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Study Examines Linkages Between Gender and New Venture Performance

14/09/2007
Gender may be linked to new venture entrepreneurial outcomes, according to the authors of a new study released by the Office of Advocacy of the U.S. Small Business Administration. The study empirically examines the influence demographic and psychographic variables have on new venture performance measures.

The authors find that when controlling for factors typically influencing entrepreneurial performance, gender does not affect new venture performance. However, differing expectations, reasons for starting a business, motivations, opportunities sought, and types of businesses started vary by gender and those differences result in differing outcomes. In essence, men are not inherently better owners, they have different business goals.

Previous research has shown women-owned firms lagging male-owned firms on such business performance measures as average annual sales. However, a full understanding of the reasons for the differences has been lacking. The current study, Are Male and Female Entrepreneurs Really That Different?, analyzes a dataset of business startups in 1998 and 1999 to study the linkage between the gender of entrepreneurs and their firms’ development.

The full report is online a: http://www.sba.gov/advo/research/rs309tot.pdf
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