Female Entrepreneurship, Access to Credit, and Firms’ Performance in Senegal

PEP working paper serie 2015-14

32 Pages Posted: 28 Oct 2015 Last revised: 11 Jul 2018

See all articles by Abdoulaye Seck

Abdoulaye Seck

Université Cheikh Anta Diop (UCAD) - Economics Department

Abdelkrim Araar

Université Laval - Département d'Économique

Karamoko Camara

University Cheikh Anta Diop UCAD, Economics Department, Students

Fatoumata L. Diallo

Université Cheikh Anta Diop (UCAD) - Economics Department

Ndeye Khady M. Diop

University Cheikh Anta Diop UCAD, Economics Department, Students

Founty A. Fall

University Cheikh Anta Diop UCAD, Economics Department, Students

Date Written: October 27, 2015

Abstract

Despite an increase in the share of female-owned existing and new start-up firms in Senegal, there is still a wide belief that female entrepreneurs are discriminated against in the credit market. This paper empirically investigates such gender-based discrimination, and the extent to which it might be translated into lower efficiency. Using firm-level data and a methodological approach that consists of the data envelopment analysis, an endogenous switching regression and a propensity score matching, the paper finds no evidence to support the common wisdom that women are discriminated in the credit market. In addition, to the extent that they benefit from credit, female reap equal returns from the funds, efficiency-wise. These results do not however call for the abandonment of gender-biased public policies aiming at promoting access to credit and entrepreneurship, but suggest they be grounded on more robust footings such as managers’ education, firms’ ownership, sectorial activities with respect to capital intensity, and geographical locations.

Keywords: Gender, access to credit, firms' efficiency, Senegal

JEL Classification: G21, J16, L25

Suggested Citation

Seck, Abdoulaye and Araar, Abdelkrim and Camara, Karamoko and L. Diallo, Fatoumata and M. Diop, Ndeye Khady and A. Fall, Founty, Female Entrepreneurship, Access to Credit, and Firms’ Performance in Senegal (October 27, 2015). PEP working paper serie 2015-14, Available at SSRN: https://ssrn.com/abstract=2681111 or http://dx.doi.org/10.2139/ssrn.2681111

Abdoulaye Seck (Contact Author)

Université Cheikh Anta Diop (UCAD) - Economics Department ( email )

Fann
Dakar
Senegal

Abdelkrim Araar

Université Laval - Département d'Économique ( email )

CREFA
Ste-Foy, Quebec 179Que G1K
Canada

Karamoko Camara

University Cheikh Anta Diop UCAD, Economics Department, Students ( email )

Senegal

Fatoumata L. Diallo

Université Cheikh Anta Diop (UCAD) - Economics Department ( email )

Fann
Dakar
Senegal

Ndeye Khady M. Diop

University Cheikh Anta Diop UCAD, Economics Department, Students ( email )

Senegal

Founty A. Fall

University Cheikh Anta Diop UCAD, Economics Department, Students ( email )

Senegal

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