IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v18y2013i1p15-46.html
   My bibliography  Save this article

Gender differences in business success of German start-up firms

Author

Listed:
  • Sandra Gottschalk
  • Michaela Niefert

Abstract

Many studies found that women-owned firms underperform. The performance gap might be attributed to gender differences in personal and firm characteristics affecting performance. This paper shall contribute to explain the female underperformance using data from the KfW/ZEW start-up panel. We track the performance of about 4,700 German start-up firms over up to four years after foundation. Sales, two measures of employment growth, and return on sales are used as performance indicators. We find that female-founded firms perform worse for the different performance indicators. At the same time, significant gender differences in many of the characteristics are observed. Compared to male entrepreneurs, female entrepreneurs have a lower level of formal education, less professional experience, are part of smaller start-up teams, are more often driven by necessity, and are overrepresented in the retail and service industries and in lower-tech industries in general. These differences can explain parts of female entrepreneurial underperformance.

Suggested Citation

  • Sandra Gottschalk & Michaela Niefert, 2013. "Gender differences in business success of German start-up firms," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 18(1), pages 15-46.
    • Handle: RePEc:ids:ijesbu:v:18:y:2013:i:1:p:15-46
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=50750
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Du Rietz, Anita & Henrekson, Magnus, 2000. "Testing the Female Underperformance Hypothesis," Small Business Economics, Springer, vol. 14(1), pages 1-10, February.
    2. Müller, Kathrin, 2010. "Academic spin-off's transfer speed--Analyzing the time from leaving university to venture," Research Policy, Elsevier, vol. 39(2), pages 189-199, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michaela Niefert & Sandra Gottschalk, 2014. "Gründerinnen auf dem Vormarsch? – Die Entwicklung der Beteiligung von Frauen am Gründungsgeschehen," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 8(3), pages 115-145, September.
    2. María José Ibáñez & Felipe Vásquez Lavin & Roberto D. Ponce Oliva, 2023. "Female Underperformance Hypothesis Revisited: Methodological Review and Empirical Testing," SAGE Open, , vol. 13(4), pages 21582440231, December.
    3. Günterberg, Brigitte & Kay, Rosemarie, 2018. "Existenzgründungen von ausländischen Staatsbürgern: Aktualisierung 2018," Daten und Fakten 20, Institut für Mittelstandsforschung (IfM) Bonn.
    4. Marilyn Young & John James Cater & Kevin James, 2019. "Examining Barriers To Success And Sources Of Assistance For U.S. Hispanic Female Entrepreneurs," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-22, June.
    5. Andreas Koch & Jochen Späth & Harald Strotmann, 2013. "The role of employees for post-entry firm growth," Small Business Economics, Springer, vol. 41(3), pages 733-755, October.
    6. Concetta Castiglione & Davide Infante & Janna Smirnova, 2022. "Do female managers perform better? Evidence from Italian manufacturing firms," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 2194-2209, April.
    7. Marcus Box & Tommy Larsson Segerlind, 2018. "Entrepreneurial Teams, Gender, and New Venture Survival: Contexts and Institutions," SAGE Open, , vol. 8(2), pages 21582440187, May.
    8. Brixiova, Zuzana & Kangoye, Thierry, 2016. "Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland," IZA Discussion Papers 10279, Institute of Labor Economics (IZA).
    9. Lechmann, Daniel S. J. & Schnabel, Claus, 2012. "What Explains the Gender Earnings Gap in Self-Employment? A Decomposition Analysis with German Data," IZA Discussion Papers 6435, Institute of Labor Economics (IZA).
    10. Kuncová, M. & Hedija, V. & Fiala, R., 2016. "Firm Size as a Determinant of Firm Performance: The Case of Swine Raising," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(3), pages 1-13, September.
    11. Daniel Lechmann & Claus Schnabel, 2012. "Why is there a gender earnings gap in self-employment? A decomposition analysis with German data," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-25, December.
    12. AMOROSO Sara & AUDRETSCH David, 2020. "The role of gender in linking external sources of knowledge and R&D intensity," JRC Working Papers on Corporate R&D and Innovation 2020-05, Joint Research Centre.
    13. Domenico Depalo & Francesca Lotti, 2013. "Firms and gender: performance differentials between male and female firms," Questioni di Economia e Finanza (Occasional Papers) 184, Bank of Italy, Economic Research and International Relations Area.
    14. Tchapo Gbandi & Ayira Korem & Kossiwa Zinsou-Klassou, 2024. "Save women entrepreneurs: gender, cultural context, and micro-commerce performance in Togo," Small Business Economics, Springer, vol. 62(3), pages 1099-1133, March.
    15. Irani Arráiz, 2018. "Time to share the load: gender differences in household responsibilities and business profitability," Small Business Economics, Springer, vol. 51(1), pages 57-84, June.
    16. Nguyen, Thi Hong Hanh & Ntim, Collins G. & Malagila, John K., 2020. "Women on corporate boards and corporate financial and non-financial performance: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 71(C).
    17. Kay, Rosemarie & Günterberg, Brigitte, 2015. "Existenzgründungen von ausländischen Staatsbürgern," Daten und Fakten 15, Institut für Mittelstandsforschung (IfM) Bonn.
    18. Abdul Basit & Zubair Hassan & Sharmila Sethumadhavan, 2021. "Entrepreneurial Success: Key Challenges Faced by Malaysian Women Entrepreneurs in 21st Century," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(9), pages 122-122, July.
    19. Robert Rieg, 2019. "Selbstständigkeit von Bilanzbuchhaltern und Controllern: Eine empirische Untersuchung zu Einkommen und Determinanten," ZfKE – Zeitschrift für KMU und Entrepreneurship, Duncker & Humblot, Berlin, vol. 67(1), pages 35-66.
    20. Elhem Ben Fatma & Ezzeddine Ben Mohamed & Léo-Paul Dana & Sami Boudabbous, 2021. "Does entrepreneurs’ psychology affect their business venture success? Empirical findings from North Africa," International Entrepreneurship and Management Journal, Springer, vol. 17(2), pages 921-962, June.
    21. Domenico Depalo & Francesca Lotti, 2014. "Sex and the Firm: Questioning the Gender-Based Performance Differential," Business and Management Research, Business and Management Research, Sciedu Press, vol. 3(4), pages 34-50, December.
    22. Nuno Silva & Pedro Dias Moreira, 2023. "On the forecasting power of corporate sales growth determinants," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    2. María Victoria Uribe‐Bohorquez & Jennifer Martínez‐Ferrero & Isabel‐María García‐Sánchez, 2019. "Women on boards and efficiency in a business‐orientated environment," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 82-96, January.
    3. Usman Khalid & Mohammad Amin, 2023. "The impact of ethnic fractionalisation on labor productivity: Does firm size matter?," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 2213-2249, October.
    4. Roy Thurik & Sander Wennekers & Ingrid Verheul & David Audretsch, 2001. "An eclectic theory of entrepreneurship: policies, institutions and culture," Scales Research Reports H200012, EIM Business and Policy Research.
    5. Aidis, Ruta & Wetzels, Cécile, 2007. "Self-Employment and Parenthood: Exploring the Impact of Partners, Children and Gender," IZA Discussion Papers 2813, Institute of Labor Economics (IZA).
    6. Marcén, Miriam, 2013. "The effect of culture on self-employment," MPRA Paper 47338, University Library of Munich, Germany.
    7. Maria Bastida & Ana Olveira & Miguel Ángel Vázquez Taín, 2023. "Are cooperatives gender sensitive? A confirmatory and predictive analysis of women's collective entrepreneurship," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1035-1059, December.
    8. Guillermo Andrés ZAPATA HUAMANÍ & Sara FERNÁNDEZ LÓPEZ & Isabel NEIRA GÓMEZ & Lucía REY ARES, 2017. "THE ROLE OF THE ENTREPRENEUR IN NEW TECHNOLOGY-BASED FIRMS (NTBFs): AN ANALYSIS ACCORDING TO CONTEXT DEVELOPMENT," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 17(2), pages 25-42.
    9. Parrotta, Pierpaolo & Smith, Nina, 2013. "Female-Led Firms: Performance and Risk Attitudes," IZA Discussion Papers 7613, Institute of Labor Economics (IZA).
    10. Elisa Salvador, 2011. "How effective are research spin-off firms in Italy?," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 99-122.
    11. Gotsopoulos, Aleksios & Pitsakis, Konstantinos, 2024. "United we stand? Organizational groups and spinoff mortality in the context of academic entrepreneurship," Journal of Business Venturing, Elsevier, vol. 39(1).
    12. Fardous Alom & Moha Asri Abdullah & Abdul Rashid Moten & S. M. Ferdous Azam, 2016. "Success factors of overall improvement of microenterprises in Malaysia: an empirical study," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 6(1), pages 1-13, December.
    13. Elert, Niklas & Sjöö, Karolin & Wennberg, Karl, 2020. "When Less Is More: Why Limited Entrepreneurship Education May Result in Better Entrepreneurial Outcomes," Working Paper Series 1322, Research Institute of Industrial Economics.
    14. Grilo, I. & Thurik, A.R., 2004. "Determinants Of Entrepreneurship In Europe," ERIM Report Series Research in Management ERS-2004-106-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    15. Aitzaz Ahsan Alias Sarang & Nicolas Aubert & Xavier Hollandts, 2024. "Board gender diversity and the cost of equity: What difference does gender quota legislation make?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 2193-2213, April.
    16. Hoang, Tuyen Thanh & Nguyen, Cuong Viet & Van Tran, Hoa Thi, 2019. "Are female CEOs more risk averse than male counterparts? Evidence from Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 57-74.
    17. Rafik Abdesselam & Jean Bonnet & Nicolas Le Pape, 2004. "An Explanation of the Life Span of New French Firms," Small Business Economics, Springer, vol. 23(3), pages 237-254, October.
    18. Ayala, Juan-Carlos & Manzano, Guadalupe, 2014. "The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis," Journal of Economic Psychology, Elsevier, vol. 42(C), pages 126-135.
    19. Barbara Orser & Allan Riding & Julie Weeks, 2019. "The efficacy of gender-based federal procurement policies in the United States," Small Business Economics, Springer, vol. 53(2), pages 491-515, August.
    20. Lone Engbo Christiansen & Ms. Huidan Huidan Lin & Ms. Joana Pereira & Petia Topalova & Ms. Rima A Turk, 2016. "Gender Diversity in Senior Positions and Firm Performance: Evidence from Europe," IMF Working Papers 2016/050, International Monetary Fund.

    More about this item

    Keywords

    start-ups; business performance; female entrepreneurship; Germany; gender differences; business success; start-up firms; women-owned firms; female underperformance; performance gaps; ZEW; Centre for European Economic Research; KfW Bankengruppe; employment growth; return on sales; performance indicators; male entrepreneurs; female entrepreneurs; men; women; education levels; formal education; professional experience; team size; start-up teams; necessity; overrepresentation; retail industries; service industries; lower-tech industries; lower-technology; small and medium-sized enterprises; SMEs; family issues; families; gender issues.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:18:y:2013:i:1:p:15-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.