Wind beneath my wings: policies promoting high‐growth oriented women entrepreneurs

Abstract

PurposeWhile numerous comparative studies have measured women's participation in starting or owning a business, the factors stimulating their engagement in highly productive entrepreneurial activity have been understudied. The purpose of this paper is to address this gap in the literature.Design/methodology/approachThis study compares country‐level data on the institutional and cultural factors that affect a woman's decision to start and grow a business with country‐level measures of the entrepreneurial environment, innovative activity and access to opportunity.FindingsIt was found that three institutional and cultural factors influence the decision calculus of women to found and expand enterprises: legal and social status; institutional presence; and economic empowerment. Women who have the requisite support exploit market opportunities and translate their ideas, creativity and skills into high potential, high growth ventures. This in turn generates entrepreneurial activity, job creation and prosperity at the country level.Research limitations/implicationsComparable data on variables of interest, including the number of female‐founded high‐growth businesses and child care support, for example, are not available across countries. This study uses proxies and indices where data are missing and makes recommendations on improving data collection for future scholarship.Practical implicationsImproving access to collateral by strengthening the property rights of women, increasing the representation of women in banking, business, government and academia, and providing greater economic empowerment of all women produces more productive entrepreneurial activity and prosperity for the entire population.Originality/valueWomen entrepreneurs are a missing link that explains variation among countries in the quality and quantity of entrepreneurial activity.