The Role of Human and Financial Capital in the Profitability and Growth of Women‐Owned Small Firms

Susan Coleman

Journal of Small Business Management, 2007, vol. 45, issue 3, 303-319

Abstract: This paper examines the relationship between human and financial capital and firm performance for women‐ and men‐owned small firms in the service and retail sectors. Results indicate that human capital variables, including education and experience, had a positive impact on the profitability of women‐owned firms, whereas measures of financial capital had a greater impact of the profitability of men‐owned firms. The ability to secure financial capital also had a positive impact on the growth rate of men‐owned firms, but did not appear to affect the growth rate of women‐owned firms. These findings suggest that the growth aspirations for women‐owned firms may be driven by factors other than human capital or the ability to secure external capital.

Date: 2007
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DOI: 10.1111/j.1540-627X.2007.00214.x

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