Bribe or Die: Gender Differences in Entrepreneurship in Emerging Markets

Abstract

This paper examines the relation between gender differences in entrepreneurship and firm-level bribery, one of the most impactful business obstacles to private sector growth. Using data from a comprehensive survey covering 16,560 enterprises in 32 emerging economies, we find that female-led firms account for 19.2% of all enterprises, which is approximately 4 times lower than the share of male-led firms, and that female entrepreneurs experience a higher level of bribery than their peers. The impact of gender on bribery is more pronounced among firms located in countries that are more corruption-prone and becomes weaker among countries with a higher female graduation ratio at the tertiary level. In addition, female-run firms have a lower likelihood of obtaining a construction permit, securing a government contract, or holding an operating license. Overall, the results suggest that a bribe-to-survive motive is a possible explanation for the higher level of bribery among female-led firms in emerging markets.

Keywords: women entrepreneurs, bribery, time cost, gender differences, emerging markets.

JEL Classification: D23, D73, J16