Whether analogue countries exhibit similar women entrepreneurial activities?

Abstract

Purpose While there are many studies on the impacts of formal institutions such as government financial supporting and tax preferential policies on women entrepreneurial entry, few attempted to explore how informal institutions causes cross-country differences in women entrepreneurship. The purpose of this paper is to investigate whether countries (Pakistan and Malaysia) with similar religious belief, political system and government policies exhibits similar level of women entrepreneurial activity from an informal institutional perspective. Design/methodology/approach This study used Global entrepreneurship monitor (GEM) data for the years 2010–2012 and employed probit regression analysis to examine the impacts of cultural-cognitive and social-normative institutions on women entrepreneurial activity. Findings The findings reveal profound differences of women’s entrepreneurial activities between Pakistan and Malaysia. While cultural-cognitive dimension shows substantial impact for both nations, social-normative dimension explains the main differences in women’s entrepreneurial activity. Practical implications This study proposes that policymakers may craft policies to enhance women skills, knowledge and networking as well as positive societal attitudes to foster women entrepreneurial activities. Originality/value This study shows that countries with the same religion and similar formal institutions can also exhibit different level of women entrepreneurial activity. In Pakistan, the negative societal attitudes in the form of deep rooted traditional beliefs as well as misinterpreted religious concepts for women role create formidable challenges and inhibit business opportunities for them. By contrast, favorable social perception and societal attitudes in Malaysia encourage women to pursue their entrepreneurial activities.

The Configurations of Informal Institutions to Promote Men’s and Women’s Entrepreneurial Activities

“…We also find that in factor-driven economies many cultural reasons may force women to engage in necessity-based entrepreneurship. These women are less educated, lack formal financing as well as fear of failure and career choices are not relevant factors for them to pursue entrepreneurship ( Junaid et al, 2019 ). In this respect, media representation of female entrepreneurs may positively influence the success of women entrepreneurs ( Ruth Eikhof, 2013 ).…”

“…Model 3F indicates that starting a business is socially acceptable for women if they hold the necessary skills, knowledge and experience to engage in entrepreneurial activities ( Junaid et al, 2019 ). Existing literature on women’s entrepreneurship reports that normative support of a country’s institutional environment is the most critical determinant of the emergence of women’s entrepreneurial activities ( Baughn et al, 2006 ; Yousafzai et al, 2015 ).…”

“…Consequently, women tend to enter in low-productivity entrepreneurial activities which occur in the informal sector of the economy and concentrate less on high-productivity sectors ( Brixiová and Kangoye, 2020 ). These women are generally less educated and have less capital, and cultural reasons may force them toward necessity-based entrepreneurship which means that fear of failure and good career choice are less important factors in starting a business ( Junaid et al, 2019 ).…”

Managerial ties as determinant of social entrepreneurial intentions: Does gender make a difference?

“…In developing countries, especially in South Asia, social and traditional constraints, and misunderstood religious beliefs hinder females to establish, expand, and utilize business networks. In most cases, females are required to have a male partner to sign deals and negotiate with business partners such as financers, investors, customers, and suppliers (Junaid, He, Yadav, & Asare‐Kyire, 2019). Such deep‐rooted sociocultural beliefs restrict business opportunities for women.…”

“…Thus, for men, business ties are expected to be more beneficial than for women. The literature has also noted that, females face more difficulties than males do in getting assistance from government departments (Agarwal, 1994; Della‐Giusta & Phillips, 2006; Junaid et al, 2019), because government employees (predominantly males) try to reinforce negative social attitudes that favor males than females, who are more obedient, reliant, self‐sacrificing, relationship oriented, and have limited information. A recent study by Venkatesh, Shaw, Sykes, Wamba, and Macharia (2017) has indicated that ties with community increases women's entrepreneurial activities, while ties with government officials decreases their entrepreneurial activities.…”