Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222704 
Year of Publication: 
2019
Series/Report no.: 
ADBI Working Paper Series No. 937
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
Within a patriarchal society, women are placed in a precarious societal positioning that leads to a prevalence of gender inequality in education, financial literacy, and access to finance. In the context of Asia, where small and medium-sized enterprises (SMEs) are the backbone of most Asian economies and the financial sector is dominated by banks, women in entrepreneurship are susceptible to facing greater credit constraints relative to their male counterparts, which can compromise their corporate performance. The objective of this research is to investigate whether there is a significant association between gender and success or failure of SMEs. Using a statistical analysis technique (principal component analysis) and running econometrics regressions on a random sample of 1,492 exporter SMEs from Iran, the research answers the question: is it plausible to conclude that female-owned SMEs are bound for lower corporate performance relative to those of male counterparts? Empirical results show that indeed, despite showing a good leverage status, female-owned SMEs perform lower relative to male counterparts as they have a higher default ratio and lower profitability, liquidity, and coverage. The paper will provide policy suggestions, such as establishment of credit guarantee funds for easing the female-owned SMEs' access to finance in Asia. Implementation of supportive policies for female-owned SMEs will have significant contribution to economic growth, employment, and ultimately, to gender equality.
Subjects: 
economics of gender
small and medium-sized enterprises
corporate performance of SMEs
financial literacy gap
access to finance
gender inequality
financial inclusion
JEL: 
J16
G32
G21
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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