12_jwe_3-4


 

UDC: 005; 331.57(497.11)  JEL: B54; L26; J64 
SCIENTIFIC REVIEW  
  

The Development of Female 
Entrepreneurship in the Function of 
Overcoming Unemployment of Women in 
Serbia 

 

  

 
 
Vujičić Slađana*, Kvrgić Goran, Ivković Dragan, Vujadin Radomir, 

Visoka škola za poslovnu ekonomiju i preduzetništvo, Beograd, Srbija 
Vujadin Nataša, Alfa banka, Beograd, Srbija 

 
 
 
 
A B S T R A C T 
 

Entrepreneurship is the engine of economic development of each country. The 
above facts indicate that entrepreneurship should be given special attention and it 
should constantly be developed. As one of the possible directions of development of 
entrepreneurship in recent decades, the development of women entrepreneurship 
stands out. Although in most countries of the world it is believed that women are less 
capable for entrepreneurship than men, and despite the fact that the majority of large 
enterprises are managed by men, a rise of women entrepreneurs in the world has 
been noticed, especially in developing countries. And in recent years in Serbia the 
number of companies headed by women has increased, so it is now about 25%, which 
means that women control or manage every fourth company in Serbia. As reasons for 
this increase we could cite the change of consciousness among women and that they 
can be just as successful in leading the company as men, but also the fact that starting 
their own business can supplement their income and improve themselves through self-
employment, increase their independence and be more respected in society. Although 
women are forced to fight in today's world to be recognized not only as women-
mothers but also as successful women-entrepreneurs, their determination, 
perseverance, willingness to take risks and all the problems which entrepreneurship 
brings, show that the time of women's entrepreneurship is yet to come. 

 

                                                 
* Mitropolita Petra 8, 11000 Beograd, e-mail: sladjana.vujicic@vspep.edu.rs  



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 2

KEY WORDS: female entrepreneurs, unemployment, female leaders, Serbia  

Introduction 

Entrepreneurship is one of the main factors of economic growth and 
development. It helps create jobs, develop common social interests as well 
as personal potentials of entrepreneurs, and also it has an important role in 
the development of the competitiveness of each country. The largest 
number of states, which realized the importance of entrepreneurship for the 
development of national economy, accepted entrepreneurship as an 
important factor in the economic growth and development. 

The choice of entrepreneurship as a career is motivated not only by 
making money, but the motivation for the development of entrepreneurship 
stems from other factors such as the desire for security, independence, 
creativity, self-assertion, etc. It can be said that, by the development of 
entrepreneurship, significant and diverse uses are achieved, both in the 
economic and social sphere. 

It is notable that female entrepreneurship is expanding in all 
countries, and the increasing number of companies whose owners or 
managers are women have been reported in our country. Every day female 
entrepreneurship becomes a source of new employment in Serbia and it 
could be said that it also contributes to the balancing of the economic 
development of Serbia. 

The Development of Female Entrepreneurship 

Women are more numerous in the total population, but in many other 
aspects of economic and political life are minority in the whole world. The 
first important scientific papers on female entrepreneurship occurred in 
1976. The work “Entrepreneurship: A New Female Frontier” was 
published in the American magazine “Journal of Contemporary Business”, 
which drew attention to the upward trend of this type of entrepreneurship 
(Vukmirović, 2005, p.4). The momentum of female entrepreneurship is 
especially present at the beginning of the 1990s. Most of the newly created 
companies in the Netherlands, Denmark and Germany are companies 
founded by women (Cabrilo, S., Hristić, D., Savić-Sikoparija, T., 2011, 
p.86). Female entrepreneurship can be a solution for those women who 
want control over their career and want to oppose “the glass ceiling effect” 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 3

(Dafoe, 2001). The fact that there are a lot of companies in the world 
headed by women tells us that the development of female entrepreneurship 
is a trend of the twentieth century.  

Until recently female entrepreneurship in Serbia has been given a 
little importance. Improvement in the employment of women in Serbia 
came together with socialism. Since the 1970s , thanks to the expansion of 
education, the destruction of legal, customary and traditional norms that 
discriminated women in the sphere of education (where the ideology of 
equality had its role), there has been an extremely large increase in 
women's participation in education at all levels (Milic,1994,p.40). 
Education has fueled the social mobility of women upward and at the same 
time allowed the empowerment of women within the family revitalizing 
their "negotiating potential" (Blagojević, 2002). 

Under present conditions of the world economy, a woman sees more 
interest in her own entrepreneurial activity. Starting and maintaining your 
own business is one of the strategies for the economic development of 
women oriented toward the entrepreneurship (Nziku, 2012, p.73). 

The Motivation for Entering Entrepreneurship 

What it is that motivates women to decide to enter the world of 
entrepreneurship is an issue that has a great presence in public. We can 
safely say that the motives are various and that they are determined by 
many factors, and we can indicate the need to provide  means of existence, 
both for themselves and for their family as the main motive for starting a 
new business in Serbia. Also, the most frequently mentioned motives for 
women to establish their own business are: 

− desire to utilize the experience and knowledge gained in 
previous jobs in their own business; 

− desire for greater flexibility and control over their own time; 
− desire to make independent decisions about their own lives and 

careers; 
− inability to thrive at a previous job, and the lack of challenge at 

work; 
− recognize the opportunity for success at work; 
− opportunities for higher earnings as a measure of success in 

business; 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 4

− desire to use their potential skills and abilities, personal 
creativity and “talent” for entrepreneurship as much as possible; 

− "glass ceiling syndrome" - women see opportunities for 
promotion, but there is a seemingly invisible barrier (glass 
ceiling) which stands between them and their goal. A common 
form of discrimination against women because their 
contribution is not recognized and not valued sufficiently; 

− desire to participate actively in social life and a sense of 
belonging and usefulness to society; 

− the pursuit of employment and providing an income for life; 
− desire to prove their own value to their partner, especially in 

countries where entrepreneurship is traditionally considered as a 
male activity (Vukmirović, 2005, p.7) 

Now an interesting question arises -why do some women enter 
entrepreneurship and not others? The answer to this question may lie 
within the fact that women are more cautious than men by their nature, 
tend to stability, quality, creativity, they are more energetic, more 
determined, more committed to work. The biggest obstacle for women to 
start an independent business may be reflected in their insecurity in 
themselves and their decisions, their concern how to harmonize business 
and family life, will everything go according to plan etc. Most women due 
to traditional views about the role of men and women in society do not 
even try to fight for their place, because they simply have no faith and 
confidence in themselves. 

In a survey done by The Union of Employers of Montenegro, under 
the project “The Women's business potential of the Montenegrin economy” 
which was done in 2011 on a sample of 70 subjects (35 men and 35 
women), women cited too much stress and stereotypes toward women 
entrepreneurs, as well as the lack of finance as a barrier for entering the 
business. 

A poll conducted in March 2011 in Serbia, on the portal 
www.poslovnažena.com, entitled “What is it that motivates business 
women at work most”, 925 (44.8%) of a total of 2067 respondents cited 
earnings and profit growth as a key factor which motivates them at work. 
 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 5

Graph 1: What motivates you most at work? 
 

 
Source: 
http://www.mc.rs/upload/documents/NAJAVE/2011/Poslovna_zena_Onlajn_istrazivanja.p
df 
 

In order to determine what are the motives that lead women to enter 
the world of business and entrepreneurship on the territory of the 
Municipality of Kragujevac, a survey on a sample of 30 women owners of 
shops and businesses was conducted in April 2012, with the question what 
motives led them to enter the world of business. The survey results showed 
that 40% of the questioned women wanted to provide funds for the life of 
their family by entering the business. 
 
Graph 2: Motives which led women to enter the world of entrepreneurship 
 

 
Source: Research of the author 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 6

This is not surprising, because Serbia is a country in which 
“releasing” a large workforce contingent occurred during the transition. 
Processes that accompanied the transition (privatization and restructuring) 
have not equally affected all categories of staff. The consequences of the 
transition to a market economy have not had the same effect on women 
and men. The experience of countries in transition shows that women in 
most countries were affected by the negative consequences of structural 
adjustment and market effects to a greater extent than men: loss of a job 
and acquired rights and benefits from the previous period, increases in the 
cost of living, unemployment and poverty, reduction of wages, difficult 
access to health services, social care, education and resources (Pejić, 2011, 
9. 649). 

All of this has resulted in the fact that women were forced to look for 
new sources of revenue through opening their own businesses, and, 
according to the words of the women polled in Kragujevac, they used 
every opportunity and chance to make some money and also improve the 
household budget,. 

In addition to providing funds for family, female respondents 
indicated that the motive is also the achievement of independence (25%), 
as well as demonstration of their own abilities (17%). The fact is that the 
motives are different and they depend on many factors such as the 
economic situation in the country, the regulations regarding 
entrepreneurship as well as social and cultural factors. 

Female Unemployment in the Republic of Serbia 

One of the most pressing problems that the global economy and 
society, as well as Serbia, are facing for many years is the high rate of 
unemployment (Radovanović, Maksimović, 2010, p.59). Women stand out 
as a particularly vulnerable group within the group of unemployed. 
According to the data from the Labor Force Survey conducted by the 
Statistical Office for 2011 only 38.3% of women of working age (15-64) 
were employed, while the percentage of men of the same age was higher 
and amounted to 52.4%. The unemployment rate in 2011 amounted to 
24.3% for women and 23.1 for men. 

If these data are compared with those from the Labor Force Survey 
conducted in 2010, it can be noted that there was a decrease in the 
employment rate in 2011compared to 2010, because the rate for men in 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 7

2010 amounted to 54.4% and for women 39.9%. The unemployment rate 
increased so it was 21.2% for men and 19.0% for women. 

Factors that can be extracted and that contributed to such a difficult 
situation on the labor market are the following: 

− Employers prefer to employ men while women are seen as a 
labor force which does not guarantee stability in the business 
due to the fact that women are traditionally burden with family 
and household responsibilities. 

− The largest number of women have general secondary 
education, which means that they have not specialized in any 
particular field or trade. The demand for workers with general 
secondary education is lower or additional skills are sought 
(knowledge of computer skills, knowledge of at least one 
foreign language, etc.). 

− General opinion which prevails in countries in transition is that 
in terms of unemployment, men have more right to get a job 
than women (Djurković Vemić, 2012, p. 250). 

 
Table 1: Employment and unemployment rate according to the gender of 

the working-age population in Serbia from 2004 to 2010. 
 

Labour market indicators Employment rate Unemployment rate 
Year female male female male 

2004. 44.0 63.1 24.1 15.9 

2005. 40.8 61.2 27.4 17.6 

2006. 40.6 59.2 25.5 18.6 

2007. 43.0 60.0 21.7 16.5 

2008. 44.7 62.2 17.3 12.7 

2009. 42.7 57.4 19.1 16.1 

2010. 39.9 54.4 21.2 19.0 

Source: Polls on working-age population 2004-2010, Statistical office of the Republic of 
Serbia 
 

The economic crisis has also contributed to all of this and it had a 
major impact on the increase of unemployment in the Republic of Serbia. 
Therefore, we will hereafter, on the bases of the data derived from the 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 8

Labor Force Survey (LFS), try to analyze the position of women in the 
labor market in relation to men, and then we will compare the results with 
those existing in the Member States of the European Union. 

 
 

Graph 3: Structure of employed working-age people according to their 
qualifications and gender, 2011. 

 

 
Source: 
http://webrzs.stat.gov.rs/WebSite/repository/documents/00/00/61/71/SB_550_ARS2011_S
AJT.pdf 

 
 

The previous chart shows us that the percentage of working men and 
women with secondary school is the highest, while the smallest is of those 
with no school. 

As for the employees by the type of ownership, it is evident that 
registered private property dominates (52.3%), then it is followed by state-
owned property (43%). The structure of people according to gender who 
are employed by the forms of the ownership is given in the following table: 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 9

Table 2: Structure of employees according to the property form, 2011 
 
  Gender 
15-64 Total Male Female 
Total    
Private registered property 52.3 55.2 48.6 
State property 43.0 38.9 48.2 
Other forms 
 property 

3.0 3.5 2.3 

Private non-registered property 1.7 2.3 1.0 

Source: 
http://webrzs.stat.gov.rs/WebSite/repository/documents/00/00/61/71/SB_550_ARS2011_S
AJT.pdf 
 

Graph 4: Structure of employees according to the property form, 2011. 
 

 
Source:  Poll on working-age population 2011, Statistical office of the Republic of Serbia 

 
Age and education are important factors of involvement in the work 

force in the European Union, where gender differences in activity rates 
decrease with higher levels of education, but increase with age. However, 
within the EU, the increase in female employment is noted, especially in 
the period from 2003 to 2008 when the female employment rate increased 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 10

from 55.0% to 59.1%. In 2011, the unemployment rate for women was 
9.8% and 9.6% for men. 

Table 3 presents the data on the unemployment rate in Serbia and in 
selected European countries and it can be clearly seen that Serbia belongs 
to the group of countries with very high unemployment. Only FYR 
Macedonia (31.7%) and Spain (19.8%) have a higher unemployment rate 
than Serbia. Number of employees in Serbia is constantly decreasing 
starting from 1989 (Golubović N., 2011, p. 425). 
  
Table 3: Unemployment rates in Serbia and in chosen European countries 
 

Source: Eurostat Statistics in Focus 8/2011 and the poll on working-age population, 
2010. 
 

According to the latest available Eurostat data, in March 2012 the 
unemployment rate for women was 10.3% and 10.2% for men. Regarding 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 11

member states, the lowest employment rates are recorded in Malta, Greece 
and Italy and highest in Denmark and the Netherlands (Tanjević, Opačić, 
2012). All of this points to the fact that the European Union has achieved 
good results in reducing unemployment among men and women. 

The Development of Female Entrepreneurship in the Function of 
Overcoming Unemployment of Women in Serbia 

During the social and economic transition in Serbia, an increase in 
inequality between women and men in all spheres, especially in the world 
of work and employment, occurred. The concept of work is changing, the 
vaguely defined work contracts and atypical forms of employment are 
increasing, and women are hit by the negative effects of sudden changes in 
the labor market more than men (Tanjević, Opačić, 2012). 

Although The First National Employment Strategy for the Republic 
of Serbia for the period from 2005 to 2010 was made and in which the 
direction and scope of activities needed to successfully solve the problems 
of unemployment and to create an efficient labor market were defined, 
desired results were not achieved. They were not achieved, primarily due 
to three sets of factors (Radović Marković, M. et al. 2010, p. 19): 

1. process of transition and privatization; 
2. labor legislation and labor market institutions and 
3. income tax system. 
The data about the unemployment rate presented above only show 

the trend of the unemployment rate in Serbia, both for men and women. 
The unemployment rate of 20% (SBS, 2010) put Serbia among countries 
with the highest unemployment rate in Europe, which is also one of its 
greatest social and economic problems. In this situation, the female 
entrepreneurship or starting independent business activities by women is 
one of the most important ways to solve unemployment and earnings 
through self-employment of women (Djurković Vemic, 2012, p.251). 

When it comes to an employment status, women are two times less 
self-employed than men and they work as contributing family members 
three times more often than men do. The position of women in the labor 
market is less favorable because they have less support than men in the 
sphere of public and private life. The research on female entrepreneurs in 
Serbia has shown that among the youngest ones (19-30) there is more than 
a half of them who have at least one parent who is an entrepreneur  



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 12

(51.5%), while that percentage was significantly lower in case of the oldest 
entrepreneurs (10.6%) (SeConS, 2012). This suggests that entrepreneurship 
is taught as a lifestyle (Blagojevic Houston, 2012). 

On the following graph it can be seen that the number of people 
employed by female entrepreneurs is bigger than the number of female 
entrepreneurs themselves, while in case of male entrepreneurs the situation 
is slightly different. These data should be seen  in the light of the findings 
of some studies which show that women entrepreneurs are often associated 
with solving family problems, mostly dealing with unemployment of a 
husband and children (SeConS, 2012,). However, the motivation for 
entrepreneurship is different for women and men to some extent, which 
results in different effects on employment (Blagojevic- Houston, 2012). 

 
Graph 5: Entrepreneurs according to gender and employment at 

entrepreneurs 2003-2010 (in thousands) 
 

 
Source: Blagojevic Houston M. (2012) “Women and Men in Serbia: What do numbers tell 
us?”, UN WOMEN United Nations Agency for Gender Equality and Empowerment of 
Women 
 

In Serbia, women own only 25% of companies and they are usually 
owners of smaller companies, which shows that the economic potential of 
women is slightly used. On the top of the ownership (management) 
hierarchy of every fifth company is a woman, mostly in smaller companies 
whose activities are health services and spa or recreation centres. In the 
region of Belgrade every fourth company is headed by a woman, in 



Vujičić, S., et al., The Development of Female, JWE (2012, No. 3-4, 1-16) 13

Šumadija and Western Serbia every seventh company is led by a female 
entrepreneur (SME Report for 2010, 
http://narr.gov.rs/index.php/Dokumenta/Istrazhivanja-i-analize). 

Potential of female entrepreneurship is still not fully utilized so it 
should be further encouraged and directed. In order to create a favorable 
climate for the development of female entrepreneurship, it is necessary to 
take measures that are related only to its encouragement. When women 
decide to start their own business, they are faced with many difficulties and 
obstacles, and the biggest problem lies in the lack of understanding in 
society as well as in the lack of confidence. 

Since the intellectual potential of women and their participation in 
European competitiveness are not fully used, the European Commission 
emphasizes the promotion of female entrepreneurship and creating a 
business environment which extends preferential treatment to establishing 
and running businesses with a woman at the helm. With this aim, on the 
fifth of October 2009, the project under the title “European network of 
female entrepreneurship ambassadors” was launched. 
(http://narr.gov.rs/index.php/Projekti/Podrshka-preduzetnishtvu/Evropska 
mrezha-ambasadorki-zhenskog-preduzetnishtva-WENS). 

The basic idea of the project is to establish a network of successful 
business women that will serve as role models to the future female 
entrepreneurs across Europe. At the beginning, the network consisted of 
150 ambassadors from 10 European countries (Denmark, France, 
Germany, Iceland, Ireland, Italy, Norway, Poland, Slovakia and Sweden), 
and then, at the end of 2010, 12 other countries joined, including Serbia 
(http://narr.gov.rs/index.php/Projekti/Podrshka-preduzetnishtvu/Evropska-
mrezha-ambasadorki-zhenskog-preduzetnishtva-WENS). 

The research on self-employment of women in Europe shows an 
increase in female entrepreneurship. However, according to a study of this 
aspect of gender equality that is reported in the literature, 25-30% of all 
people who have provided themselves with a job are women (Lohman, 
2001). 

Many programs of the European Union which induce and monitor 
women's entrepreneurship had a lot of influence on the increase of 
women's activity in starting a business and entrepreneurial activities. In 
this regard, alternative economy is often discussed, in other words the 
establishment of cooperatives, which would suit our model of alternative 
employment as a type of social enterprises. Starting from the fact that 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 14

women are the biggest losers in the transition, cooperatives have been 
recognized as a model of economic empowerment of women, in other 
words as one of the potentials for alternative employment of women, 
particularly vulnerable social groups such as the long-term unemployed, 
unskilled and marginalized groups of women, and in line with the 
experience that exists in the EU countries (http://www.vps.ns.ac.rs/ 
Materijal/mat4898.pdf). 

Conclusion 

Serbia is faced with high unemployment rate for years. To solve this 
problem it is essential that all relevant factors in the country focus on 
creating real economic and social conditions. One of the possibilities of 
reducing the unemployment is female entrepreneurship which is getting a 
very important role and is becoming an important potential for the 
economic development of a country. 

During the last decade, female entrepreneurship in Serbia marks a 
significant shift, and there is an increasing participation of women in 
business. The problem that is the most relevant and which needs to be 
solved in order to develop this sector in the right way is a financial support 
to women who want to step into the world of entrepreneurship. 
Furthermore, attention must be directed to improving the environment for 
female entrepreneurship development (introduction of tax exemptions, 
easier access to the sources of finance, support women through monitoring, 
advisory services). 

References 

[1] Blagojevic Houston M. (2012) “Women and Men in Serbia: What do numbers 
tell us?”, UN WOMEN United Nations Agency for Gender Equality and 
Empowerment of Women 

[2] Cabrilo, S., Hristić, D., Savic-Sikoparija, T. (2011) “Exploring the 
characteristics of women leaders and a new style of leadership during the 
economic crisis”, Business Economics, Edukons, Sremska Kamenica, V (2), 
Vo1. IX., p. 83-103. 

[3] Djurković Vemić, J. (2012) ”The role and importance of female 
entrepreneurship in the development of a new private sector in Serbia”, 
Business Economics, Edukons, No.1, 239 to 257 

[4] Dafoe, S. (2001) The Financial Dilemma of Women Entrepreneurs. 



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[5] Lohman, H. (2001) “Self-employed or Employee, Full-time or Part-time? 
Gender Differences in the Determinants and Conditions for Self-employment in 
Europe and the US”. http://www.mzes.uni.mannheim.de/publications/wp/wp-
38.pdg 

[6] Nziku, M Dina “Tanzanian Education and Entrepreneurial Influence among 
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[7] Pejic, B. (2011)”Characteristics of women in the labor market of Serbia”, The 
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[8] Pilić, V. (1969): “Characteristics and problems of female labor force in 
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[9] Popović, D. (1998): Women Scientists in Natural Sciences: A Free Choice 
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[10] Radovanovic, V., Maksimovic, M. “The labor market and (un)employment in 
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[11] Radović Marković, M. et. al. (2010) “Female Employment in Formal and 
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[12] The publication "Women and Men", The National Bureau of Statistics, 2011. 
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[14] Vukmirovic, N. (2005) “Models of supporting the development of female 
entrepreneurship”, Industry, vol. 33, no. 4, p. 1-18 

 
 
 

Razvoj ženskog preduzetništva u funkciji 
prevazilaženja nezaposlenosti u Srbiji 
 
 
A P S T R A K T 

Preduzetništvo je motor ekonomskog razvoja svake zemlje. Navedena činjenica 
ukazuje da se preduzetništvu mora posvetiti posebna pažnja i da ga stalno treba 
razvijati. Kao jedan od mogućih pravaca razvoja preduzetništva poslednjih decenija 
izdvaja se razvoj ženskog preduzetništva. Iako je u većini zemalja sveta prisutan stav 
da su žene manje sposobne za bavljenje preduzetništvom od muškaraca, i uprkos 
činjenici da i dalje u znatnoj meri velikim preduzećima upravljaju i rukovode 
muškarci, zabeležen je porast žena preduzetnica u svetu, posebno u zemljama u 



Journal of Women's Entrepreneurship and Education (2012, No. 3-4, 1-16) 16

razvoju. I u Srbiji se poslednjih godina beleži porast broja preduzeća na čijem su čelu 
žene, tako da on sada iznosi oko 25%, što znači da žene upravljaju ili rukovode 
svakim četvrtim preduzećem u Srbiji. Kao razloge za ovo povećanje može se navesti 
promena svesti kod žena-da i one mogu biti isto tako uspešne u vođenju preduzeća 
kao i muškarci, ali i u činjenicama da pokretanjem sopstvenog biznisa mogu dopuniti 
svoje prihode i napredovati kroz samozapošljavanje, povećati svoju samostalnost i 
biti poštovanije u društvu. Iako su žene primorane da se u današnjem svetu bore da 
budu priznate ne samo kao žene-majke već i kao žene-uspešne preduzetnice, njihova 
odlučnost, upornost, spremnost na prihvatanje rizika i svih teškoća koje donosi 
bavljenje preduzetništvom pokazuje da vreme ženskog preduzetništva tek dolazi. 
 
KLJUČNE REČI: žensko preduzetništvo, nezaposlenost, žene lideri, Srbija 
 
 
 
 

Article history: Received:  2 June, 2012 

Revised:  28 September, 2012 

Accepted:  10 October, 2012