NATIONAL CULTURE AND GENDER GAPS IN ENTREPRENEURIAL ENTRY IN DEVELOPING COUNTRIES

Abstract

This study analyzes the effects of national cultural practices on gender gaps in entrepreneurial entry in developing countries. We conducted a multilevel analysis based on Global Entrepreneurship Monitor (GEM) and Global Leadership and Organizational Behavior Effectiveness (GLOBE) data from 22 countries for 2013–2017. Our findings suggest that while women are less likely than men to create a new business, they are much less likely to enter opportunity-based entrepreneurship. Moreover, we find that cultural practices of gender egalitarianism have a positive moderating effect on gender gaps when it comes to entry into both total and opportunity-based entrepreneurship. By contrast, our results show that cultural practices of assertiveness and power distance increase gender gaps in entry into both total and opportunity-based entrepreneurship. Policy makers should implement policies that promote women’s access to the necessary resources and improve the visibility of successful female entrepreneurs to change the perception of entrepreneurship as a masculine activity.