Shattering the Glass Ceiling

For many women in the developing world, it’s not the glass ceiling that prevents them from making it to the C-suite, but rather the obstacles they face along the way. The Global Entrepreneurship Monitor (GEM), which provides an annual assessment of entrepreneurial activity at the national level worldwide, found that overall there are higher rates of female entrepreneurship in developing countries than developed countries. But this distinction is borne of necessity.

The main challenges that women face are social inequality, lack of education and trouble in securing funding. A recent study by PricewaterhouseCoopers made an interesting finding; women in developing countries find it easier to break through the glass ceiling than their colleagues in the west. Samuel DiPiazza, the company’s global head said, “In some countries such as Germany and Switzerland, there are cultural and social perceptions of women that make advancement much more challenging. Whereas in the developing world, there is a huge cry for talent, where there is enormous growth, you must be able to adjust to these norms faster.”

Still for most women in the developing world, securing financing stands in the way to opening a business. And though women usually start micro-enterprises to support themselves and their family, research from Africa and Asia suggests that females also contribute larger proportions of their personal income towards household expenditures than males, and therefore retain less profit for reinvestment.

So, what can be done to improve and encourage female entrepreneurship? Although challenges faced may be gender specific, labor regulation reform may be a good way to start. According to the Doing Business 2008 report, before the labor laws were reformed in Bhutan, it was illegal for a pregnant woman to work past 9:00pm—even if she was just 1 month into her pregnancy. Now a pregnant employee can work past 9:00 p.m. if she chooses. More importantly, the new laws prohibit firing a woman on the grounds of pregnancy.

With more reforms on the way, women may finally be able to move from the shadow of the informal economy and command their role in improving economic performance, raising incomes, and even breaking the glass ceiling somewhere along the way.