Female‐Led High‐Growth: Examining the Role of Human and Financial Resource Management

We integrate research on upper echelons theory, the resource‐based view, and gender to explore conditions that facilitate high growth for female‐led firms. We argue that female entrepreneurs have certain advantages that help them leverage their firms’ human and financial capital to achieve high growth. In support, using a sample of U.S.‐based entrepreneurial firms, we found evidence that having a female lead entrepreneur positively moderated the positive relationships between indicators of firms’ human and financial capital and high growth. The findings have implications for programs, policies, and practices to encourage more high growth in firms with female lead entrepreneurs.     

Customer Orientation and Performance of Women‐Owned Businesses: A Configurational Approach

The present research aims to improve the current understanding of the relationship between customer orientation and performance of women‐owned businesses. This study proposed that risk‐taking and financial capital are vital moderating factors of this relationship. Additionally, the study postulates that new insights can be unearthed by combining these factors with customer orientation in a three‐way interaction model. Using a sample of 264 women entrepreneurs, the results showed that (a) customer orientation is positively associated with the performance of women‐owned businesses, (b) the association is significantly moderated by both risk‐taking and financial capital, and (c) a more detailed understanding of the association is provided by the three‐way interaction of customer orientation, risk‐taking, and financial capital.     

Women's Perceived Empowerment in Entrepreneurial Efforts: The Role of Bricolage and Psychological Capital

Women's entrepreneurial empowerment—perceived competence, self‐determination, and ability in managing a firm as an entrepreneur—is important to women's entrepreneurship in developing countries. Drawing on a sample of 369 women entrepreneurs from small and medium enterprises (SMEs) located in Gujarat, a western state in India, we find that women's entrepreneurial empowerment is positively associated with firm revenues. Gains from empowerment could be further enhanced for women entrepreneurs managing resource constraints—through bricolage—and meeting the challenges of self‐employment—through psychological capital. The present study contributes to literature on women's entrepreneurial empowerment and SME performance. Women's empowerment and the bolstering effects of bricolage and psychological capital could help government agencies and non‐government organizations devise programs and policies to improve the performance of women‐owned SMEs in developing countries.     

African Women in the Entrepreneurial Landscape: Reconsidering the Formal and Informal Sectors

Informal and formal sectors can be seen as “dual economies” of African countries. This article discusses the entrepreneurial landscape in Africa considering both sectors, as well as the continuum from small to large within each. It queries whether there can be mobility within and between sectors and whether upward movement, as seen elsewhere, is possible for most African entrepreneurs. The landscape displays the range of women entrepreneurs from traditional microenterprises to large informal-sector traders, from small- to large-scale formal-sector companies, as well as emerging globalists (the “new generation of African entrepreneurs”). Paradigms compare and contrast these entrepreneurs in terms of demographic variables, types of typical enterprises and companies, product sources and markets, start-up capital, networks and associations, and mobility within and between the sectors. Findings show the informal?formal distinction is useful to disentangle the landscape, but that movement between informal sector categories is not substantial because of the entry requirements of education, capital, business networks, etc. Similarly, within the formal sector of small to large businesses, limited access to capital, networks, market niches, and product innovation hinders upward mobility for most. The new generation of African entrepreneurs form an endpoint of the continuum because their global business methods, networks, financial transparency, and business ethics propel them to success. Hence, while most African women entrepreneurs are lower on the scale, there is a growing cadre of women at the top who provide role models of achievement within their countries.     

Capital flows and capital goods

Studying the relation between equity market liberalization and imports of capital goods, we examine one channel through which international financial integration can promote growth. For the period 1980-1997, we find that after controlling for other policies and fundamentals, stock market liberalizations are associated with a significant increase in the share of imports of machinery and equipment. We hypothesize this can be attributed to the consequences of financial integration, which allows access to foreign capital, and provide evidence consistent with this channel. Our results suggest that increased access to international capital allows countries to enjoy the benefits embodied in capital goods.     

Female Entrepreneurs,Work–Family Conflict,and Venture Performance: New Insights into the Work–Family Interface*

Existing theory is extended to predict the effectiveness of strategies for structurally reducing work–family conflict by manipulating roles, given the salience of work and family roles and resources available to the female entrepreneur. A conceptual framework based on the constructs of role involvement and role conflict is used to examine whether high‐growth female entrepreneurs choose more appropriate strategies for reducing work–family conflict than their less successful counterparts. Three basic strategies for manipulating roles are discussed: (1) role elimination; (2) role reduction; and (3) role‐sharing. The following propositions are advanced: (1) work–family management strategies are a significant determinant of venture growth; (2) women who develop high‐growth businesses more effectively reduce work–family conflict by choosing strategies better matched with their internal needs and access to external resources than less successful women; and (3) role‐sharing strategies are preferred because they allow women to enjoy the enhancement of both work and family roles while reducing the level of inter‐role conflict. As a result, the high prevalence of team‐building and participative management practices observed in women‐owned businesses may be driven by the need for female entrepreneurs to manage work–family conflicts as well as genetics or socialization.     

Innovative opportunity pursuit, human capital and business ownership experience in an emerging region: evidence from Ghana

This study explores whether an entrepreneur??s ability to assemble and leverage human capital, particularly specific human capital relating to prior business ownership experience, is associated with seven types of product and work practices innovation in an emerging region, namely, Ghana. Logistic regression estimation revealed that portfolio entrepreneurs were more likely than novice entrepreneurs to report ??innovation tried??. Multinomial logistic regression analysis revealed that portfolio entrepreneurs were more likely than other entrepreneurs to report ??innovation tried and introduced??. If the goals of policy are to increase the ??quality?? of new business start-ups and maximize investment returns, there is a case to target assistance to portfolio entrepreneurs.     

Social Ties,Social Capital,and Recruiting Managers in Transnational Ventures

Social capital provides access to resources; however, how migrant entrepreneurs use social capital in the recruitment of managers for their transnational ventures is less understood. The authors conducted eight in-depth interviews with transnational entrepreneurs of Indian origin in the United Kingdom and nine confirmatory interviews with managers of their transnational ventures. Findings show that transnational entrepreneurs substitute or complement international and local social capital in the recruitment of managers contingent on whether they (a) live in the United Kingdom or India and (b) use social ties in the United Kingdom or India to recruit managers. Implications for research, policy and management are discussed.     

Why Hurry? The Slow Process of High Growth in Women‐Owned Businesses in a Resource‐Scarce Context

This article critically uncovers how embeddedness within a resource‐scarce context influences high‐growth women’s entrepreneurship. Research suggests that though highly embedded women entrepreneurs can easily access resources and attain legitimacy, resulting in high‐growth businesses, they can also become locked into existing systems that constrain their growth development paths. Using 16 qualitative cases developed in Cameroon, we unpack and resolve this paradox by analyzing how entrepreneurial path creation by women entrepreneurs enables the realization of growth aspirations. Implications for initiatives to support high‐growth women’s entrepreneurship in resource‐scarce contexts are critically examined.     

The Impact of Human and Social Capital on Entrepreneurs’ Knowledge of Finance Alternatives

Building upon prior research that demonstrates how the limited knowledge of finance alternatives of entrepreneurs may cause suboptimal finance decisions, this paper examines how entrepreneurs’ human and social capital influence their knowledge of finance alternatives. For this purpose, we use survey data from 103 Belgian start‐ups. Results demonstrate that entrepreneurs with a business education and entrepreneurs with experience in accountancy or finance have a broader knowledge of finance alternatives. Having a strong network in the financial community is further positively associated with the knowledge of finance alternatives. However, generic human capital, including higher education, industry experience, and management experience, is almost not related with the knowledge of finance alternatives.     

Beyond social capital: the role of entrepreneurs' social competence in their financial success

Two studies investigated the hypothesis that the higher entrepreneurs' social competence (their ability to interact effectively with others as based on discrete social skills), the greater their financial success. Entrepreneurs working in two different industries (cosmetics and high-tech) completed a questionnaire designed to measure several aspects of their social competence (e.g., accuracy in perceiving others, skill at impression management, persuasiveness). Results indicated that one aspect of social competence (e.g., accuracy in perceiving others) was positively related to financial success for both groups of entrepreneurs. In addition, social adaptability was related to financial success for entrepreneurs in the cosmetics industry, and expressiveness was related to such success for the entrepreneurs in the high-tech industry. The questionnaire employed to assess social competence was cross-validated with a third group of entrepreneurs who completed this measure themselves, and whose social competence was also rated by persons who knew them well. The two sets of ratings agreed closely, thus providing evidence for the validity of this measure. Overall, findings are consistent with the view that a high level of social capital (e.g., a favorable reputation, extensive social network, etc.) assists entrepreneurs in gaining access to persons important for their success. Once such access is attained, however, entrepreneurs' social competence influences the outcomes they experience.     

Blockchain entrepreneurship opportunity in the practices of the unbanked

Two billion people in developing economies have limited or no access to formal financial services, creating cause for substantial research interest in financial inclusion as a complex multidimensional phenomenon. Digital finance technologies, including blockchain, have empowered a type of crescive entrepreneurship that seeks opportunities in relation to financially excluded individuals. This article hypothesizes that nonmonetary causal factors and informal financial practices play a major role in habits of the financially excluded, which would favor blockchain’s disintermediation features over the incumbent approach. After applying fuzzy-set Qualitative Comparative Analysis (fsQCA) to determine the conditions related to financial practice and motivations that explain the absence of a formal bank account, I prescribe five sensitivities that blockchain entrepreneurs need to consider when targeting this segment. The value of this article’s approach extends well beyond traditional unisystemic views for financial inclusion, as blockchain-based entrepreneurial opportunities emerge to reveal alternative forms of disintermediated financial services, which we exemplify in startups modeling informal practices. Blockchain entrepreneurship can generate semi-formal financial services that bring financial aspirations closer to people. My perspective is relevant to blockchain entrepreneurs who aim to understand the practices of the unbanked as source information for the development of innovative solutions.     

Allocation and productivity of time in new ventures of female and male entrepreneurs

This paper investigates time allocation decisions in new ventures of female and male entrepreneurs using a model that distinguishes between effects of preferences and productivity on the number of working hours. Using data of 1,158 entrepreneurs we find that the preference for work time in new ventures relates to start-up motivation, propensity to take risk and availability of other income. Productivity of work time relates to human, financial and social capital endowments and the prevalence of outsourcing activities. This study also evaluates actual profit effects 1 year after start-up. We find that on average women invest less time in the business than men. This can be attributed to both a lower preference for work time (driven by risk aversion and availability of other income) and a lower productivity per hour worked (due to lower endowments of human, social and financial capital).     

Entrepreneurship ecosystems and women entrepreneurs: a social capital and network approach

This study investigates the effects of venture typology, race, ethnicity, and past venture experience on the social capital distribution of women entrepreneurs in entrepreneurial ecosystems. Social network data from two municipal ecosystems in Florida, USA (Gainesville and Jacksonville), suggest that network connectivity and the distribution of social capital are significantly different for men and women entrepreneurs. This difference is contingent on the venture type. Male entrepreneurs show higher comparative scores of bridging social capital in aggressive- and managed-growth venture networks, while women entrepreneurs surpass their male counterparts’ bridging capital scores in lifestyle and survival venture networks. Lastly, experienced women entrepreneurs that self-identified as white showed a higher degree of network connectivity and bridging social capital in the entrepreneurial ecosystem than less experienced non-white female entrepreneurs. Implications for entrepreneurship practice and new research paths are discussed.

     

Women Entrepreneurs and Family Firm Heterogeneity: Evidence from an Emerging Economy

Family firms add to the economic and social well-being of countries. While research on heterogeneity of family firms is gaining momentum, it has mostly been gender-neutral. The study fills this gap by examining heterogeneity of family firms owned and managed by women, in the context of a developing country—Brazil. The study draws upon the resource-based view of the firm to investigate the relationships between firm performance, family involvement, and financial resources at the start-up phase. An inductive analysis reveals two patterns. First, family firms that are started with the family achieve better performance than firms that are launched without the family and later evolve into a family business. Second, family firms that are funded with women entrepreneur’s own savings achieve worse performance than family firms that are started with borrowed funds. The results are useful for strategic decision making in fostering family businesses headed by women and proactive public policies for future innovation to enhance the success of women entrepreneurs.     

Access (Not) Denied: The Impact of Financial, Human, and Cultural Capital on Entrepreneurial Entryin the United States

Entrepreneurship contributes to business dynamics in all economies, and the individual benefits of starting a business are clear. Nonetheless, access to business start-ups may not be available to all people because of resource constraints. Using a unique new data set for the United States, we examine the relative importance of three forms of resources in pursuing start-up ventures: financial, human, and cultural capital. Our analysis of the Panel Study of Entrepreneurial Dynamics shows that neither financial nor cultural capital resources are necessary conditions for entrepreneurial entry. By contrast, potential entrepreneurs gain significant advantages if they possess high levels of human capital. Specifically, advanced education and managerial experience are significantly positively associated with entrepreneurial entry. Our findings suggest that attempts at entering entrepreneurship, at least in the short-term, may be increasing, as opportunities to acquire human capital are becoming more widespread.     

THE PROFIT–INVESTMENT–UNEMPLOYMENT NEXUS AND CAPACITY UTILIZATION IN A STOCK‐FLOW CONSISTENT MODEL

This paper studies under which conditions the share of profit in value‐added, financial constraints on investment and capital shortage may foster unemployment and may limit the growth of capital and/or the growth of aggregate demand, in a stock‐flow consistent model. The efficiency of demand‐side versus supply‐side economic policies (decrease of the real interest rate and/or of the real wage, increase of the leverage ceiling constraint) depends on capital shortage and credit rationing, which are not necessarily simultaneous due to the effects of investment on aggregate demand and supply.     

How Effective Is Government Support for Korean Women Entrepreneurs in Small and Medium Enterprises?*

Women entrepreneurs are not as involved in economic activities as should be expected, despite the growing number of women entrepreneurs and increased government support in Korea. This study aims to investigate how effective the government is in terms of boosting the satisfaction of women entrepreneurs using the structural equation model. We investigated causal effect of government support policy and government support process on women entrepreneurs' satisfaction along with many other personal factors such as individual capacity, family life, social network, and business environment. The empirical results show that the government support process has the highest effect on the improvement of the satisfaction of women entrepreneurs. However, the current level of government support process is relatively low and therefore needs to be improved. It is interesting to note that the government support policy has the least effect on the satisfaction of women entrepreneurs. That is, women entrepreneurs are not sensitive to the support scale, support program, and gender‐sensitive policies currently employed in Korea. Also, we obtain the satisfaction index of women entrepreneurs according to their marital status, presence of children, age, education level, and business type. Finally, we propose improvement plans that can effectively be activated for each business type in which women entrepreneurs are involved.     

FDI,Productivity and Financial Development

This paper examines the effect of foreign direct investment (FDI) on growth by focusing on the complementarities between FDI inflows and financial markets. In our earlier work, we found that FDI is beneficial for growth only if the host country has well‐developed financial institutions. In this paper, we investigate whether this effect operates through factor accumulation and/or improvements in total factor productivity (TFP). Factor accumulation – physical and human capital – does not seem to be the main channel through which countries benefit from FDI. Instead, we find that countries with well‐developed financial markets gain significantly from FDI via TFP improvements. These results are consistent with the recent findings in the growth literature that shows the important role of TFP over factors in explaining cross‐country income differences.     

Conscientiousness,Financial Literacy,and Asset Accumulation of Young Adults

This study utilizes the 1997 National Longitudinal Survey of Youth to examine the relationship between financial literacy, conscientiousness, and asset accumulation among young adults. Findings indicate that both conscientiousness and financial literacy are consistent predictors of asset accumulation among young Americans. A one‐standard‐deviation increase in conscientiousness is correlated with a 40% increase in net worth, a 53% increase in illiquid asset holdings, and a 33% increase in liquid asset holdings. A one‐standard‐deviation increase in financial literacy is correlated with a 60% increase in illiquid asset holdings and a 30% increase in liquid asset holdings. Financial literacy moderates the effect of conscientiousness on net worth. These findings suggest that conscientiousness and financial literacy are important factors and that policies and programming with a dual emphasis on increasing conscientiousness and financial literacy are likely to have a positive impact on consumer savings and asset‐building.