The Concept of Women in Business

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Table of Contents

Introduction
Analysis
Challenges encountered by women entrepreneurs
Conclusion
Reference List

Introduction

Diversity has become one of the most accepted elements in the contemporary business environment. Rutherford (2011) emphasises that gender ranks amongst the top diversity issues currently being considered in business management.

Bradley (2007, p.10) defines gender as ‘the varied and complex arrangements between men and women, encompassing the organisation of reproduction, the sexual division of labour, and cultural definitions of femininity and masculinity’.

Different categories of theories have been formulated in an effort to explain the concept of gender. Martin (2003, p. 88) posits that these theories include the ‘liberal feminist theory, social feminist theory, radical feminist or the psychoanalytical theory, the poststructuralist feminist and social constructionist theory’.

The liberal feminist theory emphasises that human beings are defined by their capacity to think rationally. The radical feminist, the psychoanalytical feminist, and the social feminist theories postulate that the feminine traits should be perceived as beneficial and a resource rather than a drawback.

Conversely, the poststructuralist feminist and social constructionist theory emphasises the construction of the femininity and masculinity that affects the social order. Therefore, gender emanates from an individual’s social interaction and upbringing and it varies depending on time and place (Ahl 2006).

Women have become an important constituent of the contemporary workforce (Holmes 2007). However, organisational managers encounter dilemma in the course of constituting their workforce.

Rutherford (2011) corroborates that women comprise a critical economic force that organisations should consider in exploiting the growing market. Thus, women should no longer be ignored. A few organisations have firmly embedded the concept of equality and gender in their company values (Marlow 2002).

Moreover, women are progressively being involved in entrepreneurship. Rutherford (2011, p.1) asserts that women-owned businesses ‘are one of the fastest growing entrepreneurial populations in the world’.

This paper involves a critical analysis of the concept of women in business. The analysis is based on three written case studies, which are based on real life interviews with women in business.

Analysis

Conventionally, entrepreneurship was perceived as a male domain. Ahl (2006) cites the concept of entrepreneurship as one of the discursive practices that have been propagated over the years. For a considerable period, the women’s role was associated with childcare while men had been regarded as the breadwinners.

Ahl (2006) affirms that the family has largely been considered as the women’s domain. However, women are progressively venturing into entrepreneurship. Some authors are of the opinion that entrepreneurship is a male-gendered concept. Thus, women have been made invisible with reference to entrepreneurship (Ahl 2006).

This discourse has changed considerably over the past few decades. Women-owned businesses are growing rapidly across the world. A study conducted by the United State Census Bureau shows that 25% of all small and medium enterprises [SMEs] are women-owned (Coyle & Flannery 2005).

Another study conducted in 2011 by the Office of National Statistics shows that 49% of businesses are entirely led by men, while 19% are women-led (Brescoll 2011). Conversely, women and men lead 23% of businesses equally.

Factors motivating women into entrepreneurship

Work-Family balance

The concept of women involvement in business has become an area of interest amongst academicians and practitioners. One of the areas of interest relates to the motivation behind women’s involvement in business.

Fenwick (2003) cites the need for work-family balance as one of the critical motivators towards women involvement in entrepreneurship. However, some authors are of the opinion that both genders need work and family balance.

Winn (2004) affirms that women encounter the ‘dual burden’ challenge in their quest to achieve career success due to domestic responsibilities. Moreover, Shepard (2010) contends that women’s career path are characterised by unique experiences, identities, and roles emanating from their marriage and family life.

This aspect is well illustrated in the case study by Kate who emphasises that it is her responsibility to take care of her child and at the same time handle work-related issues such as attending seminars and meetings to decide business issues like the software to purchase and the websites to build.

According to Winn (2004), entrepreneurship enables women to attain a high level of control over their work. This goal is achieved by having a higher control over the working schedule.

Kate, one of the women considered in the case study, cites the ability to balance between her work and childcare as the critical aspects that motivated her to enter entrepreneurship. In her opinion, Kate believes that venturing into entrepreneurship has provided her with an opportunity to design a flexible working schedule.

The concept of work-family balance is further highlighted in Jennifer’s case, one of the women interviewed in the case study. In her opinion, assisting her son to run the family business while at the same being involved in formal employment was quite overwhelming due to the workload involved.

With her second pregnancy, she decided to venture into family business on a full-time basis in order to gain control over her life.

Through entrepreneurship, women are in a position to establish an effective work-family culture, which is achieved through the formulation of family-friendly policies. Kate cites the numerous activities that she is engaged in coupled with how self-employment has provided her with an opportunity to manage her time optimally.

Women in business are more likely to formulate a strong work-family organisational culture and family-friendly policies as compared to their male counterparts.

The family-friendly policies vary across organisations and they may include presenting employees with an opportunity to take care of their children by providing them with on-site childcare (Brescoll 2011).

The need for work-family balance influences the nature, structure, and growth of the established business. Masculine organisations tend to adopt a hierarchical organisational structure. Moreover, the decision-making process is based on a logical economic model. Conversely, feminine organisations adopt a flat organisational structure.

Discrimination

The involvement of women in business has further been spurred by the existence of gender inequality in the workplace such as promotion opportunities and wage rate differences between men and women.

Furthermore, the existence of indirect and direct discrimination has further been cited as other factors that have motivated women to venture into entrepreneurship. Mallon and Cohen (2001, p.43) affirm that women ‘consider entrepreneurship as an alternative to employment’.

The lack of attractive employment conditions is progressively pressurising women into entrepreneurship. Mallon and Cohen (2001) assert that women are underrepresented in organisations’ managerial activities. In most cases, women are positioned at the lower levels of an organisation’s managerial power structure.

This situation is well illustrated by Kate’s assertion that in the event of a meeting involving her male counterparts, the dialogue is mainly male-centred. This situation highlights the degree of subordination against women in the workplace, which is further emphasised by the radical feminist theory.

Shepard (2010) asserts that the radical theory postulates that women’s oppression originate from men’s domination in the society.

In addition to the above aspects, women are less likely to be provided with an opportunity to work in the international market as expatriates. According to Fenwick (2003), organisations’ international assignments have remained to be a reserve of men. The extent of discrimination in the workplace varies across countries.

For example, in the US, women have an opportunity to progress through the managerial hierarchy albeit not as much as their male counterparts. Different reasons explain the existence of discrimination between men and women in the workplace.

Hogeforster and Jarke (2013) affirm that employed women aged below 30 years and over 45 years are more likely to be discriminated. In the first group, employers cite the likelihood of becoming pregnant and the subsequent leaves such as the maternity leaves, which increase their work-home related burden.

Therefore, their productivity is likely to be affected adversely. On the other hand, discrimination amongst women aged over 45 years mainly arises from a stereotypical belief that they are less productive and hesitant about personal development (Kirkwood 2007).

These aspects illustrate the extent of gender discrimination and lack of fair treatment in the contemporary work environment. Consequently, the likelihood of women to progress through the desired career path successfully is significantly limited.

Gender segregation

The interview with Sally illustrates the existence of gender segregation at the workplace. Andersen and Taylor (2008, p.320) define gender segregation as ‘the distribution of men and women in different jobs in the labour force’.

Despite the governments’ effort to prohibit discrimination at the workplace, women continue to experience different challenges arising from the practice. The practices are mainly evident in male-dominated organisations (Andersen & Taylor 2008).

This aspect explains why women prefer working in organisations whereby a large proportion of the workforce is female. Additionally, the existence of gender segregation has forced women to work in service-oriented jobs such as sales clerks, food service workers, health service workers, childcare workers, and clerical workers.

This trend shows that women are largely crowded out at the workplace and they tend to be concentrated in a few occupations while men engage in a wide array of occupations.

A study conducted by the UK Trade and Industry Committee (2005) shows that women account for 1% and 8% of the total labour force in the construction and engineering jobs. This aspect indicates the existence of horizontal segregation at the workplace.

Vertical segregation has further increased the invisibility of women in the workplace. Women are assigned lower status jobs, hence hindering their access to high-paying jobs. Sally’s job position as the Managing Director greatly astonished some of her clients.

Another reason that explains the prevalence of gender segregation in the workplace entails the structural obstacles. Andersen and Taylor (2008) affirm that structural obstacles limit women from venturing into male-dominated careers.

This phenomenon is best explained by the glass-ceiling concept, which refers to unreachable barriers that prevent women from progressing through the managerial positions. The glass ceiling mainly arises from gender bias that negatively affects the appraisal of the women employees’ abilities and performance.

The case study shows that some men do not recognise women’s ability to hold senior managerial position in the workplace. For example, Sally identifies a situation whereby a male client is astonished by her position as the Managing Director.

The appraisal process is further affected if the female employees are assertive. Most male managers associate such behaviour with the violation of the supposed gender order.

Other scholars argue that gender segregation in the workplace is further propagated by the existence of ‘glass walls’ that limit women in jobs characterised by minimal advancement opportunities.

Andersen and Taylor (2008) affirm that women who attain top job positions associate their success with personal abilities and the existence of effective social networks. Conversely, their male counterparts associate such success to individual effort.

Sex stereotyping

The case study further highlights the lack of collaboration between the organisation’s accountant [a male] and Sally in making financial decisions. According to Sally, it took years before the organisation’s accountant could talk to her about the financial issues despite the fact that she handled all firm’s financial matters.

Sally had to prove to the accountant that she was capable of handling financial issues, which changed the working relationship between the two employees. This situation underscores the existence of sex stereotyping in the workplace.

According to Robinson and Franklin (2015, p.122), sex stereotyping occurs if ‘the decision maker holds some generalised beliefs about behaviours and characteristics attributed to a particular gender’.

The existence of sex stereotyping in the workplace can further be explained by the composition of society. In spite of the numerous reforms, which have been undertaken in an effort to entrench gender equality, the contemporary society is patriarchal.

This assertion means that the society is male-centred, male-dominated, and male-identified. Radical feminist theory cites patriarchy as the source of the prevailing subordination amongst women. Subsequently, men are able to exercise power over women in diverse environments (Brescoll 2011).

In most cases, the belief is usually a misconception that affects future work-related decisions. Such incidents at the workplace may affect an organisation’s performance adversely due to its inability to optimise the skills and expertise of its female workforce.

For example, the lack of collaboration between Sally and the male accountant indicates that the two parties did not share information on work-related issues. Subsequently, the likelihood of the organisation transforming itself into a resource-based entity was significantly limited.

Work identity

Apart from the above aspects, the involvement of women in the workplace has largely been influenced by the existence of work identities. Bernard (2000) opines that work influences an individual’s self-identity. Furthermore, Bernard (2000) contends that work is a highly gendered issue.

Locklin (2007, p.47) asserts that women ‘played an ambiguous and complicated role in the world of work’. For a considerable duration, women have been associated with domestic roles.

However, their involvement in the contemporary work environment in different organisations has led to the emergence of conflict between domestic and public [paid] work identities (Bernard 2000).

In most cases, men’s identity is usually derived from their job roles. In spite of the high rate at which women are being involved in formal employment and the loss of the traditional role of a man as the breadwinner, women’s identity at the workplace has remained unchanged.

This situation is well illustrated by the existence of wage gaps between male and female employees, which has emanated from the identification of women as caregivers. The multiple roles of women as carers and wives culminate in a significant conflict with reference to their self-identity.

The women’s domestic identify as carers is transferred into the work environment, which is evidenced by their job description. In most cases, women are assigned low-status and low paying jobs (Ibarra 2003).

The domestic work identity is not only limited to the low-status and low-paying job, but also in high-status professions, for example the medical field. Bernard (2000) asserts that this situation is evidenced by the adoption of flexible working schedule by organisations in an effort to accommodate the women’s domestic identity.

The identification of women as carers further increases discrimination amongst women due to the presumed negative effect of caregiving on their productivity.

Hamilton (2006) is of the opinion that the domestic role of women has a negative effect on their performance due to the lack of concentration arising from the need to strike a balance between work and family issues. The workload encountered by women negatively affects their ability to function optimally in the workplace at times.

Thus, the likelihood of enjoying their work in such an environment is significantly reduced. According to Locklin (2007), individuals embrace their work identity due to the benefits derived such as financial security and improvement in the social status.

The aspect of work-identity with reference to gender is well illustrated by Sally’s experiences. Despite her position as a Managing Director, she admits feeling as if she does not have any right being the MD or that she has earned the position at all.

Furthermore, Sally emphasises that she is not in a position to assign any monetary value or ascertain her contribution to the organisation. Subsequently, she feels that her position as the MD is meaningless as she is not able to exercise power.

This aspect illustrates the extent of male domination at the workplace. Moreover, this occurrence indicates that organisations have not fully implemented the liberal feminist theory, which underscores the importance of ensuring equal opportunity between men and women in the workplace.

The case study underscores the fact that women’s involvement in entrepreneurship has largely been motivated by the external factors such as poor working environment. However, the success of women in entrepreneurship will depend on their ability to adjust their self-identity.

Therefore, it is imperative for women to shift from the ‘stereotype’ belief with reference to their work identify as domestic workers. In a bid to achieve this goal, women must develop the necessary skills and expertise continuously in a bid to ensure that they are positioned optimally in entrepreneurship (Smith 2009).

One of the strategies that women can adopt in order to reinvent themselves successfully entails attaining high educational qualification. One of the women considered in the case study, viz. Jennifer, affirms that she had to join the university in order to transform her self-identity.

Tiwari (2007) contends that the lack of knowledge limits women’s progress in entrepreneurship significantly due to the lack of sufficient understanding of the prevailing industry trends, which is a critical aspect in successful establishment of entrepreneurship.

Moreover, it is critical for women to affirm their position as decision-makers. This goal is only possible if they entrench the concept of learning from their workplace experiences. By adopting this approach, women will transform their work identity successfully, which is a fundamental element for success in entrepreneurship.

Despite her involvement in the running of the family business, Jenifer’s mother-in-law took a back position with reference to making decisions regarding the businesses’ operation.

However, Jennifer underscores the importance of women being involved in the daily operation of their family businesses. In her opinion, women should ensure that their contribution is considered as critical in the businesses’ operations as opposed to only doing things behind the scenes.

Challenges encountered by women entrepreneurs

The above case study illustrates that women have been motivated to venture into entrepreneurship by a myriad of reasons. Furthermore, women entrepreneurship has grown considerably over the past decades, which underscores the fact that this field is not a masculine undertaking.

Moreover, women are endowed with numerous opportunities and psychological qualities that are critical to succeeding as entrepreneurs. However, a number of challenges limit the success of women in entrepreneurship. Some of these challenges are evaluated herein.

Access to capital

Despite the high rate at which women are adopting entrepreneurship as an approach to gaining control over their career progression, their success in entrepreneurship is greatly hampered by access to financial resources.

Tiwari (2007) emphasises that women do not have tangible security to enable them access external funds such as loans from financial institutions. Furthermore, women experience challenges in accessing the working capital to enable them sustain the daily operation of their business ventures.

In most cases, women rely on loans from family and personal savings as a source of their working capital. However, such sources of finance are not sufficient to sustain their enterprises long-term success.

Access to networks

The success of business enterprises is greatly influenced by the nature of networks established. Hytti (2010) asserts that networking in running business entities is critical in assisting organisations to navigate through the bureaucracies that may arise.

Additionally, establishing networks is essential for accessing information that can enhance an organisation’s long-term success. However, women tend have few business contacts, which limits their bargaining power and subsequently the growth of their enterprises.

The domination of men in business networks also limits the women’s ability to join such networks. According to Minniti et al. (2007), the inability of females to establish business network arises from their role as ‘women’, viz. the ‘dual burden’.

In most cases, the activities that culminate in the establishment of networks tend to take place after the normal working hours. Thus, the likelihood of women participating in such activities is limited.

Despite the significance of networks in the establishment, survival, and growth of business entities, Minniti et al. (2007) contend that women tend to establish social networks around social life, family, and work.

According to Smith-Hunter (2006), most women in formal organisational employment experience diverse hurdles in their quest to establish networks. First, they are not provided with an opportunity that can expose them to such networks, which limits their managerial and supervisory capabilities.

This situation is further increased by the existence of the glass ceiling effect. Consequently, their ability to transfer knowledge from their formal employment to their personal business entities is hindered.

However, the case study shows that Jennifer, one of the women interviewed, was in a position to gain sufficient knowledge on people management from her boss. She attributes her success in business to the knowledge that she gained from her former boss.

Conclusion

The case study underscores the existence of significant gaps with reference to diversity in the workplace. The experiences of the parties considered in the case study show that gender is a continued fundamental workplace issue. Most organisations have formulated policies advocating diversity at the workplace.

One of the renowned diversity policies relates to the elimination of discriminatory practices based on the employees’ demographic characteristic such as gender. However, discrimination based on gender is a pressing issue at the workplace.

Despite their skills and expertise, most women in the workplace are not provided with the opportunity to progress through their career path. Additionally, their contribution to making decisions on work-related issues is ignored. This aspect is explained by the ‘glass ceiling’ phenomenon, which prevents their advancement in the workplace.

The persistent discrimination of women in the workplace is further explained by other factors such as gender segregation, work identity, and sex stereotyping. Due to gender segregation, women are considered more suited to work in service-oriented jobs.

Sex stereotyping has led to the development of a generalised belief that women are highly suited for certain jobs. Consequently, women holding senior managerial positions in the workplace are treated as outsiders in the organisation’s decision-making process.

Conversely, the identity of women in the workplace has been affected adversely by the ‘dual burden’ whereby women are considered as ‘carers’ and ‘paid workers’.

The above aspects have played a fundamental role in motivating women to venture into entrepreneurship. Furthermore, the involvement of women in entrepreneurship has further been motivated by the need to achieve work-life balance.

Through entrepreneurship, women have an opportunity to control their work-life issues by establishing family-friendly policies. However, the success of women in entrepreneurship is limited due to a number of challenges such lack of sufficient capital and establishment of networks, which are critical to the success of enterprises.

Therefore, in a bid to succeed in the long-term as entrepreneurs, it is imperative for women to consider dealing with these aspects, for example through training. Secondly, it is critical for women entrepreneurs to be provided with the necessary support, for example by eliminating the structural obstacles that limit their access to financial capital.

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