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WOMEN’S ENTREPRENEURSHIP IN STEM 709

physical science, engineering, mathematics, infor- workers in non-STEM occupations. Yet, the compar-
mation technology, and social science occupations as ative analysis of businesses and business owners in
STEM occupations and architecture and health occu- these industries relative to other industries are infor-
pations as science- and engineering-related, using mative of the trends related to STEM businesses and
2010 Standard Occupational Classifications (SOC) business owners.
occupational codes to define occupations (11). In the analysis of SBO data, only concentrations
In this study’s treatment of the ACS, STEM work- of STEM occupations alone, instead of STEM and
ers and entrepreneurs are identified as individuals STEM-related occupations, are used in defining
working in STEM or science- and engineering-related STEM-intensive industries. Considering the broader
occupations, excluding social science occupations. share of STEM and STEM-related occupations in
The decision to exclude social science occupations industry employment yielded educational services
was driven by the goal to focus on occupations with and health care and social assistance as additional
greater potential for commercialization activity. The STEM-intensive industries. In this industry, there
2010 SOC codes used in SOCPC’s STEM occupation is a large gap between the share of employment in
definition were then mapped to Census Bureau occu- STEM occupations (3%) and the share of employment
pations using the crosswalk developed by the Census in STEM and STEM-related occupations (25.7%).
Bureau (12). Therefore, many working in this industry may not
In the analysis of SBO data, STEM fields are fit a narrow definition of STEM suited to our com-
identified based on industries with relatively high mercialization focus; rather, they may be employed
concentrations of STEM occupations (i.e., high share in supporting or service roles, such as teachers or
of total employment that is in STEM occupations social workers.
based on SOCPC’s STEM occupation classification).
Specifically, industries defined at the two-digit North Identifying Entrepreneurs
American Industry Classification System (NAICS) The empirical analysis uses two proxies for entre-
code level and in which the share of employment preneurship based on availability in the data. In
in STEM occupations is above the national average the analysis of ACS data, entrepreneurs are identi-
of 5.8% are identified as STEM. This methodology fied based on self-employment in the job in which
identifies the following three industries as STEM- they spent the highest number of hours in the last
intensive (percentage of total employment in STEM week. This definition covers self-employment in
occupations given in parentheses): professional, sci- both incorporated and unincorporated businesses.
entific, management and administrative and waste Unincorporated businesses are sole proprietorships
management services (17.5%), information (14.2%), and partnerships, while incorporated businesses are
and manufacturing (12.1%). Public administration corporations that exist as legally separate from the
(9.7%) also falls above the national average; however, shareholders, limiting the shareholders’ liability for
the SBO is not administered to firms in this indus- the debts and losses of the business. Furthermore,
try given its largely private firm orientation. this definition includes all self-employed individuals
The decision to identify STEM fields based on two- regardless of their ownership share in the business.
digit NAICS codes was driven by the fact that SBO In contrast, the SBO data analysis focuses on pri-
data includes information on industry only based mary business owners who have a plurality ownership
on two-digit NAICS codes and no information on in a business (i.e., more than any other single owner in
occupation. Furthermore, a reliable crosswalk with a business even if it is less than 51% ownership share).
which to identify STEM-intensive industries by the If multiple plurality owners exist, primary business
SOC, provided by the U.S. Census Bureau, is also owners are identified as those that work the highest
only available at the two-digit level (12). This defi- number of hours in the business and work in a func-
nition of STEM, however, has certain limitations. In tion that provides a good or service, a function most
particular, at the aggregate two-digit NAICS code central to the production of commercial output. The
level, industries that are identified as STEM have use of both ACS and SBO data sources allows for the