Local Industrial Structures and Female Entrepreneurship in India

40 Pages Posted: 3 Jan 2012

See all articles by Syed Ejaz Ghani

Syed Ejaz Ghani

World Bank

William Kerr

Harvard University - Entrepreneurial Management Unit

Stephen D. O'Connell

Emory University

Multiple version iconThere are 2 versions of this paper

Date Written: November 8, 2011

Abstract

We analyze the spatial determinants of female entrepreneurship in India in the manufacturing and services sectors. We focus on the presence of incumbent female-owned businesses and their role in promoting higher subsequent female entrepreneurship relative to male entrepreneurship. We find evidence of agglomeration economies in both sectors, where higher female ownership among incumbent businesses within a district-industry predicts a greater share of subsequent entrepreneurs will be female. Moreover, higher female ownership of local businesses in related industries (e.g., those sharing similar labor needs, industries related via input-output markets) predict greater relative female entry rates even after controlling for the focal district-industry’s conditions. The core patterns hold when using local industrial conditions in 1994 to instrument for incumbent conditions in 2000-2005. The results highlight that the traits of business owners in incumbent industrial structures influence the types of entrepreneurs supported.

Keywords: Female, gender, entrepreneurship, agglomeration, cluster, business networks, development, India, South Asia

JEL Classification: J16, L10, L26, L60, L80, M13, O10, R00, R10, R12

Suggested Citation

Ghani, Ejaz and Kerr, William R. and O'Connell, Stephen D., Local Industrial Structures and Female Entrepreneurship in India (November 8, 2011). Harvard Business School Entrepreneurial Management Working Paper No. 12-036. Available at SSRN: https://ssrn.com/abstract=1978915 or http://dx.doi.org/10.2139/ssrn.1978915

Ejaz Ghani

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

William R. Kerr (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Stephen D. O'Connell

Emory University ( email )

1602 Fishburne Drive
Atlanta, GA 30322
United States

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