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Failure Rates for Female‐Controlled Businesses: Are They Any Different?

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  • John Watson

Abstract

Previous research has found that female‐owned businesses generally underperform male‐owned businesses on a variety of measures such as revenue, profit, growth, and discontinuance (failure) rates. It has been suggested that this finding might be the result of systematic differences between male‐ and female‐owned businesses, particularly industry differences. This paper analyzes data from a representative sample of 8,375 small and medium‐sized Australian enterprises that originally were surveyed in 1994–95, with follow‐up surveys in each of the subsequent three years for a subsample of businesses. The aim was to determine whether female‐owned businesses exhibit higher failure rates than male‐owned businesses and, if so, whether this finding persists after controlling for industry differences. The results suggest that while female‐owned businesses do have higher failure rates compared to male‐owned businesses, the difference is not significant after controlling for the effects of industry.

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  • John Watson, 2003. "Failure Rates for Female‐Controlled Businesses: Are They Any Different?," Journal of Small Business Management, Taylor & Francis Journals, vol. 41(3), pages 262-277, July.
    • Handle: RePEc:taf:ujbmxx:v:41:y:2003:i:3:p:262-277
    DOI: 10.1111/1540-627X.00081
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    Cited by:

    1. Costa, Paula L. & Ferreira, João J. & Torres de Oliveira, Rui, 2023. "From entrepreneurial failure to re-entry," Journal of Business Research, Elsevier, vol. 158(C).

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