Abstract
This paper identifies whether there was a performance difference among micro, small and medium enterprises (MSMEs) led by men and by women in Vietnam during the period 2005–2013 and aims to provide explanations for the differences, if any, in various performance indicators. The paper adopts a quantitative approach using a firm-level panel dataset in the manufacturing sector in 10 provinces/cities in Vietnam in five waves from 2005 to 2013. Fixed effect models are estimated to examine the influence of firm variables and demographic, human capital characteristics of owners/managers on firms’ value added, labor productivity and employment creation. We found that men led MSMEs did not outperform those led by women on average. Although the average value added was lower for female-led firms in the informal sector, the opposite was true in the formal sector where women tend to lead medium-size firms with higher value added and labor productivity. The performance disparity was more envisaged across levels of formality and less clear from a gender perspective. Moreover, while firms owned by businessmen seemed to create more jobs, firms owned by women had a higher share of female employees. No significant difference in business constraints faced by women and by men was found.
Highlights
The linkage between entrepreneurship and economic growth has been widely discussed in economic theory on the U-shape relationship as well on the types of entrepreneurship leading to economic growth (Acs and Virgill 2010; Audretsch et al 2006; Carree and Thurik 2010; Hoselitz 1952; Leibenstein 1968; Stam and Stel 2011; Wennekers and Thurik1999)
On the development path of a transition economy like Vietnam, gender equality issues are concerned and frequently discussed to ensure that both men and women are benefited from the fruits of economic growth
This study sheds light on the policy concern over the issues of women entrepreneurship in Vietnam by comparing the performance of MSMEs led by men and by women through an understanding of factors and constraints that promote or hinder the business development among women
Summary
The linkage between entrepreneurship and economic growth has been widely discussed in economic theory on the U-shape relationship as well on the types of entrepreneurship leading to economic growth (Acs and Virgill 2010; Audretsch et al 2006; Carree and Thurik 2010; Hoselitz 1952; Leibenstein 1968; Stam and Stel 2011; Wennekers and Thurik1999). As the promotion of entrepreneurship is a key to economic growth and the primary engine for creating a country’s wealth, many governments of developing countries and economies in transition have renewed their focus on this vital factor of production (Maksimov et al 2017; Smallbone and Welter 2001). Along this development path of developing countries and transition economies, gender equality issues are frequently discussed (Naudé 2010) to ensure that both men and women are both benefited from the fruits of economic growth. Since the early 2000s, the expansion of female entrepreneurship witnessed in most parts of the world is considered one of the fastest growing entrepreneurial populations worldwide (Brush et al 2006)
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