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Analysis of the Gender Impact on Entrepreneurship in Democratic Republic of the Congo (DRC)

Several studies in the literature show that female entrepreneurship is a factor of social well-being improvement. However, the number of women in business remains significantly lower in comparison with that of male entrepreneurs in developing countries. Some studies provide evidence of female underperformance in terms of efficiency and growth of firm, while others do not find gender-based differentials. Using data from the World Bank’s Enterprise Surveys of 2010 and 2013, this study aims to (i) highlight the impact of gender on the entrepreneurial performance and (ii) explore the factors of difference in entrepreneurship between men and women. Results from econometric and decomposition analyses suggest that, female managed and/or owned firms are less effective in terms of number of employees than their male counterparts. Nevertheless, female entrepreneurship affects positively the growth of annual sales. However, the gender based difference of firm performance is mainly due to the difference in human capital endowments between male and female entrepreneurs.