Testing the Female Underperformance Hypothesis
AbstractMost previous studies have found evidence at the aggregate level that female entrepreneurs underperform relative to their male counterparts. This study conducts a comprehensive test of this finding. The test is conducted on a large Swedish sample of 4200 entrepreneurs (405 females) with 1 to 20 employees in all sectors of the economy. Our study confirms the results of several previous studies that female entrepreneurs tend to underperform relative to men when the data is examined at the most aggregate level. At the same time our data reveals sharp structural differences between male and female entrepreneurs. In an extensive multivariate regression with a large number of controls it turns out that female underperformance disappears for three out of four performance variables. The only exception is sales. No gender difference is found for profitability. A more detailed analysis reveals that the evidence of female underperformance is much weaker in larger firms and nonexistent in firms with only one employee. If it is true that female entreprenurs on average have weaker preferences for sales growth, while we consistently find that they do not underperform in terms of profitability, our study provides no support for female underperformance given differences in preferences.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 521.
Length: 14 pages
Date of creation: 15 Oct 1999
Date of revision:
Publication status: Published in Small Business Economics, 2000, pages 1-10.
Contact details of provider:
Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Entrepreneurship; Entrepreneurial performancce; Female Entrepreneurs; Female underperformance; Gender economics; Small business growth; Women business owners;
Other versions of this item:
- Du Rietz, A. & Henrekson, M., 1999. "Testing the Female Underperformance Hypothesis," Research Institute of Industrial Economics Working Papers 521, Research Institute of Industrial Economics (IFN).
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D92 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Firm Choice and Growth, Financing, Investment, and Capacity
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-01-24 (All new papers)
- NEP-IND-2000-01-24 (Industrial Organization)
- NEP-LAB-2000-01-24 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henrekson, Magnus & Johansson, Dan, 1999.
" Institutional Effects on the Evolution of the Size Distribution of Firms,"
Small Business Economics,
Springer, vol. 12(1), pages 11-23, February.
- Henrekson, Magnus & Johansson, Dan, 1998. "Institutional Effects on the Evolution of the Size Distribution of Firms," Working Paper Series 497, Research Institute of Industrial Economics.
- Henrekson, M. & Johansson, D., 1998. "Institutional Effects on the Evolution of the Size Distribution of Firms," Research Institute of Industrial Economics Working Papers 497, Research Institute of Industrial Economics (IFN).
- Rosa, Peter & Carter, Sara & Hamilton, Daphne, 1996. " Gender as a Determinant of Small Business Performance: Insights from a British Study," Small Business Economics, Springer, vol. 8(6), pages 463-78, December.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisabeth Gustafsson).
If references are entirely missing, you can add them using this form.