Does gender make a difference in business performance?

Abstract

Purpose This paper aims toanalyse the difference in business performance and obstacles across male-owned versus female-owned enterprises in India. Design/methodology/approach This study is based on a comprehensive enterprise survey of 9,281 Indian firms operating in different regions of the country, conducted under the World Bank’s Enterprise Survey, 2014. The survey contains information on a variety of enterprise characteristics such as ownership, type of firms, size of firms, locations and age, performance indicators and information on 16 parameters of business obstacles. Business performance indicators have been derived from data in the form of growth in sales, employment, labour productivity and capability utilization by gender ownership of the firms. Simple statistical tools such as descriptive statistics, chi-square test and the independent-samples t-test have been used to analyse the data. Further, an ordered probit regression model has been estimated to identify the relative importance of parameters affecting female-owned enterprises. Findings Of the total 9,281 firms surveyed under the World Bank’s Enterprise Survey, about 8 per cent were being managed by a top female manager and about 15 per cent firms reported to have at least one female owner. Among the female owners, about 36 per cent were reported to own 50 per cent and above share of the firm. Chi-square statistics indicate that there is a significant difference in enterprise characteristics of male- versus female-owned firms in terms of location, size, type and age. Result of the independent-samples t-test indicates a significant difference in business performance across male- and female-owned businesses in terms of annual sales growth, labour productivity growth and capacity utilization of the firms. Similarly, the perception of male- and female-owned firms significantly vary on 10 obstacles out of total 16 business obstacle parameters. Overall, females perceive comparatively less business obstacles as compared to males. An ordered probit regression model has revealed the relative importance of enterprise characteristics, performance indicators and extent of business obstacles among female-owned enterprises. Practical implications This study provides an insight on the differences in the firms’ performance across gender ownership based on a large survey data. This study can be helpful in designing policies for promoting gender-based business enterprises in a focused manner. Originality/value There are limited empirical evidences on difference in organizational profile, business performance and understanding business obstacles across male- versus female-owned firms in India based on a large survey data.

Problems of political unrest: women in small businesses in Bangladesh

“…Nevertheless, some scholars (Chell and Baines, 1998;Ahl, 2006;Coleman et al, 2019) strongly contend that structural, historical and cultural factors regarding enterprises of women are seldom discussed in the literature despite the significant effect of these issues on their businesses. As a consequence, gender power structures are made invisible, and no explanation is provided regarding how the social world is arranged (Ahl, 2004).…”

Decision Making Capability, Social Capital Towards Iwapi Social Support in South Sulawesi Province.

“…This continuous interaction between interests and performance means that both must be measured and evaluated regularly as input into strategic e-business. Ali et al, 2017 in the results of the study showed that there were significant differences in the characteristics of companies belonging to men versus women-owned companies in terms of location, size, type and age. The results of the independent t-sample test showed significant differences in business performance across all male and female businesses in terms of annual sales growth, labor productivity growth and company capacity utilization.…”

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“…The findings from these studies are mixed overall, revealing that business performance depends upon the performance measure used and is tied closely to context, such that key controls often explain aggregate gender differences. While much of the research on gender patterns of business performance focuses on companies in highly industrialised countries (Da Vita, Mari and Poggesi 2014), studies on gender patterns in business performance in developing countries also find that women-owned businesses tend to perform favourably in terms of sales, profitability, and job creation when key factors such as industry and business age and size are considered (Ali and Shabir 2017).…”