fe Minority & Small Business Week
Page B2
September 26. 2 00 7
Are Male and Female Entrepreneurs Really That Different?
Study looks
at variables
P r e v io u s r e s e a r c h h a s
show n the perform ance o f
w om en-ow ned firm s lagging
m ale-ow ned firm s on factors
such as annual sales, em ploy
ment growth, income and ven
ture survival.
Reasons for the differences
are often hypothesized, but em
pirical tests have historically
suffered from data with a lim
ited number of control variables
on the motivations and charac
teristics of the owners.
Moreover, many of the previ
ous studies have suffered from
survivor bias as they study ex
isting (or surviving) businesses.
This study seeks to determine
w hy a performance difference
exists for female- and male-
owned ventures.
When other factors are con
trolled for, gender does not af
fect new venture performance.
However, several factors—dif
ferì ng expectations, reasons for
starting a business, motivations,
opportunities sought and types
o f businesses— vary between
the genders, and these result in
differing outcomes. Such ob
servations should be taken into
account when comparing the
outcom es o f ventures across
genders.
While gender was shown not
to affect new venture perfor
mance when preferences, m o
tivation, and expectations were
controlled for. the differences
observed among m en’s and
• W omen were more likely to
have positive revenues, but men
were more likely to own an
employer firm.
• Female owners were more
likely to prefer low risk/return
businesses.
• Men spent slightly more time
on their new ventures than
women.
• Male owners were more likely
to start a business to make
money, had higherexpectations
for their business and did more
research to identify business
opportunities.
• Male entrepreneurs were more
women's new business ventures larger average household size. likely to found technologically
• The educational backgrounds intensive businesses, businesses
include the following:
• Men had more businessexpe- o f male and female entrepre that lose their com petitive ad
vantage more quickly and busi
rience priortoopening the busi neurs were similar.
nesses that have a less geo
•
W
omen
were
less
likely
than
ness and higher expectations.
W omen entrepreneurs had a men to purchase their business. graphically localized custom er
When other factors are controlled
for, gender does not affect new
venture performance. However,
several factors—differing
expectations, reasons fo r starting a
business, motivations,
opportunities sought and types o f
businesses— vary between the
genders, and these result in
differing outcomes.
base.
• Male owners spent more ef
fort searching for business op
portunities, and this held up when
other factors were controlled
for.
• Differences between women
and men concerning venture
size and hours are explained
by control variables such as
prior start-up and industry ex
perience.
• R e se a rc h e rs
and
policym akers need to under
stand that studies which do not
take into account the differing
nature o f men- and w om en-
ow ned firm s could result in
m isleading results.
This report was developed
under a contract with the Small
Business Administration, Office
of Advocacy.
Twenty-six million
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second job. And
they don’t do it
for the money.
It usually starts small - perhaps running a few errands or preparing some hot meals. Maybe you don’t
even see yourself as a caregiver yet. Or sometimes the changes can be more dramatic and sudden.
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But as your loved ones age they will need more help. And perhaps you will too.
If you currently provide some care for an aging loved one, or expect to do so in the next few years,
join AARP Oregon and the Tri-County Caregiving Coalition to learn about the information, services,
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before recently becoming the
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foreign, let alone A fri
T he P ortland O bserver
can-A
m erican, producer to
Few can say that they’ve
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sic Japan TV.
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After directing a cable show
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Aaron Walker toured the globe W alker far from directing the
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Producer Makes Waves Internationally
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early ‘90s “Northeast Spec
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Portland’s minority issues.
“ It's a very drastic change,
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erything,” W alker says. “Ev-
continued
on page H4
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you
The Global Diversity Initia
tive and the U.S. Commercial
Service work closely with other
agencies in the federal govern
ment to support small and mi
nority-owned companies as they
pursue international business
opportunities.
below provide a wealth of in
formation and support for the
minority business owner, both
internationally and domesti
cally:
Minority Business Devel
opm ent A gency, U .S. D e
partment of Commerce — The
The organizations listed MBDA is a federal agency cre-
surprised yourseiT
when you discovered your energy and
determination to build a successful business.
You are an example to future generations that they
too, can make their dreams become a reality.
Regence recognizes the economic and
cultural contributions of minority businesses.
We are proud of your success and acknowledge
your contribution to the economic development
of our community in Portland.
Regence
Rnomne BunCrr«» Qk
<X Oregon ■ an mrteiW'On!
I k vr-sm o* f » Ru» On»» arri B u» S h **t AuBOceMon
Together, we can take charge’”
ated specifically to foster the
creation, growth and expansion
of minority-owned businesses
in America. MBDA has offices
throughout the United States and
provides and array of services
for minority businesses. MBDA
funds a nationwide network of
Minority Business Development
Centers which provide practi
cal assistance to minority busi
ness owners.
Small Business Adminis
tration — SBA is the U.S. gov
ernment agency devoted to pro
moting the interests of small
businesses in the United States.
The SBA provides counseling,
financing, andexport promotion
for small businesses, among
other services.
Small Business Develop
ment Centers - SBDCs are
regional centers providi ng coun-
seling. managerial and technical
assistance to existing and pro
spective sm all b u sin esses.
Website: www.sba.gov/SBDC.
Office of Small Disadvan
taged Business Utilization —
The OSDBUs oversee contracts
and procurement from minor
ity-owned firms; each federal
agency has its own OSDBU. as
do most state, county and mu
nicipal agencies.