Micro-business success: gender and innovation

Nathania M. Yuliani, R. Shanti D. Ottemoesoe, Yohanes S. Kunto and Sautma Ronni Basana

International Journal of Globalisation and Small Business, 2025, vol. 15, issue 2, 158-175

Abstract: Studies indicate that business performance varies by gender, with disparities more pronounced in regions with gender bias, especially in the micro-sector. Previous research has highlighted the importance of education and financial literacy for female-led micro-businesses. Our study examines whether entrepreneurial orientation (EO) can mitigate these gender disparities. Data from a survey of 430 micro-business owners in Java and Bali, Indonesia, were analysed using partial least squares structural equation modelling (PLS-SEM). Results show that female micro-business owners underperformed compared to males (β = -0.120, p < 0.05) in profit and asset growth. EO was a key mediator, with higher EO linked to better performance (β = 0.688, p < 0.01). However, females exhibited lower EO than males (β = -0.110, p < 0.05). These findings underscore the importance of EO in improving business performance and reducing gender disparities. We recommend gender-sensitive programs for female-led micro-enterprises in Java and Bali to promote agile entrepreneurship.

Keywords: entrepreneurial orientation; business performance; gender disparities; micro-business; necessity-driven entrepreneurship; growth-oriented entrepreneurship; financial literacy; business innovation; female entrepreneurship; empowerment strategies. (search for similar items in EconPapers)
Date: 2025
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