Where is my partner? The role of gender in the formation of entrepreneurial businesses

Abstract

This study examines the ownership structure of nascent businesses with a particular focus on the role of gender. Based on theories of gender and entrepreneurship, we examine how male and female entrepreneurs differentially mobilize their preexisting social and cultural capital to launch new businesses. With their limited social and cultural capital, we expect that female entrepreneurs are more likely to establish either a solo or a family-only enterprise rather than a non-family business in comparison to male counterparts. Moreover, we explore the possibility that female-led solo or family businesses tend to show lower performance compared to the male counterpart. Using a nationally representative data of nascent entrepreneurs in the USA, the results suggest that female entrepreneurs are more likely to found enterprises alone or with family members than their male counterparts especially when they lack social or cultural capital. In addition, our findings show that solo or family businesses run by female entrepreneurs tend to display lower initial performance compared to males. The results have important implications for broadening our understanding of the role of gender in the formation of entrepreneurial businesses.