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Determinants of the Business Performance of Women Entrepreneurs in the Developing World Context

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  • Lavlu Mozumdar

    (Department of Rural Sociology, Bangladesh Agricultural University, Mymensigh-2202, Bangladesh
    Business Management and Organisation, Wageningen University, Hollandseweg 1, 6707 KN Wageningen, The Netherlands)

  • Geoffrey Hagelaar

    (Business Management and Organisation, Wageningen University, Hollandseweg 1, 6707 KN Wageningen, The Netherlands)

  • Gerben van der Velde

    (Business Management and Organisation, Wageningen University, Hollandseweg 1, 6707 KN Wageningen, The Netherlands)

  • S.W.F. Omta

    (Business Management and Organisation, Wageningen University, Hollandseweg 1, 6707 KN Wageningen, The Netherlands)

Abstract

Resource-based theory posits the deployment of resources by entrepreneurs to achieve performance without questioning the possibility of deploying these resources. The question, however, remains how resources are deployed in developing countries that constrain the choice in the deployment of resources. To answer this, we analyse the factors determining the business performance of women entrepreneurs in a developing country context. Data were collected through a survey sent to 211 Bangladeshi women entrepreneurs engaged in handicraft businesses. Results from hierarchical multiple regression analyses show that (1) the social environment in terms of socio-cultural norms and customs hinders the performance; (2) the entrepreneurial orientation (EO) dimensions, namely, combined Innovative–proactive EO and Risk-taking EO, and the business trainings positively affect the performance; and (3) the social ties negatively influence the performance, which may be due to the excessive presence of strong ties in a personal social network. Based on results, we suggest that environment (context) is a contingent factor for the way personal traits such as EO, human, and social capital can be used by women entrepreneurs to achieve performance in a developing world context.

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  • Lavlu Mozumdar & Geoffrey Hagelaar & Gerben van der Velde & S.W.F. Omta, 2020. "Determinants of the Business Performance of Women Entrepreneurs in the Developing World Context," J, MDPI, vol. 3(2), pages 1-21, May.
    • Handle: RePEc:gam:jjopen:v:3:y:2020:i:2:p:17-235:d:365280
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    Cited by:

    1. Lavlu Mozumdar & Geoffrey Hagelaar & Valentina C. Materia & S. W. F. Omta & Gerben Velde & Mohammad Amirul Islam, 2023. "Fuelling Entrepreneurial Orientation in Enhancing Business Performance: Women Entrepreneurs’ Contribution to Family Livelihood in a Constrained Context, Bangladesh," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(3), pages 623-655, June.
    2. Samuel Godadaw Ayinaddis, 2023. "Socio-economic factors affecting women’s entrepreneurial performance in MSEs in Bahir Dar City, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.
    3. Haifa Asif, 2022. "Management skills enhancement improves women entrepreneurship: a study of the informal sector in Lahore," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 13-22, December.
    4. Faria Islam Oridi & Md. Shawan Uddin & Md. Faisal-E-Alam & Taha Husain, 2022. "Prevailing factors of rural women entrepreneurship in Bangladesh: evidence from handicraft business," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 305-318, December.

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