93894 Policy Brief Issue 9 Breaking the Metal Ceiling: Female entrepreneurs who succeed in male-dominated sectors in Uganda Francisco Campos, Markus Goldstein, Laura McGorman, Ana Maria Munoz Boudet and Obert Pimhidzai Summary Worldwide, female entrepreneurs tend to experience lower productivity and profit than their male peers. One reason for this is that women tend to be concentrated in less profitable businesses. This mixed methods study from Uganda investigates a range of factors that may hinder or help female entrepreneurs move into male-dominated sectors, where they are as successful as men, and significantly more successful than women who remain in traditionally female sectors. This analysis finds that information gaps about the relative profitability of male-dominated businesses play an important role, as do the types of role models influencing youth as they determine their career paths. Informational campaigns, as well as apprenticeship and mentorship programs, present potential policy options. GENDER GAPS IN THE ECONOMIC SECTORS ARE SOME FEMALE ENTREPRENEURS SUCCEED IN MALE- WORLD-WIDE DOMINATED BUSINESSES Across developed and developing countries, women are more This study in Uganda presents an opportunity to examine what likely to work in low-productivity sectors and in less profitable obstacles might be preventing women from “crossing over” businesses. Value added per worker is lower in firms into the more profitable, male-dominated sectors (defined as managed by women than in those managed by men across sectors where over 75% of enterprises are male-owned). urban areas in Europe and Central Asia (34% lower), Latin Businesses owned by men are 3.1 times larger and earn 2.5 America (35%), and Sub-Saharan Africa (6–8%). Female times more than female-owned firms, and yet only about 6% participation in entrepreneurial activities is higher in Africa of Ugandan female entrepreneurs choose to work in male- than in any other region, but studies show that female-owned dominated sectors. We refer to these women as “crossovers,” firms average 31% less in sales than male-owned firms. and they are the focus of our study because they appear to confront social convention in pursuit of economic success. To One factor that comes up again and again in trying to explain our knowledge, no other research exists on this subject, this gender difference is the choice of firm sector. In Africa, despite the potentially important policy implications for women entrepreneurs are concentrated in hotels and spurring productivity and economic growth. restaurants, wholesale and retail trade, garments, textiles, leather goods and other services. Men are engaged in a wider Average monthly profit among informal enterprises in Uganda, range of sectors, including construction and manufacturing. Is by sector: this because most women prefer to work in certain sectors, or because they are constrained in their choice of profession? And if the latter, what constraints are they facing? The World Bank Group | Africa Region Gender Practice Policy Brief 1 STUDY METHODOLOGY Factors not associated with crossing over: • Skills and abilities: Women who cross over do not To examine possible explanations for why more women don’t seem to have an innate intelligence that supported cross over, we used quantitative data from 2011 sampling 735 them in making the switch in sector. The team entrepreneurs operating within and just outside of Kampala, investigated this hypothesis using several tests for most of who belonged to the Katwe Small Scale Industry working memory, problem-solving skills and Association (KASSIDA). In addition, a quantitative and entrepreneurial spirit, and found that crossovers do qualitative survey was administered in 2012 to 63 crossovers not uniformly score higher. and to 120 women working in traditionally female sectors. Of • Human and financial capital: Level of education – the the latter, half of the participants were randomly sampled, and most common measure of human capital – does not half were matched to the crossovers based on a number of significantly affect the probability that a woman pre-business characteristics, such as similar age and crosses over. Similarly, even though male-dominated completion of primary school. To get a better sense of sectors tend to have higher capital requirements, this community-wide perceptions about female entrepreneurs, we was not a consideration for entrepreneurs when also conducted 17 focus group discussions with crossovers, selecting their sector. non-crossovers, clients, suppliers and male employees, and interviewed 12 community leaders and credit providers. Factors positively associated with crossing over: • Information about sectors: Many female entrepreneurs are simply not aware that they could be earning higher profits in male-dominated sectors. About 75% of the non-crossovers we interviewed incorrectly believe that they make the same or more than crossovers, when in fact they do not. • Role models: Most crossovers don’t come up with the idea of working in a male-dominated sector by themselves. Rather, that decision originates from someone else’s suggestion, observing others, and/or being offered a job in the sector by a friend or family member. Women who reported having a male role model in their youth were 20-28% more likely to be a crossover. Fathers and politicians are particularly strong role models for crossovers, either in CROSSOVERS ARE MORE PROFITABLE introducing women to the sectors where they work, or by providing important contacts or financial support. Our quantitative analysis reveals two significant findings. First, On the other hand, non-crossovers are more likely to firms owned by crossovers are about three times more have been introduced to traditionally female sectors profitable, on average, than firms owned by non-crossovers. by mothers, and especially teachers. This suggests Second, businesses owned by women who cross over are just that the current education system actually reinforces as profitable as businesses owned by men. Thus the rationale the gender segregation of labor. Moreover, once for crossing over is clear, which begs the question: What women engage in a traditionally female sector, they allows certain women to cross over, and what prevents more are unlikely to make the switch to a male-dominated women from doing so? We examine the following sector. Therefore early influence by a male role explanations: model is very important in shaping women’s professional path to a more profitable sector. A The World Bank Group | Africa Region Gender Practice Policy Brief 2 Policy Brief Issue 9 significant intermediary step in becoming a crossover • Offer supportive engagement with individuals who is active exposure to the sector, either by becoming can guide female entrepreneurs as they seek to an apprentice, engaging in actively learning the operate a business in a male-dominated sector. This trade, or being taken to observe the trade. is ideally done by drawing from the entrepreneur’s existing network of friends and family, perhaps Ongoing constraints that crossovers face in sustaining their within the context of a youth mentorship program. businesses: • Facilitate active exposure to the sector through • Low technical skills: This is the most common apprenticeships or other work experience programs. constraint mentioned by crossovers, even though It is especially important to target young women who these women do not report making significantly lower are just entering the labor force, as well as older profits than their male counterparts, nor do they have women without previous experience in a female- any trouble finding customers. But clients do dominated sector. acknowledge that crossovers have limited technical • Engage figures of influence within communities to skills, which could influence their decision about who avoid potential opposition and to gain support in to engage for a large contract. changing social perceptions of which sectors are • Credit: Both crossovers and non-crossovers appropriate for women. commonly cite access to credit as a primary business • Support crossovers in maintaining their businesses, issue. Crossovers are more likely to obtain credit such as by facilitating access to networks or by from a bank or from a spouse, whereas non- creating business organizations dedicated to crossovers most frequently borrow from a female crossovers. friend or community member. POLICY PRIORITIES This paper explores an uncharted area in the literature on enterprises and gender. Based on our analysis, we provide policy recommendations for supporting women entrepreneurs in male-dominated sectors, but stress that experimentation and impact evaluations of these policies are critical for determining the most effective approaches. Policy options include: • Provide information early to youth about the profitability of certain sectors, perhaps through informational campaigns or career guidance in schools. However, given teachers' current, strong role in preventing women from crossing over, any program using teachers requires significant training and sensitization of teachers. The World Bank Group | Africa Region Gender Practice Policy Brief 3 For questions and more information about the Africa Region’s gender program, please contact Katherine Manchester at kmanchester@worldbank.org. The World Bank 1818 H St. NW Washington, DC 20433 USA The World Bank Group | Africa Region Gender Practice Policy Brief 4