Posted: Thu 5th Sep 2019
Women entrepreneurs are less likely to give up on a company than their male counterparts, according to new research.
Male company owners are 14% more likely to stop running a company they've set up, found the researchers who analysed data covering 1,523 UK businesses from 2009 to 2016.
Muntasir Alam and Dr Dilani Jayawarna from the University of Liverpool Management School discovered that 16.3% of female entrepreneurs quit each year compared to 18.6% of men.
Further analysis revealed that women stay longer in business before exiting, despite making less money than their male counterparts.
Presenting the study at the British Academy of Management's annual conference in Birmingham this week, Alam said the differences could be explained because females are often not the main breadwinner in their household so can run a business with a lower income and they are more likely to work from home.
The further the business premises were from their homes, the more likely the owners were to quit, the researchers said.
"The analysis found that running the business from home gives women flexibility, and also being the secondary breadwinner meant their business was subsidised by their husbands or partners."
In other findings, the study found that owners who were more highly educated and trained were less likely to leave their businesses and older entrepreneurs were also less likely to quit.