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What the numbers tell: The impact of human, family and financial capital on women and men's entry into entrepreneurship in Turkey

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  • Dilek Cetindamar
  • Vishal K. Gupta
  • Esra E. Karadeniz
  • Nilufer Egrican

Abstract

Entrepreneurship contributes to economic development in countries worldwide. Entrepreneurial activity is beneficial for both men and women, including those in developing countries. However, men and women may not engage in entrepreneurship to the same extent because of differential access to (various forms of) capital. This study examines the relative importance of three types of capital -- human, family and financial -- in pursuing entrepreneurship. Using data collected in Turkey, we find that regardless of sex, all three forms of capital influence the likelihood of becoming an entrepreneur in varying degrees. Contrary to expectations, the impact of human capital on the likelihood of becoming an entrepreneur is higher for women than men. Data also revealed that family capital facilitates women's entry into entrepreneurship only when family size is very large (i.e. seven or more). No gender differences are observed in the impact of financial capital on the likelihood of becoming an entrepreneur. Findings suggest that to encourage entrepreneurship in Turkey, policy-makers should emphasize access to human and financial capital. Furthermore, findings suggest that women's likelihood of becoming an entrepreneur will be especially encouraged if they have increased access to education, as well as the skills necessary to take advantage of their family capital.

Suggested Citation

  • Dilek Cetindamar & Vishal K. Gupta & Esra E. Karadeniz & Nilufer Egrican, 2012. "What the numbers tell: The impact of human, family and financial capital on women and men's entry into entrepreneurship in Turkey," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(1-2), pages 29-51, January.
  • Handle: RePEc:taf:entreg:v:24:y:2012:i:1-2:p:29-51
    DOI: 10.1080/08985626.2012.637348
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    References listed on IDEAS

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    1. David G. Blanchflower, 2004. "Self-Employment: More may not be better," NBER Working Papers 10286, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Francisco Díez-Martín & Alicia Blanco-González & Camilo Prado-Román, 2016. "Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1079-1102, December.
    2. Knatko, D. & Shirokova, G. & Bogatyreva, K., 2015. "Industry choice by young entrepreneurs in different country settings: The role of human and financial capital," Working Papers 6426, Graduate School of Management, St. Petersburg State University.
    3. repec:kap:sbusec:v:49:y:2017:i:2:d:10.1007_s11187-017-9840-3 is not listed on IDEAS
    4. Sara Poggesi & Michela Mari & Luisa Vita, 2016. "What’s new in female entrepreneurship research? Answers from the literature," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 735-764, September.
    5. Hien Thu Tran & Enrico Santarelli, 2014. "Capital constraints and the performance of entrepreneurial firms in Vietnam," Industrial and Corporate Change, Oxford University Press, vol. 23(3), pages 827-864.
    6. Welsh, Dianne H.B. & Kaciak, Eugene & Thongpapanl, Narongsak, 2016. "Influence of stages of economic development on women entrepreneurs' startups," Journal of Business Research, Elsevier, vol. 69(11), pages 4933-4940.
    7. Manolova, T. & Shirokova, G. & Tsukanova, T. & Edelman, L., 2014. "The impact of family support on young nascent entrepreneurs's start-up activities: A family embeddedness perspective," Working Papers 6381, Graduate School of Management, St. Petersburg State University.
    8. Dianne H. B. Welsh & Eugene Kaciak & Caroline Minialai, 2017. "The influence of perceived management skills and perceived gender discrimination in launch decisions by women entrepreneurs," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 1-33, March.
    9. Gupta, Vishal K. & Goktan, A. Banu & Gunay, Gonca, 2014. "Gender differences in evaluation of new business opportunity: A stereotype threat perspective," Journal of Business Venturing, Elsevier, vol. 29(2), pages 273-288.
    10. Suwastika Naidu & Anand Chand, 2017. "National Culture, Gender Inequality and Women’s Success in Micro, Small and Medium Enterprises," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(2), pages 647-664, January.

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