Abstract:
Since China's introduction of economic reform and adoption of market-oriented
programs, more and more people are going into business. China registered an average
annual GDP growth of over 8% in the past ten years. Moreover, during the past ten
years (1995-2005), the number of women-owned businesses in China has increased
significantly, and these businesses are just as successful as those owned by men. With
an increasing number of them participating, women have become a major force in
China's economic development, even in Shaanxi. The need for a better understanding
of this emerging economy and of women entrepreneurs in small firm motivated the
researcher to undertake this study.
Moreover, this study was guided by the following research objectives:
Primary objectives
• Determine the motivations underpinning entry of women into small
business in Shaanxi
• Examine the barriers and challenges that female entrepreneurs face and
how can these be addressed
• Examine the contribution of female entrepreneurs to the regional
development of the province with regard to employment
• Consider the determinants of the employment growth of women-owned
business as in Shaanxi
• Examine the determinants of the performance of female entrepreneurs in
Shaanxi
• Make suggestions regarding further research on entrepreneurship
development in Shaanxi province, China
• Examine whether source of funding is associated with the education of the
entrepreneurs. Secondary objectives
• Examine whether perceptions of support for women entrepreneurs vary
with marital status and education.
• Examine whether perceptions of support for women entrepreneurs vary
with training and networks.
• Examine whether belonging to a business network is related to the marital
status and education of the women entrepreneurs.
According to surveyed entrepreneurs, the quest for personal development (pull) and a
feeling of not "fit in" with the organisation (push) are two main factors which
motivated women to go into business as self-employed persons. The main barriers to
them start-up in business are availability of funds and family support. Problems still
exist, but women entrepreneurs made a great contribution to Shaanxi's provincial
economic development, especially in terms of employment creation opportunities.
The regression analysis shows that education and experience of the entrepreneurs
contribute significantly to employment growth.
Moreover, efficient business networks, availability of funding with training
opportunities and the support from government are seemingly rather weak in Shaanxi,
China. Results of the hypotheses tests indicate that training, networks, business
location, family member employees and prior working experience of the women
entrepreneurs contribute significantly to better performance in business.