BUSINESS Where are all the women entrepreneurs?

GOT THE GUTS Women are willing to take the kind of risks that help a business succeed.

Women can do the business


Money matters
Brid Conroy

Last Tuesday evening, I decided to forego the joys of Eastenders and attend the monthly meeting of Mayo’s branch of Network Ireland, an organisation for women in business, the professions and the arts, being held in the Knockranny Hotel. Norma Smurfit, chairperson of First-Step Microfinance was attending with a colleague, and I was interested to hear how First-Step worked and how they were finding the world of women in business.
Very interesting indeed. First-Step was established in the ’60s when Norma, originally from London, married Micheal Smurfit of the Smurfit printing group and relocated to Dublin. The economy in Ireland back then would have not been in great shape either. She decided to do her bit and set to pushing as much funds as she could from Smurfits into a loan fund to help small businesses get off the ground.
First-Step started off by giving small loans to buy, say, an oven or a toolbox. Now, they give loans of between €5,000 and €25,000 to businesses that want to get off the ground or expand but have been refused funding by the banks. Monies are repaid over three years at an interest rate of 9 per cent. First-Step success stories include much-loved Castlebar restaurant, The Olive Tree.
One hundred loans were given last year, but wait for this: They could lend up to four times that amount but just don’t get the proper applications. Amazing. Also, when asked how many of these businesses were fronted by women, they replied that the numbers had dropped. They put this down to women being more cautious in the current economic climate.
A mere 4 per cent of businesses in Ireland are owned by women, according to official statistics. Among the explanations proffered for this shockingly low figure is the idea that women are less willing to take risks than men, which means they are less willing to strike out on their own. That got me thinking, are women really risk averse? What is stopping the female sex from grabbing the bull by the horns and setting themselves up in business?
One piece of research (and I love a bit of research) reveals that women are indeed risk averse compared to men when it comes to making traditional investments. They will choose the safer option. However, when the research was expanded to include risks aimed at bettering oneself, instigating change and motivating others, the results showed that 82 per cent of women were actually risk takers.
Women have been shown to build firm business foundations that endure. They value the opinions of others. They seek expert help. They ask questions and recognise talents in other people. They collaborate. They are willing to adapt to new ways. They are inclusive.
So what is stopping women setting themselves up in business. Nothing. If you have an idea, and the banks have refused funding for whatever reason, there is always a way. Options like First-Step are out there. All a company like First-Step needs to know is that your idea is well thought through and you have what it takes to make it happen. They also work with the County Enterprise Boards, which you can call upon for help when preparing a business plan. Enterprise Ireland is also looking to promote female entrepreneurship.
Incidentally, when Iceland declared itself bankrupt in 2008, the country turned to two women, Elín Sigfúsdóttir and Birna Einarsdóttir, to rebuild its financial system. Maybe we could do with a bit of that here.