CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the different works, studies and literature

that comprise Synthesis, Theoretical Framework and Conceptual Framework which have direct and indirect bearing with the current research from which substantial concepts have been taken. Related Literature According to WimNaud and Maria Minniti(2011) the businesses owned and managed by men and women are also different. We now know that womens businesses tend to be smaller and to grow less than those owned by men. Also, womens businesses tend to be less profitable than those of men and to generate lower sales turnover (even in same-industry comparisons). Maria Minniti (2009) provides a comprehensive and up-to-date review of the literature on women entrepreneurs and their businesses. As far as the performance of female entrepreneurs firms is concerned, the evidence from developing and developed countries is somewhat similar. Women tend to have lower growth expectations, and their firms tend to grow slower in both sales and employment than those of men even if one controls for sectors. Eugenia Petridou, AikateriniSarri, Lida P. Kyrgidou, (2009) said that there are higher enrollment rates of males than females. Regarding attitudes towards participation in entrepreneurial educational programs, females

demonstrate a stronger interest in acquiring knowledge, developing skills, facing career competition and networking with local business, to a significantly higher degree than their male counterparts. In addition, females rank all skills as of higher significance in successful entrepreneurial activity, assigning lower value only to communication skills, compared to men. The opposite holds for males, who ranked communication skills as of greatest importance among all other skills. Effie Moore Salem (2012) highlighted that men and women are created differently. Each relates to the business world from their prospective viewpoints; this may or may not be bad for business. They think differently, they see and react to business issues differently and that's why each entrepreneur works best in areas that directly affects them individually. They are different in the way they think, how they see others, and in how they react in the business world. Both, even when educated at the same level, will show differences. And of course thats equally true among women and among men. Tonia Y. Collins discussed that gender differences and their relationship to entrepreneurial behavior is valuable to identify the distinctive personal skills of women who choose to become entrepreneurs, and how social factors have influenced women in their decisions to become entrepreneurs. Male entrepreneurs scored higher on measures of adaptability, risk tolerance, time management, extroversion, and thinking, while female entrepreneurs scored higher on measures of planning, goal orientation, intuition, and perceiving. In

addition, males and females differed in their beliefs regarding entrepreneurial success. Male considered financial rewards, recognition, challenges, passion for their businesses and building relationships with customers with equal preference. Female responses included recognition and passion about their businesses, followed by financial rewards. Entrepreneurship is a field which needs an array of skill sets. This is emphasized by (Bird and Brush, 2002; Ahl, 2006) who said that when we examine gender-wise, each of them has their own plus and minus points. He has forwarded the thoughts that being an entrepreneur is the best form of personal development you can do. What he thinks that means is you cant hide from your fears and personal hang-ups if you want to succeed as an entrepreneur and taking that leap means dealing with people which means negotiation skill is essential once you are an entrepreneur. Women meet the needs required of an entrepreneur in todays consumer driven world. Females just seem to have better perception, are more engaging and over all have better communication skills. This is something where men take a really bad beating as entrepreneurs. Women are coming into their own because the way of marketing is changing. They might not be hard-sellers like men but they have a great way to impress through a softer way of approaching which is much more invaluable in todays scene. Females are very good at adapting their approach personalizing to an individual.

Women bring in much less testosterone ego. Many men become numbskulls when there are decisions to be made where their ego comes into play. Females care very less about their ego as long as their work gets done. This is a major factor that can affect entrepreneurial careers of men and women. However, there are many male entrepreneurs who can beat their female counterparts hands down because they are better listeners, more sincere, and more willing to do the right thing but it is unfair to simply generalize that men are better entrepreneurs or vice-versa. Nowadays, women are more and more starting their own businesses (Brush et al., 2008;Renzulli et al., 2000), and act entrepreneurial for many reasons. Self-employment brings flexibility in the career life of women and this flexibility partly explains why women owned-businesses are increasing. They have the freedom to choose their own work environment such as: the hours of work, type of work, working at home or closer to home and the people they want to work with. Different socioeconomic factors like age, work status, education, leadership, income, social ties, personality and perceptions are significant in a persons decision to start a business. And entrepreneurship can be seen as being created by the socio-economic and cultural structures of the society (Yetim, 2008).

Related Studies Today, the term "entrepreneur" is no longer dominated by males. In this 21th century, the autonomy and power of woman have become more obvious and as clear (Purdy 2005). Long time ago, women only played the role of mothers, confined to their homes and to take care of their household chores and children. Nowadays, women are not only independent but also have their autonomy in many aspects such as politics, education, socially and economically. They have the liberty of expressing their own ideas and displeasures on a variety of matters. There will always be discussions in comparison between men and women entrepreneurs (Brindley, 2005). Most people think that women are weaker than men in many factors. On the other hand, women are said to be more emotional when making decision and very risk aversive. Hence, women have to face more challenges and difficulties when setting up their own businesses. Confidence toward women as a successful entrepreneur can hardly be assured. (McClelland, Swail et al, 2005). For many years gender-related barriers has hindered the economic potential of women as entrepreneurs. These barriers have had an adverse impact on enterprise development, productivity, and competitiveness. This represents a significant opportunity to unleash country's productive potential and to strengthen economic growth.

In addition, gender differences may influence the styles and exercise of power in an organization (Rajan & Venkat, 2002). In this study, findings suggest that combination of gender and personality can affect power and influence. In recent studies, researchers have been discussing about how selfconfidence may motivate some individuals to become entrepreneurs and may not motivate others. This concept proposes that self-confidence maybe included in career development and career choice for either men or women. Furthermore, it also believed that personal skill and communication skill plays an important role in the new venture process (Mueller, 2007). The study of Wagner (2007) also documented significant differences in risk aversion between men and women entrepreneurs although they exhibited similar traits. Based on Wagner (2007) analysis, findings showed that women have higher fear of failure than men. Women are less likely to take up risk than men. The average ratings of importance for all the goals (financial, nonfinancial, personal) were above four, indicating that both sexes valued all these types of goals as being very important to absolutely important to their success. Preferences by men were evaluated as statistically significant for financial goals over nonfinancial as well as personal goals. For women, there were significant differences in the desire for financial over nonfinancial goals but not for financial over personal goals.

This implied that for men business owners, there was a clear dividing line in their preferences for financial over nonfinancial over personal goals. On the other hand, women owners apparently did not treat personal goals as less important than financial goals, but prioritized both of these over nonfinancial goals. Furthermore, among the ten most selected entrepreneurial success indicators, men listed more financial goals and women more nonfinancial and personal goals. This evidence thus concurred with the assertion that woman, while considering revenues/profits and other financial concerns as important, put also high emphasis on the fulfillment of personal and nonfinancial goals.

Consequently, entrepreneurial self-efficacy is an individuals belief that he or she can successfully solve all problems associated with starting a new business. Wilson, Kickul and Marlina (2004, 2007) reported that the effect of entrepreneurial self-efficacy on entrepreneurial intentions varies by gender, being stronger for females than for males. However, if females in the rural setting are more likely than males to be pushed into entrepreneurial activities by lack of income or fear of job loss, than the effect of entrepreneurial selfefficacy on entrepreneurial intentions for them is likely to be weaker than for males.

But several studies have shown that there are differences between male and female entrepreneurs in regards to characteristics, growth, motivation, and other aspects concerning entrepreneurship. Previous research has come up with different reasons why some people find the original ideas for starting new businesses and some do not. According to Van der Veen and Wakkee (2004) traditionally the explanation has been sought in psychological traits. These psychological traits can be separated in two parts: the entrepreneurial personality and the entrepreneurial behavior. Scientific research has only found evidence for two personal characteristics: inside view optimism, believe in ones own ability to accomplish a difficult task, and creativity

(Ardichvili, et al. 2003). But, the need for achievement and risk propensity is also
personal skills that influence entrepreneurship (Van derVeen and Wakkee 2004; Langowitz and Minniti, 2007). Entrepreneurial behavior is moresocio-cultural which consists aspects such as ethnicity, gender, and family, which may influence one to act entrepreneurial, or not. For instance, in many cultures the role women have in the society is different than mens and combining work and family responsibilities is a big challenge for women (Shelton, 2006), which influences their choice for entrepreneurship. Research about entrepreneurship is mostly about motives, characteristics, behaviors, and activities of men and their businesses because; prior to 1980 the majority of entrepreneurial businesses were started by men (Brush et al., 2006). Women were less active and certainly very less visible as entrepreneurs, so it is not rare that entrepreneurial research

is focused on men. Entrepreneurial research started with research focused on men and masculine characteristics, because entrepreneurship was expected to be a male activity, and most entrepreneurs were men. Therefore, research in entrepreneurship as a women career is still in a beginners phase. In the late 1980s more women choose for entrepreneurship as a career, which made this topic more and more interesting. While research on previous topics went on in the 1990s, more attention was given on motivation and why women choose to become an entrepreneur. Topics as strategic choice, self-efficacy, industry choice, and obstacles women face were considered. Venkatesh, (2008) found out that there is a growing recognition in the business world that a good leadership strategy can significantly improve business results. At the same time, good leaders seem to be rare things these days. It stated also that recruiting and retaining qualified leaders has become crucial challenge facing businesses today and in the future.

Synthesis The related literatures and studies collected by the researchers served a valuable role in the progress and improvement of the present study. The collected information possesses similarities and discrepancy compared to the present study.

The review of literature and these studies related to the presents (studies) study on account of their similar aspects According to WimNaude and Mari Minniti (2011) business owned and manages by men and women is also different, But, As far as the performance of female entrepreneurs firms is concerned, the evidence from developing and developed countries is somewhat similar. Effie Moore Salem (2012) also stated that men and women think differently not just in developing countries but then as they created unlike they also differ in personal prospective view point; how they think differently, they see and react to business issues differently and that's why each entrepreneur works best in areas that directly affects them individually. Men are good entrepreneur than women as entrepreneurship is considered a male activity while for women career it is still a beginners phase (Langowitz and minniti (2007) and Shelter (2006), Brush et al., Also, Purdy (2005), Brindly (2005),

argued that there will always be discussions in comparison between men and woman entrepreneur. Today, the term "entrepreneur" is no longer dominated by males. In this 21th century, the autonomy and power of woman have become more obvious and as clear (Purdy 2005), woman tend to be more independent today unlike being just a mother and caretaker of a family that said to be more common earlier. But, Brindly (2005) said that women are said to be more emotional when making decision and very risk aversive. Mcclelland Swail et al, (2005) also cited comparison between men and woman. He said that Confidence toward women as a successful entrepreneur can hardly be assured unlike than

those of men. Male entrepreneurs scored higher on measures of adaptability, risk tolerance, time management, extroversion, and thinking, while female

entrepreneurs scored higher on measures of planning, goal orientation, intuition, and perceiving. Males and females differed in their beliefs regarding entrepreneurial success (Tonia Y. Collins) Renzulli et al., ( 2000); Brush et al., (2008); Yetim (2008) discussed about socioeconomic factors like age, work status, education, leadership, income, social ties, personality and perceptions are significant in a persons decision to start a business. And entrepreneurship can be seen as being created by the socio-economic and cultural structures of the society (Yetim, 2008). In addition, (Rajan & Venkat, 2002) suggest that combination of gender and personality can affect power and influence. ArdichVili, et al., (2003), Van der VeenBird, wakkee (2005) and brush 2002; Ahl 2006 emphasized that negotiation skill is essential once you are an entrepreneur. They have also forwarded the thoughts that being an entrepreneur is the best form of personal development you can do. Mueller (2007), believed that personal skill and communication skill plays an important role in the new venture process. They discussed the importance of personality and negotiation skills to entrepreneurs (ArdichVili, et al.,(2003), Van der VeenBird, Wakkee, 2005). Venkatesh, (2008) found out that there is a growing recognition in the business world that a good leadership strategy can significantly improve business results.

Figure 1 Theoretical entrepreneurialskills entrepreneurs. Paradigm that showing to the relations female or among male

leads

successful

Personal Skill (Rajan & Venkat)

Communication Skill (Petridou, Sarri & Kyrgidou)

Successful Female and Male Entrepreneurs

Negotiation Skill (Bird & Brush)

Leadership Skill (Venkatesh)

Figure 2

Entrepreneurial skills: Personal skill Communication skill Negotiation skill Leadership skill

Questionnaire Interview Gathering data

Significant difference between Male and Female Entrepreneurs

Conceptual Paradigm of the study showing significant relation among the entrepreneurial skills of male and female entrepreneurs.

Theoretical Framework This study was anchored on the following theories: There are factors that directly affect the success of male and female entrepreneurs respectively; personal skill, communication skill, negotiation skill, and leadership skill. According to RudermanOhlott, Panzerand King (1999) Success is manifested in multiple roles including mother, co-worker, partner and family member. Success extends to a sense of inner harmony, being emotionally and physically healthy and having a balanced approach to life. Many perceived that their organizations define success narrowly, focusing on financial and production goals. Entrepreneurship is a field which needs an array of skill sets. Entrepreneurial skills such as personal skill, negotiation skill, communication skill and leadership skill. Personal skill according to Rajan and Venkat,( 2002), Gender differences may influence the styles and exercise of power in an organization. In this study, findings suggest that combination of gender and personality can affect power and influence. In recent studies, researchers have been discussing about how self-confidence may motivate some individuals to become entrepreneurs and may not motivate others. This concept proposes that self-confidence maybe included in career development and career choice for either men or women.

Furthermore, it also believed that self-confidence plays an important role in the new venture process. (Mueller, 2007) In connection to Communication skill Eugenia Petridou, AikateriniSarri, Lida P. Kyrgidou, (2009)stated that females rank all skills as of higher significance in successful entrepreneurial activity, assigning lower value only to communication skills, compared to men. The opposite holds for males, who ranked communication skills as of greatest importance among all other skills. Women meet the needs required of an entrepreneur in todays consumer driven world. Females just seem to have better perception, are more engaging and over all have better communication skills. This is something where men take a really bad beating as entrepreneurs Leadership skill in relation to Venkatesh, (2008) studies found out that there is a growing recognition in the business world that a good leadership strategy can significantly improve business results. At the same time, good leaders seem to be rare things these days. It stated also that recruiting and retaining qualified leaders has become crucial challenge facing businesses today and in the future. Negotiation skills to Bird and Brush, (2002); Ahl, (2006), emphasized that when we examine gender-wise, each of them has their own plus and minus points. He has forwarded the thoughts that being an entrepreneur is the best form of personal development you can do. What he thinks that means is you cant hide from your fears and personal hang-ups if you want to succeed as an

entrepreneur and taking that leap means dealing with people which means negotiation skill is essential once you are an entrepreneur.

Conceptual Framework Conceptual Framework includes input which consists the profile of the respondents such as Personal skills, Communication skills, Negotiation skills, and Leadership skills which are the necessary information that would be collected through the process of data gathering, questionnaires and interview. The accomplishment of the process would give us the output, specifically the significant relation among the success factors between male and female entrepreneurs. Figure 2 illustrates the concept, on which entrepreneurial skills directly affect the success of entrepreneurs; either they are male or female.

Endnotes Chen, C., Greene, P., and A. Crick, 1998, Does entrepreneurial self-efficacy distinguish entrepreneurs from managers? Journal of Business venturing, 13, 295-316 DeNoble, A., Ehrich, S. and G. Singh, 2007, Toward the development of a family business self-efficacy scale: A resource-based perspective, Family Business review XX (2), 127-140 Watson, John. 2002. Comparing the Performance of Male- and Female-Controlled Businesses: Relating Outputs to Inputs. Entrepreneurship: Theory & Practice, 26(3): 91-100. http://www.youngentrepreneur.com/forum/f2-general-business/are-femalesbetter-entrepreneurs-than-men-62486.html http://www.momeomagazine.com/essential-entrepreneurial-skills-the-7-skillsevery-entrepreneur-must-master http://www.globalvations.com/articles/key_personality_traits_of_an_entrepreneu r.html http://www.academicleadership.org/article/leadership-transitions-the-key-toorganizational-success

http://www.prb.org/Publications/PolicyBriefs/EmpoweringWomenDevelopingSoci etyFemaleEducationintheMiddleEastandNorthAfrica.aspx