Are the Liabilities of Newness and Smallness the Same for Male and Female Informal Entrepreneurs? Evidence from Brazil

Abstract

Abstract Though challenges to female entrepreneurship are widely acknowledged in the settings of developed countries or the context of formal firms, the challenges faced by female informal entrepreneurs in developing markets are less explored. Based on the liabilities of newness and smallness framework in organizational ecology, we draw on a sample of 2562 Brazilian informal firms, to examine the unique differences in the experience of newness and smallness between male and female informal entrepreneurs. With increasing firm age, female informal entrepreneurs realized lower firm revenues (inverted-U), however, the firm age and firm revenue association are linear for males. Informal firm performance did not vary by size between male and female informal entrepreneurs. The distinctive differences in firm revenues for male and female entrepreneurs have implications for informal entrepreneurship.