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Networks, Start-Up Capital and Women's Entrepreneurial Performance in Africa: Evidence from Eswatini

Author

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  • Brixiova, Zuzana

    () (University of Economics Prague)

  • Kangoye, Thierry

    () (African Development Bank)

Abstract

This paper analyzes the role of networks in access of women entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa. The paper first shows that higher initial capital is associated with better sales performance for both men and women entrepreneurs. Women entrepreneurs start their firms with smaller start-up capital than men and are more likely to fund it from their own sources, which reduces the size of their firm and sales level. However, women with higher education start their firms with more capital than their less educated counterparts. Moreover, women who receive support from professional networks have higher initial capital, while those trained in financial literacy more often access external funding sources, including through their networks.

Suggested Citation

  • Brixiova, Zuzana & Kangoye, Thierry, 2019. "Networks, Start-Up Capital and Women's Entrepreneurial Performance in Africa: Evidence from Eswatini," IZA Discussion Papers 12198, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12198
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    References listed on IDEAS

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    Cited by:

    1. Brixiová, Zuzana & Kangoye, Thierry & Tregenna, Fiona, 2020. "Enterprising women in Southern Africa: When does land ownership matter?," GLO Discussion Paper Series 457, Global Labor Organization (GLO).

    More about this item

    Keywords

    networks; start-up capital; multivariate analysis; Africa;

    JEL classification:

    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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