Pathways: A new approach for women in entrepreneurship

An independent review into women in entrepreneurship in Scotland, authored by Ana Stewart and Mark Logan. Based on thorough data analysis and stakeholder engagement the report's recommendations seek to address the root causes of female under-participation in entrepreneurship.


Appendix B: Full cause and effect tree

This appendix presents the full tree of cause-and-effect relationships proceeding from the root causes of under-participation, and their various consequences. Each section of this tree is analysed in detail in Chapters 4 through 8.

A flow diagram illustrating cause and effect. The diagram flows from two root causes ‘education system does not counter social conditioning’ and ‘social conditioning on role stereotypes’.

The flow chart extends into clusters of characteristics (or intermediate causes) within the second layer which lead to a proximate cause in the third layer, and collectively all the causes result in under-participation of women in entrepreneurship.

Another cluster of characteristics displays: 1. Business support systems built around men and 2. key informal networks are male-oriented, male-dominated. The next layer of the diagram illustrates further effects of 3. mitigated by many orgs filling specific minority/women gaps – confusing to parse; 4. business support systems not designed for minorities; 5. business support systems not designed for women. These  characteristics lead to the next layer of the diagram, which explains that pathways into entrepreneurship are unclear, which in turn, results in under-participation, highlighted at the top layer of the flow diagram.

The diagram flows from the root causes into another cluster of intermediate causes which make entrepreneurship a hostile environment for women. The characteristics displayed in the chart are as follows; 1. Frequent prejudice, sexism, racism; 2. Lack of female and minority ethnic role models; 3. Greater scrutiny and ‘standard-bearer’ pressure; 4. White male dominated business landscape; 5. Lack of education to encourage female entrepreneurship; 6. Equality and diversity not embedded across full education curriculum. These collectively lead into the next layer which is the effect of lowered confidence and a sense of not belonging, which is turn results in under-participation demonstrated at the top layer of the flow diagram. 

The flow diagram branches into another cluster of characteristics as follows: 1. women are usually the primary carer; 2. society does not provide balancing support; 3. women are usually the home manager; The next layer of the diagram shows 5 resulting intermediate effects 1. less time; 2. greater cognitive burden,  3. working around childcare commitments 4. geographically constrained  and 5. Greater risk awareness. The next layer of the diagram shows how these effects cause women to 1. Seek greater flexibility, 2. Seek less cognitively demanding roles, 3. Seek convenient, accessible services and 4. Seek financial security. These characteristics collectively result in the effort of women often being logistically highly constrained, which in turn, leads to under-participation.

The diagram illustrates another group of characteristics: 1. women are usually the primary carer; 2. society does not provide balancing support; 3. women are usually the home manager, leading to 4. greater risk awareness, leading to 5. women founders tend to favour service-orientated business, or less risky business models. A separate characteristic explains 6. most VCs have almost zero female/minority partners, leading to 7. VCs not experienced in investing women/minorities and 8. VCs not knowledgeable about business domains often proposed by women/minorities. Collectively, these characteristics lead upwards on the diagram to women and minorities receiving much less investment, and in turn this results in under-participation.

The flow diagram extends into a final proximate cause which is ’entrepreneurial education is largely not present in Scotland’, which follows on to the resulting under participation.
A flow diagram illustrating cause and effect. The diagram flows from two root causes ‘education system does not counter social conditioning’ and ‘social conditioning on role stereotypes’.

The flow chart extends into clusters of characteristics (or intermediate causes) within the second layer which lead to a proximate cause in the third layer, and collectively all the causes result in under-participation of women in entrepreneurship.

Another cluster of characteristics displays: 1. Business support systems built around men and 2. key informal networks are male-oriented, male-dominated. The next layer of the diagram illustrates further effects of 3. mitigated by many orgs filling specific minority/women gaps – confusing to parse; 4. business support systems not designed for minorities; 5. business support systems not designed for women. These  characteristics lead to the next layer of the diagram, which explains that pathways into entrepreneurship are unclear, which in turn, results in under-participation, highlighted at the top layer of the flow diagram.

The diagram flows from the root causes into another cluster of intermediate causes which make entrepreneurship a hostile environment for women. The characteristics displayed in the chart are as follows; 1. Frequent prejudice, sexism, racism; 2. Lack of female and minority ethnic role models; 3. Greater scrutiny and ‘standard-bearer’ pressure; 4. White male dominated business landscape; 5. Lack of education to encourage female entrepreneurship; 6. Equality and diversity not embedded across full education curriculum. These collectively lead into the next layer which is the effect of lowered confidence and a sense of not belonging, which is turn results in under-participation demonstrated at the top layer of the flow diagram. 

The flow diagram branches into another cluster of characteristics as follows: 1. women are usually the primary carer; 2. society does not provide balancing support; 3. women are usually the home manager; The next layer of the diagram shows 5 resulting intermediate effects 1. less time; 2. greater cognitive burden,  3. working around childcare commitments 4. geographically constrained  and 5. Greater risk awareness. The next layer of the diagram shows how these effects cause women to 1. Seek greater flexibility, 2. Seek less cognitively demanding roles, 3. Seek convenient, accessible services and 4. Seek financial security. These characteristics collectively result in the effort of women often being logistically highly constrained, which in turn, leads to under-participation.

The diagram illustrates another group of characteristics: 1. women are usually the primary carer; 2. society does not provide balancing support; 3. women are usually the home manager, leading to 4. greater risk awareness, leading to 5. women founders tend to favour service-orientated business, or less risky business models. A separate characteristic explains 6. most VCs have almost zero female/minority partners, leading to 7. VCs not experienced in investing women/minorities and 8. VCs not knowledgeable about business domains often proposed by women/minorities. Collectively, these characteristics lead upwards on the diagram to women and minorities receiving much less investment, and in turn this results in under-participation.

The flow diagram extends into a final proximate cause which is ’entrepreneurial education is largely not present in Scotland’, which follows on to the resulting under participation.

Contact

Email: EIDEEBSPEnquires@gov.scot

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