Recently Mario Draghi’s report on European competitiveness identified an urgent need to boost Europe's role in the global economy. The report stresses the importance of technological diffusion, sustainability, and a fully functioning single market to enhance Europe's economic position.

As I’ve written previously, I’m in agreement with these elements of Mr. Draghi’s report. However, as a former entrepreneur, I believe that one important issue that deserves more attention is the untapped opportunity of diverse and inclusive entrepreneurship.

Only about one-third of businesses in the EU are started by women[1]. Imagine the economic impact if more women were empowered and enabled to take the leap into business ownership. If the percentage of female entrepreneurs increased from 33% (today’s EU average) to 40%, what would that do for employment opportunities, tax revenues, and turnovers? Can the EU afford not to capitalise on the potential of female entrepreneurs? In my view, the answer is no.

Women’s economic empowerment has flattened in the last decade[2], as women are typically more impacted by the effects of recession and crises such as the COVID-19 pandemic[3], and renewed efforts are therefore needed to reverse this trend and move towards strengthening women’s economic opportunities. An inclusive entrepreneurial landscape will not only support financial independence for women (who constitute 52% of the EU population), but will also have positive effects beyond their own businesses. According to the European Investment Bank, female-led firms are more likely to be innovate and foster the green transition by setting energy targets and monitoring their carbon footprint. [4]

To return to Mr. Draghi’s report, we should harness the potential of female entrepreneurship as a catalyst for the competitiveness agenda. Supporting female entrepreneurs can meet the challenges which Mr. Draghi identifies, by, for example, fostering innovation and helping start-ups to commercialise and scale up. In short, boosting female entrepreneurship should be a core element of the new plan for Europe’s sustainable prosperity and competitiveness.

This week is European SME Week - the European Commission’s campaign to encourage and facilitate people to set up their own businesses. And today, on November 19, we also celebrate Women’s Entrepreneurship Day, an initiative led by the Women’s Entrepreneurship Day Organization to honour and support women in business globally. To delve deeper into these issues at a national level, Amazon in Sweden commissioned a report - Entrepreneurship for All – 10 Recommendations for Democratised Entrepreneurship in Sweden – which draws insights from 400 leaders of Swedish small and medium-sized enterprises (SMEs). The report identifies digital knowledge and access to technologies as significant barriers to equitable growth, and highlights the importance of digital literacy.

According to the report, when companies sell via digital marketplaces, there is no difference in how female and male entrepreneurs perceive barriers; whereas offline, female entrepreneurs experience more obstacles than their male counterparts. Furthermore, traditional barriers are perceived as lower or non-existent among women who run businesses using e-commerce. The findings demonstrate how digitalisation can help bridge the gap in reaching equal opportunities for male and female entrepreneurs. And even though the report was focused on gender discrepancies, the data showed that digital tools were also beneficial for other marginalised groups; for example, entrepreneurs not born in Sweden or not living in large cities.

To expand on the report's findings, we convened a panel of over 20 government officials, experts, and business leaders, to discuss the potential of e-commerce and digital tools in boosting competitiveness in Europe. The group also discussed actionable steps towards more inclusive economic growth and concluded that these three policy areas require focus:

  1. Promoting digital economy and market access: Digital tools such as e-commerce and AI can facilitate access to new markets and customers, benefiting both men and women. Measures disucussed in this context were expanded R&D tax deductions and increased access to capital for businesses.
  2. Supporting skills development and entrepreneurship: By enhancing digital skills and providing education, more EU citizens can become entrepreneurs. Measures include clearer regulations, financial education in high schools, and entrepreneurship training for immigrants.
  3. Increasing access to capital and support systems: There is a need for more financing options to reduce the disparity in capital distribution, particularly for women-led businesses. Increased access would enable more companies to grow and create jobs.

As someone who has started their own business, I know first-hand that measures that support SMEs are really impactful, not least for women. I’m committed to playing my part in promoting activities that support female entrepreneurs, and to fostering a more inclusive business environment for the more than 127,000 EU-based SMEs selling with us, who sold more than 1.3 billion products worldwide in 2023.

[1] Gender distribution of early-stage entrepreneurs in Europe by country 2021 | Statista & Eurostat via Macrobond
[2] Global Gender Gap Report, 2023
[3] European Investment Bank, Support for female entrepreneurs: Survey evidence for why it makes sense, 2022
[4] European Investment Bank, Support for female entrepreneurs: Survey evidence for why it makes sense, 2022