Networking and female entrepreneurship in developing countries

Abstract

The doctoral thesis has focused on networking and female entrepreneurship in developing countries. The thesis has shown the reason for the lower share of women as entrepreneurs in developing countries. Women are less preferred than their male counterparts when starting a business due to lower education, worse access to credit, etc. The central point of the thesis is the importance of networking, examined by analysing the role of social capital for women in starting a new business and how it reduces the gender gap in entrepreneurial entry. This doctoral study has focused on quantitative and qualitative analysis. For quantitative analysis, the paper has used Global Entrepreneurship Monitor (GEM) data from 2011-2018, considering developing countries, with a special focus on India and all Asian developing countries mentioned together to validate the hypothesis of the role of social capital in entrepreneurial entry, using a binary model. For qualitative study, an online interview was conducted, interviewing 13 female respondents to validate the role of networks and how they help in managing the difficulties women face when entering business. The results are first based on a quantitative analysis of all Asian countries available in the Global Entrepreneurship Monitor (GEM) database, considering entrepreneurial networks (ENeT) as a key variable. This is followed by a separate quantitative analysis of India. The estimation demonstrates the effect of ENeT on female respondents. When variables such as personal business contacts, business skills, opportunities, work status, and subjective norms are included, a reduction in the gender gap is observed. The effect of ENeT is also evident among women across different income groups and educational levels, those possessing business skills, considering good opportunities to start a business, and experiencing a fear of failure. These results indicate how networking increases the likelihood of active business participation for women. Qualitative research has shown different aspects of social connections that helped the interviewees (such as financial support, contacts, moral support, etc.) in setting up and running their businesses. Given proper direction and guidance, women can perform better in entrepreneurial activities. For this, social and entrepreneurial contact is highly required.