The Impacts of Gender Differences in Social Capital on Microenterprise Business Start-Up

Abstract

The Microenterprise Development Programs (MDPs) in the United States provide low-income women with business training and loans for their business start-up. This study investigates whether gender differences in social capital influence business start-up in order to find implications to improve female micro-entrepreneurs' business start-up. By analyzing the data from Panel Study of Entrepreneurial Dynamic (2001)(2002)(2003)(2004), this research finds that women are less likely to utilize bridging and linking social capital for their businesses and also are less likely to start up business compared to men. This study provides implications that U.S. MDPs need to develop gender-specific social capital interventions that support female participants' business start-up.

Business advisory services and risk among start-ups and young companies: a gender perspective

“…Of the 21 sources for advice (both public and private), women use ten sources to a greater extent than men; men use one source more than women; and women and men use ten sources equally. Our study supports Kim and Sherraden's (2014) study in which they claim women tend to have less access to networks (weak ties). A possible conclusion is that women use outside support to reduce their risks at start-up and to access information thorough network connections, Consistent with findings by Kim and Sherraden (2014), we also found that women use different business advisory services than men.…”

“…Our study supports Kim and Sherraden's (2014) study in which they claim women tend to have less access to networks (weak ties). A possible conclusion is that women use outside support to reduce their risks at start-up and to access information thorough network connections, Consistent with findings by Kim and Sherraden (2014), we also found that women use different business advisory services than men. For instance, women use advice from Family and relatives, Tax Office, Labour Office, Start-up courses, ALMI (National support for companies at all stages), Enterprise Agencies, Office for business support offered by the Municipality, Start-up guides on Internet, and an industry organisation.…”

Social Networks and Women Micro-Enterprise Performance: A Conceptual Framework

“…Social networks consist of informal networks (family, relatives, friends, acquaintances) and formal business networks such as customers, distributors, suppliers, competitors, government (Gunto & Alias, 2014). Women entrepreneurs with high growth resources tend to use more formal social networks (Kickul et al, 2007) and those with low growth resources tend to use informal social networks (Kim & Sherraden, 2014).…”

“…This is often noticed in job creation, and community development (Kim & Sherraden, 2014). For example, in Louisiana, 51% of privately owned firms were women which generated over $13 billion in sales and employed nearly 102,000 people in 2006 (Mahajar & Yunus, 2012).…”

“…Numerous researches have been carried out on the relationship between micro-finance factors and microenterprise performance globally in USA, Tanzania, Germany, Australia, Kenya, Philippines, Ethiopia, Ghana, Nigeria, Bangladesh, India and Thailand respectively (Kim & Sherraden, 2014;Kuzilwa, 2005;Stohmeyer, 2007;Eversole, 2009;Peter, 2001;Gine & Karlan, 2009;Doocy et al, 2005;Cheston & Kuhn, 2002;Ojo, 2009;Khan et al, 2013;Basargekar, 2011;Purateera et al, 2009). Specifically in Malaysia, studies on micro-finance factors and micro-enterprise performance include Aziz et al (2012), Mohamed et al (1997), Al-Mamun (2010), and Paul et al (2013).…”