THE VALUE OF GENDER-BASED SMALL BUSINESS PROGRAMS: WHAT DOES THE EVIDENCE SAY?
Barbara
J. Orser, Carleton University
Allan Riding, Carleton University
Judith J. Madill, Carleton University
Principal Topic
Proponents of government interventions advance the argument that “marketplace gaps” present barriers to economic development and that intervention is warranted. On the other hand, some contend that markets are functioning as they should and that government interventions simply subsidize the weak. Previous research has documented gender-differences in depth and breadth of management experience. It is not clear, however, what are the specific skills and competencies that differ between men and women business owners. The goal of the paper is twofold: (a) to inform the debate about gender-based program initiatives, and (b) to develop a “management capacity index,” a tool to assist in understanding better SME owners’ business skills and competencies.
Method
The research used a two-stage approach. In the first stage, a measurement tool was developed to measure management capabilities of owners of very small firms (less than 5 employees). The efficacy of this tool was tested and refined using an initial sample of 210 male and female small business owners. The second phase of the research used the tool to compare managerial skills across three sampling frames: two groups of randomly selected business owners in the Province of Manitoba (one set of 899 males and the other of 1,516 females), and a third comprising 168 former Women’s Enterprise Centre (WEC) clients who had received assistance from the WEC gender-based training program. The response rates (eligible respondents only) were 50% for the WEC cohort, 33 percent for the random women business owners, and 16.4% for random male business owners.
Results and Implications
Findings showed significant gender differences in both growth intentions and management capacity. These results reflect differences across the majority of management skills and competencies. Gender differences in management experience prior to business start-up were associated with current management practices. Based on these findings, the authors present a “management capacity index,” a tool to measure knowledge gaps small business owners.
CONTACT: Barbara Orser, Carleton University, Ottawa ON Canada; (T) 613-520-2600, Ext 2033; (F) 613-520-2363; barbara_orser@carleton.ca
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