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Study Examines Linkages Between Gender And New Venture Performance

Owner’s Goals And Expectations May Affect Business Development

Gender may be linked to new venture entrepreneurial
outcomes, according to the authors of a new study released by the Office of
Advocacy of the U.S. Small Business Administration. The study empirically
examines the influence demographic and psychographic variables have on new
venture performance measures.

The authors find that when controlling for factors typically influencing
entrepreneurial performance, gender does not affect new venture
performance. However, differing expectations, reasons for starting a
business, motivations, opportunities sought, and types of businesses
started vary by gender and those differences result in differing outcomes.
In essence, men are not inherently better owners, they have different
business goals.

“It’s not surprising that the data show entrepreneurs vary in their
motivations and reasons for starting a business,” said Dr. Chad Moutray,
Chief Economist for the Office of Advocacy. “Small businesses and small
business owners are unique, and that has important implications for
policymakers as they debate issues affecting small business.”

Previous research has shown women-owned firms lagging male-owned firms on
such business performance measures as average annual sales. However, a
full understanding of the reasons for the differences has been lacking.
The current study, Are Male and Female Entrepreneurs Really That
Different?, (http://www.sba.gov/advo/research/rs309tot.pdf) analyzes a
dataset of business startups in 1998 and 1999 to study the linkage between
the gender of entrepreneurs and their firms’ development.

The report was co-authored by Erin Kepler, and Dr. Scott Shane, Professor
of Entrepreneurial Studies at Case Western Reserve University, and was
funded by the Office of Advocacy.

The Office of Advocacy, the “small business watchdog” of the federal
government, examines the role and status of small business in the economy
and independently represents the views of small business to federal
agencies, Congress, and the President. It is the source for small business
statistics presented in user-friendly formats, and it funds research into
small business issues.

For more information and a complete copy of the report, visit the Office of
Advocacy website at http://www.sba.gov/advo.

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The Office of Advocacy of the U.S. Small Business Administration (SBA) is
an independent voice for small business within the federal government. The
presidentially appointed Chief Counsel for Advocacy advances the views,
concerns, and interests of small business before Congress, the White House,
federal agencies, federal courts, and state policy makers. For more
information, visit http://www.sba.gov/advo, or call (202) 205-6533.

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