Examining the Glass Ceiling for Female Entrepreneurs: An Empirical Analysis

Abstract

Extensive research on the glass ceiling has shown that the large gap between the female representation at lower and upper levels of management is largely driven by differences in family responsibilities, career interruptions and the requirement of working long hours. Additionally, recent data suggests that female entrepreneurial activity lags behind that of males in terms of business creation and revenue generation. Though one might expect female entrepreneurs to bypass the glass ceiling constraints when becoming a business owner, research still documents gender gaps in this market. This paper examines whether the traditional glass ceiling inhibitors apply to female entrepreneurs as well. We find that male and female reach early levels of success at similar rates and have similar aspirations for financial growth. However, we find that female entrepreneurs are more likely to cite flexibility as an important reason for entering entrepreneurship and spend more time on housekeeping and childcare.