Training, Human Capital, and Gender Gaps in Entrepreneurial Performance

32 Pages Posted: 18 Nov 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

In the aftermath of the global financial crisis, policymakers have been increasingly striving to support female entrepreneurship as a possible growth driver. This paper contributes to reconciling mixed findings in the literature on the effectiveness of entrepreneurial training with an analysis that links training and human capital, including tertiary education and non-cognitive skills, with gender gaps in entrepreneurial performance in Africa. We have found that while financial literacy training directly benefits men, it does not raise the sales level of women entrepreneurs. Instead, tertiary education has a direct positive link with the performance of women. Consistent with our theoretical model where different skills are complements, tertiary education can act as a channel that makes training effective. Regarding non-cognitive skills, evidence shows that women entrepreneurs who are tenacious achieve stronger sales performance. Our results underscore the importance of incorporating tertiary education and entrepreneurial training programs focused on a balanced set of skills, including non-cognitive skills, among policies for women entrepreneurs.

Keywords: female entrepreneurship, training, non-cognitive skills, tertiary education

JEL Classification: L53, O12, J4

Suggested Citation

Brixiova, Zuzana and Kangoye, Thierry, Training, Human Capital, and Gender Gaps in Entrepreneurial Performance. IZA Discussion Paper No. 12777, Available at SSRN: https://ssrn.com/abstract=3488204 or http://dx.doi.org/10.2139/ssrn.3488204

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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