The Impacts of Gender Differences in Social Capital on Microenterprise Business Start-Up

Abstract

The Microenterprise Development Programs (MDPs) in the United States provide low-income women with business training and loans for their business start-up. This study investigates whether gender differences in social capital influence business start-up in order to find implications to improve female micro-entrepreneurs’ business start-up. By analyzing the data from Panel Study of Entrepreneurial Dynamic (2001–2004), this research finds that women are less likely to utilize bridging and linking social capital for their businesses and also are less likely to start up business compared to men. This study provides implications that U.S. MDPs need to develop gender-specific social capital interventions that support female participants’ business start-up.