Female Ownership and Entrepreneurs’ Business Performance: the Moderating Role of Egalitarianism

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2024-07-11

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en

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This study contributes to the theoretical understanding of gender-specific entrepreneurship by investigating the moderating role of egalitarianism on the relationship between female ownership and the business performance of entrepreneurial firms in Eastern Europe. Utilizing data from the World Enterprise Survey Data Bank, the analysis focuses on real annual sales growth, annual employment growth, and annual labor productivity growth as key indicators of business performance. Data of eight developing countries within Eastern Europe – Bosnia and Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Hungary, North-Macedonia, and Romania – from 2013, 2019 and 2023 leads to 11919 firms being included in the sample. The findings reveal that female-owned businesses exhibit distinct performance patterns compared to male-owned businesses, with the influence of female ownership on business performance being significantly, and negatively moderated by the level of egalitarianism in society. While egalitarian practices generally enhance business performance, their positive effects are less pronounced for female-owned firms, suggesting that their business do not benefit from egalitarianism as expected. Therefore, egalitarianism mitigates some negative impacts on the relationship between female ownership and business performance, but does not fully counterbalance them. This highlights the importance of supportive cultural and political environments in fostering female entrepreneurship. This study offers practical insights for policymakers aiming to enhance gender equality in the entrepreneurial landscape and underscores the need for policies that provide equal access to resources and opportunities for female entrepreneurs. Limitations of the study include data, measurement, and generalizability constraints, suggesting avenues for future research such as incorporating qualitative research, an expanded geographical scope, and incorporating additional factors such as intersectionality, technology, and innovation.

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Faculteit der Managementwetenschappen