Gender Gap in SME Ownership: Are Women Left Behind? Evidence from Sri Lanka

Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 08 August 2019

Gender Gap in SME Ownership: Are Women Left Behind? Evidence from Sri Lanka

N.P. Ravindra Deyshappriya

Uva Wellassa University, Sri Lanka

Download Full-Text Pdf

10.31014/aior.1992.02.03.124

Pages: 749-760

Keywords: Small & Medium Enterprises (SMEs), Women Labour Force Participation, Gender Gap, Business Development Service (BDS), Enterprise Survey

Abstract

The current study examines the gender gap in SME ownership and socio-economic factors which lead women to start Small and Medium Enterprises (SMEs) in Sri Lanka. The study conducted enterprise survey with 329 SME owners and also household survey which focused on 400 unemployed women in Uva and Central Provinces of Sri Lanka. The study found that there is a significant gender gap in ownership of SMEs across four districts in both provinces and this trend is more pronounced in the Nuwara Eliya district where only 20% of SMEs are owned by women. However, the gender gap in SME ownership is comparatively low in both the Monaragala and Badulla districts where 48.1% and 41.7% of SMEs are run by females. The econometric analysis reveal that factors such as marital status, age, number of children, having primary education, attached to a family with business background, easy access to Business Development Service (BDS) and owning required capital assets motivate womens’ to start SMEs. Hence, the study recommends to expand the facilities related to BDS while providing capital requirements to get women involved with SMEs more efficiently.

References

  1. Abeyratne, S. & Ranasinghe, H.M. (2004), Promotion of local private sector in Moneragala district: Problem and prospect study for MONDEP research project for development studies institute, University of Colombo, Colombo

  2. Abeyratne, S. (2006). Small and medium enterprises in Sri Lanka: Integrating the SME sector with the market. Centre for Development Research, Colombo

  3. Athukorala, N.A.R. (2017). A SME policy finally in Sri Lanka. Daily FT.

  4. Attygalle, K., Hirimuthugodage, D., Madurawala, S., Senaratne, A., Wijesinha, A. and Edirisinghe, C. (2014). Female entrepreneurship and the role of business development services in promoting small and medium women entrepreneurship in Sri Lanka

  5. Brush, C.G., Carter, N., Gatewood, E., Greene, P & Hart, M. (2006). Growth-Oriented Women Entrepreneurs and their Businesses: A Global Research Perspective Edward Elgar Publishing, Cheltenham.

  6. Butler, J. (2003). New Perspectives on Women Entrepreneurs, Information Age Publishing Inc., Greenwich, Connecticut.

  7. Canadian Prime Minister’s Task Force on Women Entrepreneurs Report and Recommendations. (2003). Canada: www.liberal.parl.gc.ca/entrepreneur, viewed 4th April 2006.

  8. Charney, A., & Libecap, G. D. (2000). Impact of entrepreneurship education (p. 45À60). Kansas City, MO: Kauffman center for entrepreneurial leadership.

  9. Coughlin, J. (2002), The Rise of Women Entrepreneurs, Quorum, Westport, Connecticut.

  10. De Mel, S., McKenzie, D., & Woodruff, C. (2008). Who are the microenterprise owners? Evidence from Sri Lanka on Tokman v. de Soto. The World Bank.

  11. Department of Census and Statistics. (2012). Final Report: Household Income and Expenditure Survey. Department of census and Statistics, Sri Lanka

  12. Department of Census and Statistics. (2012). Sri Lanka labour force survey annual report. Department of Census and Statistics, Sri Lanka.

  13. Dzisi, S. (2008). Women Entrepreneurs in Small and Medium Enterprises in Ghana. PhD Thesis.

  14. Fatoki, O. and Odeyemi, A. (2010) Which New Small and Medium Enterprises in South Africa Have Access to Bank Credit? International Journal of Business and Management, 5, 128-136

  15. Fielden, S & Davidson, M. (2005.) International Handbook of Women and Small Business Entrepreneurship, Edward Elgar Publishing Limited, Northampton, Massachusetts.

  16. Global Entrepreneurship Monitor. (2002). Executive Report, Babson College, Wellesley,

  17. Kitching, B.M & Jackson, P.A. (2002). Female Entrepreneurs in Transitional Economies: Businesswomen in China. The International Journal of Entrepreneurship and Innovation, vol.3, no.2, pp.145-155. Massachusetts.

  18. Ministry of Industry and Commerce (2016). Annual Report. Ministry of Industry and Commerce of Sri Lanka.

  19. National Foundation of Women Business Owners. (2002)

  20. Nguyen, N. and Luu, N. (2013) Determinants of Financing Pattern and Access to Formal-Informal Credit: The Case of Small and Medium Sized Enterprises in Viet Nam. Journal of Management Research, 5, 240-259

  21. Observatory of European SMEs. (2002). Highlights from the 2001 Survey, No.1, European Commission Enterprise Publications, Luxembourg.

  22. OECD (2004). Promoting, entrepreneurship and innovative SMEs in a global economy: Towards a more responsible and inclusive globalization. 2nd OECD conference on ministers responsible for SMEs.

  23. OECD. (1998). Fostering Entrepreneurship. Proceedings of OECD Conference on Jobs Strategy, Paris

  24. Sinha, T. N. (1996). Human Factors in Entrepreneurship Effectiveness. The Journal of Entrepreneurship, 5(1), 23-39.

  25. The Nation. (2013). Low financial literacy, crowding out of women.

  26. Vossenberg, S. (2013). Women entrepreneurship promotion in developing countries: What explains the gender gap in entrepreneurship and how to close it? Working Paper no. 2013/08. Maastricht School of Management, Netherlands.

  27. Welmilla, I., Weerakkody, W. A. S., & Ediriweera, A. N. (2011). The impact of demographic factors of entrepreneurs on development of SMEs in tourism industry in Sri Lanka. Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka.

  28. Winn, J. (2005). Women entrepreneurs: Can we remove the barriers. International Entrepreneurship and Management Journal. Vol. 1(3): 381-397

  29. Woldie, A. & Adersua, A. (2004). Female Entrepreneurs in a Transitional Economy: Businesswomen in Nigeria. International Journal of Social Economics, vol. 31, no.1/2, 2004, pp.78-93. Emerald Group Publishing Ltd. ISSN 0306-8293

  30. Women’s Unit UK, & Ministry of Industry, Employment and Communications (Sweden), 2001, Women as Entrepreneurs in Sweden and the UK, Cabinet Office, London

About Us

The Asian Institute of Research is an online and open-access platform to publish recent research and articles of scholars worldwide. Founded in 2018 and based in Indonesia, the Institute serves as a platform for academics, educators, scholars, and students from Asia and around the world, to connect with one another. The Institute disseminates research that is proven or predicted to be of significant influence for the general public.

Contact Us

Please send all inquiries to the email:

editorial@asianinstituteofresearch.org

Business Address:

5th Floor, Kavling 507, Fajar Graha Pena Tower, Jl. Urip Sumohardjo No.20, Makassar, Indonesia 90234

Copyright © 2018 The Asian Institute of Research. All rights reserved

Stay Connected

  • Instagram - Black Circle
  • Facebook - Black Circle
  • LinkedIn - Black Circle