Who Runs the World: Women Entrepreneurs and Economic Development

Abstract

Economic development aims to increase economic wealth and prosperity within a country to improve the overall quality of living for the people and incite positive change within society. Due to its vital role, economic development, or rather the factors of economic development, has been greatly researched and debated by economists. The Human Capital Approach asserts that people can increase productivity and consequently promote development through greater education and skills attainment as well as improved health. Women in particular have been proven to create and utilize economic opportunities differently from men, and there is evidence that women entrepreneurs are driving forces in economic progress. Though there is much research on development across countries, there is a lack of research on the impact that women entrepreneurs make on the economy across the stages of development. This research assesses the relationship between important measurements related to female entrepreneurial activity and economic development according to the two-category development status (i.e., higher vs lower income), income level, and level of female entrepreneurial activity. It utilizes the World Bank Open Data System to access and evaluate measurements related to human capital, entrepreneurship, women, and female entrepreneurial activity. Two-tailed t-tests and a one-factor ANOVA test reveals important associations: an association between higher rates of female entrepreneurial activity and increased economic development. The results also reveal the importance of capital access and institutions related to start-up procedures for registering businesses in spurring both female entrepreneurial activity and development.