Women Entrepreneurs’ Survey

Results of the Survey of the

Hamburg Chamber of Commerce

Dr. Mary Papaschinopoulou Brussels, May 25th, 2004

Sibyl Scharrer

WOMEN IN BUSINESS AND IN DECISION MAKING

A project supported from the European Community – Program relating to the Community Framework
Strategy on Gender Equality (2001-2005)

The information contained in this publication does not necessarily reflect the position or opinion of the
European Commission
Introductory remarks
This report was conducted by the Hamburg Chamber of Commerce in the frame of the
Eurochambres project “Women in Business and in Decision-making” which is financially
supported by the European Union.

The Hamburg Chamber of Commerce

The Hamburg Chamber of Commerce is one of the largest ones in Germany, representing
almost 120,000 member companies with about 680,000 employees in the Free and
Hanseatic City of Hamburg. Regarding women entrepreneurship the companies in the
Hamburg metropolitan region, supported by the Hamburg Chamber of Commerce, are
leading in Germany.

The survey
In the realisation of the survey in the metropolitan region of the Free and Hanseatic City of
Hamburg, the Hamburg Chamber of Commerce cooperated with the Brussels
Representation of the IHK Nord – Association of Northern German Chambers of Commerce
and Industry. The responsibilities were divided as follows:
• The Representation of the IHK Nord was responsible for the conception and final set-
up of the survey in cooperation with the other project partners, i.e. the chamber
organisations of Italy, Greece and Cyprus as well as Eurochambres.
• The International Department of the Hamburg Chamber was responsible for the
dissemination of the survey questionnaires. Almost all of the addressed entrepreneurs
were current or former participants of “etrifftu – Start-up meets entrepreneur”, the
Hamburg Chamber’s initiative for women entrepreneurs and start-ups. The
questionnaire was sent to about 700 women entrepreneurs. 127 answers were
received, which is almost 20 %.
• The Brussels office of the IHK Nord collected and evaluated the answers and wrote the
final report.

Structure of the report

The report is divided into three sections which correspond to the structure convened by all
project partners.

A. Type of enterprises
B. Profile of business women (educational, family and business background)
C. Participation in decision-making bodies

The report ends with a conclusion and policy recommendations.

A) Type of enterprises
The aim of this part is to get a profile of the enterprises of women in the metropolitan region
of Hamburg.

• Question 1: “What is the size of your enterprise?”

Among the 127 answers 120 come from micro enterprises, 6 from small entrepreneurs. One
woman has a medium-sized enterprise.
 120
100
80
Micro enterprises
60 Sm all enterprises
40 Medium sized enterprises
20
0
Total num bers

• Question 2: “What is the sector of activities?”

As regards the sectors of activities, there is a wide range of sectors covered.
One sector are services or consultancy for training, education and personal
development as well as career coaching. Related to that are services for personnel
counselling and development, employment services as well as pedagogic services.
A second sector is the multimedia, internet and communication sector. This includes
also services in data processing as well as the film and music sector.
A third important sector is PR, event organisation and marketing, including market
research. To this category belong also businesses on sales promotion, publicity and
advertising.
Other sectors are design, textiles, fashion and interior architecture, also with
businesses in the import and wholesale of textiles, an own production and own brand.
Further enterprises focus on office services or technical translation.
More traditional sectors, chosen in only one case each, are: retail trade, wholesale and
foreign trade and construction business.

B) Profile of Business Women

1. Educational background
This part analyses the profile of the business women.

• Question 4: “What is your educational background?”

This question refers to the educational background of the entrepreneurs. It results in the
following distribution for the Hamburg metropolitan region1:

1
All figures and percentages in this report are round.

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 80 73
70
60
50 Primary Education
40 Secondary Education
30 Tertiary Education
20 14 13
10
0
In %

• Question 5: “If tertiary, what course(s) did you follow?”

The courses show a great diversity ranging from business administration to fashion
design.
Business administration and economics are mentioned. They are combined with
pedagogics, computer science, chemistry or other natural sciences. Other business related
studies such as marketing or postgraduate studies in tourism are included in this section.
Other courses followed were social sciences, such as pedagogics, social management,
psychology, or sociology. Some women are teachers in primary and secondary education,
often for languages.
In other cases the humanities are chosen, also in combination with arts, ethnology,
Africa studies, or East European studies.
Also mentioned were studies in design or industrial design, geography, or theology.
Some women have university degrees in liberal professions, including architecture,
interior architecture, law or pharmaceutics.
Only 3 entrepreneurs studied agro-engineering, construction engineering or software
technology.

2. Family background
This part consists of two questions. As these refer to quite personal questions, respondents
were free not to answer.

• Question 6: “Do you have a family?”

This question has two parts: The first one is to find out whether the entrepreneur has a
husband / partner and the second one whether she has children or not. In the first part 5
respondents do not answer, in the second part 16.
Among the 122 respondents 65 % have a partner / husband, 35 % do not. There are
clearly more entrepreneurs without children (61 %) than with children (39 %).

70 65 70 61
60 60
50 50
39
40 35 Yes 40 Yes
30 No 30 No
20 20
10 10
0 0
Husband/Partner in % Children in %

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• Question 7: “Do you have help at home?”
This question is whether the entrepreneurs are supported by their parents, a household
help or somebody looking after the children etc. 14 persons do not answer.
The answers show that 27 % have support at home, almost 3 times as much – 70 % –
of the total of surveyed women do not.

80
70
60
50
Yes
40
No
30
20
10
0
Help at home in %

3. Business Background
In this part the business background of the women entrepreneurs is analysed.

• Question 8: “Have you always worked for yourself?” / Question 9: “If no, how
many employers did you have before starting your own business?”
The results show that 91 % of the surveyed persons have not always worked for
themselves, compared to 9 % who have always been self-employed.
On average, women have 3 employers before starting their own business.

9% Not alw ays

w orked for
herself
Alw ays
w orked for
91% herself

• Question 3: “At what age did you start your own business?”
It shows that women found more enterprises with increasing age. This starts with one
enterprise in the group of 20-25 years and ends with 43 businesses for the group of the
persons aged 41 years or more.
An exception is the group of 36-40 years old women who have a lower number of
enterprises than those aged 31-35. This might be due to the fact that at this age many
women found a family. The repartition is as follows:

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 1% 14%
34% 20-25 years old
26-30 years old
31-35 years old

28% 36-40 years old

m ore than 41 years old
23%

• Question 17: “How many hours per week do you dedicate to your business?”
The answers show that most women spend extremely lot of time on their business, i.e.
more than 48 hours. On the other hand, 21 of the surveyed entrepreneurs dedicate less than
35 hours to their company. This is closely followed by 40-44 hours and 45-48 hours. Few of
the questioned entrepreneurs spend 35-39 hours per week on their business.
6 persons do not answer.

70 m ore than 48 h
60
50
40
30 less than 35 h
40-44 h
20 45-48 h
10 35-39 h
0
In absolute figures

• Question 15: “What made you start your own business?”

The most important reason is the want for control and freedom to take own decisions
(98 answers). The second most important reason is self-achievement (79), followed by
confidence in the products/services offered (52). The option “did not want to work for others”
has about the same level (50). Next one in the ranking is “other reasons” (42) which will be
explained in detail below. The business women consider “profit/making money” a lot less
important (21). In only 11 cases a better “social status” is chosen as reason for an own
business.

Want for control and freedom

17 9
77 Self-achievem ent
33

Confidence in
products/services

39 Did not w ant to w ork for others

41 62 Other reasons

In % (multiple answers)
Profit

Among the “other reasons” different answers are given.

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 Women see an own enterprise as the only means to overcome unemployment often
caused by re-structuring or closing down of the companies in which the women were
formerly employed.
Others feel to be too old to find a new workplace or not to have the qualifications
demanded in the labour market.
The reason for an own enterprise is not always mere necessity or a lack of alternatives
but can also be good compatibility of family and work as well as flexibility. Also, the wish for
security may prevail.
Women are looking for a new challenge after years of employment. They wish to apply
their skills obtained as an employee in a new profession and in their own company. This is
felt as a further logical step in the professional biography. Also, having an own enterprise
means additional education. It is difficult to work as an employee after being self-employed.
Some women want to bridge a gap in the market, i.e. offer new and innovative
services.
Parents who are self-employed serve as a role model.

• Question 12: “Have you created your present enterprise yourself, is it a family
business you have “inherited” or a business you have bought?”
Over 90 % of the business women say they have created their business (a total number of
119). Few have bought their enterprise or have inherited it.

4% 2%

Created
Bought
Inherited

94%

• Question 10: “Is your present business the first enterprise that you own?”
This question is answered in the positive by almost 90% (113 persons). In 14 cases it is not
the first enterprise (11 %).

89
100

80
60 First Enterprise
40 11 Not the first enterprise

20

0
In %

• Question 11: “If no, what happened to the enterprise(s) you have owned
previously?”
Of the 14 businesses which are not the first ones eight have gone out of business, 3 have
been sold, in two cases there is no answer and one is still successful.

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 7%
14%
Gone out of business
Sold
No answ er
58% Still successful
21%

• Question 13: “When you started your business, what were the main obstacles
you faced?”
The results show that financing was for about half of the entrepreneurs (ca. 50 %) the
most important obstacle when they started their business, closely followed by problems to
find the right contacts for their business venture (48 %).
On the third place “other reasons” are mentioned (37 %) which will be analysed in
detail below.
For around 28 % low self-confidence was initially an obstacle to their venture. This is
followed by problems to combine family and work life in about 1/5 of the cases.
Lack of information posed a problem for ca. 13 % of the women.
Only 11 % did not face any obstacles in the start-up of their company.

Financial questions
60
50 48
50 Finding the right contacts for
your business venture
40 37 Others

28
30 A question of self-confidence
21
20
13 11 Com bining fam ily and w ork life
10
Lack of inform ation/advice
0
In % (m ultiple answ ers) No obstacles

Among “other obstacles” a problem for women entrepreneurs in their start-up phase
was contacting and acquiring customers as well as ensuring continuity of orders. Some
clients were quite retentive in ordering. Additionally, in the media sector the profit marges
were too low. All these problems were also caused by widely felt recession.
Other women had difficulties finding networks or having a good exchange with
colleagues and publicity platforms. This was even harder for those with low confidence in
themselves and in their own product quality, which made efficient self-marketing difficult.
It was hard for women to persuade their family of their capabilities.
Lack of practical experience and of important skills, e. g. in public relations and
marketing, affected the womens’ business adversely.
Insufficient financial ressources and seed capital made the venture difficult. This was
aggravated by the lack of banks supporting micro-business and the difficulties to negotiate
effectively with them. Above that, the lack of financial support for child care was criticised.

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 Competition in a new sector was hard to stand, especially when the entrepreneurs had
initially assessed the market situation wrongly. In some cases the original idea turned out not
to be sucessful, so a difficult re-orientation was necessary.
The combination of family / private life with business also posed a problem.

• Question 16: “What are the main obstacles you are facing now in the running of
your business?”
As in the start-up phase, liquidity and other financial problems are mentioned in over 50
% of the cases. “Other obstacles” are mentioned in roughly 35 % of the cases. This is
followed by a lack of time for training / upgrading skills (18 %). However, about the same
percentage, 17.3 %, declares not to have any problems at all.
Once the business is consolidated women have less problems to combine family and
work life than in the start-up phase – this is only perceived as an obstacle by 15.7 %
compared to 20.4 % in the start-up phase.
The smallest problem among the women surveyed is gaining acceptance / respect of
people (7 %).

Liquidity and other financial

50 problem s

40 Other obstacles

30 Lack of tim e for training

20
No problem s at all
10

0 Com bination
Main obstacles in %
Gaining acceptance/respect

The analysis of “other problems” brings the following results:

Lack of time or difficulties with time management is a problem. High work load,
especially in the acquisition of clients, does not leave enough time for training and for private
life. The combination of work and family life is difficult.
Also, competition is hard to stand, especially when aggravated by the general
recession. Positioning in the market is difficult.
The financial success of the business is often limited due to low budgets of clients who
order and do not pay. Expansion of the business and successful acquisition are perceived as
extremely difficult, which is sometimes also caused by the entrepreneur’s low self-confidence
or by a difficult combination of acquisition and the carrying out of orders. High expenses arise
until orders are given. This means a longer start-up phase than foreseen.
Above that, a complicated regulatory environment particularly with regard to staff
recruitment poses a problem.

• Question 14: “State briefly how you have overcome any obstacles”
An important strategy is the expansion of the entrepreneur’s network and the building
of new contacts, also through the foundation of an own group of entrepreneurs facing the
same situation. However, some women feel the necessity to distance themselves from
competitors and rather look for contacts and cooperation partners in other sectors.
Successful colleagues can serve as a role model.
A second approach is the use of coaching, mentoring, training, events, and seminars
offered by different institutions or organisations. Some of them are taylored to the specific
needs of women, such as the EU-project “Profession: female entrepreneur”, which includes a
1-year individual supervision. Another important program is “Enigmah”, managed by the

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Federal Employment Agency (“Arbeitsamt”)or the program “Woman and work”. The purpose
of the participation in these seminars is to recognise own weaknesses, to work on strengths
and to fill knowledge gaps, e.g. in the field of marketing or acquisition. It is also possible to
learn merely from the experience of other entrepreneurs.
To overcome financial problems, women rely on seed-capital from friends or family.
Support by the Federal Employment Agency or other institutions is also possible.
Entrepreneurs have to go through a period of extreme financial restrictedness and discipline.
Sometimes the business can only be maintained through parallel employment. A re-
orientation regarding the project idea may take place. To decrease the financial and risk
women cooperate with other entrepreneurs or have an associate. A good tax adviser or a
patient bank is also quite helpful.

C – Participation in decision-making
The last 6 questions of the survey refer to the participation in decision-making
processes in chambers and other organisations and potential obstacles to it.

• Question 18: “Do you actively take part in your Chamber’s decision-making
bodies?” / Question 19: “If yes, in what way?”
None of the persons surveyed are active in either the plenary assembly or the
chamber’s committees. One entrepreneur participates regularly in the Hamburg Chamber
initiative “SME - woman start-up meets entrepreneur” and other events. In one case there is
a participation in the CCI working group “Women in Business” of the Chambers of
Kiel/Lübeck. Another entrepreneur mentions regular contacts and informal exchange with the
chamber, still another one knows the “Wirtschaftsjunioren” (young entrepreneurs) and the
“Wirtschaftssenioren” (senior entrepreneurs). One woman says she can imagine to actively
participate in the chamber bodies.

• Question 20: “Do you actively participate in decision-making bodies of other

organisations/entities?”
No participation in the chamber bodies does not mean no participation in organisations
at all. 28 % of the surveyed persons are taking part in decision-making bodies of different
organisations, 70 % are not; the rest does not answer.

Participation in Decision-making

2%
28%
Take part
Do not take part
No answer
70%

• Question 21: “If yes, which ones?”

In the kind of organisation and engagement there is a big variety, although in most
anwers the woman’s respective role is not specified. Important answers are engagement in
Business and Professional Women Germany (BPW), membership in the board of directors of
the VDU (Association of German Women Entrepreneurs), the BWMW (Federal Association
of Medium Enterprises) as well as in the CDU-Wirtschaftsrat (Economic Council of the
Christian Democrats), the VMW (Committee for Foreign Trade) and the Stock Exchange

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Club. One woman is member of the federal board of directors of the German Association of
Women Lawyers.
Further forms of engagement are auditing for the non-profit Hertie foundation “Audit
Profession and Family”, membership in the association of conference interpretors or VIVA
(United Women Engineers and United Women Architects) as well as in working groups of
professional associations. Women are active in honorary work in the church, neighbourhood,
schools or political bodies.

• Question 22: “What are the main obstacles that prevent you from participating in
decision-making bodies?”
In 61 anwers the most important obstacle is too much time taken-up by business
actitvities. This is followed by “other reasons”, analysed below. 20 women do not see any
obstacles. In 14 cases family obligations hinder the women from more engagement in
organisations. 11 entrepreneurs do not show any interest in participating. For only one
person competition poses an obstacle.

Too m uch tim e taken-up by

70 business activities
59
60
Others
50
40 No obstacles
30 25
19
20 13 11 Fam ily obligations
10 1
0 No interest
In % (m ultiple answ ers)
Com petition

Among the “other reasons” women declare not to have any information concerning
participation in decision-making processes or not to know the right contact persons. Non-
participation may also be due to not finding the right organisation or board. Women feel hard
pressure on their business so their time is entirely spent on their enterprise or on training.
They also prefer to wait whether their enterprise survives.
Additionally, women entrepreneurs do not feel well represented by the chamber or
professional associations. They also think that chamber and sectoral organisations are a
“closed” shop whith fixed “power relations” whose structures can not be entered easily by an
outsider.
Another reason for non-participation may be task sharing between the woman
entrepreneur and her associate who is active in a decision-making board.

• Question 23: “What measures would help you to get more actively involved in
the decision-making bodies of Chambers and other organisations/entities?”
A relevant measure is the provision of clear, concise and transparent information on
the possibilities to participate, on topics, activities, tasks and selection criteria for the boards.
This could be done e. g. through the internet or personal contacts and invitations.
Also proposed is the possibility to test an engagement before taking a definite decision.
Women perceive some organisations, including chambers, to be too male-dominated. They
miss more women-oriented and women-friendly alternatives, e.g. a convenient timetable for
meetings (before 8 pm., combination with family life is difficult).
Women entrepreneurs think that chambers and other organisations can not really
influence policies, that there is too much discussion of internal matters. Additionally,
chambers are perceived as too bureaucratic, thus not giving any incentive to participate. It is
also mentioned that chambers and other organisations focus too much on medium-sized
enterprises while neglecting small service companies.

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 Women hope for a PR-effect through the publication of names of the entrepreneurs
doing voluntary honorary work in the chamber bodies or other organisations. Contacts and
exchange with other women in the decision-making bodies may be helpful.

Conclusions
The results show that in Hamburg most women have their business in strongly service-
oriented sectors. Their companies are often very small, usually micro-businesses. There is
clearly a tendency that women with tertiary education start their own business. The
compatibility of family and work life is not easy for entrepreneurs and improvement is
essential.
However, the main difficulties in the start-up phase as well as in the consolidation
phase of the venture consist in financial restrictions and in finding clients. In order to
overcome the latter problem most women apply an expansive networking strategy. To
master the former problem of access to finance of women entrepreneurs and of micro-
businesses, the regulatory environment for access to finance has to be improved. Better
possibilities to obtain micro-credits are recommended. The chambers together with banks,
authorities in the EU-Member states and the European Commission should cooperate in the
conception of new and tailored schemes.

The non-participation of women in chamber bodies seems mainly to be due to an

information gap regarding the possibilities of participation and the positive effects of it. At the
same time, the most important reason for non-participation is lack of time. Representation in
the chamber bodies does not seem to be regarded as priority; women feel it unnecessary to
invest their time. In order to awake interest among the women entrepreneurs for active
engagement in chamber bodies, it is necessary for chambers to improve access to
information.

To promote increasing and sustainable women entrepreneurship, women should be

encouraged to start their business in future-oriented sectors with growth potential. Thus,
more women should be encouraged to enter these sectors through chosing appropiate
studies at university. The chambers’, the authorities’ and the European Commission’s role
may consist in the development and expansion of schemes or programmes addressing girls
and female students to arise interest both for future-oriented subjects and for self-
employment.

In addition, it might be advisable for women who want to start their own business to
obtain the necessary skills before doing so. If they accquire the necessary skills before or at
an early stage of their venture, their business would be more stable from the very beginning.
Chambers should try to develop better tailored services for women.

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