Comparing Female Entrepreneurship Between Fragile and Stable States: Insights from GEM 2024

Abstract

Abstract

This paper addresses the structural inequalities in female entrepreneurship between fragile versus non-fragile countries, drawing from the Global Entrepreneurship Monitor (GEM) 2024 data, which comprises data of 56 countries from different income brackets and type of institutions. Low and unstable levels of governance, political stability, and income are compared against high steady income and stable entrepreneurial ecosystems established in developed countries. The research focuses on the three main components of women entrepreneurship: Total Early-stage Entrepreneurial Activity (TEA), Established Business Ownership (EBO) and access to ecosystem support such as access to financial, mentor and training.

The results of the quantitative analysis show that women in fragile states are much less likely to operate established businesses and are significantly less likely to pursue opportunity-based entrepreneurship than their peers in stable states. The gender gap in TEA is especially wide in fragile regions such as the Middle East and in some Eastern European regions, where experts believe that women’s opportunities for resources are poor. In addition, fragile settings are characterized by a high share of necessity-driven entrepreneurship as well as discontinuation of business operations among women, indicating systemic barriers that go beyond individual ability.

These results indicate that fragility as a contextual factor amplifies gendered disparities in entrepreneurship, constraining the number and quality of women’s ventures. The latter section of the study ends with specific policy recommendations that may improve gender-sensitive entrepreneurship ecosystems in fragile contexts, such as gender-specific finance, skills development, and formal institutional support.

Keywords: women entrepreneurship, fragile states, GEM 2024, TEA, institutional development, gender gap, entrepreneurial ecosystems