Networks, Start-Up Capital and Women's Entrepreneurial Performance in Africa: Evidence from Eswatini

19 Pages Posted: 21 May 2019

See all articles by Zuzana Brixiova

Zuzana Brixiova

University of Cape Town - Faculty of Commerce - School of Economics

Thierry Kangoye

African Development Bank

Abstract

This paper analyzes the role of networks in access of women entrepreneurs to start-up capital and firm performance in Eswatini, a country with one of the highest female unemployment rates in Africa. The paper first shows that higher initial capital is associated with better sales performance for both men and women entrepreneurs. Women entrepreneurs start their firms with smaller start-up capital than men and are more likely to fund it from their own sources, which reduces the size of their firm and sales level. However, women with higher education start their firms with more capital than their less educated counterparts. Moreover, women who receive support from professional networks have higher initial capital, while those trained in financial literacy more often access external funding sources, including through their networks.

Keywords: networks, start-up capital, multivariate analysis, Africa

JEL Classification: L53, O12

Suggested Citation

Brixiova, Zuzana and Kangoye, Thierry, Networks, Start-Up Capital and Women's Entrepreneurial Performance in Africa: Evidence from Eswatini. IZA Discussion Paper No. 12198, Available at SSRN: https://ssrn.com/abstract=3390185 or http://dx.doi.org/10.2139/ssrn.3390185

Zuzana Brixiova (Contact Author)

University of Cape Town - Faculty of Commerce - School of Economics ( email )

Rondebosch
Cape Town, 7700
South Africa

Thierry Kangoye

African Development Bank ( email )

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