International Journal of Management and Economics Fundamental
54
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VOLUME
Vol.05 Issue 06 2025
PAGE NO.
54-62
10.37547/ijmef/Volume05Issue06-11
The Macroeconomic Contribution of Women's
Entrepreneurship Within Inclusive Economic Growth
Models
Askarova Fariza Daniyar qizi
Master’s student University of World Economy and Diplomacy, Tashkent, Uzbekistan
Djuraeva Rano Abdullayevna
Scientific supervisors, PhD in Economics, Associate Professor, Uzbekistan
Abdurakhmanov Bekhzod Bobirmirza o’g’li
Scientific supervisors, PhD in Economics, Associate Professor, Uzbekistan
Received:
11 April 2025;
Accepted:
07 May 2025;
Published:
17 June 2025
Abstract:
The purpose of this paper is to determine the significance of women's contribution to economic
empowerment within the framework of an open macroeconomic model. It analyzes the principal channels
through which women’s entrepreneurial activity impacts key macroeconomic indicators—
such as employment
generation, GDP growth, enhancement of export capacity, reduction of regional disparities, and improvements in
population welfare. Drawing on cross-country comparative data, the study identifies institutional and structural
patterns of female entrepreneurial participation across countries with varying income levels. Particular attention
is devoted to the sectoral and market focus of women-led startups, highlighting their role in advancing sustainable
development, accelerating digital transformation, and promoting national economic self-sufficiency. The results
demonstrate that women’s entrepreneurship functions not only as a mechanism for expanding economic rights,
but also as a strategic driver of structural transformation and long-term national competitiveness. The article
concludes by arguing for the integration of women’s entrepreneurship promotion into the core strategic priorities
of national economic policy frameworks.
Keywords:
Women's entrepreneurship, sustainable development, macroeconomic indicators, employment, GDP,
export, microbusiness, small enterprises, economic inclusiveness.
Introduction:
In
recent
decades,
women’s
entrepreneurship has gained considerable attention in
both academic research and policy discourse,
particularly in the context of promoting inclusive and
sustainable economic growth. While gender equality is
universally recognized as a fundamental human right,
the economic dimension of women’s empowerment—
especially through entrepreneurial activity
—
remains
insufficiently explored within macroeconomic analysis.
Bridging this gap is essential for understanding the
broader implications of gender inclusion on long-term
development outcomes.
In the context of the transformation of the global
economic sy
stem, women’s entrepreneurship is
emerging as a critical force
—
not only in advancing
women's economic empowerment, but also as a
fundamental driver of inclusive and sustainable
economic development. The growing involvement of
women in entrepreneurial activities, especially in
countries with robust institutional support for small
and medium-sized enterprises, signals a shift toward a
new dimension of economic engagement. Women’s
entrepreneurship
has
a
profound
and
multidimensional impact on key macroeconomic
International Journal of Management and Economics Fundamental
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
indicators, contributing not only to the overall growth
of economic activity but also to the deepening of
structural transformation within national economies.
Within the framework of an open macroeconomic
model, women entrepreneurs
—
acting as leaders and
initiators of economic transformation
—
play a pivotal
role in fostering growth through the implementation of
innovative ideas and the adoption of strategically
important decisions aimed at expanding economic
opportunities [1]. Their contribution facilitates the
initiation and sustainability of new economic processes
that promote the diversification of national economic
structures.
Women serve as a significant but underleveraged force
in driving economic growth, with their entrepreneurial
initiatives contributing fundamentally to sustainable
development.
Female-led
businesses
generate
employment, reducing poverty and unemployment,
foster market diversification and enhance competition
through creativity and innovation. By expanding
women’s participation in entr
epreneurship, economies
can unlock untapped potential, driving resilience and
long-term structural transformation [3].
This paper investigates the multidimensional impact of
women’s
entrepreneurial
activity
on
critical
macroeconomic indicators within an open and inclusive
economic growth model. Drawing on cross-country
empirical data, the study evaluates how female
entrepreneurship influences employment generation,
GDP growth, export capacity, and the improvement of
population welfare, particularly in economies with
diverse income levels and institutional structures.
Despite the growing recognition of its importance,
women’s entrepreneurship continues to be hindered
by structural, institutional, and socio-cultural barriers.
These
constraints
limit
the
scalability
and
competitiveness of female-led enterprises, thereby
curbing their potential contribution to national
economic development. Overcoming these challenges
requires comprehensive policy reforms aimed at
fostering an enabling environment for women
entrepreneurs. The objective of this article is to assess
the
macroeconomic
relevance
of
women’s
entrepreneurship and to identify the pathways through
which it contributes to inclusive and sustainable
economic growth. The analysis also emphasizes
sectoral trends, geographic disparities, and policy
mechanisms that can effectively support the
integration of women’s entrepreneurial activity into
national development strategies.
DISCUSSION AND ANALYSIS
Employment
generation
through
women’s
entrepreneurship. Women entrepreneurs around the
globe have significant impact on the economic
development, as the entrepreneurial ventures are
creating new employment opportunities [2]. Within the
macroeconomic model, their participation facilitates
capital
accumulation
by
mobilizing
untapped
household savings and effectively attracting both own
and
borrowed
financial
resources.
Women’s
investments in business development not only
generate added value but also contribute to the growth
of national wealth
—
a key condition for industrial and
economic progress.
By developing small and medium-sized enterprises
(SMEs), women address the systemic challenge of
unemployment, particularly in developing economies.
As the number of women-led enterprises
—
both small
and large
—
increases, so does the number of jobs
created, directly within the businesses and indirectly
across related sectors. In the long term, these
enterprises tend to expand, ensuring sustainable
employment and generating a multiplier effect across
the economy. Thus, women’s
engagement in
entrepreneurial activity represents a critical factor in
reducing unemployment and serves as one of the core
drivers of sustainable economic growth.
The analysis of the diagram presented in Figure 1
clearly illustrates the pivotal role women play in
shaping
employment
through
entrepreneurial
initiatives.
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Figure 1. Startup business size by gender and national income [5]
In low- and middle-income countries, approximately
40% of women entrepreneurs operate as self-
employed individuals without hired personnel, while
more than 55% manage businesses employing between
one and five people. This structure reflects the
dominance of micro- and small-sized enterprises, which
constitute a fundamental component of employment
in such economies. In contrast, high-income countries
demonstrate a more balanced distribution: a
significantly greater share of women-led startups
employ between 6 and 19 workers (12%) or 20 or more
employees (5%). Of particular note is the case of the
United States, where women have achieved gender
parity in the number of startups employing 20 or more
individuals (16.4% among women compared to 16.3%
among men), and Canada, where this figure is even
higher among women than men (19.2%). These
findings underscore a strong correlation between the
quality of institutional and socio-economic conditions
for women’s entrepreneurship and the scale of job
creation. The more conducive the policy environment,
infrastructure, and social norms, the greater the
likelihood that women will expand their businesses,
hire employees, and contribute to sustainable
economic development. Conversely, in economies
primarily driven by subsistence entrepreneurship,
where women often encounter barriers such as
restricted mobility, cultural norms, and limited access
to finance and entrepreneurial infrastructure, self-
employment tends to prevail as the dominant model.
On the one hand, elevated self-employment rates may
be observed in contexts characterized by constrained
choices and insufficient support mechanisms,
especially among women whose entrepreneurial
activities are shaped by household responsibilities and
institutional limitations. On the other hand, in
countries with well-developed support systems for
small and medium-sized enterprises, gender-
responsive
policies,
and
inclusive
economic
opportunities, women are more likely to expand
operations and engage in employment generation
—
an
assertion supported by the comparative data outlined
above.
Contribution of female-led enterprises to GDP growth.
Reducing the gender gap in entrepreneurial activity
represents one of the key drivers of enhanced
macroeconomic efficiency. The active participation of
women in entrepreneurship contributes to the
intensification of economic processes by expanding the
productive base, improving the allocation of labor
resources, and mobilizing human capital more
effectively. According to international estimates from
the Boston Consulting Group, the potential increase in
global gross domestic product (GDP) resulting from the
elimination of institutional and socio-cultural barriers
to women’s economic engagement may range from 3%
to 6%, contributing an additional USD 2.5 to 5 trillion to
the world economy [4]. Empirical comparisons
between female participation in economic activity and
GDP per capita indicate a stable and positive
correlation between these variables (Figure 2).
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Figure 2. Female labor force participation and GDP per capita, 2023 [7]
Countries with a high level of gross domestic product
(GDP) per capita
—
such as Norway, Iceland, Australia,
and Belgium
—
also demonstrate elevated rates of
women’s participation in the labor force, exceeding 60–
75%. In contrast, countries with minimal female
involvement
in
economic
activity
—
such
as
Afghanistan, Syria, Iraq, and Algeria
—
consistently
exhibit low GDP per capita, despite the presence of
other natural or geopolitical resources. In middle-
income economies (e.g., Ghana, Bangladesh, Bolivia),
the data reveal a clear potential for GDP growth,
contingent upon enhanced economic inclusion of
women. Based on the data presented, it can be argued
that the level of women’s economic participation
serves as an important indicator not only of social
inclusivity but also of a country’s actual economic
potential.
Fostering sustainable and socially-oriented business
models. Contemporary trends in entrepreneurial
development increasingly reflect a shift toward socially
responsible and environmentally sustainable business
practices
—
an orientation that is particularly evident
among women entrepreneurs. As reported by the
Global Entrepreneurship Monitor, over 78% of women
engaged in early-stage entrepreneurial activity (TEA)
prioritize social and/or environmental impact in
strategic decision-making, whereas the corresponding
figure among men remains below 65% (Figure 3).
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Figure 3. The share of early-stage entrepreneurs who somewhat or strongly prioritise social and/or
environmental impact above profitability or growth (% female TEA; % male TEA) [6]
This
divergence
in
entrepreneurial
priorities
underscores a marked gender-based distinction in
business strategies. Women entrepreneurs are more
inclined to adopt sustainable business models that
integrate long-term social and environmental
objectives into their core strategic vision. This
orientation underscores the distinctive contribution of
women’s entrepreneurship to the advancement of the
Sustainable Development Goals (SDGs), particularly
SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8
(Decent Work and Economic Growth), and SDG 10
(Reduced Inequalities).
Promoting balanced regional economic development.
Women's entrepreneurship significantly contributes to
mitigating regional socio-economic disparities by
fostering business creation and growth in less-
developed areas. The expansion of industrial and
entrepreneurial activities in such regions facilitates the
establishment of essential social infrastructure,
including transportation, education, healthcare, and
cultural services. Strengthening the economic potential
of remote areas, in turn, reduces interregional
development gaps and establishes the foundations for
sustainable and balanced territorial growth. Notably, in
conditions of accelerating industrialization, economic
resources and power often tend to concentrate among
a limited number of market participants, increasing the
risks of monopolization. In this context, enhancing
women's entrepreneurship, particularly within socially
significant and locally oriented sectors, promotes
diversification of economic activities and plays a crucial
role in decentralizing economic power. Consequently,
this contributes to a more equitable distribution of
resources and economic activities across regions.
The diagram presented in Figure 4 clearly illustrates the
economic sectors predominantly selected by women
entrepreneurs, thus elucidating their prospective role
in regional development, particularly in economically
lagging and rural regions. Approximately half of the
female entrepreneurs in the analyzed countries engage
in wholesale and retail trade, exhibiting a higher
sectoral concentration relative to their male
counterparts (W/M ratio = 1.09). Moreover, women
demonstrate a significantly higher propensity
compared to men to initiate enterprises in the field of
government and social services (GSS), with nearly one
in five female-led businesses operating within this
domain (W/M ratio = 1.76). These sectors constitute
essential components of regional development,
directly addressing local needs in education,
healthcare,
social
support,
and
employment
generation.
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
Figure 4. Industry segmentation of startups by gender and national income [5]
The contribution of women to entrepreneurial activity
is particularly pronounced in low-income economies,
where more than 60% of female-founded startups are
concentrated in the retail trade sector. This sectoral
concentration has a tangible impact on the
development of local markets, the expansion of self-
employment opportunities, and the consolidation of
resilient intra-regional economic networks. At the same
time, a notable gender gap persists in the information
and communication technology (ICT) sector, where
women remain significantly underrepresented. Female
entrepreneurs are approximately twice as unlikely as
their male counterparts to establish enterprises in this
domain. This disparity is especially evident in low-
income countries, where the proportion of women-led
startups in ICT amounts to merely 0.5%, compared to
1.5% among men. These findings highlight the critical
need for strategic policy interventions aimed at
diversifying the sectoral composition of women’s
entrepreneurship and facilitating their integration into
technologically intensive and high-growth industries.
The sectors predominantly selected by women
entrepreneurs
—
such as retail, education, healthcare,
and social services
—
are inherently integrated within
local economic systems and oriented toward the
provision of essential services. These areas are
instrumental in extending access to fundamental
infrastructure and addressing the primary needs of the
population. Moreover, such sectors often serve as
entry points for entrepreneurial activity in small towns,
rural communities, and peripheral regions, rendering
them vital for reducing territorial disparities and
reinforcing the foundations of regional economic
development.
Improving living standards and expanding export
potential. The improvement of living standards
represents a fundamental benchmark of economic
progress and social sustainability. Within this
framework, women’s entrepreneurship emerges as a
critical driver, facilitating both the diversification and
increased availability of goods and services, while
simultaneously reinforcing macroeconomic resilience.
The active participation of women in entrepreneurial
activities ensures the scalable provision of goods and
services, frequently oriented toward local markets and
aligned with the essential needs of the population. This
dynamic contributes to the optimization of production
costs, intensifies price-based competition, and
broadens access to high-quality products, thereby
exerting a direct and measurable influence on the
enhancement of overall living conditions.
In addition, women-owned enterprises contribute
substantively to the development of export capacity
within the national economy. Their engagement in
export-oriented production and integration into global
markets fosters foreign currency inflows and mitigates
reliance on imported goods, thereby laying the
groundwork for enhanced economic autonomy.
Figure 5 presents data reflecting the gender
distribution of startups characterized by high potential
in terms of employment generation, innovation, and
export advancement.
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Figure 5. Gender composition of high job expectations, innovation, and export-focused startups [5]
The diagram illustrates that approximately 40% of
innovation-oriented startups, as well as those targeting
national and international markets, are founded by
women. This reflects the growing capacity of female
entrepreneurs to develop competitive and scalable
business models. Within the framework of an open
macroeconomic model, women entrepreneurs are
increasingly capable of offering a diverse range of
goods and services tailored to individual consumer
preferences, thereby reinforcing their contribution to
improving quality of life and diversifying market supply.
Of particular significance is the fact that nearly 40% of
startups projected to create 20 or more jobs are also
led by women, indicating a strong orientation toward
business expansion and employment generation. In the
segment of export-oriented startups
—
defined as those
generating over 25% of their revenue from exports
—
a
substantial proportion, exceeding one-third, is likewise
owned by women. This evidences the emergence of a
significant potential for women’s entrepreneurship in
foreign trade and its meaningful contribution to the
development of the export sector.
Strengthening national economic self-sufficiency. The
achievement
of
national
self-sufficiency
is
fundamentally contingent upon the development of
endogenous productive capacity and the stimulation of
export-oriented activities, including those driven by
women entrepreneurs. Within the framework of an
open macroecono
mic model, women’s participation in
the production and service sectors facilitates the
generation of domestically produced goods, thereby
advancing import substitution, diminishing reliance on
external supply chains, and reinforcing the resilience of
the internal market. Moreover, the engagement of
women-led enterprises in export activities contributes
to the accumulation of foreign exchange earnings, thus
supporting macroeconomic stability and enhancing the
country's economic sovereignty.
Figure 6 illustrates the market orientation profiles of
male- and female-founded startups across countries
with different income levels. The data reveal a
pronounced focus of women entrepreneurs on
domestic markets
—
both at the local and national
levels
—
which plays a critical role in safeguarding
internal economic stability. This orientation highlights
the
strategic
contribution
of
women’s
entrepreneurship to sustaining local and regional
economies, particularly in the context of global
disruptions and systemic vulnerabilities in international
supply networks.
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Figure 6. Gender composition of market focus by national income [5]
At the same time, women demonstrate a notable
degree of engagement in international trade: the share
of female-led startups oriented toward global markets
ranges from 30% to 40%, depending on a country’s
income
level.
This
evidences
that
women
entrepreneurs are not only instrumental in satisfying
domestic demand but are also actively integrating into
global economic systems, thereby contributing to the
export potential of national economies. The data
presented underscore the multifaceted role of
women’s entrepreneurship in advancing national self
-
sufficiency
—
simultaneously
reinforcing
domestic
production capacities and local market resilience, while
also fostering outward-oriented economic activity. This
model of women’s economic participation lays a robust
foundation for the attainment of long-term economic
autonomy and the sustained development of the
national economy.
CONCLUSION
Contemporary models of economic growth, centered
on the development of human capital and the
stimulation of entrepreneurial activity, regard gender
inclusiveness as a fundamental prerequisite for
sustainability and balanced development. The
integration of women into the economy through
entrepreneurial engagement contributes to the
attainment of a broad range of interrelated objectives,
including:
- the expansion and diversification of economic activity;
- the enhancement of th
e economy’s innovative and
digital capacities;
- the reduction of poverty and social inequality;
- the strengthening of local labor markets and the
improvement of regional resilience;
- the institutionalization of sustainable development
principles.
Women’s entrepreneurship should be recognized not
only as a mechanism for advancing gender equality, but
as a strategic driver of sustainable economic growth,
inclusive
development,
and
the
structural
transformation
of
national
economies.
The
intensification of female entrepreneurial activity exerts
a comprehensive and multidimensional influence on
major
macroeconomic
indicators,
including
employment creation, innovation performance, GDP
growth, and digital transformation. In order to
effectively unlock women's entrepreneurial potential,
it is recommended for governments to adopt the
following strategic measures:
-develop inclusive educational and vocational
programs
aimed
at
strengthening
women’s
entrepreneurial competencies, financial literacy, and
leadership capacity;
-ensure non-discriminatory access to financial
resources
—
such as government subsidies, grants, and
credit schemes
—
by addressing institutional and
regulatory barriers;
-establish
integrated
public-private
mentorship
systems to facilitate knowledge transfer, access to
expert guidance, and long-term professional support
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International Journal of Management and Economics Fundamental (ISSN: 2771-2257)
for emerging women entrepreneurs;
-promote infrastructure tailored to the needs of
women-led
enterprises,
including
incubators,
accelerators, and co-working spaces, particularly within
male-dominated sectors of the economy;
-support the formation and expansion of dedicated
business networks and sectoral platforms that enable
effective professional collaboration and increase
access to investment opportunities.
Integrating these approaches for fostering women's
entrepreneurship into the national economic
development strategy will contribute to sustainable
employment, increased productivity, and the creation
of a more equitable and competitive economy.
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