The Dilemma of Growth: Understanding Venture Size Choices of Women Entrepreneurs

Abstract

In recent years the number of women-owned firms with employees has expanded at three times the rate of all employer firms. Yet women remain underrepresented in their proportion of high-growth firms. A number of plausible explanations exist. To develop richer insights, a two-stage research project was undertaken. A mail survey was sent to a sample of female entrepreneurs to assess motives, obstacles, goals and aspirations, needs, and business identity. Based on the survey results, follow-up, indepth interviews were conducted with entrepreneurs, selecting equally from modestgrowth and high-growth ventures. In terms of quantitative findings, growth orientation was associated with whether a woman was "pushed" or "pulled" into entrepreneurship, was motivated by wealth or achievement factors, had a strong women's identity in the venture, had equity partners, and believed women faced unique selling obstacles. The qualitative research made clear that modest-and highgrowth entrepreneurs differ in how they view themselves, their families, their ventures, and the larger environment. The results of both stages suggest that growth is a deliberate choice and that women have a clear sense of the costs and benefits of growth and make careful trade-off decisions.

Linking globalization of entrepreneurship in small organizations

“…With regard to the third hypothesis, women entrepreneurs have attracted increasing attention from authors in terms, for example, of the limitations of female-owned ventures (Menzies et al 2004) or of the quality of family or personal lives (Morris et al 2006). Brush (1992) pointed out that the similarities between the two sexes outweigh the differences, while du Rietz and Henrekson (2000) studied performance differences between ventures started by men versus women in terms of revenue growth.…”

A Qualitative Study on Environmental Factors Affecting Iranian Women Entrepreneurs’ Growth Orientation

“…The other important factor explaining the desire for growth of women entrepreneurs is the presence of equity partners. The presence of other owners may indicate greater financial sophistication and a clear plan for organizational growth (Morris et al, 2006). Davidsson (1989) and Kolvereid (1992) have demonstrated that conditions on the labor market affected growth willingness.…”

“…Cliff(1998) defined propensity for growth as an entrepreneur's intent to expand the organization, and ability to manage growth as the degree to which he/she can obtain resources and develop the organization. Ylitalo (2010) and Morris (2006) have defined growth orientation as having growth as top priority, and accepting risk to achieve growth.…”

“…Davidsson (1989) also expressed that the conditions on the financial market may affect the willingness to grow. Morris et al (2006) investigated that "difficulty of getting investors", "difficulty of getting a commercial loan" and "difficulty of getting personal bank loans for business" are three items creating the greatest obstacles for women all related to financing. The other important factor explaining the desire for growth of women entrepreneurs is the presence of equity partners.…”

“…One of the factors that can affect growth is the growth orientation of the firm owner. Researchers have suggested a lower tendency towards growth among females, than male entrepreneurs; in other words, female entrepreneurs voluntarily decide not to have a high rate of growth in their business (Buttner, 1993, Verheul et al, 2005, Morris, 2006.…”