Author: Mohammad Amin
Source: Enterprise Analysis Unit - World Bank Group, 2010
Abstract: The paper extends the female under-performance hypothesis to informal or unregistered firms in two developing countries, Argentina and Peru. Specifically, results show that for a sample of informal firms, average productivity of labor and firm-size measured by monthly sales and employment are smaller for female-owned compared with male-owned firms.
Author: Jessica Leino
Source: Enterprise Analysis Unit - World Bank Group, 2009
Abstract: This note uses unique data from enterprise surveys in three African countries to examine the characteristics of informal and formal microenterprises. Entrepreneurs in the informal sector have different motivations for starting a business from their formal sector counterparts, with about twice as many informal entrepreneurs citing lack of alternative employment opportunities as their main motivation. Female entrepreneurs are more likely to operate in the informal sector, with 38 percent of informal businesses and only a quarter of formal businesses owned by women. Differences in entrepreneur characteristics translate into differences in business practices, with informal firms less than half as likely to have paid employees and nearly half as likely to have bank accounts.
Author: Mohammad Amin
Source: Enterprise Analysis Unit - World Bank Group, 2010
Abstract: From a sample of informal firms in Burkina Faso, Cameroon, Cape Verde, Côte d’Ivoire, Madagascar and Mauritius, this note compares male- and female-owned businesses. We test a number of hypotheses discussed in the literature and find the following results. First, the female-owned business under-performance hypothesis is confirmed, but only for firm-size. For firm efficiency, measured by the average productivity of labor, we find little difference across male and female-owned businesses. Second, as documented in the literature, there is a greater proclivity among female relative to male entrepreneurs to work from home than outside the home. However, working from home does not appear to be disadvantageous to female entrepreneurs; at least, no more than for male entrepreneurs. In fact, working from home protects female-owned businesses from crime more so than for male-owned businesses. Lastly, female entrepreneurs are less likely to have a bank account and use external financing sources than male-owned businesses. Reasons for not seeking loans appear to vary by the gender of the owner and are discussed.
Author: Mohammad Amin
Source: Enterprise Analysis Unit - World Bank Group, 2010
Abstract: Recently collected data on informal or unregistered firms in Argentina and Peru show significant differences between male and female-owned firms in certain firm characteristics and performance measures. Compared with male-owned firms, female-owned firms are smaller in size as measured by total monthly sales and also less efficient as measured by the average productivity of labor. Female-owned firms are less likely to use equipments such as machines and vehicles, although this is not the reason for their lower efficiency. Some of the commonly held views including lower education among women entrepreneurs, fewer numbers of owners among firms that have a female as the largest owner and greater difficulty faced by women in accessing credit are only weakly supported in the data. However, as documented in the literature, women managers have fewer years of experience in running a business and they are also more likely to operate from inside than outside household premises in order to avail better working hours and location. Some gender based differences in the willingness to register and the potential costs of registering are also observed in the data.
Author: Mohammad Amin
Source: Economics Bulletin (2010), 30(1): 663-668
Abstract: A number of studies show that relative to male owned businesses, female owned businesses are smaller in size. However, these studies are restricted to the formal or the organized sector. Also, with some exceptions, they focus on the developed countries. This paper explores the gender and firm-size relationship for a sample of informal or unregistered firms in six developing countries in Africa including Burkina Faso, Cameroons, Cape Verde, Cote d’Ivoire, Madagascar and Mauritius. We find strong evidence that female owned businesses are smaller than male owned businesses.
Author: Mohammad Amin
Source: Enterprise Analysis Unit - World Bank Group, 2010
Abstract: Anecdotal evidence suggests that working from home makes it easier to balance work and family life. This is particularly attractive to women, who are viewed as primary caregivers in the family in most developing countries. However, there is some concern in the literature that family responsibility may detract from doing business, leading to fewer hours of operation and lower efficiency for home-based businesses run by women. The present paper tests these hypotheses using data on informal or unregistered firms in five African countries. We find strong evidence that female entrepreneurs have a greater proclivity compared with male entrepreneurs to work from home than outside. However, differences between firms located inside vs. outside household premises in the number of hours a business normally operates and firm efficiency are neither economically large nor statistically significant. Further, these differences are roughly same for male and female managed businesses. In short, working from home does not appear to be disadvantageous to businesses, and it does not discriminate against women entrepreneurs.
Author: Mohammad Amin
Source: Enterprise Analysis Unit - World Bank Group, 2011
Abstract: A commonly held view is that female-owned businesses suffer from many disadvantages compared to male-owned businesses. These disadvantages lead in turn to relatively lower levels of efficiency and smaller firm-size among female-owned businesses—the female-owned firms under-performance hypothesis. Using data on unregistered firms in Argentina and Peru, the female-owned firms’ under-performance hypothesis is confirmed. The gender based difference in efficiency and firm-size holds within the full sample and no more than 25 percent to 30 percent of the difference can be explained by variations in firm characteristics. The gender based gap in performance also holds within various sub-samples, although the magnitude of the difference does vary across the sub-groups— such as Argentina vs. Peru, firms located inside vs. outside household premises and firm management with high vs. low education levels.