Women in Ukraine are the most willing to set up their own business compared with the rest of Europe, according to new research commissioned by Mastercard.
Out of all the Ukrainian women, living in a war zone and facing very difficult circumstances, two-thirds (66%) say that they plan to start their own business. Among those who consider the same, the ratio is even higher among the younger generation, with over four-fifths of Gen Z (83%) wishing to take this leap of faith.
Female entrepreneurs are playing a critical role in economic development, resilience, and recovery, said Mastercard, adding that they are also driven by supporting a positive change in the world.
“For example, entrepreneur and mother Inna Bozhko, owner of Barbershop Inclusive in Kharkiv, Ukraine. She used our support through the Mastercard Center for Inclusive Growth to open her own barbershop with a special soundproofed space for children with disabilities who are affected by sound (her eight-year-old daughter has cerebral palsy),” Payal Dalal Executive Vice President Global Programs of Mastercard told Euronews Business.
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Ukrainians, both men and women, cite lack of funds as the key reason they have not yet started a business (65% of men and 76% of women). Women also named the lack of experience (47%), knowledge (36%), and self-confidence (38%) being the main factors holding them back from starting a business.
Ukrainian women are most interested in opening their business in online sales (22%), education, including tutoring (17%), agriculture (15%), and food and drink (15%).
Boosted by GenZ’s highly entrepreneurial spirit, more and more women in the EU are turning to set up their own business to gain financial independence, improve work-life flexibility, and make a difference in the world.
According to the report, carried out in 41 countries across the world, four in ten European women have considered running their own business, this ratio is the highest among Gen Z (62%) and millenial women (53%).
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Within the EU, Portuguese women are the most willing to set up their business and they are also twice as comfortable with basic financial skills, such as dealing with savings and budgets, than the average European woman (21%).
“Our data found that Portuguese (62%), Polish (47%) and Greek (46%) women are more likely than the average European woman (40%) to consider starting their own business”, Dalal said to Euronews Business.
According to the report, those who not just consider, but actually plan to set up their businesses in these countries are also numerous – in Portugal, 56%; in Poland 36%; and in Greece 46%.
Behind the increased appetite for entrepreneurship, the report shows that Gen Z women in Europe are most likely to start a business to do ‘something good for the world’ (19% vs. 13% millennials, 14% Gen X and 16% Baby Boomers).
On reflection of this, education and childcare are among the top three sectors that European Gen Z women would like to start a business in. However, the top spot is reserved for cosmetics, which is by far the most popular sector for this generation (26% vs. 10% European average among women).
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According to the report, concerns around risk of failure (31%), lack of financial resources (29%) and lack of experience (28%) are the top barriers cited by women who have not yet started their own business.
Confidence is also a significant challenge for women, who also say they struggle disproportionately with caring commitments (both for children and older family members), too.
Leaders from Mastercard as well as Amazon Web Services agree that there is big potential for digital technologies to transform the set-up and the running of small businesses, and women entrepreneurs could particularly benefit from these.
“In the next few years, I would hope to see barriers for women entrepreneurs overcome through the increasing use of digital technologies, which themselves still need to adapt to cater for the diverse needs and capabilities of smaller businesses.”
“From enhancing operational efficiencies to expanding market reach, digital tools offer unprecedented opportunities for increased scalability, resilience and growth,” said Payal.
In the next few years, I would hope to see barriers for women entrepreneurs overcome through the increasing use of digital technologies, which themselves still need to adapt to cater for the diverse needs and capabilities of smaller businesses.
Tanuja Randery, Amazon Web Services’ Vice President and Managing Director for EMEA and founder of PowerWomen Network, said, “the latest advancements in technology, with Gen AI, are opening up huge opportunities for female entrepreneurs – lowering barriers to entry, automating tasks to improve productivity, and providing smarter insights to scale businesses.”
She also emphasised that “to accelerate female entrepreneurship and enable the next unicorns in Europe, we need to ensure women have access to the right sponsors, networks, and venture/government funding to help them navigate these opportunities with confidence.”
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Randery told Euronews Business about her experience growing up in India and being inspired by her father to work in the tech sector. Today she represents one of the world’s top five tech companies, Amazon, through its Web Services branch. She shared her thoughts with Euronews Business about what could inspire the next generation of female entrepreneurs.
“The three pieces of advice I would have for women as they pursue their careers are: a) Have a plan “remember what Alice said, if you don’t know where you are going, any road will take you there; b) Find your sponsors, “women are over mentored and under-sponsored, and c) Play to win not to fit in, take risks, be mobile (move countries, industries, functions) – and take feedback but in the end you should not forget who you are, what makes you happy and at your best.”
