What the numbers tell: The impact of human, family and financial capital on women and men's entry into entrepreneurship in Turkey

Dilek Cetindamar, Vishal K. Gupta, Esra Karadeniz and Nilufer Egrican

Entrepreneurship & Regional Development, 2012, vol. 24, issue 1-2, 29-51

Abstract: Entrepreneurship contributes to economic development in countries worldwide. Entrepreneurial activity is beneficial for both men and women, including those in developing countries. However, men and women may not engage in entrepreneurship to the same extent because of differential access to (various forms of) capital. This study examines the relative importance of three types of capital -- human, family and financial -- in pursuing entrepreneurship. Using data collected in Turkey, we find that regardless of sex, all three forms of capital influence the likelihood of becoming an entrepreneur in varying degrees. Contrary to expectations, the impact of human capital on the likelihood of becoming an entrepreneur is higher for women than men. Data also revealed that family capital facilitates women's entry into entrepreneurship only when family size is very large (i.e. seven or more). No gender differences are observed in the impact of financial capital on the likelihood of becoming an entrepreneur. Findings suggest that to encourage entrepreneurship in Turkey, policy-makers should emphasize access to human and financial capital. Furthermore, findings suggest that women's likelihood of becoming an entrepreneur will be especially encouraged if they have increased access to education, as well as the skills necessary to take advantage of their family capital.

Date: 2012
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DOI: 10.1080/08985626.2012.637348

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