WOMEN-OWNED BUSINESSES IN CENTRAL AMERICA UP

The share of women-owned businesses in Central America rose by almost 60 percent (from 13.9 to 24.5 percent) between 1991 and 2018, according to a new ILO publication.

Case studies from Costa Rica, El Salvador, Mexico (Chihuahua) and Panama show that, on average, 22.3 percent of business owners in Costa Rica are women, 29 percent in El Salvador, 15.3 percent in Chihuahua, Mexico, and 22.4 percent in Panama.

The factors driving many women to start their own businesses are precarious economic conditions, lack of career prospects in companies and the absence of well-paid job opportunities.

The publication, Women in business in Central America, issued by the ILO’s Bureau for Employers’ Activities (ACT/EMP), says that women’s success as business owners and employers can be influenced by the size of their enterprise, the economic sectors in which they operate, education and professional experience.

The case studies also showed that women entrepreneurs were better educated than men in Costa Rica, Mexico (Chihuahua) and Panama, and had similar education levels in El Salvador.

Nevertheless, in all four areas, the average levels of profit from businesses run by women was lower than those run by men.

For example, in Panama the average monthly profits for male own-account workers and employers* were higher than for women, by more than 78 and 40 percent, respectively.

The difference in profits between men and women entrepreneurs becomes more acute when moving up the earnings distribution.

Among those in the top 10 percent earnings level (90–100 percentile), women make on average US$663 less than men.

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