GB/Z 42773-2023 Women’s entrepreneurship - Key definitions and general criteria
1 Scope
This document establishes a set of common definitions related to women's entrepreneurship, such as those for women-owned business and women-led business.
This document also defines women-led cooperatives and women-led informal enterprises. These definitions can be used, for example, in women’s economic empowerment programmes (such as procurement and trade programmes) and for the collection of internationally comparable data on women's entrepreneurship (including the impact on local and national economies). This document also provides criteria for evaluating important factors related to these definitions, such as ownership, management, and control, as well as how to handle dilution by investment.
Note: If an enterprise cannot be categorized according to the definitions given in this document, it does not necessarily mean that the enterprise is male-owned or male-led.
This document does not provide recommendations on how to initiate programmes based on the definitions and criteria, for example on public procurement. In addition, this document does not address issues such as how to promote conformity assessment.
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content constitutes requirements of this document. For dated references, only the edition cited applies. For undated references, the latest edition of the referenced document (including any amendments) applies.
ISO 26000, Guidance on social responsibility
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
women-owned business
business (3.10) that is more than 50 % owned by one or more women, whose management (3.5) and control (3.7) lie with one or more women, where a woman is a signatory of the business’s legal documents and financial accounts, and which is operated independently from businesses that are not owned by women
3.2
women-led business
business (3.10) that is at least 25 % owned by one or more women, whose management (3.5) and control (3.7) lie with one or more women, which has at least one third of the board of directors comprised of women, where a board exists, where a woman is a signatory of the business's legal documents and financial accounts, and which is operated independently from businesses that are neither led nor owned by women
3.3
women-led cooperative
cooperative (3.11) in which more than 50 % of the total number of votes are held by women, where the majority of the board of directors are women, and where the majority of leadership positions, if applicable, are held by women
3.4
women-led informal enterprise
informal enterprise (3.19) whose management (3.5) and control (3.7) lie with one or more women
Note: The woman/women make(s) the important strategic and operational decisions about the economic unit for which her/their work is performed and about the organization of her/their work, she/they is/are not accountable to or supervised by other persons, and she/they is/are not dependent on a single other economic unit or person for access to the market, raw materials or capital items.
3.5
management
ability to direct basic functions and day-to-day activities of the enterprise (3.12), including, but not limited to, signature responsibility for insurance and/or bonds, investments, the ability to sign payroll checks and letters of credit, the authority to negotiate contracts and financial services
3.6
operational authority
ability to manage the day-to-day activities of the enterprise (3.12)
3.7
control
power, as evidenced by the governance documents when applicable, to direct or cause the direction of the management (3.5) or policies and the ability to make decisions on strategy and the direction of the enterprise (3.12) without any provisions which restrict the ability of the woman/women from exercising this power
3.8
managerial control
demonstrated ability to make independent and unilateral decisions regarding the enterprise (3.12) necessary to guide the future and destiny of the enterprise
3.9
independence
ability of the enterprise (3.12) to perform in the enterprise’s area of specialty/expertise without substantial reliance on finances and other resources (e.g. equipment, automobiles, facilities) of enterprises that are neither led nor owned by women
Note 1: "Substantial reliance on finances and other resources" does not include those related to investment or start-up capital.
Note 2: The enterprise can rely on finances and/or resources of enterprises that are neither led nor owned by women, if these are obtained at market value.
3.10
business
undertaking carried out for profit in the course of which products are acquired or supplied whether at a price or otherwise
Note: Pass-through entities (3.18) or sales representatives are not included by this term.
[SOURCE: ISO 22059:2020, 3.1, modified.]
3.11
cooperative
autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise (3.12)
[SOURCE: Statement on the Cooperative identity, International Cooperative Alliance]
3.12
enterprise
institutional unit in its capacity as a producer of goods and services
Note 1: An enterprise can be a corporation (3.17), a quasi-corporation, or an unincorporated enterprise.
Note 2: Enterprises include all types of organizations defined as women-owned businesses (3.1) women-led businesses (3.2), women-led cooperatives (3.3) and women-led informal enterprises (3.4).
Note 3: This definition includes social enterprises, and both for-profit and non-profit enterprises.
[SOURCE: Glossary of the 1993 SNA, United Nations Statistical Commission, modified]
3.13
sole proprietor
individually owned business (3.10) whose assets are wholly owned by a single individual
3.14
general partnership
ongoing, formalized cooperation between an enterprise (3.12) and one or more other enterprises, including other enterprises, usually concerning particular services or activities
Note 1: A general partnership will usually have a contractual basis. Partners may make different
contributions, e.g. expertise, funding, training, materials in kind, premises.
Note 2: Cooperation between two or more enterprises within a single administrative unit is excluded.
Note 3: Time-limited cooperation on a specified project is excluded and counted as a cooperative project.
Note 4: A one-way relationship, whether paid or unpaid, where one partner is only supplying and the other only receiving services, is excluded.
[SOURCE: ISO 2789:2013, 2.5.5, modified.]
3.15
limited partnership
separate legal entity which behaves like a corporation (3.17) but whose members enjoy limited liability
Note: In effect, the partners are simultaneously both shareholders and managers.
3.16
limited liability company
private business (3.10) whose owners are legally responsible for its debts only to the extent of the amount of capital they invested
3.17
corporation
large business (3.10) or group of businesses authorized to act as a single entity and recognized as such in law
3.18
pass-through entity
business (3.10) entity whose income is taxed as the owner's personal income at the individual rate rather than as business income
