Israel has surpassed the United States and Switzerland to become the world’s best place for female entrepreneurs, according to a new report released Monday.
The Middle Eastern country rose three places this year to snatch the title from New Zealand in the annual Mastercard Index of Women Entrepreneurs (MIWE).
The four leaders were joined in the top 10 for the first time by Poland, Sweden and Spain, rising quickly this year to form a geographically diverse top list. The UK, Canada and Australia rounded out the top 10 as high-income economies fared better for female founders during the pandemic.
Now in its fourth year, MIWE examines the work environments of 58 economies – representing nearly 80% of the world’s female workforce – to measure their success in supporting and promoting female entrepreneurship. Based on global data from the World Bank and OECD, the study evaluates economies based on indicators including access to education and finance and other supporting factors.
A top 10 on the move
Thanks to a significant increase in its support for small and medium-sized enterprises (SMEs), leader Israel took the top spot for the first time this year, jumping 41 places in this segment alone.
The country has set itself the ambitious goal of doubling the number of female entrepreneurs within two years and is introducing targeted support and networking initiatives to achieve this.
The US retained second place due to its high percentage of female business owners and positive cultural perception. In a separate Female Opportunity Index 2020/21 released last week by digital bank N26, the states ranked top globally for female entrepreneurship.
Switzerland rose eight places to take third place overall, driven by a strong improvement in government support for SMEs and a significant increase in cultural perceptions of entrepreneurship. Meanwhile, New Zealand, the 2019 leader, fell to fourth place but still ranks high on factors such as the high visibility of female leaders.
The most difficult places to be a female entrepreneur included Saudi Arabia, Tunisia, Iran, Egypt, Algeria and Bangladesh – a list that has barely changed from last year.
Covid in focus
This year’s report comes against the backdrop of the coronavirus pandemic, which experts say is disproportionately affecting women.
This has led female founders to look for new ways of working, including pursuing new business opportunities and reorienting existing models, the report said.
More than two-fifths (42%) of female entrepreneurs shifted to an online business model in the wake of the pandemic, and over a third (37%) developed a business to meet new local or global needs. Another third (34%) identified new business opportunities as a result of the virus.
The long-awaited call for governments, institutions and organizations to close the gender gap has never been more urgent.
Mastercard Women Entrepreneurs Index
But it has also highlighted the need to create a more inclusive environment for women entrepreneurs as the global economy tries to get back on track after the pandemic.
“The long-awaited call for governments, institutions and organizations to close the gender gap has never been more urgent,” the report said.
“Now, in the midst of what is being called the worst global recession since World War II, the need to reduce this gender inequality is even more important to drive a fair and sustainable economic recovery,” she added.
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