Toward Understanding Another Gender Gap: How Women in Economic Development Perceive Access to Capital

This study uses survey data collected from members of the International Economic Development Council (IEDC) to assess gender differences in the perceptions of female economic developers involved in the policy process. The analysis reveals women are more likely than their male counterparts to believe access to capital serves as a barrier to economic development in the communities they serve. This finding is important because bureaucratic perceptions are anticipated to have a gendered dimension, because there is ample evidence that women-owned businesses less frequently obtain external financing than do those owned by men. This obstacle to growing a business may therefore resonate more strongly with female economic developers if their perceptions reflect experiences and socialization processes shared with the women they represent. Results of an ordinal logistic regression model support this contention and contribute to the study of economic development and the role of women in the policy process.     

The Differences in Financial Structure Between Women- and Men-Owned Family Businesses

Lenders often are faced with the challenge of evaluating the financial success of a business or a proposed business by examining the financial records of the household, reasoning that an assessment of the household's financial position should be a plausible indicator of the financial status of the business. Utilizing data from the recently released Family Business Survey, this study uses financial information about both the family and the business to examine the relationship between household financial indicators and business financial indicators for women- and men-owned family businesses. The results suggest that, while household financial statements may be good indicators for men-owned businesses, they appear to be much less reliable for women-owned businesses.     

Work and Employment in Small Businesses: Perpetuating and Challenging Gender Traditions

More and more women and men are becoming dependent on some form of small business activity for all or part of their livelihoods but there is little research offering insight into gender and working practices in small businesses. In this article we assess some theoretical approaches and discuss these against an empirical investigation of micro-firms run by women, men and mixed sex partnerships. In the ‘entrepreneurship’ literature, with its emphasis on the individual business owner, we find little guidance. We argue that in the ‘modern’ micro-business, family and work are brought into proximity as in the ‘in between’ organizational form described by Weber. The celebrated ‘flexibility’ of small firms often involves the reproduction within modernity of seemingly pre-modern practices in household organization and gender divisions of labour. This is true in the Britain of the 1990s in a growing business sector normally associated neither with tradition nor with the family. Tradition, however, is never automatic or uncontested in a ‘post-traditional society’. A minority of women and men in micro-enterprises actively resist traditional solutions and even traditional imagery of male and female behaviour. For this small group alone new economic conditions seem to bring new freedom.     

TRUST,TRUSTWORTHINESS, AND BUSINESS SUCCESS: LAB AND FIELD FINDINGS FROM ENTREPRENEURS

This article contributes to the literature on trust and small businesses in developing countries by linking the level of trust in others that entrepreneurs display in a lab setting to sales data outside of the lab. The results show a robust positive correlation between trust and business success (with sales used as a measure of success): The successful entrepreneurs invested in trust more than the less successful ones did. In the lab, trusting in others is highly profitable, with successful entrepreneurs doing so to the degree required to maximize revenue. However, I found no association between trustworthiness and business success. (JEL O17, L26, C91)     

Gender Differences in Perceived Business Success and Profit Growth Among Family Business Managers

Using data from the 1997–2000 National Family Business Surveys (NFBS), this study investigated the effect of gender on business success and profit growth among family businesses. The Ordinary Least Squares (OLS) results indicate that all else being equal, female managers perceived their businesses as more successful than male managers, and they reported more profit growth between 1996 and 1999 than male managers. The results of the dummy variable interaction approach also show that a differential response existed in profit growth over time between female and male managers in relation to health status, business liabilities, business size, and whether the business was home-based. This study concludes that there are many distinct differences between male and female managers in business performance.     

Small Business Success in Rural Communities: Explaining the Sex Gap*

Abstract Building on previous theory and research, we propose a “structural relational” view of the sex gap in small business success. Our findings, based on analyses of data from 423 small business owners in Iowa, show support for our model and suggest that links between owners, social relational processes, business structure, and small business success operate differently depending on the industry location of the business and the owner's sex. Results also indicate that the business owner's sex has direct and indirect effects on business success. This finding suggests that social relations, organizations, and institutions are all gendered in ways that influence the sex gap in sales, but that further research is needed to more fully explain sex differences in small business success. We discuss these and other findings in terms of their theoretical and practical implications, and suggest directions for future research.     

Exist or exit? Women business‐owners in Bangladesh during COVID‐19

Within the unique context of COVID‐19, this feminist research provides novel insights on how gender‐specific issues are articulated in the experiences of women concerning their small businesses in a patriarchal developing nation. Based on the interviews of women business‐owners in Bangladesh, this research reveals the diversified gendered experiences of women in private and public spheres in continuing their business operations during the pandemic period. It also unveils patriarchal practices regarding women's discontinuing or closing down ventures due to the COVID‐19 crisis. Thus, the research substantially advances the understanding on the influence of gender on women's continuing or discontinuing or even closing down their businesses in a highly patriarchal developing nation during the pandemic period. It further offers important suggestions for policy practitioners in supporting women business‐owners of patriarchal developing nations during the COVID‐19 pandemic.     

Social network and family business: Uncovering hybrid family firms

What does it mean for a private enterprise in China to be embedded in a family? Our purpose here is twofold: (1) use social network analysis to describe what it means for a firm to be embedded in a family, (2) reveal from the application a new kind of firm, not family, yet akin to family. Armed with data on a large probability sample of private enterprises — a third of which meet ownership and employment criteria of being family businesses — we uncover a category of “hybrid family firms” that look modern in the style of firms that exclude family, but operate socially in ways similar to family firms. Our conclusion from summary statistics on the sample is that there are no differences in average performance level or network advantage for the three categories of businesses: family firms, hybrid family firms, and family-excluded firms. The fact that CEOs of family firms and hybrid family firms more often turn to family as key business contacts is a fact about network composition that raises no question about network mechanisms. Whether the CEO turns to more or fewer family contacts, government help is more likely with stronger political connections, and business success and survival are more likely with a large, open network. That said, the look-modern, act-traditional hybrid family firms stand alone in prospering with a CEO embedded in a closed business network. Recognition of hybrid family firms adds to the literature’s illustrations of social network analysis used to distinguish types of businesses and business people, and extends the population of organizations within which governance and strategy are likely to be better understood when viewed through a family logic.     

Profiling a New Generation of Female Small Business Owners in New Zealand: Networking,Mentoring and Growth

The contribution of female small business owners to economic development in Western developed countries such as New Zealand, Australia, the United Kingdom, the United States and Canada, is generally under–researched and traditionally grounded in male norms. Increasingly policy–makers acknowledge that in countries like New Zealand where 85% of business employs five or less people, small business offers the greatest employment potential. Not enough is known, though, about the growth orientation and characteristics of female small business owners. This article reports findings from the largest empirical study of small business undertaken in New Zealand and provides inter–gender comparison between male and female small business owners and for intra–gender contrast between networked female small business owners and women who did not belong to a business network. The results showed that the networked women, who were in the main better educated and more affiliative by nature, were more expansionist than both other female small business owners and men. The networked women were also more likely to have a business mentor. The findings confound earlier research suggesting women are less growth–orientated and wish only to satisfy intrinsic needs from their businesses. The article concludes by discussing the need to acknowledge the heterogeneity of female small business and what this means for policy–makers when assessing their socio–economic potential.     

Promoting women entrepreneurs in Lebanon: the experience of UNIFEM

The work of the United Nations Development Fund for Women (UNIFEM) in West Asia began in 1994 with a regional program to strengthen women-owned enterprises in Jordan, Syria, and Lebanon. In Lebanon, a survey of 100 women entrepreneurs, as well as nontraditional credit programs and banks, was conducted prior to program design. A second survey assessed micro-entrepreneurs' demands for financial and other services. Since gender analysis was a new concept in Lebanon, UNIFEM organized a gender awareness workshop for representatives of government, nongovernmental organizations, and the banking sector, followed by a strategic planning workshop. The surveys confirmed that women were concentrated mainly in the less profitable economic sectors, producing handicrafts and food products or running small service or trading companies. Women were less likely than men to get bank loans or to register their businesses. Women's problems accessing credit--the main obstacle limiting their ability to develop their businesses--were compounded by their lack of information, male-oriented collateral requirements, and discriminatory banking regulations. UNIFEM decided to channel counseling of women entrepreneurs on legal matters, marketing, and credit sources through the Ministry of Social Affairs. It is expected that knowledge of gender-related employment issues and the use of gender-specific analysis will become integral to the Ministry's program as a result.     

Rural women in local agrofood production: Between entrepreneurial initiatives and family strategies. A case study in Greece

Recent years have seen a relative flourishing in the Greek countryside of small women’s businesses engaged in the production of local traditional agrofood products for an emerging consumer demand for foods of specific quality. In the present article the central research question may be summarized as: “to what extent do these women perceive their business more as a means of supplementing family income than as a point of departure for a personal professional career?” We argue that women as entrepreneurs probably adhere to different behavioural patterns from men and have different expectations in the sense that they attach more importance to maintaining equilibrium between the requirements of profession and the demands of family life than they do to achieving economically rational goals through business success.     

Women in Business-owning Families: a Comparison of Roles,Responsibilities and Predictors of Family Functionality

The purpose of this study is to compare groups of women associated with family businesses and ascertain predictors of functionality. The sample consisted of 589 women divided into five groups based on their roles in the business. Of interest were various combinations of work at home, in the family business, and outside the business and how multiple roles affect the family. The women varied on several characteristics with female business managers less likely to be married than other women and generally operating smaller businesses. The women were not significantly different on levels of family functioning. Family goal success, satisfaction with business role, and being married were positive significant predictors of family functionality. Higher levels of household tension were negatively associated with family functionality. Family therapists and family business consultants must be cognizant of the multiple role responsibilities of women associated with a family firm.     

Adjustment Strategy Use in Minority Family Businesses: Differences Across Gender

The objectives of this study were to explore the adjustment strategies employed by minority female owners of small family firms and to compare their use of adjustment strategies with those of their male counterparts. There were significant gender differences in the adoption of adjustment strategies among minority-owned family firms. The major findings of this study suggest that minority female business owners were more likely to reallocate family resources to help with business tasks and were more likely to intertwine both tasks than minority male business owners when demands were particularly great for the family or the firm. In addition, compared to male business owners, a relatively higher proportion of female business owners used volunteer help without pay during hectic times. Implications for business consultants and educators working with minority business owners are discussed.     

Do women have longer conversations? Telephone evidence of gendered communication strategies

We investigate whether there are systematic gender differences in communication behavior by telephone. First, we report a study of anonymized billing records of 3103 subscribers to a large mobile operator in Italy and Greece over 2 years from 2006 to 2008. Faced with identical tariffs, women make fewer calls than men, and their calls last 16% longer controlling for other factors. Secondly, we report a study of some 92,000 person-days of calls to call-center employees of a large consumer services company operator at four sites in Germany. Calls randomly allocated to women last 15% longer than those of men controlling for other factors. There is no evidence, however, that this results in the women being any less effective employees than the men; indeed, in operations involving sales where it is possible to measure productivity by this criterion, female employees make slightly more sales per shift than men. It appears instead to reflect systematic gender differences in communication strategies, though it may reflect also an element of preference by both men and women for speaking to women. The findings of both studies are highly statistically significant and are found across all age groups. The magnitude of gender differences is sensitive to the costs of communication. The results have implications for possible explanations of gender clustering in the labor market.     

The Significance of Community to Business Social Responsibility1

Abstract In this paper, I focus attention on one aspect of business social responsibility, the relationship between businesses and community. Specifically, I explore the impact of business operators' perceptions about norms of collective action in their communities on the level of their support for and commitment to their communities. This relationship was elaborated using data from interviews with 1,008 business owners and managers randomly selected from 30 small Iowa communities (500 to 10,000 in population). Findings indicate the majority of small business operators report that they are committed to and provide support for their community. Also, it is concluded that operators' educational levels and lengths of residence, the success and age of their businesses, and their perceptions of community levels of collective action are significantly associated with levels of business social responsibility.     

Is the good corporation dead? the community social responsibility of small business operators

This study examined whether social responsibility is a meaningful characteristic with which to differentiate businesses given its supposed demise in the new global economy. The analysis focuses on small businesses and the social responsibility of businesses toward their community. Community social responsibility and competitive strategies were measured by the self reports of 675 small business operators in 10 Iowa cities. Cluster analysis revealed four categories of business operators designated as civic leaders, alienated business operators, followers in high collective action communities, and followers in low collective action communities. Findings demonstrate that business owners and managers can be differentiated on the basis of community social responsibility. The clusters so created are associated with meaningful business and operator demographic features and with the operator’s belief in the importance of community support as a strategy for business success. This analysis shows that in spite of changes in the economy, a significant segment of small business operators believe in tenets of the enlightened self interest model of business social responsibility, that is, that doing good is good business.     

The Use of Owner Resources in Small and Family Owned Businesses: Literature Review and Future Research Directions

This paper integrates relevant literature and the Sustainable Family Business Model regarding interchange of financial resources between family and business. Two distinct literatures on the use of owner resources in small businesses are examined: the intermingling of business and household resources from the family firm literature and financial bootstrapping studies from the small business finance literature. What has not been addressed in both literatures about the use of owner resources is discussed and the risks that owner resource bootstrapping and intermingling may place on the household and the business are considered. Recommendations and propositions for future research are suggested. To fully understand the makeup and success of household financial portfolios and family businesses, it is important to understand the use of owner resources in a holistic manner.     

Spousal Roles on Motivations for Entrepreneurship: A Qualitative Study in New Zealand

Little is known about the role the spouse plays in an entrepreneur’s motivations for entrepreneurship. A gender comparative qualitative study is presented, based on interviews with 68 entrepreneurs (45 men and 23 women) in New Zealand. A continuum of spousal support is described—those whose spouses are co-founders, supportive spouses, and unsupportive/ambivalent spouses. Findings show that women and men tend to have different expectations of their spouse when contemplating starting a business. A woman looks to her husband for business advice, for support, and encouragement and considers the effects that starting a business may have on her spouse. A man tends to assume support is forthcoming, and some men start businesses without explicit spousal support. Contributions to theories of family business are made.     

Les réseaux de PME en Argentine : une voie alternative ?

Do small businesses in Argentina really form “local networks of production” similar to those in Italy? Institutional, regional (public or private) networks of support for small businesses are identified along with the strategies of various parties and the sorts of agreements worked out between them. A survey of small business networks in four areas chosen for the variety of their output and for their positions in the market and in the chain of production shows that regional networks lack consolidation, except in the Mendoza area, where small businesses, big firms, universities and private as well as public institutions function in an “integrated” network. — Special issue: Latin America.     

Ethnic enclaves and middleman minorities: alternative strategies of immigrant adaptation?

This article examines 2 modes or strategies of immigrant adaptation: middleman minorities and ethnic enclaves. Although they have been discussed as if they were disjointed and mutually exclusive, the authors challenge this view. Middleman minorities 1) tend to be self-employed or to work for a coethnic, 2) are usually concentrated in small business, 3) tend to rely on the in-group for resources, and 4) fill a "status gap" in the receiving society. Ethnic enclaves depend on 3 features: 1) recent coethnic arrivals spend a tour of duty at the worst jobs, 2) coethnics provide ethnic entrepreneurs with consumer markets, 3) ethnic businesses rely on each other to supply their operating needs. Ethnic enclaves are concentrated and spatially identifiable. For this study, the authors collected data in a survey of the Cuban exile community of San Juan, Puerto Rico. The sample selection procedure yielded a total of 261 individuals, 220 of whom were interviewed. 10 predictions found in the middleman minority and ethnic enclave perspectives were checked against the researchers' data. 4 of these predictions are hld in common by both approaches: 1) eomployment in an ethnic enterprise increases subsequent chances of self-employment, 2) ethnic firms rely on the in-group for business resources, 3) coethnic workers represent an asset to the ethnic entrepreneur in that they occupy important positions requiring the employer's trust, and 4) there is business competition between locals and minority members. As predicted by the middleman strategy, Cuban businesses in Puerto Rico tend not to be immediately productive and there is no evidence of spatial concentration of these businesses. However, fitting the enclave approach, these firms do not dominate certain business lines, Cuban entrepreneurs do not appear to be sojourners, and they tend to have business backgrounds. The middleman perspective is supported in that some elements of the local elite favor Cuban exiles. Thus, there is no evidence to support treating the middleman minority and ethnic enclave models as disjointed and discordant theoretical models. Neither approach is entirely accurate or inaccurate. The authors suggest that the 2 modes of adaptation are ideal types; therefore, actual ethnic economies exhibit some features found in each one.