The Gendered Aspects of MSEs in MENA: Evidence from Egypt and Turkey

Fatma El Hamidi, Cem Baslevent
2010 Social Science Research Network  
This study attempts to shed light on the gendered aspect of MSEs (i.e. how the sectors of activities, income, growth, etc. differ by the gender of the entrepreneur) and tests some of the main claims of the rather modest available literature by means of an econometric analysis. The empirical work utilizes nationally representative MSE surveys conducted for Turkey and Egypt in 2001 and 2003 respectively (for brevity, we hereafter use "E&T" to refer to "Egypt and Turkey"). The working sample has
more » ... 36 and 4238 permanent establishments located in the urban areas of Egypt and Turkey, respectively. By identifying the sectors and types of activities females are more likely to thrive in, this study calls attention to those sectors where direct intervention by the government will be more effective, and provide some guidance for making proposals to further reduce the extent of gender-differences and practices in MSEs. The empirical work utilizes nationally representative MSE surveys conducted for Turkey and Egypt in 2001 and 2003 respectively (for brevity, we hereafter use "E&T" to refer to "Egypt and Turkey"). The working sample has 4136 and 4238 permanent establishments located in the urban areas of Egypt and Turkey, respectively. Key Findings: Similarities between Egyptian and Turkish MSEs: 1. Most respondents are married and owners of their business in E&T. The share of nonmarried female entrepreneurs is twice as much as non married males, attesting to the need these women face to earn a living, in face of limited pension or low alimony. 2. The majority of businesses employ less than 3 workers. 3. Trade is the dominant activity. The allocation of MSEs by economic sector for Egypt is 16, 73, and 11%, and for Turkey is 21, 67 and 12% for manufacturing, trade and services, in that order, with skilled workers making up the largest share of the workforce. 4. Own savings are the main source of start-up capital, followed by inheritance. Only 10% of Turkish and 4% of Egyptian capitals come from loans (formal and informal). 5. Results pertaining to the 'sufficiency' measure (i.e. MSEs income exceeds household expenditures) indicate that income of owners of MSEs is sufficient and exceeds monthly household expenditures for E&T males alike.
doi:10.2139/ssrn.1819300 fatcat:4elovvhvpva6llyl23ww7smk3y