Gender difference in the probability of success in starting business turns negligible when controlling for the managerial experience

Abstract

This study analyses the difference in the probability of success in starting a business between male and female entrepreneurs. The novel data set of the participants of business start-up seminars enables us to control for entrepreneurial drive, educational level and managerial experience. In contrast to the existing literature, the gender difference proves to be negligible after controlling for the managerial experience. Our finding implies that the training programmes for women to improve their management skill will reduce the gender gap in starting a business.

Notes

¹The METI (2002) showed that, in Japan, more than half of the entrepreneurs inherited their family firms and less than half of the entrepreneurs started businesses from scratch.

²The probability of starting businesses for those in their thirties is 1.27 times higher than that for those in their fifties. There is no significant education-based difference between the probabilities of starting business.