The Entrepreneurial Gender Gap in sub-Saharan Africa: An Institutional Framework

In nearly every economy women are not as actively engaged in entrepreneurial ventures as their male counterparts. Sub-Saharan Africa is one of the few regions of the world with a high concentration of female entrepreneurs. This empirical study compares the varying levels of female involvement in entrepreneurial activities in sub-Saharan countries with countries outside the region to capture important variables that aid in the explanation of how institutions impact the decision of females to become entrepreneurs. Analyzing the different levels of entrepreneurial activities under an institutional framework addresses two questions: Why do some countries have above average female involvement in entrepreneurship while other countries do not? And, more specifically, why are countries in sub-Saharan Africa more likely than countries outside of the region to have above average female involvement in entrepreneurship? I test three hypotheses; countries with greater trade and financial openness are more likely to have above average female involvement in entrepreneurial activities; female entrepreneurship is higher in sub-Saharan African countries where law and order is weak, whereas outside the region, weak law and order leads to less female involvement in entrepreneurship; and higher levels of female enterprises are found in sub-Saharan Africa where the security of transactions and contracts are weak, whereas outside the region, insecurity in transactions and contracts leads to less female involvement in entrepreneurship. The data collected from 2012 covers 58 countries measured by the Global Entrepreneurship Monitor (GEM) and the Institutional Profiles Database (IPD). I find that overall, countries are more likely to have above average female involvement in entrepreneurship when trade and financial sectors are open, and countries in sub-Saharan Africa are more likely than countries outside of the region to have above average female involvement in entrepreneurship when there is less cooperation between public and private stakeholders; when there is weaker security of transactions and contracts; and when there is greater gender inequality as a tradition within society and as a result of the existence of formal institutions.

Grantor dc:publisher

Creighton University

Year dc:date.issued

2016

Author dc:creator

• Wilhite, Molly

Advisor dc:contributor.advisor

• Wunsch, James S.

Statement dc:rights

• Copyright is retained by the Author. A non-exclusive distribution right is granted to Creighton University and to ProQuest following the publishing model selected above.

Language dc:language.iso

en_US

Handle dc:identifier.uri

http://hdl.handle.net/10504/85545

OAI identifier oai:identifier

oai:cdr.creighton.edu:10504/85545