Does Gender Matter for Firm Performance? Evidence from Eastern Europe and Central Asia

Using 2005 firm level data for 26 countries in Eastern and Central Europe, this paper estimates performance gaps between male and female-owned businesses, while controlling for location by industry and country. The findings show that female entrepreneurs have a significantly smaller scale of operations (as measured by sales revenues) and are less efficient in terms of total factor productivity, although the difference is small. However, women entrepreneurs generate the same amount of profit per unit of revenue as men. Although both male and female entrepreneurs in the region are sub-optimally small, women's returns to scale are significantly larger than men's, implying that women would gain more from increasing their scale. The authors argue that the main reasons for the sub-optimal size of female-owned firms are that they are both capital constrained and concentrated in industries with small firms.

Bibliographic Details

Main Authors:	Sabarwal, Shwetlena, Terrell, Katherine
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	World Bank, Washington, DC 2008-09
Subjects:	ACCESS TO CAPITAL, ACCESS TO FINANCE, ACCESS TO FINANCING, ACCESS TO FUNDS, ACCESS TO LOANS, ADVOCACY, ATTITUDES TOWARDS WOMEN, AVERAGE PAY, BANK FINANCING, BANK LOAN, BANK LOAN OFFICERS, BANK LOANS, BANKING SECTOR, BANKS, BARRIERS TO WOMEN, BORROWING, BUSINESS CREDIT, BUSINESS CREDIT MARKET, BUSINESS LOAN, BUSINESS LOAN APPLICATIONS, BUSINESS MANAGEMENT, BUSINESS OPERATION, BUSINESS OWNERSHIP, BUSINESS SCHOOL, BUSINESS SUCCESS, BUSINESS SURVIVAL, CALCULATION, CAPITAL INVESTMENTS, CAPITAL STOCK, CAPITALIZATION, CENTRAL ASIAN, CHILD CARE, COLLATERAL, COLLATERAL REQUIREMENTS, COMMERCIAL BORROWING, CONTRIBUTION, COST OF CAPITAL, COST OF LOANS, CREDIT CARDS, CREDIT MARKET, CREDIT WORTHINESS, CREDIT-WORTHINESS, DENIAL RATES, DISCRIMINATION, DISCRIMINATION AGAINST WOMEN, EARNINGS, EARNINGS EQUITY, ECONOMIC DEVELOPMENT, ECONOMIC MANAGEMENT, EMPLOYMENT GROWTH, ENROLLMENT, ENTREPRENEUR, ENTREPRENEURIAL ACTIVITY, ENTREPRENEURIAL OPPORTUNITIES, EQUITY FINANCING, EU, EXPENDITURE, EXTERNAL FINANCE, EXTERNAL FUNDS, FEDERAL RESERVE, FEMALE, FEMALE ACCESS, FEMALE BUSINESS, FEMALE ENTREPRENEUR, FEMALE ENTREPRENEURS, FEMALE ENTREPRENEURSHIP, FEMALE-OWNED BUSINESS, FEMALE-OWNED BUSINESSES, FEMALES, FEMINIST, FINANCIAL CAPITAL, FINANCIAL CONSTRAINTS, FINANCIAL DECISIONS, FINANCIAL INSTITUTIONS, FINANCIAL SERVICES, FIXED ASSETS, FOREIGN BANKS, GENDER, GENDER DIFFERENCE, GENDER DIFFERENCES, GENDER DISCRIMINATION, GENDER DISCRIMINATION IN BANK, GENDER EQUALITY, GENDER GAP, GENDER GAPS, GROWTH OPPORTUNITIES, HOME, HOME EQUITY, HOME OWNERSHIP, HUMAN CAPITAL, INCOME, INPUT PRICES, INTEREST RATE, INTEREST RATES, INTERNAL FINANCING, INTERNATIONAL BANK, INVESTMENT CAPITAL, INVESTMENT CLIMATE, LABOR MARKET, LABOR MARKET LEGISLATION, LACK OF ACCESS, LARGE FIRM, LENDERS, LINE OF CREDIT, LOAN, LOAN APPLICATIONS, LOAN APPROVALS, LOAN DECISIONS, LOANS TO GROUPS, LOWER INCOMES, LOWER INTEREST RATE, MICRO-ENTERPRISE, MICRO-ENTERPRISE DEVELOPMENT, MONEY LENDERS, NET WORTH, NEW BUSINESS, OPPORTUNITIES FOR ENTREPRENEURSHIP, PERMANENT EMPLOYEES, PERSONAL WEALTH, PROBABILITY, PRODUCTIVITY, PROFITABILITY, RATE OF INTEREST, RATES OF RETURN, REGRESSION ANALYSIS, RETAINED EARNINGS, RETURN ON EQUITY, RISK AVERSION, SALARY, SALE, SALES, SALES GROWTH, SALES REVENUE, SALES REVENUES, SECONDARY EDUCATION, SELF-EMPLOYMENT, SELF-EMPLOYMENT EARNINGS, SEX, SHARE OF PROFITS, SMALL BUSINESS, SMALL BUSINESS ADMINISTRATION, SMALL BUSINESS FINANCES, SMALL BUSINESS LOAN, SMALL BUSINESS OWNERS, SMALL BUSINESSES, SMALL ENTERPRISES, SMALL-BUSINESS, SMALLER FIRM, SMALLER FIRMS, SOCIAL CAPITAL, SOCIAL DEVELOPMENT, SOCIAL DIFFERENCES, SOURCES OF FINANCE, START UP CAPITAL, START-UP, START-UP CAPITAL, STATE OWNED BANKS, STD, STOCK MARKETS, SUPPLY OF FINANCE, TAX LEGISLATION, TERMS OF LOANS, TRADE CREDIT, TRANSITION ECONOMIES, TRANSPORT, TRINIDAD AND TOBAGO, UNION, WAGE, WAGE GAP, WAGE RATES, WILL, WOMAN, WOMEN BUSINESS OWNERS, WOMEN ENTREPRENEURS, WOMEN OWNERS, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2008/09/9813792/gender-matter-firm-performance-evidence-eastern-europe-central-asia http://hdl.handle.net/10986/6783
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