The choice of the industry sector where the business is established is influenced by the prior work experience of females. For example, 88 per cent of employed women are currently working in services compared to 51 per cent of men, while just 9 per cent of women are employed in industry compared to 17 per cent of men (Fitzsimons & O’ Gorman, 2007). An examination of the level of the prior work experience or the functional roles assumed by females provide an added dimension on the impact of prior work experience on small firm growth. A number of studies (Arenius & Kovalainen, 2006; Eagly & Karau, 2002; Marlow, 2002; Stevenson, 2003) suggested that this same factor will be a determinant on the subsequent growth of the established small firm. Moreover in the majority of cases the level of experience gained by female owner/managers is not at managerial level (Arenius & Kovalainen, 2006; Eagly & Karau, 2002; Marlow 2002; Stevenson, 2003). According to the SIA Group, the lack of managerial experience is a key determinant on the growth of the enterprise.
“…… a serious obstacle for women in business
is the need for training be it skill-based, technical, technological or management technique and that such training is an essential contribution to producing an able body of entrepreneurs, who not only survive but thrive and can contribute to both local and global economies” (2001: p17).
The lack of managerial competencies requires the female entrepreneur to employ functional specialists, delegate to existing staff or alternatively acquire the relevant management training themselves. Female entrepreneurs should be encouraged to undertake training and development areas that will provide them with skills and competencies to manage business operations with a focus on people, financial and ICT management. In addition the lack of certain expertise by the female entrepreneur results in a reliance on external sources to compensate their skills deficiencies.