Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Female entrepreneurship in Nordic countries - statistics & facts
The Nordic countries Denmark, Finland, Iceland, Norway, and Sweden are perceived as some of the most gender equal in the world. All five are found within the top eight most gender equal countries in the world. Despite this, female entrepreneurs continue to be underrepresented in the five countries. Looking at the share of female entrepreneurs in OECD countries, both Sweden, Denmark, and Norway landed below the OECD average (Finland and Iceland were not included). In Denmark, only seven percent of women were considering starting a business in 2022 compared to 16 percent of men. Why do female entrepreneurs continue to be underrepresented in these otherwise gender equal countries?
Additionally, the Nordic countries are characterized by a solid welfare state including paid maternity leave, meaning that women easily can return to employment after taking care of their babies. In Denmark, women stated a need for a steady income and lack of competences as the main reasons for not starting a business. Indeed, the economic risks of starting a business are substantial, and in countries with good employment conditions, it is natural that most people choose not to start a business. Some have argued that women are more security-oriented than men, and therefore more rarely choose to start businesses. Moreover, women tend to be over-represented in health care and educational services that often are public in the Nordic countries, whereas men tend to work within ICT as well as construction and manufacturing, where it is more common to found an own business.
Despite these improvements, there are still some structural obstacles in place. In Denmark, Sweden, and Norway, a high majority of the start-up funding went to companies founded by men. This is partly down to the fact that there are more companies founded by men, but still does not explain why around 90 percent of the funding went to start-ups with male founders. Unsurprisingly, access to finance was ranked as one of the weakest aspects of the entrepreneurship framework conditions in Norway. Finally, it may take several years before the results of the more recently implemented support policies become visible.
A lack of incentives and social structures
One possible explanation is that there is a lack of incentives to start a business in the Nordic countries. Employment rates are high, as are salaries. Put differently, jobs are accessible and usually well-paid, meaning that the incentives to start an own business to make a way of living are not prevalent. Compared to the leading European countries, a lower share of the adult population in Sweden and Norway are involved in a start-up. This does not, however, explain why there are fewer female than male entrepreneurs in the region, although this tendency can be observed worldwide.Additionally, the Nordic countries are characterized by a solid welfare state including paid maternity leave, meaning that women easily can return to employment after taking care of their babies. In Denmark, women stated a need for a steady income and lack of competences as the main reasons for not starting a business. Indeed, the economic risks of starting a business are substantial, and in countries with good employment conditions, it is natural that most people choose not to start a business. Some have argued that women are more security-oriented than men, and therefore more rarely choose to start businesses. Moreover, women tend to be over-represented in health care and educational services that often are public in the Nordic countries, whereas men tend to work within ICT as well as construction and manufacturing, where it is more common to found an own business.
Favorable conditions, but still room for improvement
Even though the number of female entrepreneurs is lower than the number of male entrepreneurs in the Nordic countries, conditions are deemed favorable for women who want to start a business in the five countries. Women have high education, and several support programs have been implemented in recent years to aid aspiring female entrepreneurs. For instance, Denmark ranked second in the knowledge assets and financial access sub-index of the Mastercard Index of Women Entrepreneurs in 2021, and Sweden held the same position in the entrepreneurial supporting conditions sub-index of the same index.Despite these improvements, there are still some structural obstacles in place. In Denmark, Sweden, and Norway, a high majority of the start-up funding went to companies founded by men. This is partly down to the fact that there are more companies founded by men, but still does not explain why around 90 percent of the funding went to start-ups with male founders. Unsurprisingly, access to finance was ranked as one of the weakest aspects of the entrepreneurship framework conditions in Norway. Finally, it may take several years before the results of the more recently implemented support policies become visible.
