Prague Journal

Saturday, February 05, 2005.

The sun is out this morning, but only through the haze of the overcast sky. There is frost on the windows and the streets and sidewalks are icy. Walking on cobblestones when they’re icy is not an activity for the faint of heart or those who have problem with balance. And it’s certainly not advised for those who have slick or high-heeled shoes. Despite the fact that I have good shoes and warm clothes, I decided to hunker down and work today, mostly in preparation for the conference in Slovakia next week. I only have a 15-20 minute presentation, but it’s good to take some time to think about what I might want to say.
When people ask about my research, Rick says I’m writing case studies about women, and of course this is true. I try to put the women I talk to in a general context and look for the commonalities and differences between them. The women I seek out—in the US and in the Czech Republic—are all company founders and have regular employees. Most of the businesses are either owned solely or in partnership (few are investor-owned) and are formally (legally) incorporated. I’m not interested in micro-enterprise or self-employment, because I look at business formation and managerial processes, not self-sufficiency. I am told that most women entrepreneurs in the Czech Republic are part of a husband-wife team and/or a family business. This is a typical business configuration in small towns in the U.S and South America as well, but my area of interest or expertise is not with family firms but rather with women entrepreneurs, only a few of whom have involved their husband or children in their businesses. I prefer to look at companies poised and eager to grow, rather than those that want to stay small and merely eke out a living for the founder and her family.
Among the women I interview, most talk about balance in their lives and about the consuming nature of owning a business. While male entrepreneurs are also at the beck and call of their businesses, I have never heard a man talk about balance, although I have heard them talk about their frustration at not having more time with their families. Childcare issues are major concerns for parents everywhere, but less so for those who have family close by (usually their mothers) who can help out. In the Czech Republic, most people live close to their parents and extended family. This is seldom the case in the U.S.
The women I talk to here are more likely to put their business aside in the evenings and, depending on the nature of the enterprise, on weekends. Few are interested in getting rich, although most want to put money back into the business for growth and development. Few entrepreneurs here seek outside financing, while it is common in the U.S. to use credit card debt or take out loans. (This is difficult for women everywhere, although bank lines of credit are common here as well as the U.S.). Fewer people here use credit cards. Few women entrepreneurs seek investor financing, but that depends largely on the nature of the business and the capital requirements for startup and/or growth. In the Czech Republic, taking out a home mortgage or car loan is still uncommon.
Entrepreneurs in general suffer from isolation – they have few people to talk with about their business. Partnerships everywhere are delicate balances, so I am never surprised when partnerships dissolve. Women allegedly have better social skills than men, but they take partnership difficulties personally and may dissolve the business to save the friendship. Few partnerships (here or the U.S.) allocate ownership by tasks, expertise, or time devoted to the business. I’d bet that this is true for men as well.
Few women I have talked to feel discriminated against, except in the area of financing and, occasionally suppliers, but rarely from customers. Most women are engaged in service businesses (70% here as well as the U.S.), with less than 10% in manufacturing or product innovation. There are fewer drawbacks to business ownership here than in the U.S.: healthcare and pensions are government funded (businesses contribute the lion’s share, but the money is not targeted to their own employees) and all women receive maternity benefits for three years. More women here than in the U.S. are in the professions: law, medicine, accounting and financial services. More entrepreneurs here than in the U.S. complain about legislative changes (which are common occurrences here) or under-the-table dealings and dishonest employees or suppliers, but all complain about the maze of legal and tax regulations, the cost of accounting services, and high employment-tax rates.
Among entrepreneurs, it is estimated that about a third are women, here as in the U.S. and Canada and in most western countries. The wage gap among women in large corporations is also similar. As in the U.S., women are more apt to hire women—or to strive for diversity among their employees. Across the board, entrepreneurs are energetic, enthusiastic, innovative, optimistic, and hard working. The people I meet have interesting stories to tell and are managing interesting enterprises, which why I love field work.

posted by JWinn @ 8:38 PM