They are offering a wide range of goods and services to satisfy the demand of the rising number of urban consumers. Another important factor contributing to the surge in the number of women entrepreneurs is the growth of opportunities for them in the small scale and informal sectors. While populations continue to grow, jobs in many developing countries remain scarce and wages are low. The small scale and informal sectors offer employment opportunities because the low level of skills required means that entry is relatively easy. This is a critical factor in facilitating the way for women entrepreneurs.
Women turn to entrepreneurial activities to provide a living for themselves and their children.
Before examining the potential of women entrepreneurs, it is important that the term be clearly defined. Women entrepreneurs in the developing economies are a diverse group ranging from those who manage large conglomerates to those who operate roadside restaurants. This article, however, focuses on the problems of small and medium sized businesses and of entrepreneurs in the micro or informal sector. This group comprises the majority of women entrepreneurs in the developing world. In general, the small and medium scale sector refers to small businesses which are owned and operated by the same person, perhaps with employees, and located in a fixed site.