Female entrepreneurship in transition economies: the case of Lithuania and Ukraine

Abstract

To date, little research has focused on female entrepreneurship in the context of transitioning countries. This paper compares from an institutional perspective two countries at different stages in the process of transformation. Lithuania followed a rapid transitional path leading to European Union membership, while Ukraine is on a much slower development path. Women entrepreneurs in Lithuania and Ukraine share many common features and problems; however, there are important differences in the experiences of women in these two countries. This indicates a need to recognize the diversity that exists among transition countries, reflecting different inheritances from the Soviet past as well as differences in the pace of change during the transition period.Female entrepreneurship, transition countries, Lithuania, Ukraine, institutional theory, SMEs, JEL Codes: M13, P2, P3,

The entrepreneurial ladder, gender, and regional development

“…One particular institutional context that is important in explaining entrepreneurial activity is that of transition economies. Few studies have focused on female entrepreneurship in transition countries (Aidis et al 2007), even though femaleowned firms are said to be of specific importance within the transition context. They can help reduce female unemployment by employing themselves and hiring other women, they can serve as role models that make younger generations aware of alternative occupational opportunities and, finally, they can help to speed up the transition process through their creativity and innovative capacity and through the further development of the private sector.…”

“…Given their alleged importance, the question that arises is whether the institutional environment in transition economies restricts female entrepreneurial activity (Welter et al 2003). Institutional factors that affect women's engagement in entrepreneurial activity in transition countries include both formal institutions (e.g., legal gender equality, the effect of tax legislation on dual earners, childcare facilities) and informal institutions (e.g., traditional roles, religion, family values, entrepreneurship as masculine activity) (Welter et al 2003;Aidis et al 2007). Female entrepreneurship may be inhibited in countries where normative support for female entrepreneurship is lacking because the traditional role of women as caretaker in the household is emphasized (Baughn et al 2006).…”

The Study of the Current Obstacles to the Development of Women’s Entrepreneurship in the Function of Reducing Unemployment in Bosnia and Herzegovina

“…Access to finance and advisory services, as an obstacle to the development of women's entrepreneurship, are also identified by Powers and Magnoni (2010), Welter (2004), Muzondi (2014), Aidis et al (2007), Woldie and Adersua (2004) etc. Help in the interpretation of factors can provide the weight factor diagram shown in Figure 3.…”

“…In transition countries, Lithuania and Ukraine (Aidis et al, 2007), women also have poorer access to external sources of capital than men. This is mainly associated with the traditional perception of the role of women in the household, which affects their attitudes towards risk, and their ability and willingness to use the resources of the household in order to start their own businesses.…”

Social progress orientation and innovative entrepreneurship: an international analysis

“…It implies well-defined regulatory actors, as well as the attention and regular participation of the whole society in the design of public budget and the use of public funds. Regarding gender inequality, literature on female entrepreneurship suggests that the gap between women and men is harmful for social and economic development (Aidis et al 2007;Baughn et al 2006;Terjesen and Amorós 2010, among others). In this regard, Kantor (2005) highlighted that the participation of women entrepreneurs should also be considered in terms of its importance to the home, since it allows for their own development and knowledge transfer to their offspring.…”