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Does gender matter for firm performance ? evidence from Eastern Europe and Central Asia

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  • Sabarwal, Shwetlena
  • Terrell, Katherine

Abstract

Using 2005 firm level data for 26 countries in Eastern and Central Europe, this paper estimates performance gaps between male and female-owned businesses, while controlling for location by industry and country. The findings show that female entrepreneurs have a significantly smaller scale of operations (as measured by sales revenues) and are less efficient in terms of total factor productivity, although the difference is small. However, women entrepreneurs generate the same amount of profit per unit of revenue as men. Although both male and female entrepreneurs in the region are sub-optimally small, women's returns to scale are significantly larger than men's, implying that women would gain more from increasing their scale. The authors argue that the main reasons for the sub-optimal size of female-owned firms are that they are both capital constrained and concentrated in industries with small firms.

Suggested Citation

  • Sabarwal, Shwetlena & Terrell, Katherine, 2008. "Does gender matter for firm performance ? evidence from Eastern Europe and Central Asia," Policy Research Working Paper Series 4705, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4705
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tolga Cebeci & Sammar Essmat, 2015. "Women-Led Enterprises in Turkey," World Bank Other Operational Studies 25409, The World Bank.
    2. Brixiova, Zuzana & Kangoye, Thierry, 2016. "Gender Disparities in Employment and Earnings in Sub-Saharan Africa: Evidence from Swaziland," IZA Discussion Papers 10455, Institute for the Study of Labor (IZA).
    3. Reyes Aterido & Mary Hallward-Driemeier, 2011. "Whose business is it anyway?," Small Business Economics, Springer, vol. 37(4), pages 443-464, November.
    4. Claudia Trentini & Malinka Koparanova, 2013. "Corruption and entrepreneurship: does gender matter?," ECE Discussion Papers Series 2013_1, UNECE.
    5. Claudia Piras & Andrea Filippo Presbitero & Roberta Rabellotti, 2013. "Definitions Matter: Measuring Gender Gaps in Firms' Access to Credit," Mo.Fi.R. Working Papers 90, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    6. Rijkers, Bob & Costa, Rita, 2012. "Gender and Rural Non-Farm Entrepreneurship," World Development, Elsevier, vol. 40(12), pages 2411-2426.
    7. Julita E. Wasilczuk, 2015. "Entrepreneurial Motivations and Management Decisions Versus Gender in Micro-Firms (Plec a motywacje przedsiebiorcze oraz podejmowane przez mikroprzedsiebiorcow decyzje zarzadcze)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 13(56), pages 115-130.
    8. Sarosh Sattar, 2011. "Opportunities for Men and Women : Emerging Europe and Central Asia," World Bank Other Operational Studies 2800, The World Bank.
    9. Brixiova, Zuzana & Kangoye, Thierry, 2016. "Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland," IZA Discussion Papers 10279, Institute for the Study of Labor (IZA).
    10. Nigar Hashimzade & Yulia Rodionova, 2013. "Gender Bias in Access to Finance, Occupational Choice, and Business Performance," Economics & Management Discussion Papers em-dp2013-01, Henley Business School, Reading University.
    11. World Bank, 2011. "Emerging Europe and Central Asia - Opportunities for men and women," World Bank Other Operational Studies 2820, The World Bank.
    12. Réal Labelle & Claude Francoeur & Faten Lakhal, 2015. "To Regulate Or Not To Regulate? Early Evidence on the Means Used Around the World to Promote Gender Diversity in the Boardroom," Gender, Work and Organization, Wiley Blackwell, vol. 22(4), pages 339-363, July.
    13. Brixiova, Zuzana & Kangoye, Thierry, 2015. "Gender and Constraints to Entrepreneurship in Africa: New Evidence from Swaziland," IZA Discussion Papers 9273, Institute for the Study of Labor (IZA).
    14. Nelli S. Gazanchyan & Nigar Hashimzade & Yulia Rodionova & Natalia Vershinina, 2017. "Gender, Access to Finance, Occupational Choice, and Business Performance," CESifo Working Paper Series 6353, CESifo Group Munich.

    More about this item

    Keywords

    Access to Finance; Banks&Banking Reform; Gender and Health; Gender and Law;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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