Impact of Gender on Difficulties Faced by Entrepreneurs

Abstract

During the last decade, women have been recognized as successful entrepreneurs, and the constantly rising number of women-owned businesses all over the world has led to an increasing number of studies on the differences between male and female entrepreneurs and their businesses. Women's entrepreneurship is characterized by structural constraints such as family responsibility and a relative lack of relevant resources such as social capital. Following the resource-based perspective, this study investigates whether women entrepreneurs face different difficulties from their male counterparts and are indeed disadvantaged as to resources such as management experience, business and technical skills, raising capital, etc. The results of the study show that women's ventures are smaller, service-oriented and ‘cheaper’ to finance. Compared with their male counterparts, women entrepreneurs perceive their lack of management experience and business skills as a major constraint.