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Gender and the Business Environment for New Firm Creation

Author

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  • Leora F. Klapper
  • Simon C. Parker

Abstract

The authors summarize the extant literature on the relationship between gender and entrepreneurship. They note significant quantitative gender differences in business entry, with male-owned firms heavily prevailing over firms owned by women in many parts of the world. They find that enterprises owned by men on the one hand and women on the other are generally concentrated in different sectors, women entrepreneurs being better represented in labor intensive sectors such as trade and services rather than capital intensive manufacturing industries. They also observe certain gender differentials in business survival and growth patterns. Yet an analysis of a large body of literature does not suggest that, in general, the so called "gender gap" in entrepreneurship can be explained by explicit discrimination in laws or regulations. Rather, differences in quantitative and qualitative indicators of business entry and performance can in part be explained by a number of business environment factors that disproportionately affect a woman's decision to operate a business in the formal sector. For example the concentration of women in low capital intensive industries--which require less funding and at the same time have a lower potential for growth and development--might also be driven by barriers against women regarding access to finance. Furthermore, women may have relatively less physical and "reputational" collateral than men, which limits their access to finance. Overall the literature suggests that improvements in the business environment can help promote high-growth female entrepreneurship. Copyright 2011, Oxford University Press.

Suggested Citation

  • Leora F. Klapper & Simon C. Parker, 2011. "Gender and the Business Environment for New Firm Creation," World Bank Research Observer, World Bank Group, vol. 26(2), pages 237-257, August.
  • Handle: RePEc:oup:wbrobs:v:26:y:2011:i:2:p:237-257
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    File URL: http://hdl.handle.net/10.1093/wbro/lkp032
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    Cited by:

    1. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2014. "Political reservations and women's entrepreneurship in India," Journal of Development Economics, Elsevier, vol. 108(C), pages 138-153.
    2. Ghani, Ejaz & Kerr, William & O'Connell, Stephen, 2013. "Promoting Women’s Economic Participation in India," World Bank - Economic Premise, The World Bank, issue 107, pages 1-6, February.
    3. Hallward-Driemeier, Mary & Gajigo, Ousman, 2015. "Strengthening Economic Rights and Women’s Occupational Choice: The Impact of Reforming Ethiopia’s Family Law," World Development, Elsevier, vol. 70(C), pages 260-273.
    4. Xuemei Xie & Jiuchang Lv, 2016. "Social networks of female tech-entrepreneurs and new venture performance: the moderating effects of entrepreneurial alertness and gender discrimination," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 963-983, December.
    5. Campos,Francisco Moraes Leitao & Goldstein,Markus P. & Mcgorman,Laura & Munoz Boudet,Ana Maria & Pimhidzai,Obert, 2015. "Breaking the metal ceiling : female entrepreneurs who succeed in male-dominated sectors," Policy Research Working Paper Series 7503, The World Bank.
    6. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    7. repec:eee:riibaf:v:41:y:2017:i:c:p:336-346 is not listed on IDEAS
    8. Jessica K. Simon & Megan McDonald Way, 2016. "Why the Gap? Determinants of Self-Employment Earnings Differentials for Male and Female Millennials in the US," Journal of Family and Economic Issues, Springer, vol. 37(2), pages 297-312, June.
    9. repec:wsi:jdexxx:v:22:y:2017:i:03:n:s1084946717500194 is not listed on IDEAS
    10. Sharon Yong Yee Ong & Nurul Fadly Habidin & Mad Ithnin Salleh & Nursyazwani Mohd Fuzi, 2016. "Relationship of Entrepreneurship Practice and Business Performance of Women Entrepreneur in Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(11), pages 95-109, November.
    11. Thomas Buser, 2016. "The Impact of Losing in a Competition on the Willingness to Seek Further Challenges," Management Science, INFORMS, vol. 62(12), pages 3439-3449, December.
    12. AfDB AfDB, 2015. "North Africa - Working paper - Promoting North African Women’s Employment through SMEs," Working Paper Series 2321, African Development Bank.
    13. Ghani,Syed Ejaz & Grover,Arti & Kerr,Sari & Kerr,William Robert, 2016. "Will market competition trump gender discrimination in India ?," Policy Research Working Paper Series 7814, The World Bank.
    14. Buvinic, Mayra & Furst-Nichols, Rebecca, 2014. "Promoting women's economic empowerment : what works ?," Policy Research Working Paper Series 7087, The World Bank.
    15. Cagla Okten, 2015. "Female Entrepreneurship in Turkey," World Bank Other Operational Studies 25410, The World Bank.
    16. Jennifer M. Sequeira & Sherrhonda R. Gibbs & Norma A. Juma, 2016. "Factors Contributing To Women’S Venture Success In Developing Countries: An Exploratory Analysis," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-31, March.
    17. Kalnins, Arturs & Williams, Michele, 2014. "When do female-owned businesses out-survive male-owned businesses? A disaggregated approach by industry and geography," Journal of Business Venturing, Elsevier, vol. 29(6), pages 822-835.
    18. World Bank Group, 2016. "Women Entrepreneurs in Indonesia," World Bank Other Operational Studies 24751, The World Bank.
    19. Aterido, Reyes & Beck, Thorsten & Iacovone, Leonardo, 2013. "Access to Finance in Sub-Saharan Africa: Is There a Gender Gap?," World Development, Elsevier, vol. 47(C), pages 102-120.
    20. Babbitt, Laura G. & Brown, Drusilla & Mazaheri, Nimah, 2015. "Gender, Entrepreneurship, and the Formal–Informal Dilemma: Evidence from Indonesia," World Development, Elsevier, vol. 72(C), pages 163-174.
    21. repec:spr:intemj:v:14:y:2018:i:2:d:10.1007_s11365-017-0450-y is not listed on IDEAS
    22. Klyver, Kim & Nielsen, Suna Løwe & Evald, Majbritt Rostgaard, 2013. "Women's self-employment: An act of institutional (dis)integration? A multilevel, cross-country study," Journal of Business Venturing, Elsevier, vol. 28(4), pages 474-488.
    23. Diana M. Hechavarría & Charles H. Matthews & Paul D. Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    24. Aragon-Mendoza, Juan & Raposo, Mario & Roig-Dobón, Salvador, 2016. "Gender matters in venture creation decision," Journal of Business Research, Elsevier, vol. 69(6), pages 2081-2086.

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