Moderating effect of demographic and business characteristics on performance of women owned small enterprises: empirical evidence from India
Abstract
This study aims to explore the moderating effect of demographic and business characteristics on the performance of women-owned small enterprises. The theoretical and existing literature supports the moderating effect of demographic and business characteristics on business performance. The study adopted the descriptive research method. The primary data was gathered from 340 women owners of small enterprises and surveyed through a structured questionnaire. The Liner multiple regression was used to test the hypotheses. The findings of the study reveal that demographic characteristics such as father’s occupation, education, and experience were significantly associated with business performance. Hence, age and marital status were not significantly associated with the business performance of women-owned small enterprises. Business characteristics such as the age of business, location of the business, and type of business were significantly associated with business performance.
References
Abor, J., & Biekpe, N. (2006). SMEs' Access to Debt Finance: A Comparison of Male-Owned and Female-Owned Businesses in Ghana. International Journal of Entrepreneurship and Innovation, 7 (2), 105-112.
Adegbite, S.A., Ilori, M.O., Irefin, I.O., Abereijo, I.O. & Aderemi, H.O.S. (2007). Evaluation of the Impact of Entrepreneurial Characteristics on the Performance of Small Scale Manufacturing Industries in Nigeria. Journal of Asia Entrepreneurship and Sustainability, 3 (1), 1-22.
Aderemi, H.O, Ilori, M.O, Siyanbola, W.O, Adegbite, S.A., & Abereijo I.O. (2008). An Assessment of the Choice and Performance of Women Entrepreneurs in Technological and Non-technological Enterprises in South-Western Nigeria. African Journal of Business Management, 2 (10), 165-176.
Agarwal, R., & Gort, M. (2002). Firm and Product Life Cycles and Firm Survival. The American Economic Review, 92 (2), 184-190.
Alli, K. L., Ramirez, G.G., & Yung, K. (1991). Corporate Headquarters Relocation: Evidence from the Capital Markets. Journal of the American Real Estate and Urban Economics Association 19 (4), 583-600.
Antoncic, B. (2009). The Entrepreneur’s General Personality Traits and Technological Developments. World Academy of Science, Engineering and Technology, 53, 236-241.
Ardichvili, A., Cardozo, R., & Ray, S. (2003). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing, 18 (1), 105-123.
Basu, A., & Goswami, A. (1999). South Asian Entrepreneurship in Great Britain: Factors Influencing Growth. International Journal of Entrepreneurial Behaviour and Research, 5 (5), 251-275.
Becchetti, L., & Trovato, G. (2002). The Determinants of Growth for Small and Medium-Sized Firm. The Role of the Availability of External Finance. Small Business Economics, 19 (4), 291-306.
Becker, G.S. (1994). Human Capital: A Theoretical and Empirical Analysis with Specific Reference to Education , Third Edition. University of Chicago Press. Chicago. USA
Bell, S.T., Villado, A.J., Lukasik, M.A., Belau, L., & Briggs, A.L. (2011). Getting Specific about Demographic Diversity and Team Performance Relationships: A Meta-Analysis. Journal of Management, 37 (3), 709-743.
Bertaut, C.C., & Starr-McCluer, M. (2000). Household portfolios in the United States. Finance and Economics Discussion Series 2000-26, Board of Governors of the Federal Reserve System (U.S.) Retrieved from https://ideas.repec.org/p/fip/fedgfe/2000-26.html
Bosma, N., Van Praag, M., Thurik, R., & De Wit, G. (2004). The Value of Human and Social Capital Investments for the Business Performance of Start-ups. Small Business Economics, 23 (3), 227 – 236.
Brown, R. (1990). Encouraging Enterprise: Britain’s Graduate Enterprise Program. Journal of Small Business Management, 28 (4), 71-77.
Brush, C.G., & Chaganti, R. (1999). Business without Glamour? An Analysis of Resources on Performance by Size and Gender in Small Service and Retail Firms. Journal of Business Venturing, 14 (3), 233-257.
Charney, A., & Libecap, G.D. (2000). Impact of Entrepreneurship Education: An Evaluation of the Berger Entrepreneurship Program at the University of Arizona, 1985-1999. Kauffman Center for Entrepreneurial Leadership. Final Report. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.584.9846&rep=rep1&type=pdf
Chen, H.S., Beck, S.L., & Amos, L.K. (2005). Leadership Styles and Nursing Faculty Job Satisfaction in Taiwan. Journal of Nursing Scholarship, 37(4), 374-380.
Cooper, A.C., Folta, F., Gimeno-Gascon, F.J., & Woo, C.Y. (1992). Entrepreneurs, Process of Founding and New Firm Performance. In Sexton, D., & Kassandra, J. (Eds.), The State of the Art in Entrepreneurship. Boston, MA: PWS Kent Publishing Co. 301-340.
Cooper, A.C., Gimeno-Gascon, F.J., & Woo, C.Y. (1994). Initial Human and Financial Capital as Predictors of New Venture Performance. Journal of Business Venturing, 9(5), 371-395.
Freedman, D.A. (2009). Statistical Models: Theory and Practice. Cambridge University Press.
Dobbs, M., & Hamilton, R.T. (2007). Small Business Growth: Recent Evidence and New Directions. International of Entrepreneurial Behaviour and Research, 13 (5), 296-322.
Duchesneau, D., & W. Gartner. (1990). A Profile of New Venture Success and Failure in an Emerging Industry. Journal of Business Venturing, 5 (5), 297-312.
Government of India. (2018). Annual Report of MSME, 2017-18. Ministry of Micro, Small and Medium Enterprises, New Delhi. Retrieved from https://msme.gov.in/sites/default/files/MSME-AR-2017-18-Eng.pdf
Hart, S.L. (1995). A Natural-resource-based View of the Firm. Academy of Management Review, 20 (4), 986-1014.
Hunt, S.D., & Morgan, R.M. (1996). The Resource-advantage Theory of Competition: Dynamics, Path Dependencies, and Evolutionary Dimensions. The Journal of Marketing, 60 (4), 107-114.
ILO. (2003). Jobs, Gender and Small Enterprise in Africa: Tanzanian Women Entrepreneurs - Going for Growth. ILO Office, Dar es Salaam and Ministry of Industry & Trade, Geneva: International Labour Organization. Retrived from https://www.ilo.org/public/libdoc/ilo/2003/103B09_58_engl.pdf .
Islam, M.A., Khan, M.A., Obaidullah, A.Z.M., & Alam, M.S. (2011). Effect of Entrepreneur and Firm Characteristics on the Business Success of Small and Medium Enterprises (SMEs) in Bangladesh. International Journal of Business and Management, 6 (3), 289-299.
Jennings, P., & Beaver, G. (1997). The Performance and Competitive Advantage of Small Firms: A Management Perspective. International Small Business Journal, 15 (2), 63-75.
Kim, P., Aldrich, H., & Keister, L. (2006). Access (Not) Denied: The Impact of Financial, Human, and Cultural Capital on Entrepreneurial Entry in the United States. Small Business Economics, 27 (1), 5-22.
Kirby, A.D. (2003). Entrepreneurship. McGraw-Hill Education, Maidenhead.
Kolvereid, L. (1996). Prediction of Employment Status Choice Intentions. Entrepreneurship Theory and Practice, 21 (1), 47-58.
Krauss, S.I., Frese, M., Friedrich, C., & Unger, J.M. (2005). Entrepreneurial Orientation: A Psychological Model of Success among Southern African Small Business Owners. European Journal of Work and Organizational Psychology, 14 (3), 315-344.
Kristiansen, S., Furuholt, B., & Wahid, F. (2003). Internet Cafe Entrepreneurs: Pioneers in Information Dissemination in Indonesia. The International Journal of Entrepreneurship and Innovation, 4 (4), 251-263.
Lama, P., (2013). Micro, Small and Medium Enterprises in India - Problems and Prospects. Business Studies, 33, 106-116.
Loscocco, K., Robinson, J., Hall, R., & Allen, J. (1991). Gender and Small Business Success: An Inquiry into Women's Relative Disadvantage. Social Forces, 70 (1), 65-85.
March, J.G., & Sutton, R.I. (1997). Crossroads-Organizational Performance as a Dependent Variable. Organization Science, 8 (6), 698-706.
Mazzarol, T., Volery, T., Doss, N., & Thein, V. (1999). Factors Influencing Small Business Start-ups. International Journal of Entrepreneurial Behavior and Research, 5 (2), 48-63.
Mungai, E., & Velamuri, S.R. (2010). Parental Entrepreneurial Role Model Influence on Male Offspring: Is It Always Positive and When Does It Occur? Entrepreneurship Theory and Practice, 35 (2), 337-357.
Niittykangas, H., & Tervo, H. (2005). Spatial Variations in Intergenerational Transmission of Self-employment. Regional Studies, 39 (3), 319-32.
Isaga, N., (2015). Owner-Managers’ Demographic Characteristics and the Growth of Tanzanian Small and Medium Enterprises. International Journal of Business and Management, 10 (5), 168-181.
Olson, P.D., Zuiker, V.S., Danes, S.M., Stafford, K., Heck, R.K.Z., & Duncan, K.A. (2003). The Impact of the Family and the Business on Family Business Sustainability. Journal of Business Venturing, 18 (5), 639-666.
Politis, D. (2005). The Process of Entrepreneurial Learning: A Conceptual Framework. Entrepreneurship Theory and Practice, 29 (4), 399-424.
Rasheed, H.S. (2002). Developing Entrepreneurial Characteristics in Youths: The Effect of Education and Enterprise Experience. International Journal of Entrepreneurship Education, 2 (1), 21 - 36.
Rauch, A., & Frese, M. (2000). Psychological approaches to entrepreneurial success. A general model and an overview of findings. In C.L. Cooper & I.T. Robertson (Eds.), International Review of Industrial and Organizational Psychology. Wiley. Chichester. 101-142.
Rencher, A.C., & Christensen, W.F. (2012). Methods of Multivariate Analysis, Wiley Series in Probability and Statistics, John Wiley & Sons.
Reynolds, P.D., Hay, M., Bygrave, W.D., Camp, S.M., & Autio, E. (2000). Global Entrepreneurship Monitor 2000 Executive Report: Babson College, Kauffman Center for Entrepreneurial Leadership, and London Business School. Retreived from https://www.researchgate.net/publication/273705139_Global_Entrepreneurship_Monitor_2000_Executive_Report
Rutashobya, L.H.K. (1995). Women in Business in Tanzania. In C. Creighton & C.K. Omari (Eds.), Gender Family and the Household in Tanzania. Westport, Avebury, 269-281.
Lucas, S. (2017). The Impact of Demographic and Social Factors on Firm Performance in Kenya. Journal of Business and Economic Development, 2 (4), 255-261.
Schrader, R., & Siegel, D.S. (2007). Assessing the Relationship between Human Capital and Firm Performance: Evidence from Technology-Based New Ventures. Entrepreneurship: Theory and Practice, 31 (6), 893-908.
Salia, P.J. (2017). The Influence of Selected Demographic and Business Characteristics on the Performance of Women-Owned Microenterprises in Tanzania. Saudi Journal of Business and Management Studies, 2 (3A), 169-178.
Scott, M.G., & Twomey, D.F. (1988). The Long-term Supply of Entrepreneurs: Students’ Career Aspirations in Relation to Entrepreneurship. Journal of Small Business Management, 26 (4), 5-13.
Shane, S. (2004). A General Theory of Entrepreneurship: The Individual-Opportunity Nexus. Edward Elgar Publishing, Inc. Aldershot, Great Britan
Shiralashetti, A.S. (2017). Prospects and Problems of MSMEs in India - A Study. International Journal of Multidisciplinary and Academic Research, 1(2), 1-7.
Sinha, T.N. (1996). Human Factors in Entrepreneurship Effectiveness. The Journal of Entrepreneurship, 5 (1), 23-39.
Sleuwaegen, L., & Goedhuys, M. (2002). Growth of Firms in Developing Countries, Evidence from Cote D'Ivoire. Journal of Development Economics, 68 (1), 117-135.
Sorensen, J.B. (2007). Closure and Exposure: Mechanisms in the Intergenerational Transmission of Self-employment. Research in the Sociology of Organizations, 25, 83-124.
Stevenson, H.H., & Jarillo, J.C. (1990). A Paradigm of Entrepreneurship: Entrepreneurial Management. Strategic Management Journal, 11 (1), 17- 27.
Stuart, R.W., & Abetti, P.A. (1990). Impact of Entrepreneurial and Management Experience on Early Performance. Journal of Business Venturing, 5 (3), 151-162.
Ucbasaran, D., Westhead, P., & Wright, M. (2008). Opportunity Identification and Pursuit: Does an Entrepreneur’s Human Capital Matter? Small Business Economics, 30 (2), 153-173.
Unger, J.M., Rauch, A., Frese, M., & Rosenbusch, N. (2009). Human Capital and Entrepreneurial Success: A Meta-analytical Review. Journal of Business Venturing, 26 (3), 341-358.
Vasan, M. (2016). Problems and Prospects of Women Entrepreneurs in India. Shanlax International Journal of Management, 3 (1), 312-315.
Wijewardena, H., & Cooray S. (1996). Factors Contributing to the Growth of Small Manufacturing Firms: Perceptions on Japanese Owner/ Managers. Journal of Enterprising Culture, 4 (4), 351-361.
Wright, M., Hmieleski, K.M., Siegel, D.S., & Ensley, M.D. (2007). The Role of Human Capital in Technological Entrepreneurship. Entrepreneurship Theory and Practice, 31(6), 791-806.
Yoganandan, G., & Sivasamy, G. (2016). Challenges of Women Entrepreneurs in Modern India. International Journal of Research in Commerce, Economics and Management, 6 (11), 31-33.
Yoganandan, G., & Vignesh, T. (2017). Challenges of Young Entrepreneurs. Asia Pacific Journal of Research, 56 (1), 112-115.
Yusuf, A. (1995). Critical Success Factors for Small Business: Perceptions of South Pacific Entrepreneurs. Journal of Small Business Management, 33 (2), 68-73.
Zahra, N. (2013). Implications of Demographic Antecedents in Determining the Motivational Drives among Women Entrepreneurs: A Case Study of Women Entrepreneurs Venturing in Lahore. Pakistan. Asian Journal of Business Management, 5 (1), 163-173.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.