4 minWomen's Entrepreneurship: overcoming obstacles on the road to success
Banque de Luxembourg is a proud partner and sponsor of the 11th edition of the 'Entrepreneurial Woman Project' initiative. Established by the Luxembourg-Poland Chamber of Commerce (LPCC), this series of workshops is aimed at women with no prior business knowledge who want to learn how to start up their own business in Luxembourg. Spotlight on specific features of women's entrepreneurship and the local initiatives in Luxembourg to promote it.
Comparative studies of male and female entrepreneurship in Luxembourg are few and far between. This contrasts with Europe where there is no shortage of research, notably a report by the European Investment Bank (EIB) in 20221. One of the findings of the report is that support for businesses run by women can help increase women's participation in the labour market, with a knock-on effect in reducing the risks of poverty.
The only research study on male and female entrepreneurship in Luxembourg2 was commissioned by the Ministry for Gender Equality and Diversity back in 2011. Nevertheless, some important distinctions are highlighted by data in the Global Entrepreneurship Monitor (GEM) 2023/2024 report3. The GEM report published by STATEC, the Luxembourg government's statistics department, shows that the Total early-stage Entrepreneurial Activity (TEA) rate (the proportion of the adult working-age population actively trying to start a business or owning and running one that is less than three and a half years old) in Luxembourg is slightly higher than the European average (9.7% compared to 9.2% in the EU). Entrepreneurial intentions remain robust, with 19% of respondents expressing the wish to start up a business in the next three years.
In search of independence
The motivations for embarking on an entrepreneurial adventure differ by gender. According to the GEM report, men are frequently motivated by rapid growth and profit. Women are more interested in achieving independence and a better work/life balance.
The Eurochambres Women Network Survey 2023 shows that 78% of women who have set up their own company mainly offer consultancy services. In contrast, the study by the European Investment Bank indicates that men are 3.1 times more likely than women to work in the information and communication technology sector and that today's digital economy places greater obstacles in the path of working women4. Meanwhile, the OECD report, ‘The Missing Entrepreneurs 2023’, points out that in Europe, women also seem more likely than men to be self-employed in the ‘other’ services sector. A third of women working in this sector were self-employed compared to less than a quarter of men. According to the House of Entrepreneurship (the national platform for entrepreneurship contacted by Banque de Luxembourg for this article), this sector includes repair and maintenance services, membership organisation activities, personal and household goods and other personal service activities (such as the washing and dry-cleaning of textiles and furs, hairdressing and other beauty treatments, and physical well-being activities). In Luxembourg, women have a greater presence in services, education and health while men dominate in finance, industry and technology.
Although fewer women than men are becoming entrepreneurs (8.7% compared to 10.6% in 2023), evidenced in the GEM 2023/2024 report, they are often motivated by more sustainable values, with a strong commitment to social and environmental responsibility.
Specific challenges facing women entrepreneurs
In practice, women entrepreneurs face a number of challenges, particularly in terms of access to finance. The latest GEM report indicates that 40% of women starting up a business identify finance as a major obstacle. Furthermore, 47% of the women surveyed said that they had set up a company out of economic necessity. This figure, which is lower than the European average of 58%, reflects the economic pressures they face.
An academic article5 on the issue of women's entrepreneurship highlights a lack of self-confidence as a major obstacle for many aspiring women entrepreneurs. This feeling of inadequacy can create a psychological barrier that stifles initiative and ambition, exacerbated by a lack of inspiring role models and support in the entrepreneurial community.
Another major challenge, according to GEM, is work/life balance. Family responsibilities can limit the capacity of women to devote themselves wholeheartedly to their business. However, flexible working models and a strong support network can help strike a comfortable balance. There are numerous initiatives and clubs dedicated to supporting women entrepreneurs in Luxembourg. They play a crucial role in creating opportunities and strengthening their presence and influence in the local economy. Notable examples are ‘La Fédération des Femmes Cheffes d'Entreprise’ (FFCEL), the association dedicated to women entrepreneurs in Luxembourg, ‘Mumpreneurs Luxembourg Association’ which supports entrepreneurial mothers, while ‘WeSTEM+’ (formerly Girls in Tech) and ‘Geek Girls Carrots’ promote the involvement of women in tech sectors.
The non-profit organisation ‘Women in Business’ brings businesswomen together by developing and encouraging networking opportunities between women from all sectors and at all stages of their careers, through sporting, cultural and social events.
These findings naturally suggest that a bank close to its clients that places particular emphasis on entrepreneurship is a partner of choice. Because it is important to be supported throughout your entrepreneurial journey. At Banque de Luxembourg, we understand this. Our advisers are fully aware of the challenges of entrepreneurship. They take the time to listen, to get to know each client individually and understand their needs at every stage in the life of their entrepreneurial business.
1 ‘Support for female entrepreneurs: Survey evidence for why it makes sense’
2 L'entrepreneuriat féminin et masculin au Luxembourg.pdf
4 EIB survey: Support for female entrepreneurs: Survey evidence for why it makes sense