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Financial Development, Gender And Entrepreneurship

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Executive Summary

Female entrepreneurs are much less frequent than male entrepreneurs. In this paper the authors investigate a possible culprit: access to financial services. They use a dataset with entrepreneurship rates by opportunity and by need from the Global Entrepreneurship Monitor and indicators of financial institutions from Beck, Demirguc-Kunt and Levine (2000) for 41 developed and developing countries from 2001 to 2004. The conclusions are that financial development, though generally encouraging entrepreneurial activity, is unlikely, by itself, to contribute to bring male and female entrepreneurship rates closer together.

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