Shattering the Glass Ceiling? How the Institutional Context Mitigates the Gender Gap in Entrepreneurship

Abstract

We examine how the institutional context affects the relationship between gender and opportunity entrepreneurship. To do this, we develop a multi-level model that connects feminist theory at the micro-level to institutional theory at the macro-level. It is hypothesized that the gender gap in opportunity entrepreneurship is more pronounced in low-quality institutional contexts and less pronounced in high-quality institutional contexts. Using data from the Global Entrepreneurship Monitor (GEM) and regulation data from the economic freedom of the world index (EFW), we test our predictions and find evidence in support of our model. Our findings suggest that, while there is a gender gap in entrepreneurship, these disparities are reduced as the quality of the institutional context improves.

Challenges Faced by Women Entrepreneurs of 21st Century

“…Lack of knowledge is recognized by researchers as one of the roadblocks for women entrepreneurs (Alemayehu & Joseph, 2019). SMEs operated by women entrepreneurs cannot reach their full potential due to the discrimination they face by the people which deprives them from essential resources (Boudreaux & Nikolaev, 2018). In the case of Morocco, most of the women entrepreneurs learn skills and knowledge from other women, leading to a lack of modern business marketing and management knowledge without proper education and experience (Gray, 2001).…”