Women Entrepreneurship in Estonia: Formal and Informal Institutional Context

Abstract

This paper explores the impact of gendered context on the female entrepreneurship environment in Estonia. Having introduced comprehensive structural and institutional reforms in the 1990s, Estonia is now one of the most developed and progressive post-Soviet bloc countries. Most global rankings place Estonia towards the top of their lists, presenting it as an example of long-term successful economic and fiscal policy, with effective structural reforms and state governance. Nevertheless, the women entrepreneurship rate in Estonia is surprising, with women entrepreneurs constituting only 5% of the women in the active labor force in 2012. This is significantly lower than the EU-28 average entrepreneurship rate, and one of the lowest in Europe. This paper aims to contribute to the field of entrepreneurship, illustrating how the extent of entrepreneurship is linked to its social context. A sample of 20 women entrepreneurs was taken from the main cities in Estonia (Tallinn, Tartu, Narva and Kurresaare) to explain the experience of female entrepreneurs.