HCBE Faculty Articles

Title

Does Female Ownership of Business Attenuate the Impact of Business Experience on Profitability: An Empirical Study of Small Businesses

Document Type

Article

Date

6-2018

Publication Title

Academy of Business and Economics Journal

ISSN or ISBN

1542-8710

Volume

18

Issue

2

First Page

59

Last Page

70

Description

While work experience of business owners can positively impact small business profitability, the moderating impact of female ownership on this relationship is not adequately addressed in extant literature. Our study fills this gap through this empirical study and analysis with a sample population of 21,200 observations. Using one of the largest data banks from the National Survey of Small Business Finances (NSSBF) along with the Baron and Kenny (1986) model to test moderating effects, our study investigates the linkage between owners’ business experience and profitability, and the moderating effects of female ownership on the linkage. We found that greater the business experience of the owners, greater is the small business profitability. However, we also found that the percentage of female ownership in small business mitigates the positive effect of owners’ experience on small business profitability. Our empirical findings align with the larger phenomenon of gender disparities in the workplace. Gender disparities may provide the rationale for why increased female ownership could negatively impact small business profitability. We conclude with limitations and implications of the results.

DOI

10.18374/JABE-18-2.5

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