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Enabling Women Entrepreneurs: Exploring Factors That Mitigate the Negative Impact of Fertility Rates on Female Entrepreneurship

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  • Nabamita Dutta
  • Sushanta Mallick

Abstract

In the wake of the global financial crisis that resulted in many business closures and given the long‐term problem of population aging in advanced countries and poverty in low‐income countries, it has become important to investigate whether new business formation by women entrepreneurs is a path to prosperity even when countries experience low fertility rates. Existing country studies suggest that female entrepreneurship can have favorable development outcomes through the channels of employment, innovation and welfare, but this paper undertakes a holistic cross‐country analysis on the determinants of female entrepreneurship, exploring the role of fertility rates in affecting female entrepreneurial outcomes. We find that the impact of fertility rate is negative and significant in influencing entrepreneurship. But factors like greater tertiary enrollment of females and higher ratios of female to male labor force participation rates can offset the negative impact of fertility rate and in fact can make the impact positive. Additionally, greater access to informal finance makes female enrollment more effective in mitigating the negative impact of fertility rate.

Suggested Citation

  • Nabamita Dutta & Sushanta Mallick, 2018. "Enabling Women Entrepreneurs: Exploring Factors That Mitigate the Negative Impact of Fertility Rates on Female Entrepreneurship," Kyklos, Wiley Blackwell, vol. 71(3), pages 402-432, August.
  • Handle: RePEc:bla:kyklos:v:71:y:2018:i:3:p:402-432
    DOI: 10.1111/kykl.12175
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    File URL: https://doi.org/10.1111/kykl.12175
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    Citations

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    Cited by:

    1. Brixiová, Zuzana & Kangoye, Thierry & Said, Mona, 2020. "Training, human capital, and gender gaps in entrepreneurial performance," Economic Modelling, Elsevier, vol. 85(C), pages 367-380.
    2. Luis San Vicente Portes & Vidya Atal & Miriam Juárez-Torres, 2019. "Women's Empowerment: Aggregate Effects on Savings and Wealth," Working Papers 2019-21, Banco de México.
    3. Dutta, Nabamita & Jana, Dipparna & Kar, Saibal, 2020. "Does state-level per capita income affect juvenile delinquency? An empirical analysis for Indian states," Economic Modelling, Elsevier, vol. 87(C), pages 109-120.
    4. Spataro, Luca & Fanti, Luciano & Pacini, Pier Mario, 2019. "Saving, fertility and public policy in an overlapping generations small open economy," Economic Modelling, Elsevier, vol. 81(C), pages 16-29.
    5. Dutta, Nabamita & Sobel, Russell S., 2018. "Entrepreneurship and human capital: The role of financial development," International Review of Economics & Finance, Elsevier, vol. 57(C), pages 319-332.
    6. Peng, Congmin & She, Po-Wen, 2020. "Are women less likely to be managers in the UK labour market?," Economic Modelling, Elsevier, vol. 85(C), pages 317-324.
    7. Georgios Mavropoulos & Theodore Panagiotidis, 2020. "Why Young Adults Retreat from Marriage? An Easterlin Relative Income Approach," Discussion Paper Series 2020_01, Department of Economics, University of Macedonia, revised Jan 2020.
    8. Thaís García-Pereiro & Ivano Dileo, 2019. "Female national-level entrepreneurship and the gendered dimension of the cultural environment," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - Italian Review of Economics, Demography and Statistics, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 73(3), pages 77-88, July-Sept.
    9. Ng, Wung Lik & Wang, Yin-Chi, 2020. "Waiting as a signal: Why women are delaying fertility?," Economic Modelling, Elsevier, vol. 87(C), pages 471-479.
    10. Zuzana Brixiová & Thierry Kangoye, 2019. "Networks, start-up capital and women's entrepreneurial performance in Africa: Evidence from Eswatini," SALDRU Working Papers 257, Southern Africa Labour and Development Research Unit, University of Cape Town.

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