Lack of job opportunities and salary gaps, main reasons for entrepreneurship in women

There are many reasons to undertake: being your own boss, having something of your own, having a better income, among others; however, for women the main reasons, in most cases, are due to the need due to lack of job opportunities and the wage gaps that still persist in Latin America, reveals the Global Entrepreneurship Monitor (GEM).

According to data from the National Institute of Statistics and Geography, of the micro, small and medium-sized companies registered in Mexico, 36.6% are led by women They work mainly in the trade and services sector.

Of the Mexican entrepreneurs, 49% are between 18 and 34 years oldand in similarity to the data registered in Latin America, the majority decided to start their business due to the lack of opportunities and generate more income to support their family.

Despite the fact that the wage gap has decreased in Mexico in the last three years, it is still 12.2%, with an income for women of 49.40 pesos per hour and 54.10 pesos for men.

Lorena is one of the Mexican entrepreneurs who started her fashion accessories and school business two years ago when the pandemic broke out, given the unemployment she suffered.

Being the breadwinner of her home with two children, she did not hesitate to acquire clothes, shoes, bags and other accessories such as games to spend the confinement as pleasant as possible. With this, she managed to earn an income and now it is not only a business on social networks as it started, she already has an establishment in her neighborhood and has employed two more women who also lost their jobs during the crisis.

Challenges of entrepreneurs

Despite the fact that more women join the world of entrepreneurshipchallenges persist that prevent them from having favorable growth.

According to the Mexican Institute for Competitiveness, the first is the high cost of administrative procedures to start businesses, which also have long periods.

The second is the access to financingmany for not having credit histories, enough traction in the business or other elements.

The third is the Lack of training in finance, accounting, business development and technology.

Another of the problems experienced by entrepreneurs is that the vast majority are in the informal sector, which is why they do not have social security and cannot access financing or credit, or implement adequate technological tools.

In the second quarter of 2022, the informality rate was 54.7% for womenunlike 49.4% of men. Chihuahua It is the state with the least informality (30.11%) while Oaxaca stands out with the highest index (78.83%), indicates the Inegi.