Challenges to Female Entrepreneurship in Rural Ethiopia: Why Gender and Social Institutions Matter

When African governments want to encourage women’s entrepreneurship in rural areas, but social norms preclude women from participating, how can local leaders motivate women’s participation? This survey experiment aims to identify if the endorsement of women’s participation by elders, or women’s groups, would increase a woman’s likelihood to take part in a new business venture. Additionally, it considers what type of capacity-building initiative will also have an effect on women’s participation. Through a randomized survey experiment, I will vary the type of local elite endorsing an entrepreneurial project for women, and, I will assess the relative rates of participation. I will also randomize the type of capacity-building initiative the program will implement, to see if certain types of structural support are more effective than others in mobilizing women’s participation. The first step in engaging women in the entrepreneurial process involves adapting to the local context, and allying with local elites to increase access to opportunities. Through this experiment, I will uncover with whom the state should ally itself to encourage women’s participation, and the types of initiatives that can best facilitate their success.