to this study of WEs.
In Africa, it is not only members of local ethnic groups (such as the Dioulas ofthe Ivory Coast) who become entrepreneurs. Large numbers of ethnic migrantshave moved to Africa in search of business opportunities. Amine (1987) coined theterm ‘ethno-domination’ to describe how non-local business people establish adominant presence in commercial or geographic sectors outside their home countryand succeed by applying a distinctive set of cultural work values. Examples inAfrica include Asians operating in East Africa, Lebanese, and Palestinian Arabs inWest Africa, Omanis in Zanzibar, and merchant classes composed of ‘intra-Africans’.
Ethno-domination often results in restricted access to a market by aspiring localAfrican entrepreneurs. In a study comparing indigenous African entrepreneurs toentrepreneurs of European and Indian descent operating in Kenya, Tanzania,Zambia and Zimbabwe, Ramachandran and Shah (1999) found significantdifferences between sample members. Differences were seen in their education,networks, and business growth rates, with entrepreneurs of European or Indiandescent having more formal education and better business networks. Thesecharacteristics provided migrants with competitive advantages over indigenousentrepreneurs. Ramachandran and Shah (1999) also reported that black-ownedenterprises in their sample had lower growth rates in general, while large European-and Indian-owned firms experienced positive growth. In contrast, Mead andLiedholm (1998) did not find any significant demographic characteristics that mightdistinguish between successful African and non-African entrepreneurs. Kiggundu(2002, 242) suggested that ‘race and ethnicity may be symptomatic of other variablesmore salient for entrepreneurial success’. More definitively, Fafchamps (2003)concluded that start-up networks and working capital are not affected by ethnicity.Given the small number of studies and their conflicting results about ethnicity andentrepreneurship, it is difficult to draw any meaningful generalizations that may beuseful to this study of WEs.
Of more direct relevance is the attitudinal research undertaken byAfrobarometer, a joint enterprise of the Institute for Democracy in SouthAfrica, the Centre for Democracy and Development in Ghana, and Michigan StateUniversity, working in collaboration with national partners from participantcountries (Afrobarometer 2002a). So far, three rounds of research have beenconducted, covering some 1200 respondents in each country, and results from thefirst and second rounds have been published. One question about ethnicity asked:‘Which group do you feel you belong to first and foremost’? Interestingly,respondents tended to cite their occupation (e.g. farmer, trader) more often thantheir ethnic identity. This underlines the fact that tribal or ethnic identity is sostrongly felt among African respondents and is so much a part of their implicitpersonal identity that it was not even mentioned; instead a sub-group identity wascited in response to the survey question. Overwhelmingly, male and female
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respondents expressed pride in their self-defined group identity and did notconsider it to be in conflict with their national identity. Results on ethnicity didhowever vary considerably by country.
3.2. Attitudes toward entrepreneurship
The Afrobarometer (2002a) also surveyed respondents’ view of economic problemsand beliefs about relative responsibility for job creation. Table 3 shows thatrespondents were divided about their government’s responsibility for their individualwell-being, but were notably more in favour of ‘people creating (their) own jobs bystarting businesses’ (by a ratio of 2:1 in some countries). They also agreed that‘people should be free to earn as much as they can’ and that new businesses areworthwhile. As stated by Logan and Machado (Afrobarometer 2002a, 24):
the Africans we interviewed display an impressive confidence in their entrepreneurialability. An overwhelming 76 percent agree that it is worthwhile to invest one’s savings oreven borrowed money in a new business, compared to just 18 percent who believed thatthis is likely to be a money-losing proposition. Strong tolerance for personal economicrisk held across all countries; even among those populations that displayed the leastconfidence, Basotho and Namibians, the public agrees by wide margins that investmentis worthwhile.
These findings demonstrate a general belief among Africans that entrepreneurshiphas value and is regarded favourably. In later sections of the paper, we will show thatthis positive macro-level finding appears to be at odds with strongly negativeattitudes towards WEs at the local community level.
Woldie and Adersua (2004) reported that aspiring WEs face additional barriersto success arising from negative social attitudes. Prejudice against WEs isexperienced much more severely in Africa than in developed Western nations,arising from deeply-rooted, discriminatory cultural values, attitudes, practices, andthe traditions of patriarchal cultures. Local prejudice is expressed throughdifferential attitudes toward women in general, and through different standardsand expectations for women’s social behaviour in particular. While social attitudesare not the only factors hindering women’s entrepreneurship, they are recognized byGartner (1985) as critical factors. Moreover negative attitudes in Nigeria werereported by Woldie and Adersua (2004) to pose the greatest challenge for WEs.These researchers concluded that the greatest reward for WEs from businessownership is gaining control over their working lives.
3.3. Entrepreneurship and gender
Entrepreneurship has been defined as the pursuit of an opportunity irrespective ofexisting resources, and entrepreneurs as those who perceive themselves as pursuingsuch opportunities (Krueger and Brazeal 1994). These definitions are gender-neutraland are consistent with Buttner and Moore’s (1997) assertion that entrepreneurshipis a gender-blind career choice. Although this assertion is theoretically true, inpractice gender and environment interact to determine the success or failure ofwomen as entrepreneurs in sub-Saharan Africa. Strikingly, Kiggundu (2002)reported that most successful African entrepreneurs are male, middle-aged, marriedwith a number of children, and are more educated than the general population.
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Table
3.Economic
values
ofAfricansin
eleven
sub-Saharannations(M
arch2002).
Whichstatementdoyouagreewithmost
AorB?
(See
fulltextofstatements
infootnotes)
Botswana
Ghana
Lesotho
Malawi
Mali
Namibia
Nigeria
South
Africa
Tanzania
Uganda
Zambia
Zim
babwe
Afro
Mean
A.People
responsible
for
ownwell-being.
AgreewithA
Some
what/Strongly
49
55
43
73
65
55
43
52
50
35
51
36
51
AgreewithB
Somew
hat/strongly
44
45
54
25
33
40
56
47
48
61
44
59
46
Don’tAgreewithEither
4–
22
21
11
22
53
2Don’tKnow
4–
251
15
51
151
11
11
B.Governmentresponsible
for
people’swell-being.1
A.People
should
create
ownjobsbystartingbusinesses.
AgreewithA
Some
what/Strongly
57
51
39
68
66
64
43
42
66
56
47
41
53
AgreewithB
Somew
hat/strongly
38
49
57
30
32
31
56
57
30
40
48
55
44
Don’tAgreewithEither
1–
11
11
11
32
32
2Don’tKnow
3–
251
14
51
151
21
21
B.Governmentshould
provide
fullem
ployment.2
A.People
should
befree
toearn
asmuch
asthey
can
AgreewithA
Some
what/Strongly
48
70
59
72
66
65
55
63
75
73
59
45
63
AgreewithB
Somew
hat/strongly
41
30
34
22
29
24
39
33
21
21
35
51
32
Don’tAgreewithEither
3–
44
34
42
43
42
3Don’tKnow
8–
41
21
62
21
32
33
B.Governmentshould
impose
limitsonearnings.3
A.New
businesseslose
money.
AgreewithA
Some
what/Strongly
13
14
28
10
–35
17
19
––
10
16
16
AgreewithB
Somew
hat/strongly
78
86
59
89
–52
81
77
––
80
78
76
Don’tAgreewithEither
2–
61
–4
12
––
63
3B.It
isworthwhileto
invest
inanew
business.4
Don’tKnow
7–
851
–9
12
––
33
4
Notes:
1In
SouthernAfrica,A:People
should
beresponsible
fortheirownsuccessandwellbeing.B:Governmentshould
bearthemain
responsibilityfor
ensuringthesuccessandwellbeingofpeople.In
allother
countries,A:People
should
lookafter
them
selves
andberesponsible
fortheirownsuccessin
life.B:
Thegovernmentshould
bearthemain
responsibilityforensuringthewellbeingofpeople.
2A:Thebestwayto
create
jobsisto
encouragepeople
tostart
theirownbusiness(inSouthernAfrica,‘theirownlargeorsm
allbusiness’).B:Thegovernment
should
provideem
ploymentforeveryonewhowants
towork.
3A:People
should
befree
toearn
asmuch
asthey
can,even
ifthisleadsto
largedifferencesin
income.
B:Governmentshould
place
limitsonhow
much
rich
people
canearn,even
ifthisdiscourages
somepeople
from
workinghard.
4A:Thereisnosense
intryingto
start
anew
businessbecause
itmightlose
money
(inEast
andWestAfrica:‘because
manyenterpriseslose
money’).B:If
apersonhasagoodidea
forbusiness,they
should
investtheirownsavingsorborrow
money
tomakeitsucceed.
Source:
Adaptedfrom
Afrobarometer
2002,Round1,Paper
11,p.25.
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According to the report by the GEM Consortium (2005), high ratios of female to
male entrepreneurs in low-income countries are the result of necessity-basedentrepreneurship, rather than of elective decisions to go into business. In low-income economies, entrepreneurship leads to simple business endeavours which in
turn create jobs and new markets (GEM 2005). Other studies report that WEs differfrom men in terms of their motivations, the types of external barriers that they face,
and the type of help available to women (Buttner and Moore 1997; Mattis 2004;Woldie and Adersua 2004). Krueger and Brazeal (1994, 101) asserted that favourable
environmental conditions such as ‘support from political, social, and business leadersand a team spirit in the community’ effectively encourage entrepreneurship amongboth men and women. Social support from family and friends who provide positive
role models, as well as from parents who promote entrepreneurial aspirations duringchildhood, all contribute to create positive environmental conditions favouring
women’s entrepreneurship. In contrast, lack of access to seed funds and workingcapital are two environmental factors that particularly discourage WEs. Staub and
Amine (2006) argue that many women in sub-Saharan Africa are ‘ready to go’ asentrepreneurs, if only environmental conditions were more favourable to theirefforts. These findings underline the importance and value of the environmental
analysis which is the focus of this study. Moreover, these research findings suggestthat women’s experience of entrepreneurship in Africa is qualitatively different from
that of men, due to the differential impact on WEs of environmental factors.
3.4. Nature of women-owned businesses
Most women-owned businesses in sub-Saharan Africa operate in the informal sector,are necessity-based, and best described as micro- or small-scale enterprises (GEM
2005; McDade and Spring 2005). They are often run out of the home because WEs donot have the funds necessary to acquire or rent business premises (McDade and Spring
2005; ILO 2006). Although a convenient arrangement, the lack of physical spaceeventually acts as a brake on growth of the business. Other problems facing women
who want to start or grow their own businesses have been documented by Fick (2002),Chamlee-Wright (2002), Akinola (2005), Kibas (2005) and the International LaborOrganisation (ILO 2006). They include lack of accurate market information, lack of
operating funds and lack of property to use as collateral. These findings providefurther support for conclusions drawn from analysis of data presented in Table 1.
Other concerns were identified by the Afrobarometer (2002b) as follows:
Asked to name the most important problems facing their country, survey respondentscite economic problems (51 percent) more frequently than social (42 percent) or politicalproblems (7 percent). The most prominent economic problem is defined as‘unemployment’ in the industrialized Southern African countries, but as ‘poverty’ or‘food shortages’ in more rural places like Mali and Malawi. Except in Botswana, AIDSis rarely spontaneously mentioned (just 3 percent), though some who cite ‘health’(ranked second overall) may be referring to AIDS (Afrobarometer 2002b, Paper 1, p. 3).
With regard to these results, it should be noted that many people throughout the
region, including some governments, regard self-employment as being synonymouswith unemployment. For many, only formal employment in the public sector or in
large enterprises constitutes real employment, so small-scale entrepreneurs are widelyviewed as unemployed. However unemployment may be defined, it is a pressing and
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widespread problem, along with under-employment. Thus any public or private stepstaken to alleviate these problems, such as the promotion of entrepreneurship, mustbe considered to be positive social initiatives.
This review of the literature on women and entrepreneurship in sub-SaharanAfrica presents a complex picture of critical environmental barriers, social challengesand practical problems that men, and more particularly women, must overcome, ifthey want to become entrepreneurs or expand their small businesses. Next, wedeepen our analysis by adopting the perspective of institutional theory from the fieldof international business.
4. An institutional theory-driven analysis of barriers affecting WEs in sub-Saharan
Africa
Institutional theory takes a sociological view of reciprocal interactions betweeninstitutions (such as business entities) and society. According to Scott (2001, 48),‘Institutions are social structures that have gained a high degree of resilience’.Busenitz, Gomez, and Spencer (2000, 994) observed that institutions ‘are embeddedin country-specific institutional arrangements’ (emphasis added). Differences betweennational institutions affect both the level of entrepreneurial activity in each country(Busenitz, Gomez, and Spencer 2000) and the nature and amount of innovationtaking place within the country (Nelson 1993).
Scott (2001) identified three different systems or ‘pillars’ that support socialinstitutions, namely the regulatory, normative and cognitive systems. In theregulatory system, formal and informal rules are set, monitored and enforced ifnecessary by means of laws, regulations, and government policies which promote orrestrict behaviours within a country (Busenitz, Gomez, and Spencer 2000). Thenormative system consists of ‘normative rules that introduce a prescriptive,evaluative, and obligatory dimension into social life’ (Scott 2001, 54). In contrast,the cognitive system recognizes ‘the shared conceptions that constitute the nature ofsocial reality and the frames through which meaning is made’ (Scott 2001, 57). Thus,individuals’ cognitive structures and social knowledge combine to represent anation’s cognitive environment.
This sociological view of institutions includes consideration of conditionsprevailing in the market environment, so it is well suited to the study ofentrepreneurship. Busenitz, Gomez, and Spencer (2000) linked national institutionalprofiles to an exploration of how and why levels of entrepreneurship vary by country.More recently, Peng (2003) proposed a two-phase model of market-orientedinstitutional transitions. Given that these researchers have established theoreticallinks between entrepreneurship, environmental factors and institutional systems, weconsider institutional theory to be an appropriate framework for analysing barriersfacingWEs in sub-Saharan Africa. In a later section of the paper, the related theory oflegitimacy will be introduced and linked to results from the following institutionaltheory analysis.
4.1. The regulatory system and WEs
Elements in the regulatory system that affect entrepreneurs include the laws,regulations, and government policies which support or restrict creation of a new
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business, reduce or increase risk for an entrepreneur, and facilitate or restrict access toresources (Busenitz, Gomez, and Spencer 2000). The character of a nation’s regulatorysystem directly affects the country’s official level of entrepreneurship: thus in theory,the greater the difficulty in legalizing a business, the less likely an entrepreneur is tomake a new business legal. However, as mentioned with regard to Table 1, theexistence of two competing systems for registering or licensing new businesses acrosssub-Saharan Africa calls into question any definition of the term ‘legal’.
Djankov et al. (2002) studied difficulties in starting a business in 85 countriesbased on the number of procedures, official time and cost involved in making a newventure legal. Their results clearly linked the ease of legalizing a business to improvedlevels of national wealth. They also found that starting a business in a country with alow GDP is more difficult and more costly (in relative terms) than in a country witha high GDP. Furthermore, start-up procedures in rural areas take more time and aremore costly than in big cities. Djankov et al. (2002, 4) concluded that ‘stricterregulation of entry is associated with sharply higher levels of corruption and agreater relative size of the unofficial economy’. These results suggest reasons whymany businesses (not just women-owned businesses) in sub-Saharan Africa are notlegally registered or even informally licensed, simply because it is too cumbersome todo so. These findings provide further support for the earlier conclusions drawn fromTable 1.
Djankov et al. (2002) also suggested that regulatory procedures may be rendereddeliberately complex in order to benefit the regulators themselves, through receipt ofbribes to break or ‘bend’ the rules. While this type of legalistic or corruptenvironment discourages both men and women entrepreneurs from starting a newbusiness, it imposes additional burdens on women who, as a group, may lackconfidence in their ability to deal with corrupt government officials. Women alsohave less time available to handle bureaucratic procedures, due to their householdand childcare responsibilities. Three other aspects of the regulatory system createspecial difficulties for WEs in sub-Saharan Africa. These are inheritance laws andownership of property, lack of access to capital and lack of access to micro-loans.
4.1.1. Inheritance laws and ownership of property
National inheritance laws often exclude women from inheriting or owning land orproperty (United Nations 1994), and regulatory discrimination may make itimpossible for WEs to buy land, even if they have the necessary financial capital.As a consequence, many WEs in sub-Saharan Africa have no other option than torely on using their husbands’ or relatives’ land or renting property from others.Eventually, however, the ability to gain access to real property becomes an essentialcondition for women to expand a business beyond the home. The need for access toproperty is particularly acute among women working in the agricultural sector,where land is essential for cultivation of crops and animal pasture. Governments insome African nations are addressing this problem of lack of property by issuing landcertificates. These indicate a range of personal rights, rather than serving as stricttitle deeds for the recipient (The Economist 2007b).
The impossibilities of owning or using real property as collateral are two majorreasons why WEs in sub-Saharan Africa cannot obtain bank loans. Without a loan,they are unable to acquire more real property and achieve business growth.
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Thus, a vicious circle persists which will require widespread government interventionto rectify.
4.1.2. Lack of access to capital
Financial capital has long been recognized as the most critical element of newventure creation and subsequent successful performance (Marlow and Patton 2005).Many small- and medium-sized businesses are under-capitalized because ownerscannot meet the collateral requirements necessary for obtaining commercial loans.Even if they succeed in meeting requirements, these loans often turn out to be verycostly (Gray and Cooley 1997). Thus, while access to capital can be difficult for bothmen and women, it is usually much more difficult for WEs, especially if they areunable to legalize their business in some form. It is not surprising then that access tocapital is one of the most frequently cited environmental barriers to business entryfor African WEs (Mirchandani 1999; Dumas 2001; McElwee and Al-Riyami 2003;ILO 2006).
The micro-scale of many women-owned businesses in rural sub-Saharan Africa isa further factor precluding WEs from obtaining access to capital through bank loans.Bigsten et al. (2003) examined bank loans issued to manufacturing firms in Ghana,Zimbabwe, Kenya, Cote d’Ivoire, Burundi, and Cameroon. They reported that onlyone-quarter of loan applicants actually obtained a loan from the formal sector, andsize of the firm was determinant in this outcome.
Women in rural communities are especially vulnerable to these types ofregulatory discrimination. In many cases, they do not have collateral for atraditional bank loan, they may not have any savings and they seldom own land.Any one of these factors alone or in combination makes it difficult, if not impossible,to raise venture capital to start or expand a business (Kibas 2005; Center forWomen’s Business Research 2005; ILO 2006). (For more discussion of how tomobilize assets of the poor, see King and McGrath (1999) and Hernando de Soto’s(1941) The mystery of capital, which revisits elements of the debate about small andmicro-enterprises, poverty and growth).
4.1.3. Lack of access to micro-loans
WEs do not need large amounts of capital to get started. Micro-loans to women ofless than US$100 have experienced tremendous growth in world markets over thelast two decades, culminating in 2005 being designated by the United Nations as theYear of Micro-Credit (as part of the Millennium Development Goals project)(Yearofmicrocredit.org 2006). Worldwide, women constitute more than 90% ofmicro-loan banks’ customers and their repayment rates reach extremely high levels,often above 90%.
Muhammad Yunus’s Grameen Bank of Bangladesh is the best knownmicro-credit institution, being the prime mover in a new market sector and nowthe largest micro-lender in the world (measured in number of borrowers) (Centerfor Global Development 2006). The World Bank itself is involved in this sector,having increased its micro-loan portfolio from US $2 million in the late 1980s toover US$4 billion currently. Some 3000 micro-financing organizations worldwideserve more than 100 million poor people (KBYU-TV 2005; Yearofmicrocredit.org 2006).
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Global brand-name consumer marketers are joining micro-loan lenders to serve
the poor. For example, VISA partnered with The Village Banking Campaign of
FINCA International to sponsor an advertising campaign in 2007, under the slogan
‘Give a little, change a lot’. Their goal was to launch 100,000 Village Banks by 2010.
A print ad for the campaign bearing the thought-provoking headline ‘Elegant’
featured a smiling woman entrepreneur standing beside her young daughter in their
small grocery shop in Kampala, Uganda (The Economist 2007c, 100).
4.2. The normative system and WEs
The normative system is composed of the social norms, values, beliefs and
assumptions which bring a prescriptive, evaluative, and obligatory dimension into
the social life of a people (Scott 2001). In the case of entrepreneurship, the normative
system operates through the value that a nation attaches to innovation and
entrepreneurial activity. Some cultures value and support entrepreneurial activity
much more than others (Baumol 1990; Casson 1990). In her discussion of ethno-
domination of market channels, Amine (1987) demonstrated how tightly culture,
ethnicity and entrepreneurship can be bound together. Three aspects of the
normative system which impact WEs especially are societal views of WEs and
female role complexity, ubuntu and belief systems.
4.2.1. Societal views of WEs and female role complexity
Women’s roles and responsibilities in sub-Saharan Africa are also made immeasur-
ably more difficult and time-consuming due to problems caused by lack of basic
infrastructure and services at the local level, such as clean water, electricity, reliable
transportation, and modern communications. Table 1 illustrates some of these deficits
by presenting numbers of fixed and mobile line subscribers, Internet users and
personal computers per 1000 people in each of four sample countries. Another factor
that severely affects potential WEs is absence of the husband from the family home,
while seeking employment or working in a remote location. This extra responsibility
distracts women from starting or growing a business with the consequence that many
women find their options strictly limited to the world of work at home.Table 1 presented data about school enrolments for four countries at the primary,
secondary and tertiary levels, revealing very marked losses in enrolments with
increasing age. Literacy rates for women are consistently below those for the general
population aged over 15 years, dipping to a low of 34% in the Central African
Republic while reaching a high of 82% in Botswana. Lack of educational
opportunities for girls throughout sub-Saharan Africa puts women at a tremendous
disadvantage in adult life. Not only are they unable to improve their own intellectual
and social abilities through education, they also suffer from social subservience and
an inability to engage in business on an equal footing with men. Inadequate
education leaves women ill-equipped to resist normative pressures from society for
them to conform to traditional social role expectations for division of labour.
Educational deficits also make it difficult for women to counter pressure by their
husbands and family members to conform to social norms.In Muslim communities of sub-Saharan Africa (such as in Nigeria), it is not
considered socially right or proper for a woman to work outside the home or to own
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her own business. It is feared that a married woman’s access to an independentsource of income will change traditional roles in the family, undermine patriarchaldomestic relations, and affect the balance of power within the household, potentiallyleading to divorce and the possibility of self-determination.
Socially constructed meanings may interpret the fact of a married womanworking for pay outside the home as deriving directly from a man’s inability tocontrol his wife or to provide adequately for his family without her assistance.Fearing such a loss of control, personal honour or social standing, many men simplyrefuse to allow their wives to start or operate their own businesses. An even greaterthreat is the social stigma that might attach to a man if his wife is seen to be moresuccessful than he is (Njeru and Njoka 2001). Such deep social embarrassment anddishonour of the family name are deemed intolerable outcomes in many cultures ofthe world, not just in Africa. (See, for example, studies of the social impact onfamilies of women’s employment in the ‘maquiladora’ factories along theUS-Mexican border over the last 30 years [American Friends Service CommitteeAFSC 2006].)
While such fears are grounded in traditional socio-cultural beliefs, attitudinalchange can be accomplished through education of both men and women, allowingwomen to achieve self-determination and men to enjoy a more prosperous family lifewith their wives’ financial contribution to the household. Recommendations on howto bring about this type of change in attitudes towards women, work andindependent enterprise will be addressed in a later section on social marketing.
4.2.2. Ubuntu
Ubuntu is a special sense of group identity and liability, a sense of human inter-dependence that is driven by social norms such as reciprocity, suppression of self-interest and the virtue of symbiosis. Mangaliso (2001, 24) defines ubuntu as‘humaneness – a pervasive spirit of caring and community, harmony and hospitality,respect and responsiveness – that individuals and groups display for one another’.
Ironically, ubuntu may work both for and against the interest of individual WEs,for example in regard to management of micro loans to a group. In the collectivistcommunities of Africa, any member who does not repay a loan for which the groupis liable faces stringent negative social consequences, such as loss of personalreputation (Kobeissi and Damanpour 2003). Social censure is the dark side ofubuntu’s standard of caring. This is because failure by one individual to pay back amicro-loan systematically prevents others in the group from obtaining future loans.In this instance, ubuntu is experienced as negative normative pressure to suppressone’s self-interest in order to preserve harmony in the community. In other socialsituations, such as a woman’s desire to work as an entrepreneur outside the home,ubuntu might work to discourage innovation and severely punish non-conformity.(See Mutwa’s [1969] work My people for more information on negative socialpressures.)
4.2.3. Belief systems
Belief systems in sub-Saharan Africa play a critical role in shaping attitudes towardbusiness in general and entrepreneurship in particular. Of special interest here are theprevalence and consequences of witchcraft in rural areas. Sorcerers give blessings and
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tell the future; they also issue curses or provide protection against a curse.Remarkably, Signer and Laine (2006) identified negative links between sorcerers’curses and an individual’s interest in pursuing entrepreneurial activities. In thecontext of the traditional extended African family, where members support oneanother through times of adversity, any individual who neglects to share businesswealth with relatives or who is perceived as holding back, risks becoming the objectof a curse. Thus, fear of witchcraft may discourage potential entrepreneurs (bothmale and female) through fear of the consequences of failing to meet financialexpectations of dominant family members. Witchcraft may also affect establishedentrepreneurs, torn between the social need to share their income with their familyand the practical need to reinvest in building their business.
Interesting insights into the social role of belief systems can be drawn from astudy of indigenous entrepreneurs in Australia. Foley (2003) presented evidence thatattitudes among this group seemed to differ from those of other Australianentrepreneurs. The Aborigines ranked ‘religion’, ‘maintaining their indigenousculture’ and ‘creating a better life for their children’ more highly than otherentrepreneurs, while giving little importance to money – a surprising result in a studyof entrepreneurs. These results suggest analogies with other religious minoritieswhose members embrace self-employment as a means of organizing their personallife, in a social context dominated by a majority group. Thus, ‘being their own boss’provides them with flexibility in use of their time, as well as the freedom to observeprayer-times and holy days. Examples are seen among Muslims and Jews living inAfrica whose self-employment allows them to celebrate the Sabbath on a Friday orSaturday, rather than having to fit in with the Christian weekend.
4.3. The cognitive system and WEs
According to institutional theory, the cognitive system consists of a people’scognitive structures and social knowledge. Cognitive structures play an importantrole in forming schemas, frames and inferential sets, all of which determine howmembers of a group select and interpret information (Markus and Zajonc 1985).According to Busenitz, Gomez, and Spencer (2000, 995), the lack of a tradition ofentrepreneurship and any formal educational support for entrepreneurs may result inindividuals not having ‘the knowledge necessary to understand even the most basicsteps required to start and manage a new or small business’.
Reference was made earlier to the value of having family members or peers whoovertly model entrepreneurial behaviours. Real-life examples and direct personaladvice shape an individual’s knowledge networks about how to become and how toact as an entrepreneur. Institutional training in business and technology is anadditional factor which shapes the national cognitive system in which entrepreneurslive and function. Some analysts believe that it may take a generation or more forgovernments to remedy the severe deficits in functional training and education thataffect African women so dramatically. Other observers believe more pessimisticallythat no change will come about unless the political elite ‘buy in’ to this initiative.
Striking differences were noted in Table 1 between the technological infra-structure and facilities available in Kenya and Botswana, compared to those in theCentral African Republic and Nigeria. These findings underline the variability ofopportunity in sub-Saharan Africa for those WEs who want to start or expand their
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businesses using modern technologies. Even if these women have the requisite
personal entrepreneurial drive, a viable business concept in mind, and access to
micro-loans with which to start their own business, their lack of formal education
and knowledge of basic business skills, together with lack of access to technology, all
pose serious challenges to their success (Fick 2002; ILO 2006). Perhaps even more
critical to the success of WEs is the need for political will among ruling elites to
introduce the necessary systemic changes that will create more favourable working
environments for WEs.When WEs are able to acquire the necessary personal and practical resources of
all types, then their success as entrepreneurs can be quite remarkable, as
demonstrated by the following brief example of one woman’s experience in
Uganda. She is both the recipient of a micro-loan and a participant in the world
of high technology:
With her most recent loan, Fatima purchased a mobile phone kit to start a pay phonebusiness, becoming one of the first ‘village phone operators’ of MTN villagePhone, aninitiative of Grameen Foundation USA and MTN Uganda. Undeterred that her villagehas no electricity, Fatima uses a car battery to charge her phone. With the nearest publicpay phone more than four kilometers away, people in Fatima’s community are happy tohave convenient and affordable telephone access for the first time. Fatima is pleasedwith her new business, which has the added benefit of attracting people to her store andgenerating greater profit to share with her family (Yearofmicrocredit.org 2006).
This example illustrates how deficits in the technological infrastructure of a
market environment (lack of electricity and public pay phones) can be overcome
through one woman’s business initiative. It also shows how elements of the
regulatory system (such as access to micro-loans) and the cognitive system (use of
technology) can be effectively managed by a woman entrepreneur.
5. Legitimacy of WEs
Underlying institutional theory is the broad and complex concept of legitimacy.
Legitimacy has been defined by Suchman (1995, 574) as ‘a generalized perception or
assumption that the actions of an entity are desirable, proper or appropriate within
some socially constructed system of norms, values, beliefs, and definitions’ (emphasis
added). Legitimacy is essential for successful entrepreneurship insofar as ‘legitimate
organizations become almost self-replicating, requiring little ongoing investment in
collective mobilization’ (Suchman 1995). The legitimacy construct is important to the
current discussion because it determines whether or not a social group accepts and
supports certain behaviours, in this case women’s entrepreneurship. (See
Stinchcombe [1965] for further discussion about the legitimacy of start-ups.)In sub-Saharan Africa, men becoming entrepreneurs constitutes a legitimately
acceptable behaviour. While women becoming entrepreneurs may be acceptable in
some areas, such as farming communities, women as successful entrepreneurs is
widely regarded as illegitimate and unacceptable, especially if they outshine their
husbands (Njeru and Njoka 2001). Ironically, some groups are divided amongst
themselves about issues of legitimacy, such that some men support WEs while some
women do not. Furthermore, only particular manifestations of certain behaviours
may be deemed legitimate. For example, women may be tolerated as farmers selling
produce or as small-scale retailers running a market stall, but they may be derided as
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employers of others or as owners of businesses. Entrenched negative norms about
legitimacy pose enormous barriers for individual women who want to break away
from tradition, break out of the social mould and become innovators as WEs.
Considerable self-confidence and moral courage are needed to take a stand against
the conventional thinking of a whole community.Three types of legitimacy have been identified: pragmatic, moral, and cognitive
legitimacy (Suchman 1995). A business venture achieves pragmatic legitimacy when
its actions benefit the self-interest of an immediate audience (through, for example,
the payment of bribes). In contrast, moral legitimacy is achieved only when an
audience perceives actions of the venture to be right and proper, in terms of
promoting societal welfare. Cognitive legitimacy is achieved when the intended
audience is able to make sense of the business venture in terms of its existence and
actions. Clearly, cognitive legitimacy is most valuable to a new business venture. It is
however the most difficult to achieve because it requires (near) consensus of social
opinion.Based on the preceding institutional theory-driven analysis of environmental
barriers affecting WEs, it appears that conditions in sub-Saharan Africa are not yet
conducive to promoting and supporting WEs. In contrast, many environmental
barriers of different types persist in discouraging WEs. Changes are needed in all
three institutional systems (regulatory, normative, and cognitive) in order for a more
conducive environment to develop that will favour entrepreneurship in general and
WEs in particular. Figure 2 summarizes the environmental barriers affecting WEs in
sub-Saharan Africa, identified from this institutional analysis.
6. Changing environmental conditions for WEs through social marketing
A general proposition is that institutions change over time and that some elements of
the environment may be amenable to influence, while others are highly resistant.
According to Pedersen and McCormick (1999), failure of structural adjustment
programmes to promote industrialization in Africa may be at least partly explained
by the fragmentation of African business systems, while the lack of supportive
financial, state, and social institutions inhibits trust and accountability. Thus, an
� Inheritance laws
� Ownership of property
� Access to capital
� Access to micro-loans
Regulatory systemNormative
� Societal views of WEs
� Ethnicity and cultural factors
� Family responsibilities
� Social role complexity
� Religion and belief systems
Cognitive
� Level of education
� Access to functional training
� Use of technology
Institutional theory
system system
Figure 2. A summary view of key environmental barriers affecting women entrepreneurs insub-Saharan Africa based on institutional theory analysis.Source: Developed by the authors.
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alternative approach is needed to bring about improvements in the moral andcognitive legitimacy of women’s efforts to become entrepreneurs in sub-SaharanAfrica.
Two thorny questions remain about who will initiate and manage these neededchanges and how change should be brought about. While one might reasonablyexpect national governments to take responsibility, the critical need to co-opt andconvince political and ruling elites across sub-Saharan Africa must be recognized asan important hurdle to overcome. Without the support of influential opinion leadersand decision-makers, needed national resources will not be applied to this task.Realistically, helping poor rural women to start their own businesses may not be ahigh priority among these power groups.
With regard to how change should be brought about, the law of unintendedconsequences must be recognized when introducing and managing change by meansof social marketing. Clearly there is considerable potential for disruption of fragileeconomies and political systems if social marketing campaigns are poorly designed orpoorly managed. In this regard, much can be learned from the fields of ethnography,international development, and donor studies about how interventions in complexorganic cultural systems actually work in practice.
6.1. Value of social marketing
Social marketers are trained to bring about and manage both attitudinal andbehavioural change in target markets. These goals are accomplished by selectingspecific communication goals and developing messages that are tailored to thespecific audience. The aim is to promote shifts in beliefs and related attitudes towarda variety of ‘attitude objects’ (Ao). In social marketing these ‘objects’ include broadissues and ideas that contribute to an enhanced quality of life.
In the context of sub-Saharan African markets, some primary goals of socialmarketing will be to change beliefs and attitudes toward three related objects:women, work and their independent enterprise. Many complex relationships linkingwomen, work and their independent enterprise in the region have been identified inthis paper by means of environmental and institutional analyses. Based on thisdetailed understanding of the nature of problems affecting WEs, it should be possibleto apply well-established social marketing methods and bring about very positivechanges. Of course due diligence, professionalism, and sensitivity to local conditionsare all prerequisites for achievement of desired goals. (See Kotler 1989, 2006 andKotler, Roberto, and Lee 2002 for detailed information on social marketing as aninstrument for improving quality of life.)
Large-scale promotion of attitude and behavioural change in sub-Saharan Africadoes not necessarily require use of sophisticated or expensive mass media, as indeveloped markets. Low-cost media include outdoor billboards and posters, mobileunits equipped with video and sound equipment, radio advertising, and promotionalevents (such as the Mandela/MTV-sponsored concerts mentioned in theIntroduction). Media such as these support high levels of repetition of simplepersuasive messages.
Social marketing methods especially suited to African market environmentsinclude relationship marketing through peer-to-peer contacts; viral and buzzmarketing through the use of opinion leaders and word-of-mouth communications;
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and celebrity endorsements. Artists, celebrities and political figures involved inMTV’s Staying alive campaign have included Bill Clinton, Sean ‘P Diddy’ Combs,Jennifer Lopez, Justin Timberlake, Halle Berry, Alicia Keys, Missy Elliott, RickyMartin, and Mary J. Blige, among others (MTV 2003). A further example of thepower of celebrity is Oprah Winfrey who, as a woman entrepreneur, has launchedher Leadership Academy for Girls in South Africa.
Primary campaign goals would include high levels of reach across geographicmarkets, high levels of repetition to ensure learning and retention of messages, andfollow-up studies to assess effective shifts in attitudes toward a specific Ao.Widespread use of the Internet is an essential means of publicizing both a messageand the thrust of a campaign, as demonstrated by the success of the 46664 andStaying alive campaigns.
Next, we lay out goals and recommendations for action by various constituencieswhich include national governments, marketers, non-governmental organizations(NGOs), donors, and others involved in building civil society. Brief examplesillustrate the type of results that social marketing can achieve in each of the threeinstitutional environments.
6.2. Actions to promote change in the regulatory environment
Sustained large-scale efforts to promote change in the regulatory environment willrequire planning and implementation on several fronts simultaneously. For example,political leadership at the highest level is needed to bring about changes in laws toimprove the social status of women. An interesting example of leadership andregulatory innovation from outside the sub-Saharan region is taking place in NorthAfrica, led by King Mohamed VI of Morocco. As a champion of women’s causes, hehas personally promoted extensive remedial legislative action to improve women’srights, as well as revamping political rights to guarantee election of minimal numbersof women into government (see Gray and Amine 2002, 2007 for further details).These legislative changes have been broadly and consistently supported by publicinformation campaigns using television, in order to sensitize the Moroccan people tothe meaning and potential impact of these innovations in their lives. In this regard,the King himself has taken on a key role in public relations by ensuring the visibilityof his wife, a professionally-trained business woman, who often appears in publicwith His Majesty. Both of them routinely wear western business clothes for thesemedia appearances. Thus it is important not only to institute regulatory change butalso to ensure that the target audience perceives the change as holding real-lifeconsequences for their own lives.
In addition to benefiting from improved legal rights and civil status, women insub-Saharan Africa need to own land that can be used as collateral for bank loans.These funds can then be used to start or expand a business. Thus, nationalgovernments must modify laws and rules governing ownership of property and landin order to qualify women for access to commercial sources of funds that arenecessary for entrepreneurial action. Where favourable legislation is already on thebooks, steps must be taken to ensure effective implementation at the localcommunity level.
Lack of access to capital is a problem for both men and women entrepreneurs.While there has been significant growth in micro-loan institutions world-wide,
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national markets in sub-Saharan Africa are still poorly served, with particularlyintense need in rural areas. Therefore the numbers of micro-loan institutionsoperating in sub-Saharan Africa need to increase, and more intense marketing offinancial services toward women is needed. The rapidly growing interest in BOPmarketing (mentioned in the Introduction) will doubtless be instrumental inencouraging more financial services companies to extend their geographic marketpresence throughout Africa.
6.3. Actions to promote change in the normative environment
Aspects of the normative environment which perpetuate negative opinions about therole of women in business need to be transformed through social marketing. To thisend, large-scale, long-term advertising campaigns must be designed and implementedthroughout the region. Guidance can be drawn from the anti-smoking campaignsin Western nations, which are designed to change not only beliefs and attitudes in acommunity but also individual behaviours. These campaigns have not onlysuccessfully reversed entrenched social views about cigarette-smoking as a sign ofsophistication, but have also reduced smoking addiction with the help of behaviouralsupport programmes.
Social marketing programmes in sub-Saharan Africa must aim to bring aboutmeasurable attitude change among men toward their wives and daughters asindividuals with the right of self-determination and as future business people.Specific programmes should aim to enhance the reputation and social standing ofWEs as responsible parents, spouses, household members, members of theircommunities, and as contributing members of society. Programmes must alsoencourage women themselves to believe in the possibility of their own self-determination within the family context and in their self-efficacy as entrepreneursand business women. Expected outcomes will be more favourable attitudes amongtarget populations toward women who wish to innovate and improve their livesthrough involvement in commercial and business activities.
Many NGOs are active in sub-Saharan Africa, working independently from thenational government to provide services to civil society that go beyond provision ofbasic necessities such as food and medicine. It would be highly desirable for thesegroups to work co-operatively with local government offices and agencies, in aconcerted effort to provide training and functional expertise to individuals andcommunities. Joint efforts of this type will bring more synergistic results than ifNGOs complementing the work of government agencies, rather than try to substitutefor them. It is notable in this regard that Robert Reich, a former member of theClinton Administration in the USA, has promoted the controversial argument thatgovernments must assume responsibility for building civil society, rather than relyingon for-profit corporations to assume this burden as part of any programme ofcorporate social responsibility (Reich 2007).
6.4. Actions to promote change in the cognitive environment
Change in the cognitive environment of the sub-Saharan region requires theprovision of adequate educational and training programmes for girls and women.Some analysts believe that it will be possible to leap-frog traditional stages of
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education and training by introducing technology that is sophisticated in function
but very simple to use and cheap to buy. Two interesting examples include the USAgency for International Development’s Women in Governance (WING) pilot
programme (USAID 2000a, 2005b) and the One Laptop Per Child Programsponsored by MIT Media Lab (2006), working with the global companies AMD,
Google and News Corporation (Jewell 2005). Through the free distribution of mass
communications technologies, these programmes connect target populations to theworld at large, providing them with new information which is a prerequisite for any
attitudinal change.Questions have been raised about the viability of the MIT project. For example,
the Indian government rejected an early invitation to participate in the year 1 launch
but authorized a pilot project in Maharashtra in 2007 (CNN 2006, 2007). An analogycan be drawn here between the likely success of this ‘computer for the masses’ and
the rapid diffusion of cell phones throughout the developing world in the 1990s.
Adoption of that new leapfrog technology has allowed poor people around the worldto avoid waiting for their government to construct telephone landlines. Creative
marketing of pay-as-you-go rechargeable telephone cards now allows low-incomeBOP consumers to avoid the expensive monthly subscription programmes
characteristic of Western markets.Introduction of new technologies in support of goals for building civil society
coincidentally also create business opportunities for entrepreneurs. Thus men and
women in small communities have equipped Internet cafes with computer terminals
and rent out basic equipment (such as cell phones) to their neighbours for personaland commercial use. This will be an important growth market in sub-Saharan Africa
because currently only 4% of Africans have access to the Internet. Dial-upconnection speeds remain slow and local Internet content is sorely lacking, creating
‘an enormous investment prospect’ for astute marketers (The Economist 2007d).In addition to improvements in the technological environment, improvements are
needed in the educational and training sectors for women, with special emphasis on
business methods, communications skills, and financial expertise. Programmes can
be organized either as formal classes or promoted informally through peer-to-peertraining among micro-loan borrowers (Amine and Staub 2005). Effective universal
education for girls and training programmes for women are important societalcommitments by national governments that will increase rates of women’s
entrepreneurship, levels of business performance, and numbers of women actively
employed. Therefore, following the lead of Oprah Winfrey, both public and privateeducation and business training programmes for girls and women must be designed,
introduced, and multiplied throughout sub-Saharan Africa.Results from demonstration projects must be rapidly diffused throughout the
region by governments, NGOs, commercial business investors, and business
researchers. Researchers should contribute managerial insights by publishingcomparative case studies on best practices. One example of best practice comes
from state governments in the USA who have had much success providing business
‘incubator’ units in local communities to support entrepreneurs who are just gettingstarted. Further research must investigate the success of similar programmes in
Kenya, addressing questions about standardization versus local adaptation ofincubator programs. (See McCormick [1999] for an example of research into
enterprise clusters in Kenya.)
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7. Conclusion and future research
Using environmental and institutional analyses, we have identified a broad range offactors that persistently constrain the activities of actual and potential womenentrepreneurs (WEs) in sub-Saharan Africa. Problems exist in the regulatory,normative and cognitive environments and involve complex issues of sociallegitimacy. Specific goals and recommendations for action through social marketinghave been put forth, involving a wide range of constituencies and social partners.Goals include promoting acceptance of the new belief that women should be bothallowed and encouraged to undertake self-employment as entrepreneurs, modifyingcurrent prejudicial beliefs and discriminatory behaviours that hold back WEs, andencouraging abandonment of old stereotypes about women’s limited abilities tocontribute to society.
Clearly more research is needed, particularly by business scholars trained inenvironmental analysis and social marketing. Of particular value will be real-life casestudies of best practice suggesting how to promote women’s entrepreneurship. Inaddition, theoretical research is needed to assess which roles are best played bynational and local governments, financial institutions, social marketers, NGOs, andfor-profit corporations, in order to transform national institutional systems intomarket environments favourable to women entrepreneurs.
Note
1. While it is theoretically desirable to exclude South Africa from analysis for the reasonsgiven, in several instances in this study it proved impossible to disaggregate this countryfrom statistics that we obtained from publications by international organizations.Excluding South Africa the ‘sub-Saharan region’ consists of 47 countries. These areBurundi, Central African Republic, Democratic Republic of Congo, Republic of Congo,Rwanda (in Central Africa); Djibouti, Eritrea, Ethiopia, Kenya, Seychelles, Somalia,Tanzania, Uganda (in East Africa); Angola, Botswana, Comoros, Lesotho, Madagascar,Malawi, Mauritius, Mozambique, Namibia, Swaziland, Zambia, Zimbabwe (in SouthernAfrica), Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Cote d’Ivoire, EquatorialGuinea, Gabon, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania,Niger, Nigeria, Sao Tome and Prıncipe, Senegal, Sierra Leone, and Togo (in West Africa).
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