Boosting European Economies through Gender Parity in Entrepreneurship

Strategic Insights -

Achieving gender parity in entrepreneurship could significantly boost European economies, new research carried out by Frontier Economics and commissioned by Amazon shows. The study looked at 13 European countries and found that reaching gender parity in new business creation—where 50% of startups are founded by women—could increase productivity by 1.6% to 5.5% by 2040, translating into substantial economic gains across the continent.

Key Takeaways:

  • Achieving gender parity in entrepreneurship could increase productivity by 1.6% to 5.5% by 2040, depending on the country, resulting in substantial economic gains across Europe.
  • The present value of the annual increase in Gross Value Added (GVA) from achieving gender parity would reach approximately €250 billion across the studied countries by 2040.
  • Key barriers holding back female entrepreneurs include access to capital, regulatory obstacles, and structural constraints, with 37% citing difficulty accessing investors or venture capital and 40% identifying lack of accessible government support as barriers.
  • The EU's competitiveness strategy could support female entrepreneurship by removing Single Market barriers, cutting red tape, and leveraging digital tools, but more targeted measures are needed.
  • Five priority actions emerge for supporting female entrepreneurship, including ensuring that EU and national competitiveness strategies support SMEs and female entrepreneurs, improving access to finance, simplifying regulatory processes, supporting digital readiness, and addressing structural constraints.

Statistics:

  • Achieving gender parity in entrepreneurship could increase productivity by 1.6% to 5.5% by 2040, depending on the country.
  • The present value of the annual increase in Gross Value Added (GVA) from achieving gender parity would reach approximately €250 billion across the studied countries by 2040.
  • 37% of female-founded businesses cited difficulty accessing investors or venture capital as a moderate or significant barrier while 39% reported limited access to finance or credit.
  • 40% of female entrepreneurs identified lack of accessible government support (incubators, networks, mentorship programs, courses, and one-stop-shops for important info and reporting) as a barrier, while 37% struggled with complex administrative procedures.

Sources:

  • Amazon
  • Frontier Economics
  • EU Competitiveness Compass
  • Mario Draghi's report on "The future of European competitiveness"
  • Atomico report on growth-stage funding for European startups
  • Womenalia
  • Feminvest
  • European Commission's Competitiveness Compass