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The Effects of Formal and Informal Institutions on Women’s Entrepreneurship in Georgia

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Minds, Brains, and Doxa for Inclusive Entrepreneurship

Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 47))

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Abstract

The aim of this chapter is to address the impact of formal and informal institutions on women’s entrepreneurship and to extend our understanding of issues influencing women-owned businesses and women’s entrepreneurship in the context of a transition economy, such as Georgia. Our work specifically addresses formal institutions, such as governmental initiatives, financial institutions, and business-relevant education. It also addresses informal institutions, such as women’s role in society, the use of informal networks of connections and acquaintances, and gift-giving practices. Drawing on results from an online focus group discussion with women entrepreneurs in Georgia, we provide initial insights into the critical constraints and supporting factors that local women entrepreneurs experience. Based on the interrelation of institutions and women’s entrepreneurship, we conclude that changes in formal institutions do not lead directly to changing informal institutions. Due to the lack of trust in formal institutions, women entrepreneurs are more likely to look for business development solutions outside the official frames, including illegal or unethical means of survival. Nevertheless, increased opportunities – induced by specific entrepreneurship policies and programs – encourage women to enter entrepreneurship. In addition to this, entrepreneurship enables women in Georgia to overcome gender discrimination issues, which is more prevalent in employment relationships in the local labor market than in entrepreneurial activities.

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Notes

  1. 1.

    As a result of migration, women who left their (young) children in their homeland became “transnational mothers”, for whom remittances became a means of expressing physical and emotional care for their children (Zurabishvili and Zurabishvili, 2010).

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Author information

Authors and Affiliations

  1. University of Siegen, Department III, Business Administration, Siegen, Germany

    Lela Griessbach

  2. Westfälische Hochschule, Bocholt, Germany

    Kerstin Ettl

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  1. Lela Griessbach
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  2. Kerstin Ettl
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  1. Jackstädt-Center Flensburg, University of Flensburg, Flensburg, Schleswig-Holstein, Germany

    Kirsten Mikkelsen

  2. University of Applied Sciences Emden Lee, Emden, Germany

    Annika Wolf

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Griessbach, L., Ettl, K. (2024). The Effects of Formal and Informal Institutions on Women’s Entrepreneurship in Georgia. In: Mikkelsen, K., Wolf, A. (eds) Minds, Brains, and Doxa for Inclusive Entrepreneurship. International Studies in Entrepreneurship, vol 47. Springer, Cham. https://doi.org/10.1007/978-3-031-50164-7_3

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