Gender and business creation: similarities and differences

What is it about?

Globally, over two-fifths of the one billion involved in early-stage business creation are women. Representative national samples from over a hundred countries from the Global Entrepreneurship Monitor (GEM) program indicate overall participation is much greater and gender differences much smaller in less developed economies. Participation by early career men and women is highest in all economies at all stages of development. In 2022 18m per 100 men and 16 per 100 women were engaged in early-stage business creation. The gender gap has reduced from 5% to 2% in the past two decades. Data from the longitudinal Panel Studies of Entrepreneurial Dynamics (PSED) projects indicates little difference in the skills, background, and experiences of men and women that pursue business creation. Female nascent entrepreneurs are, however, more involved in consumer-oriented sectors, are not as growth oriented as male nascent entrepreneurs and report less success in obtaining external funding. Half of nascent ventures implemented by men or women owned teams reach profitability, as do one-third of solo men or women initiatives. Gender equal teams, one-fifth of all nascent ventures, are slightly less likely to reach profitability. Men and women that disengage from the start-up process do so in response to personal issues, revenue shortfalls, and lack of financial support. The majority return to traditional jobs and nine-in-ten would get involved in another start-up.

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