Do Women Fare Better in Female-Owned Businesses?

Abstract

Numerous studies have chronicled the problems women experience in seeking to be hired and subsequently break through the glass ceiling in corporate America. These studies have been approached from the traditional perspective of male-dominated organizations. However, using a human resource management (HRM) framework, this article explores the possibility of further extending to femaleowned businesses Kanter's homosocial reproduction thesis that increased numbers of women in positions of management would increase hiring and advancement of women in corporate America. Results show that, at each step in the HRM process, female business owners in this study fulfill expectations by hiring, promoting and retaining significantly more women than male business owner counterparts. In addition, there were significant differences between minority and non-minority female business owners in the proportion of co-racial managers. Moreover, Whites and Blacks showed a significant preference for co-racial managers, while Hispanics and Asians did not.