Female Entrepreneurship, Access to Credit, and Firms’ Productivity in Senegal

Abdoulaye Seck, Abdelkrim Araar, Karamoko Camara, Fatoumata L. Diallo, Ndeye Kh. Diop and Founty A. Fall

Journal of African Business, 2022, vol. 23, issue 1, 199-224

Abstract: Despite an increase in the share of female-owned existing and new start-up firms in Senegal, there is still wide belief that female entrepreneurs are discriminated against in the credit market. This paper empirically investigates such gender-based discrimination, and the extent to which it might be translated into lower performance. Using firm-level data and a methodological approach that consists of the data envelopment analysis, an endogenous switching regression and a propensity score matching, the paper suggests that there is no such thing as gender-based discrimination, and to the extent that they benefit from credit, female reap equal returns from the funds, efficiency-wise. These results do not however call for the abandonment of gender-biased public policies aiming at promoting access to credit and entrepreneurship, but suggest they be grounded on more robust footings such as managers’ education, firms’ ownership, sectorial activities, and geographical locations.

Date: 2022
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DOI: 10.1080/15228916.2020.1826859

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