Female Entrepreneurship in Denmark

Transcription

1 Female Entrepreneurship in Denmark Multiple Case Study on Danish and International Women Who Have Business in the Country Written by: Stanislava Nedelcheva Exam Nr Supervisor: Steffen Korsgaard Master Thesis, MSc in International Business Aarhus University, Business and Social Sciences September, 2012

2 Acknowledgment: I would like to thank to all the incredible women who agreed to participate in this study. Without them, it would be impossible to conduct the research. I would also like to thank to my supervisor, Steffen Korsgaard, who made the process of writing a thesis well structured and organized, and was always ready to help with advises and guidance. I also appreciate the support of my family, friends and colleagues, who encouraged me on the way. Last, but not least, I would like to thank to my mother, who is a female entrepreneur, and was the main source of inspiration for this thesis.

3 Abstract In recent years, the number of female entrepreneurs worldwide is slowly increasing, and female entrepreneurship receives more attention by researchers and policy makers. However, the topic is still underdeveloped and there is a great potential for research and improvement. Denmark is one of the countries where female entrepreneurs receive increased attention. The country has a great business potential and entrepreneurship conditions, and is ranking among the best countries in the world in terms of entrepreneurship. The policy makers have started various initiatives to stimulate the creation of new companies, and to attract more women to choose entrepreneurship as a career path. However, the number of female entrepreneurs in the country remains relatively small, compared to the male-owned businesses. This inspired the present study to find what motivates women in Denmark to become entrepreneurs. Six women, both Danes and internationals, were invited to participate and share their experiences for the purpose of the study. During the interviews, they talked about their personal and professional motivations, experiences, and practices as entrepreneurs.

4 Contents 1. Introduction Entrepreneurship Environment in Denmark Problem Statement and Research Question Motivation Delimitations Theoretical Framework Entrepreneurship from the Point of View of Human Motivation The decision to behave entrepreneurially as a result of personal characteristics and goals, environment, business idea, expectations and outcome- the model of Naffziger, Hornsby and Kuratko (1994) Personal characteristics Personal Environment Personal goals Business Idea Perceived implementation-outcome relationship and perceived expectation-outcome relationship A Graphical model of entrepreneurial motivation The entrepreneurial process as a result of the variation among people in their willingness and ability to act as entrepreneurs the model proposed by Shane, Locke and Collins (2003) Opportunities and entrepreneurial motivation Personal characteristics influencing the decision to become entrepreneur Cognitive factors influencing entrepreneurial behavior Environmental conditions A Graphical model of human motivations and their influence over the entrepreneurial process Female Entrepreneurship Studies Financial Capital Bank loans as a source of external financing Why female entrepreneurs are less likely to use bank credits? Equity funding as a source of external capital Social Capital and Network

5 Definition of social capital Importance of Formal and Informal Social Networks Gender effect on social capital and networking Business Growth Studies challenging the traditional perception of growth Female entrepreneurship and Business Growth Qualitative model of women s business growth Work-Life Balance Work-life balance as a contemporary policy issue Models explaining the relationship between work life and family life Female entrepreneurs and work-life balance Methodology Research Paradigm Research Reasoning Research Strategy Sampling Strategy Sampling Size Units of analyzes Sampling frame and criteria Data collection Data analysis Limitations and Generalization Limitations Generalization Data Analysis Presentation of cases Case Case Case Case Case Case Main findings of the study

6 Women who are in their natural environment and have their well-established network are more often pulled to become entrepreneurs, while the non-local women are exposed to conditions that push them to start their own businesses Women often have intrinsic motives behind their business activities Women who have already tried once to have their own business are willing to remain entrepreneurs and easily start new companies again Women have a preference to start small and without making large investments. Furthermore, they establish different strategies to cut down their expenses Even though women have different perception and strategies in relation to networking, they are all aware of the power of networking and social capital, and know how to establish contacts and get support When it comes to social support, the role of the husband and the figures of the business advisor and mentor are vital and important The perception of business growth and the desire to grow the company are closely related to the stage of business, the goals implemented in the company, the impotence of work-life balance and the intrinsic motivation of the entrepreneur Conclusions and recommendations for future research Bibliography Appendices: Appendix 1 -Interview Guide Appendix 2- Form of Informed Consent cons Appendix 3- Transcripts of the Interviews Appendix 4 -Codlings of the Interviews Tables: Table 1 Presentation of the Cases List of Figures: Fig. 1: Thesis Structure Fig. 2: A Model of Entrepreneurial Motivation. Source: (Naffziger, Hornsby et al. 1994) 3

7 Fig. 3: Model of entrepreneurial motivation and the entrepreneurship process (Shane, Locke et al. 2003) Fig. 4: Growth Platforms and Motivation in a Hierarchical Model (Dalborg, Friedrichs et al. 2011) Fig. 5: Business platforms and strategic building blocks (Dalborg, Friedrichs et al. 2011) Fig. 6: The Research Onion Structure (Saunders, Lewis et al. 2007) Character count: (with spaces) Words:

8 1. Introduction The introduction chapter will present an overview of the contextual framework of this study. The first section will provide a brief description of the entrepreneurship environment in Denmark and recent initiatives concerning the female entrepreneurship in the country. Then, the purpose of the study will be presented through formulation of the problem statement and the main research question. The third part of the chapter will describe the main motives behind the study and why the topic is found to be of interest. Subsection four will outline the delimitations imposed to the study. At the end of the chapter the structure of the thesis will be introduced Entrepreneurship Environment in Denmark According to the Doing Business Project initiated by The World Bank, Denmark is one of the countries with great ease of doing a business. The country is ranked on the fifth place among 183 economies around the globe 1. Denmark also has a leading position in the EU in regard to establishment of new businesses as stated in the 2010 Entrepreneurship Index.The report shows that Denmark is one of the countries with the best performance concerning business regulations and policy, access to financing and market conditions. However, it also informs that there are still some areas where improvements are needed as the country ranks low in terms of entrepreneurial skills and knowledge, and creation and diffusion of knowledge 2. Entrepreneurship is set high in the public policy agenda and the Danish government has two main goals in this area- 1) to maintain the leading position in Europe in terms of number of start-up companies and 2) by 2020 to have leading position in terms of high-growth enterprises 3. To achieve these goals, the government has started various initiatives and development centers promoting entrepreneurship nationwide 4. 1 The World Bank Doing Business Project: Entrepreneurship Index-Entrepreneurship Conditions in Denmark: National and Cross- national Policies on Women s Entrepreneurship in the Baltic Sea Region- A Comparative Perspective: 4 Danish Enterprise and Construction Authority: 5

9 Since 2009 the policy makers in Denmark are paying increased attention toward female entrepreneurship. As part of the multiple initiatives for entrepreneurship promotion, the Danish Enterprise and Construction Authority launched Action Plan for Women Entrepreneurs 5. One of the initiatives in the action plan was the creation of a web platform for female entrepreneurs where women can find relevant information regarding business establishment and growth 6. The action plan and the earlier publication Kvinder kan få succes med egen virksomhed 7 recognized the need of attracting more women in Denmark to start a business. Even though the country has a great business and entrepreneurship potential, the number of female compared to male business owners is still relatively small. A recent report on National and Cross- national Policies on Women s Entrepreneurship in the Baltic Sea Region informs that the share of women business owners in Denmark is between 25 % and 27% and remains steady. The same information has been shared by the GEM 2010 Report: Women Entrepreneurs Worldwide 8.The report acknowledges that by the end of 2010, the gender gap in Denmark was narrowed down, however, the reason for this positive result is not an increased share of women entrepreneurs, but rather a decreased number of male entrepreneurs in the country Problem Statement and Research Question The overview of various reports and statistics point to the fact that female entrepreneurship n Denmark is still underdeveloped and there is a great potential for improvement. Consequently in the years to come the topic should increasingly attract attention among researchers and governing authorities. The present paper recognizes the need for more research in the field and aims to generate insights about motives and personal experiences of women who have established business in Denmark. Keeping in mind the call for international presence in Denmark the study focuses not only on Danish women, but also on women with foreign origins. In order to fulfill the goals, the study is guided by the following main research question: 5 Action Plan for Women Entrepreneurs: ebst.dk/publikationer/ivaerksaettere/handlingsplan_for_kvindelige_ivaerksaettere/index.htm 6 Web Platform for Women Entrepreneurs: GEM 2010 Report: Women Entrepreneurs Worldwide: 6

10 Why do Danish and international women in Denmark start their own businesses? In order to answer the main research question, the paper will put forward the following questions: What motivates women in Denmark to start their companies? What are their personal backgrounds and do these women have some special characteristics? How do they finance their businesses? How women perceive social capital and network and how important it is for their businesses? How do they perceive business growth and do they have an intention to grow their companies? How do they balance between work life and family life and do they have any challenges in doing so? What is their opinion about the entrepreneurship environment in Denmark and do they have some recommendations for improvement? 1.3. Motivation The need for more research in the area of female entrepreneurship in Denmark has already been described in the previous chapter. Indeed, this is one of the reasons for my decision to conduct the present study. Beside this, the decision was also inspired by very personal motives. As a daughter of a female entrepreneur, I have always been interested in this field and grow up with an idea that entrepreneurship is going to be my career path. During my stay in Denmark I took an entrepreneurship course and was an active participant in events concerning entrepreneurship. Meeting different entrepreneurs was inspiring experience which evolved into a decision to study female business owners in Denmark more closely Delimitations The study poses a geographical delimitation by focusing particularly on female entrepreneurship in Denmark. During the data collection process, interviews were 7

11 conducted in two cities- Aarhus in Odense. Thus the study represents only two of the country s regions - Midtjylland and Fyn Thesis Overview The present thesis is divided in five chapters. The figure bellow presents the structure of the paper and gives a brief description of the content of each chapter: Chapter 1: Introduction Presents a brief overview of the entrepreneurship environment in Denmark and describes the problem statement and the main research question of the thesis. Chapter 2: Theoretical Framework Examines entrepreneurship through existing literature. The first part of the chapter introduces two models of entrepreneurial motivation and the second part discusses four main topics important to the female entrepreneurs-financial capital, social capital and network, work-life balance, and business growth. Chapter 3: Methodology Describes critical realism research paradigm and abductive reasoning. Explains the motives behind the choice of qualitative strategy in the study. Presents information about the sampling strategy, data collection and data analysis techniques.finally, it states limitation and generalization problems. Chapter 4: Data Analysis As starting point, the chapter presents the six cases included in the study. The second part of the chapter contains the main findings of the study along with quotes supporting the results. Chapter 5: Conclusion and Recomendations for Future Research The last chapter sum up the findings, outlines a conclusion, and recommends topics that might be of interest for future research. Fig. 1: Thesis structure 8

12 2. Theoretical Framework This part of the paper has a purpose to establish initial knowledge in the field of female entrepreneurship and to serve as a base for primary research. As starting point, the chapter will provide a brief review of the entrepreneurial motivation theories proposed by Naffziger, Hornsby and Kuratko (1994) and Shane, Locke and Collins (2003). The second part of the chapter will discuss theories related to female entrepreneurship. Four themes have been identified as important and relevant for the study on female business owners in Denmark. These are financial capital, social capital and network, business growth, and work-life balance. On the later stage of the study the entrepreneurial motivation and the female entrepreneurship theories served as a source of information for the establishment of an interview guide. The theories described in the present chapter were a source of inspiration for the themes and the questions in the interview Entrepreneurship from the Point of View of Human Motivation Entrepreneurial activity is a result of human actions. Consequently entrepreneurship cannot be discussed outside the context of the human factor. Personal motivations, perceptions and characteristics play a critical role in the decision to act entrepreneurially: Economic circumstances are important; social networks are important; entrepreneurial teams are important; marketing is important; finance is important; even public agency assistance is important. But none of these will, alone, create a new venture. For that we need a person, in whose mind all of the possibilities come together, who believes that innovation is possible, and who has the motivation to persist until the job is done (Shaver, Scott 1991; p. 39) The main aim of the paper is to find why the female entrepreneurs in Denmark took the decision to start their businesses. In order to acquire theoretical knowledge about the main factors that motivate people to behave entrepreneurially, the following part of the paper will review two models, the first one proposed by Naffziger, Hornsby and Kuratko (1994) and the second established by Shane, Locke and Collins (2003) 9

13 The decision to behave entrepreneurially as a result of personal characteristics and goals, environment, business idea, expectations and outcome- the model of Naffziger, Hornsby and Kuratko (1994) The purpose of the model developed by Naffziger, Hornsby and Kuratko (1994) is to explain the factors that influence the decision to establish a company. Furthermore, the model describes the factors that motivate entrepreneurs to implement strategies and to continue their entrepreneurship activities: An expanded view of entrepreneurship should include the entirety of the entrepreneurial experience, that is, behaviors necessary in the operation of the firm, its performance, and the psychological and non- psychological outcomes resulting from firm ownership (Naffziger, Hornsby et al. 1994; p.31) The authors indicate seven factors influencing the decision to behave entrepreneurially. Each one of the factors will be discussed below Personal characteristics Naffziger et al. (1994) discuss three personal characteristics important in the process of establishing a new venture. The first two are the need of achievement and the locus of control. These characteristics are related to the human desire to accomplish something significant and the perception of control over the circumstances, and can be influential for the decision to start own business. Another factor is the risk-taking propensity, or in other words, how much risk an individual is predisposed to take. In addition to these three characteristics, Naffziger et al. (1994) also list energy level, conformity, the need for autonomy, persistence and dominance, the desire for personal control and the desire to build something on one s own (Naffziger, Hornsby et al. 1994) Personal Environment According to Naffziger et al. (1994) beside the individual characteristics some factors from the personal environment can also influence the decision to start a business. The authors point out three significant aspects of the personal environment- marital status, gender, and growing up in an entrepreneurial family. 10

14 Cooper at al. (1994) acknowledge that people coming from families in which the parents were entrepreneurs are predisposed to start their own business. The authors further explain that individuals growing up in such families see parents as role models and that entrepreneurship is perceived as a viable career. (Cooper, Gimeno-Gascon et al. 1994; p.377) Davidsson and Honig (2003) also confirm that people coming from entrepreneurial families can easily recognize business opportunities. (Davidsson, Honig 2003) Personal goals People have different aims behind the decision to act entrepreneurially and each entrepreneur may have a set goal unique to his or her particular business and molded by his or her individual situation (Naffziger, Hornsby et al. 1994; p.35). The authors consider that personal intentions, goals and vision are important force for the formation of the company and acknowledge that regardless of the goals, it is believed they will influence the decision and shape the eventual business (Naffziger, Hornsby et al. 1994; p.35) Business Environment An entrepreneur does not exist on its own, but rather operates in interaction with other actors and under the influence of external elements. Consequently, environmental conditions are important when people take a decision whether or not to act entrepreneurially (Naffziger, Hornsby et al. 1994). The authors discuss economic conditions, societal attitudes toward entrepreneurship and business, and access to financing as significant environmental conditions. In addition to these variables, participation in entrepreneurship networks has also been found as influential (Naffziger, Hornsby et al. 1994) Minniti and Naudé (2010) discuss that even though the factors influencing the decision to behave entrepreneurially are the same for both women and men and are also identical across the countries, the macroeconomic environment has a greater impact on the entrepreneurial decisions of women than on those of men (Minniti, Naudé 2010; p.285) 11

15 Business Idea There is a concept behind every business organization. The new venture creation starts with awareness of a business idea that may be further developed by the entrepreneur (Naffziger, Hornsby et al. 1994). The authors emphasize the importance of the business idea for the venture establishment and discuss that the existence of an idea and the evaluation of that idea is an important part of the new venture decision-making process (Naffziger, Hornsby et al. 1994; p.35) Perceived implementation-outcome relationship and perceived expectationoutcome relationship Besides the above discussed five factors, Naffziger et al. (1994) also talk about perceived implementation-outcome relationship and perceived expectation-outcome relationship. Perceived implementation-outcome relationship refers to the relationship between managerial and strategic decisions implemented by the entrepreneur and the results he expects to be achieved by his firm (Naffziger, Hornsby et al. 1994) The authors propose that the stronger this relationship is perceived to be, the stronger will be the resulting motivation to continue to behave entrepreneurially, either in the form of continued pursuit of the current venture or initiations of further ventures (Naffziger, Hornsby et al. 1994; p.36) Perceived expectation-outcome relationship is related to the entrepreneur s perceptions that the outcomes of the company will meet his anticipations (Naffziger, Hornsby et al. 1994). The authors hypothesize that the extent to which an entrepreneur believes that his or her entrepreneurial expectations will be met or exceeded by the inception or continuance of adventure, the stronger will be the motivation to engage in entrepreneurial behavior (Naffziger, Hornsby et al. 1994; p.36) A Graphical model of entrepreneurial motivation Based on the discussion of the seven main variables influencing the decision for new venture creation, Naffziger et al. (1994) present the following graphical model of entrepreneurial motivation: 12

16 Fig.2: A Model of Entrepreneurial Motivation. Source: (Naffziger, Hornsby et al. 1994) The entrepreneurial process as a result of the variation among people in their willingness and ability to act as entrepreneurs the model proposed by Shane, Locke and Collins (2003) Shane, Locke and Collins (2003) discuss entrepreneurial motivation factors and make suggestions how these factors can influence the entrepreneurial process. The authors argue that: human motivations influence these decisions, and that variance across people in these motivations will influence who pursues entrepreneurial opportunities, who assembles resources, and how people undertake the entrepreneurial process (Shane, Locke et al. 2003; p.258). In the model proposed by them, Shane, Locke et al. (2003) consider the importance of opportunities, personal characteristics, cognitive factors, and macro-economic environment as aspects influencing the entrepreneurial activities. Each of these variables will be briefly discussed below Opportunities and entrepreneurial motivation The authors present discussion on the relationship between opportunities and motivation. They share two visions of this relationship-the first one described by Shane and Collins, and the second one formulated by Locke. 13

17 Shane and Collins explain the opportunities as aspects of the environment that represent potentialities for profit making (Shane, Locke et al. 2003; p.260). According to the authors, opportunities vary within different industries and have different economic value, and can influence the entrepreneurial behavior (Shane, Locke et al. 2003) Locke describes opportunities as aspects of the environment viewed from a certain perspective (Shane, Locke et al. 2003; p.262). His view is that opportunities are potentialities for profit making, but realizing an actuality out of potentiality depends not on any mechanical laws of finance but on free will the capacity of the human mind to discover, through creative thought, solutions that had not existed before (Shane, Locke et al. 2003; p.263) Personal characteristics influencing the decision to become entrepreneur Shane, Locke et al. (2003) list several variables influencing the entrepreneurial behavior. These are 1) need for achievement (nach) 2) tolerance of ambiguity 3) locus of control 4) desire for Independence 5) drive 6) egoistic passion 7) self-efficacy and 8) goal setting The model discussed by Shane, Locke et al.(2003) propose that: entrepreneurship is a process that begins with the recognition of an entrepreneurial opportunity and is followed by the development of an idea for how to pursue that opportunity, the evaluation of the feasibility of the opportunity, the development of the product or service that will be provided to customers, assembly of human and financial resources, organizational design, and the pursuit of customers (Shane, Locke et al. 2003; p.275) Cognitive factors influencing entrepreneurial behavior In addition to personal characteristics, the model also includes cognitive factors influencing the entrepreneurial behavior. The authors described three cognitive factors- knowledge, skills and abilities (KSAs). According to them the entrepreneur must have relevant knowledge about the industry and the technology, to have skills such as management, selling, decision making, negotiating etc., and last, but not least the entrepreneur should have certain abilities (Shane, Locke et al. 2003). They acknowledge that: 14

18 Possessing the necessary KSAs enables the entrepreneurs to develop a viable vision, including a strategy for the organization and to carry it out successfully. Motivation helps the entrepreneur to acquire such KSAs in the first place and provide the impetus and energy to implement the needed actions (Shane, Locke et al. 2003; p.275) Environmental conditions According to Shane, Locke et al. (2003) the environmental conditions can also be a driving force. The legal system, the age of the industry, the availability of capital, the conditions of the capital market and the overall economy are factors that according to Shane, Locke et al. (2003) will definitely matter for the decision to engage in entrepreneurial activity A Graphical model of human motivations and their influence over the entrepreneurial process Based on the discussion presented in their paper, Shane, Locke and Collins suggest a graphical model of human motivations and their influence over the entrepreneurial process: Fig.3: Model of entrepreneurial motivation and the entrepreneurship process. Source: (Shane, Locke et al. 2003) 15

19 2.2. Female Entrepreneurship Studies This part of the paper will discuss four topics that have been found significant for the entrepreneurship field and particularly for the female entrepreneurs. As starting point, the chapter will discuss financial capital and some issues related to female business owners and the use of bank credits. The second part will talk about the importance of social capital and network. In the third part the focus will be moved to business growth and recent studies on female entrepreneurs and growth. The last part of the chapter will discuss work-life balance and its significance in recent years, especially for working women and female business owners Financial Capital Financial capital is an important part of each business. No one can start a company without at least a small amount of money. Further the capital is vital for the development and growth of the company. Because of its importance, the topic is also considered in the present study. This part of the paper will discuss two sources of external capital- bank loan and equity funding. The section will also review some problems concerning the use of bank credits among the female business owners and three possible explanations why women use less bank loans compared to men Bank loans as a source of external financing Financing is an important part of a new venture creation and further for its development and business growth. Access to capital is a critical issue for small businesses. Without sufficient capital, small firms are unable to develop new products and services or grow to meet demand (Coleman 2000; p.37). Cooper et al. (1994) explain that capital can influence the business performance directly and indirectly: Direct effects include the ability to buy time, undertake more ambitious strategies, change courses of actions, and meet the financing demands imposed by growth. In terms of indirect effects, capital accumulation may reflect better training and more extensive planning (Cooper, Gimeno-Gascon et al. 1994; p.391 ) In contrast to the big corporations, small companies commonly do not have access to the capital markets (Coleman 2000). This makes them heavily dependent on bank loans, trade 16

20 credit, and informal sources of financing such as personal savings, credit cards, home equity loans and loans from family and friends (Coleman 2000; p.37). Coleman (2000) also acknowledges that small companies use bank loans as a main source of external financing. However, previous research conducted by Cole and Wolken (1995), based on National Survey of Small Business Finances in the USA since 1993, found that female entrepreneurs are less probable to use bank credits compared to their male counterparts (Cole, Wolken 1995a). Brush (1992) acknowledges that women experience difficulties accessing informal financial networks and rely on personal capital and resources when starting a new venture Why female entrepreneurs are less likely to use bank credits? There are different explanations of the fact that women use less bank loans compared to men when they have to finance their business. Three of the explanations found in the literature will be discussed below. Some authors talk about discrimination factors, other explain the phenomenon with the specific characteristics of the female owned firms which make them less favorable when it comes to bank credits. A third group of researchers explain the use of less bank credits by the female business owners with their modest financial needs. The discrimination explanation Some authors explain the slight use of bank credits among female business owners with the difficulties women face when they try to obtain bank credits. Stevenson (1986) explicates that female entrepreneurs face some financial barriers which male business owners do not experience, and access to finances is an issue examined by most of the studies on female entrepreneurship. The author acknowledges that credit applications made by women are not well perceived by bank representatives (Stevenson 1986). Research conducted by Buttner and Rosen (1988) on how bank officers evaluate successful entrepreneurs features, shows that characteristics attributed to successful entrepreneurs were more commonly ascribed to men than to women (Buttner, Rosen 1988; p.249). In later research made by Buttner and Rosen in 1989, the authors investigated whether the bank officers perceptions actually influence their decisions, and no evidence for sex stereotypes and gender based 17

21 discrimination were found. The results indicated that, other things equal, bankers are not significantly influenced by sex stereotypes in funding decisions (Buttner, Rosen 1989; p.267) The specific characteristics of the female owned companies as another explanation Another discussion on the topic explicate that female owned businesses are les favored by the banks because of their characteristics. Research by Riding and Swift (1990) conducted in Canada discuss whether women are treated differently from men in terms of loans and credits. The authors also analyze the differences between female owned and male owned businesses in order to explain the gender bias. The study concludes that female entrepreneurs in Canada receive loans on less favorable conditions than their male counterparts. However, the authors posit that the patterns of ownership of female owners relative to those of male owners differed in terms of firm size, firm age, industrial sector, sales growth, and business form (Riding, Swift 1990; p.338). As a result of their research Riding and Swift (1990) conclude that: Apparent gender-related differences in the other aspects of banking practices (rates of loan approvals, cosignature requirements, requirements for loan collateral, and interest rates on loans and lines of credit) can be accounted for by the differences in the characteristics of male- and female-owned businesses (Riding, Swift 1990; p.338) Research by Haines et al. (1999) address the effect of gender on the relationship between small business clients and banks. The authors propose that lenders employ a set of criteria that determine the bankability of a prospective client. SME clients that meet the threshold criterion obtain credit; others do not (Haines, Orser et al. 1999; p.291). After analyzing the sector, size and age of firm they find no evidences supporting the concept of gender discrimination. In conformity with Riding and Swift (1990), the authors posit that the differences between women and men owned businesses in regard to financial services and bank credits can be explained by the specific characteristics of the female owned companies (Haines, Orser et al. 1999) 18

22 The minor financial needs as a third possible explanation Other researchers discuss that the use of less bank credits by the female business owners is a result of their modest financial needs. Cole and Wolken (1995) propose that the difference between male and female entrepreneurs in regard to use of bank credits may be attributable to differences in other firm characteristics, such as size (Cole, Wolken 1995; p.635).the authors report that 15 percent of the small firms in their study used nonfinancial sources of capital where friends, family members and other firms are financial providers. The findings of their research acknowledge several factors influencing the use of financial services 1) the growth of the firm lead to increased use of financial services 2) solo traders use less or no financial services compared to partnership companies, S corporations and C corporations 3) the oldest companies which are in the business for 25 or more years under the same ownership are less likely to use financial services compared to younger firms- five to nine years old (Cole, Wolken 1995a). Consequently, the factors referring to the firm s size and the firm s age can be a possible explanation of the fact that women are less willing to use financial services. Coleman (2000) discuss that women-owned firms are, in fact, smaller, newer, and less profitable than men-owned businesses (Coleman 2000; p.40). Since the female owned firms are usually described by researchers as younger, smaller and located in the service sector (Coleman 2000; Riding and Swift 1990), it can be also proposed that they don t need external financing and bank credits that much: women owned businesses use less debt because they don't need it. Women-owned firms tend to be smaller and more heavily concentrated in service lines of business. Because they are small, they may be able to finance their needs using personal resources. In addition, many service businesses do not have much in the way of assets to be financed because the principal resource is the human capital of the owner; financial capital requirements for businesses of this type may be relatively modest. (Coleman 2000; p.39) Equity funding as a source of external capital Another form of business funding for female entrepreneurs, beside self- financing and bank loans, is external equity funding. However, this third kind of financing received lack of attention from the researchers. There is presently no knowledge of the factors related to 19

23 successfully seeking and obtaining equity capital by women entrepreneurs (Carter, Brush et al. 2003; p.4). Research by Buttner and Rosen (1992) finds that after rejection for a bank loan, female entrepreneurs become more active than men in seeking alternative funding. The authors acknowledge that Female entrepreneurs were significantly more likely to present their proposal at a venture forum and to seek funding from venture capitalists than were their male counterparts (Buttner, Rosen 1992; p.61). Research by Brush et al. (2002), investigating the participation of female business owners in equity investment at both supply-side and demand-side, shows that some women are making significant inroads on the demand side, especially with regards to early stage financing (Brush, Carter et al. 2002; p.316).however, the authors findings demonstrate that the number of women receiving equity funding is inadequate to the overall number of female business owners, and the number of women venture capitalists is also significantly small (Brush, Carter et al. 2002). The current research will try to discover what kind of financial strategies the female business owners in Denmark use-do they rely on bank loans, personal capital and help from their closest network or do they seek access to venture capital and equity funding. Furthermore, it will be of interest to learn if the Danish and international women use different kinds of funding, and to explore if the international women in the research experience any difficulties to obtain external capital Social Capital and Network In the last thirty years, the significance of social capital and network has received broad attention by the study of entrepreneurship (Cope, Jack et al. 2007). Social capital and network and its importance for the female entrepreneurs will also be included in the current study. This part of the chapter will present different definitions of social capital, will discuss previous studies concerning networking, and last but not least will make an overview of research on gender differences and gender effect on social capital and networks Definition of social capital Previous research have addressed the difficulties of defining social capital as an asset and pointed out that its meaning is elusive (Cope, Jack et al. 2007; Anderson, Jack 2002). One 20

24 definition given by Anderson and Jack (2002) describes social capital as the operation of a social process, where non-co-operative action would lead to a reduction in information and resources flows (Anderson, Jack 2002; p.195). The authors acknowledge that entrepreneurial social capital is a significant component of the business activity. The findings of their research confirm that entrepreneurs use the process of networking as ways of generating information sources, developing resources and as a mechanism for acquiring business potentials (Anderson, Jack 2002; p.202). Social capital has been described by Baron and Markman (2000) as the actual and potential resources individuals obtain from knowing others, being part of a social network with them, or merely from being known to them and having a good reputation (Baron, Markman 2000; p.107). Further, the authors acknowledge that social capital helps entrepreneurs to acquire access to financing, clients and other important connections (Baron, Markman 2000). Lin and Dumin (1986) define social capital as a resource facilitating instrumental action taken for the purpose of gaining valued resources such as wealth, status, and power (Lin, Dumin 1986; p.365). They posit that both access to and use of social resources are affected by the strength of positions and the strength of ties (Lin, Dumin 1986; p.384) Importance of Formal and Informal Social Networks Essential element of the social capital is social network. It is very beneficial especially for the small companies. Social network provides small firms with easier access to resources and contributes to their development (Neergaard, Shaw et al. 2005). Buttner (1993) acknowledge that: To be successful, entrepreneurs must be well- integrated in their communities. Networking can be a way for an entrepreneur to gain access to resources (information, advice, or capital) needed for initiating and operating a new venture. Entrepreneurs connected to many diverse information sources are more likely to survive and make their businesses grow (Buttner 1993; p.63) In a study conducted by Davidsson and Honig (2003) regarding entrepreneurs personal and business networks, the authors discuss the strength of ties within the networks and also emphasize the importance of both formal and informal networks. They posit that: 21

25 Social capital is often operationalized through the identification of networks and network relationships, sometimes defined by the strength of ties, repetitive group activity such as the frequency of meetings and other formal interactions, as well as informal gatherings and other social activities, and social and family relationships. From an entrepreneurial perspective, social capital provides networks that facilitate the discovery of opportunities, as well as the identification, collection and allocation of scarce resources (Davidsson, Honig 2003; p.309) Study conducted by Birley (1985) examines how and to what extent entrepreneurs collaborate with their networks during the process of establishing of a new business. The author s supposition is that during the process of starting a new business, the entrepreneur is looking not only for tangible resources such as equipment, capital, and office and production space, but also intangible resources like information, encouragement, guidance and advices (Birley 1985). Birley (1985) further discuss the importance of formal and informal networks and their influence over the entrepreneur and the nature of the company, and suggest that the efficient entrepreneur would seek help from a variety of sources in both types of network (Birley 1985; p.114) Gender effect on social capital and networking Alongside the studies that explore social capital and social network and their effect on business creation and development, some researchers also acknowledge gender differences and gender effect on social capital, networking and entrepreneurship (Brush 1992; Buttner 1993; Neergaard et al ). Neergaard, Shaw and Carter (2005) acknowledge that there is a need to address the gender blindness and gender bias which has dominated small business network research (Neergaard, Shaw et al. 2005; p.340). The authors further suggest a new framework on social capital and network viewed from female perspective and based on social support theory (Neergaard, Shaw et al. 2005). Social support has been previously conceptualized as supportive resources such as guidance, advices, financial and emotional help that people can receive from participation in supportive social networks of family, friends, coworkers and acquaintances (Walker, Wasserman et al. 1993). Lately, researchers have addressed the importance of the social network structure and its role in offering and receiving social support (Walker, Wasserman et al. 1993). Walker, Wasserman and Wellman (1993) acknowledge that different connections and actors in the network will 22

26 provide different kinds of help.four categories of social support have been described by Wan, Jaccard and Ramey (1996). These are emotional support, informational support, companionship support and tangible support (Wan, Jaccard et al. 1996). In their study Walker, Wasserman et al. (1993) propose that in order to receive diversified support individuals should maintain many different types of contacts. Social support perspective has been also discussed by Neergaard et al. (2005) who suggest that studies on entrepreneur networks should focus their attention on connections providing different types of support, both tangible and intangible, in order to acquire better knowledge of the influence that social capital has on entrepreneurship (Neergaard, Shaw et al. 2005). The authors share the view that: by integrating social support theory into network studies of the business owner a more comprehensive understanding of the impact which gender may have on business networks, social capital and business ownership may be acquired (Neergaard, Shaw et al. 2005; p.346) Integrative Perspective has been previously proposed by Brush (1992) for describing gender differences between men entrepreneurs and women entrepreneurs. The Integrative Perspective posit that female business owners perceive their business as interconnected system of relationships (Brush 1992; p.6): This system of relationships composing the business is ''integrated" into the woman business owner's life. The woman business owner is at the center of a network of various relationships that include family, community, and business. In other words, when a woman starts or acquires her own business, in her view she is not creating/acquiring a separate economic entity, rather she is "integrating" a new system of business-related relationships into her life (Brush 1992; p.6) In similar vein, Buttner (1993) discuss that Women and men may also have different priorities in establishing networking relationships. Men's motives are often more instrumental (seeking personal gain), while women have more affective considerations in social relationships (Buttner 1993; p.63). Brush (1992) note that many female entrepreneurs perceive their business not as a separate unit for profit -making, but rather they see it as a network of interpersonal connections. In accordance with Brush (1992), Moore and Buttner (1997) acknowledge that the socialization aspects of networks are of 23

27 high importance to the women business owners. Their value appears to lie more in terms of sounding boards, rather than in resource gathering (Moore, Buttner 1997; p.150). The discussion presented above, underlines the importance of social capital and its role in the new venture creation. The current study will try to ascertain what kind of networks the female entrepreneurs in Denmark have access to. In what manner they use their connections and to what extend it s important to them to receive different kinds of support from both formal and informal network. Furthermore, it will be of interest to find out if the international women in the study experience any challenges to establish a network in Denmark and to receive social support Business Growth This part of the chapter will focus on business growth and development. As starting point, the section will overview theories that challenge the traditional perception of growth, later it will discuss studies on female entrepreneurship and growth and at the end will present the hierarchical model of Growth Platforms and Motivation established by Dalborg, Friedrichs and Wincent (2011) Studies challenging the traditional perception of growth Traditionally business growth has been perceived as financial development, cash flows and company profits. The traditional view of performance is fundamentally a quantitative approach, where attention has been paid to growth in numbers measured as a progression to a present state from a lower historical state (Dalborg, Friedrichs et al. 2011; p.2). This view of growth has been adopted by entrepreneurship policy and research which are strongly interested in entrepreneurs as entities creating growth in the countries economic systems (Korsgaard 2007). Leitch, Hill and Neergaard (2010) point out that: For 50 years, the field has been heavily influenced by economics and, in particular, Edith Penrose s monolithic Theory of the Growth of the Firm (Penrose, 1959), which defines growth as both an internal process of development and an increase in amount. Most emphasis has been placed on the latter, which accounts for the dominant use of outcome-based quantitative indicators (Leitch, Hill et al. 2010; p.251) 24

28 This quantitative perspective has been discussed by Mc Kelvie and Wiklund (2010), who argue that growth must be analyzed and understood from a qualitative point of view before studying its quantitative perspective. The authors suggest: researchers have prematurely tried to answer questions of how much firms grow. We suggest that we first need to get a better grasp of the answer to the question how firms grow, i.e., what mode of growth firms use and why (McKelvie, Wiklund 2010; p.280) Similarly Leitch et al.(2010) criticize that the predominant preoccupation with growth as change in amount is premature and overly simplistic (Leitch, Hill et al. 2010; p.258). The authors agree with McKelcie and Wiklund (2010), and discuss the need for better understanding and theoretical elaboration on business growth with more attention on the process itself as a complex composition Female entrepreneurship and Business Growth Just like Leitch, Hill and Neergard (2010) and Mc Kelvie and Wiklund (2010), Korsgaard (2007) criticize the quantitative perspective of growth. He argues that the purely financial idea of growth creates a very limited picture of the entrepreneurship capacity (Korsgaard 2007). In regard to female business owners and growth, the author suggests that the concepts of growth and thereby the measure of entrepreneurial success are embedded in a traditional masculine value system, which emphasises male values over female, making it relatively more difficult for women to succeed (Korsgaard 2007; p.42). The need of new research approaches to study female entrepreneurship has been previously acknowledged by Stevenson (1990). The author argues that male-based models are particularly inadequate when used to explain the experiences of women as entrepreneur (Stevenson 1990; p.439). Concerning female entrepreneurs and business growth, Korsgaard (2007) note that male standards of evaluating entrepreneurs will result in perception that the female entrepreneurs perform worse: The problem, thus, might not be that women entrepreneurs are less ambitious, less adept and less successful than male entrepreneurs, but that it is simply a measurement problem, in that the measures are incapable of presenting the real 25

29 value, success, and therefore also the real problems as well as successes of female entrepreneurs (Korsgaard 2007; p.43) Study by Haugum, Mørkved, Lilleenget,Dalborg and Friedrichs (2011), focusing on female entrepreneurs and growth, shows that according to women business owners, growth is not necessarily related to the traditional quantitative and financial notions, but is rather perceived as personal development as well as development of their companies (Haugum, Mørkved et al. 2011) This findings can be interpreted as confirmation that the problem is not that women perform worse than men, but rather that their success is not measured in the correct way Qualitative model of women s business growth The purely economic definition of growth has been also discussed by Dalborg, Frederichs and Wincent (2011) who say that: It does not explain how growth has occurred, the goals set by the individual entrepreneurs, and even when the research focuses on seemingly relevant growth measurements, it is usually not comparable because what the entrepreneurs themselves define as growth (or progress) may not necessarily be measurable with quantitative secondary data or the available registers (Dalborg, Friedrichs et al. 2011; p.2) With the main argument that growth may not necessarily be an increase in sales or in profits growth could be more meaningful to study when taking account of goal progress and qualitative considerations (Dalborg, Friedrichs et al. 2011; p.3), the authors make a research on growth of female owned businesses from a qualitative perspective. They conduct interviews and a survey among 191 female entrepreneurs. Dalborg et al. (2011) establish a concept of business platforms in the women owned business and find similarities with Maslow s pyramid of unsatisfied human needs. The findings of their research show that women give description of growth depending on the phase of their business and the factors that motivate them to develop their companies (Dalborg, Friedrichs et al. 2011). In addition, they acknowledge that the goals and ambitions to grow can be motivated by intrinsic and extrinsic factors: 26

30 Inspired by hierarchical classification and movements of motives, we believe it is reasonable to assume that extrinsic growth needs are replaced by intrinsic growth motivation when the extrinsic needs are fulfilled. Research into motivation usually makes a distinction between intrinsic and extrinsic motivation. The difference depends on whether an act is valuable in itself or if it leads to a reward (Dalborg, Friedrichs et al. 2011; p.11) Based on their findings Dalborg et al. (2011) present a hierarchical model on growth platforms and motivation: Fig.4: Growth Platforms and Motivation in a Hierarchical Model. Source: (Dalborg, Friedrichs et al. 2011) According to women who run companies in the business platforms Survive and Stability, growth is about creating profitability in the company. Motivation to grow can be assumed to be extrinsically motivated, because growth leads to an indirect result of the action. Women who run their business on a platform further up the hierarchy express the motivation to grow in a different way. Instead it is about contributing to society or obtaining appreciation, which can be considered to be intrinsically motivated (Dalborg, Friedrichs et al. 2011; p.18) Beside the hierarchical model on growth platforms and motivation Dalborg et al. (2011) also establish a model of business platforms and strategic building blocks: 27

31 Fig.5: Business platforms and strategic building blocks. Source: (Dalborg, Friedrichs et al. 2011) The authors present the following explanation of the business platforms model: the motivation to grow and the transfer of growth ambitions implied a change in attention to building and developing different individual building blocks in each overarching qualitative business platform. To achieve the different levels of motivation, we noticed that women entrepreneurs seem to build their businesses based on a transfer of different hierarchical business platforms, and from paying attention to different building blocks (Dalborg, Friedrichs et al. 2011; p.18) Recent studies on female entrepreneurship and growth clearly show that research and policy concerning entrepreneurship should change their perception of growth from more quantitative to more qualitative perspective. This is especially true in the area of female entrepreneurship. The present study will focus on the qualitative perspective of growth and will try to find how the female entrepreneurs in Denmark define growth. It will be also of interest to learn what are the factors influencing their perceptions and do they have intention to grow their companies Work-Life Balance Recently the work-life balance topic has been widely discussed among society, researchers and policy makers. Research concerning female entrepreneurship has also paid attention to the work-life conflict among women business owners. This theme will be also included in the current study on female entrepreneurship in Denmark. In order to acquire some knowledge in the field, the present section will discuss what is a work-life balance and why is it 28

32 attracting attention. Further, the section will review models explaining the relationship between work life and family life. The third part of the section will discuss theories on the work-life balance issue among the female entrepreneurs Work-life balance as a contemporary policy issue Before the actual discussion of work-life balance and its significance, it is important to clarify the definition of the term. The following description of a work-life balance has been found at the The European Industrial Relations Dictionary: Work life balance is a term used to describe a state of equilibrium between an individual's work and personal life. A satisfactory work life balance is achieved when an individual s right to a fulfilled life inside and outside paid work is accepted and respected as the norm, to the mutual benefit of the individual, business and society (The European Industrial Relations Dictionary 2009). Until relatively recently the work-life balance question was not perceived as an issue. Nowadays the increasing levels of employment among women, most of whom are also mothers, is one of the main reasons the work-life balance to attract more attention among society and policy makers. (Crompton, Lyonette 2006). Guest (2002) identifies three sets of factors influencing the increasing interest toward work-life balance issue: those concerned with developments at work that might be seen as causing the problem of work-life imbalance, those relating to life outside work that might be viewed as consequences of work-life imbalance and those concerning individuals and their lives outside work that give rise to the need to address the challenge of worklife balance as a contemporary policy issue (Guest 2002; p.256) Models explaining the relationship between work life and family life Guest (2002) and earlier Zedeck and Mosier (1990) point out the existence of five models explaining the relationship between free time and life at work: Spillover Model- proposes that life at work and life outside work can influence each other either positively or negatively (Guest 2002). It asserts that there is a similarity between what occurs in the work environment and what occurs in the family environment (Zedeck, Mosier 1990; p.241). 29

33 Compensation Model- hypothesizes that both worlds can balance each other. Consequently, what may be lacking in one sphere, in terms of demands and satisfactions, can be made up in the other (Guest 2002; p.258). Segmentation Model-proposes that work life and family life are separate notions and don t affect each other (Guest 2002). According to this model, an individual can function successfully in one without any influence on the other (Zedeck, Mosier 1990; p.241). Instrumental Model- suggests that the two environments are influencing each other in a positive way (Zedeck, Mosier 1990). Within this model activities in one sphere facilitate success in the other (Guest 2002; p.258). Conflict Model- In contrast to the compensation and instrumental models, the conflict model hypothesizes that with high levels of demand in all spheres of life, some difficult choices have to be made and some conflicts and possibly some significant overload on an individual occur (Guest 2002; p.259). Furthermore, satisfaction or success in one environment entails sacrifices in the other, the two environments are incompatible because they have distinct norms and requirements (Zedeck, Mosier 1990; p.241). Guest (2002) acknowledges that the conflict model has recently attracted high attention and most of the studies report on a work-family clash. Greenhaus and Beutell (1985) discuss that the conflict between work life and family life emerges when: (a)time devoted to the requirements of one role makes it difficult to fulfil requirements of another; (b)strain from participation in one role makes it difficult to fulfil requirements of another; and(c)specific behaviors required by one role make it difficult to fulfil the requirements of another (Greenhaus, Beutell 1985; p.76) Thereby the authors define three meanings of work-family clash- role, interrole and work- family conflict. Each one of them will be described below. 1) Role Conflict- There are different forms of conflicting pressure within each role. Role conflicts exist when one set of role pressures is in some sense incompatible with the other set of pressures (Greenhaus, Beutell 1985; p.77). 30

34 2) Interrole Conflict- people usually have more than one role and each one of the different aspects of their life has its own requirements and is source of different pressures. This is a form of role conflict in which the sets of opposing pressures arise from participation in different roles (Greenhaus, Beutell 1985; p.77). 3) Work-Family Conflict- sometimes participation in the work activities poses challenges to participation in the family activities and vice versa. Work-family conflict is a form of interrole conflict in which the role pressures from the work and family domains are mutually incompatible in some respect.that is, participation in the work (family) role is made more difficult by virtue of participation in the family (work) role (Greenhaus, Beutell 1985; p.77). The last type of conflict has been analyzed in depth by the authors who further distinguish three forms within the framework of the Work-Family conflict- time-based, strain-based and behavior based (Greenhaus, Beutell 1985): 3.1) Time-Based Conflict- when a person has multiple roles and limited time then the time demanded by one role will restrict the amount of time committed to another role (Greenhaus, Beutell 1985). Since the time is separated between the work and the family, Greenhaus and Beutell distinguish Work-Related Sources of conflict and Family-Related Sources of conflict. The authors acknowledge that if the family role requires a significant amount of time this can result in work-family conflict. Consequently they expect married persons and parents to experience higher level of work-family conflict compared to nonmarried and people with no kids (Greenhaus, Beutell 1985). 3.2) Strain-Based Conflict-this type of conflict can emerge as a consequence of lack of support in the family (Greenhaus, Beutell 1985). 3.3) Behavior-Based Conflict- various roles have different behavioral requirements and value systems which may be incompatible with each other. The authors acknowledge that If a person is unable to adjust behavior to comply with the expectations of different roles, he or she is likely to experience conflict between the roles (Greenhaus, Beutell 1985; p.82). 31

35 Female entrepreneurs and work-life balance The work-life conflict and the lack of balance between these two roles have been confirmed by researchers to have a negative impact on people s life. The imbalance affects the effective functioning and causes stress. (Guest 2002). Even though work-family balance is not gender-specific and is a problem for many employees, it is an issue of high significance to women workers (Kirkwood, Tootell 2008). Previous research acknowledges that women compared to men experience greater conflict between their dual roles at the work life and the family life and feel most of the burden of stress (Alpert, Culbertson 1987). Qualitative study conducted by Mc Lellan and Uys (2006) on self- employed women in South Africa observes how they combine their dual roles as mothers and executives and further what effect this can have on their well-being. In interviews with five self-employed women, Mc Lellan and Uys (2006) derive five important themes related to the women s dual roles including quality time with children and family, structure and planning, guilt, support structure and self-reliance, balance between work and life. The authors conclude that the increasing female s role in the business and the working world do not decrease or eliminate the role of a mother in the family- while these women were fulfilling dual roles and continued to strive for coping mechanisms to fulfill both roles effectively, the emphasis on the family as a priority remained (McLellan, Uys 2009; p.28). The findings of the research show that the balancing of work and family responsibilities remains as large a source of stress for women as previously (McLellan, Uys 2009; p.28). Similarly Kirkwood and Totell (2008) conduct qualitative research among entrepreneurs in New Zeeland in order to outline the work-family conflict and work-family balance for entrepreneurs. Even though the research includes both male and female participants, Kirkwood and Totell (2008) emphasize on the work-life balance among the female business owners. The authors state that many people (particularly women) see entrepreneurship as a way of achieving a better balance between work and family than that provided by paid employment (Kirkwood, Tootell 2008; p.285). Female business owners ambition to achieve work-family balance is highly influenced by the fact that they have children (Kirkwood, Tootell 2008).In his article on mompreneurship, Korsgaard (2007) posits that women 32

36 combining motherhood and entrepreneurship are creating a balance between childcare and work and their general strategy is to create continuity between the different spheres of the life of the mompreneur (Korsgaard 2007; p.43). Stevenson (1986) acknowledge that among the reasons for starting own business flexibility is an important factor for women, and managing own business allows them to care for their children at the same time. Kirkwood and Totell (2008) find a number of strategies used by the entrepreneurs to achieve work-family balance. They include role management, where to work, when to work and who to work with (Kirkwood, Tootell 2008). In a previous paper comparing high growth female entrepreneurs and less successful businesswomen, Shelton (2006) points three main strategies for balancing the dual roles. The strategies identified by Shelton (2006) include role elimination, role reduction and role-sharing. The author posits that successful high growth female entrepreneurs will apply these strategies to balance their multiple roles (Shelton 2006). While Shelton (2006) posits that the use of work-family management strategy will help female entrepreneurs to achieve balance and experience greater well-being, and at the same time good business performance, Kirkwood and Totell (2008) acknowledge that the strategies employed by the women entrepreneurs are not always the key to work-family balance. They conclude that even though many women start their own business in order to balance their dual roles, the reality is different from their expectations and entrepreneurship does not always allow them to manage between the family life and the business life: For many women entrepreneurs, the goal of achieving work family balance by choosing to start a business may be somewhat unattainable. For many women entrepreneurs, balancing and managing the work family divide is a continual struggle. While there is some flexibility in terms of when to work and where to work, the amount of work they do does not lessen. However, they could choose to work with a partner and choose the types of employees they wanted to work with, so some ability to achieve work family balance is apparent that may not be the case for those who are employees of other companies (Kirkwood, Tootell 2008; p.299) The present study will definitely direct the question of work-life balance among the female entrepreneurs in Denmark. It will aim to understand how the female entrepreneurs in 33

37 Denmark perceive work-life balance in the context of family life, but also in the context of free time and leisure time, do they experience dual role conflict and do they apply workfamily management strategies. 3. Methodology The purpose of this paper is to research and comprehend what motivates Danish and international women in Denmark to start their businesses. Furthermore, the paper aims to build understanding of the female entrepreneurs experience in terms of networking, financial capital, work-life balance and their perception and desire to grow their businesses. In order to fulfill the goals and understand what motivates Danish and international women in Denmark to start their businesses the study employs qualitative research method. It is designed as multiple holistic cases and semi structured interviews are used as a technique for primary data collection within each case. The present chapter is going to introduce and discuss the composing parts of the research that will be applied to fulfill the goals of the study. The structure of the section is going to follow the logic of the so-called Research Onion presented by Saunders, Lewis and Thornhill (2007): Fig. 6: The Research Onion Structure. Source: (Saunders, Lewis et al. 2007) 34