WHEN RISING TIDES LIFT SOME BOATS MORE THAN OTHERS: GENDER-BASED DIFFERENCES IN THE EXTERNAL ENABLEMENT OF ENTREPRENEURSHIP

Abstract

External enablers (EEs) are exogenous, macro-environmental forces that influence the rate, extent and substance of entrepreneurial activity. A steadily increasing body of empirical research has sought to identify, describe and predict the aggregate impact of EEs, yet few studies have assessed whether EEs exert similar or dissimilar effects across societal groups, and none to date have sought to ascertain whether EEs function in a gender-neutral fashion. The issue is important to address because it is common for governments to implement policies designed to leverage or mitigate the influence of EEs. Absent knowledge regarding the differential effects of EEs, policies may be enacted with an aggregate intent, but which may routinely disadvantage female entrepreneurs. To address this concern, we investigate the impact of a prominent EE (internet access) on entrepreneurial activity, employing a longitudinal design, consisting of 61 countries from 2004 to 2013. Our results suggest that increased internet access is, in the aggregate, associated with heightened entrepreneurial activity, but the favorable effect for male entrepreneurs is markedly greater than that for female entrepreneurs. The findings reveal that gender-based disaggregation is critical in assessing the influence of EEs.