Does gender still matter? An examination of small business performance

This study provides novel insights into gender differences in small business outcomes. We analyze the first publicly available microdata from the 2007 US Census Bureau PUMS dataset, in a manner similar to (Fairlie and Robb’s in Small Business Economics , 33, 375–395 2009 ) analysis of the 1992 CBO dataset, and explore differences in female-led versus male-led firms’ business performances over a 15-year period. Findings indicate that gender differences persist and that female-led businesses continue to trail male-led businesses in survival rates, profits, employment (i.e., firm size), and sales. We also extend the work by (Fairlie and Robb in Small Business Economics , 33, 375–395 2009 ), by examining new performance and predictor measures, including payroll firm and longevity. We find that female-led businesses trail male-led businesses in these variables as well. However, the news is not all bad. Our findings also reveal that, although female-led businesses continue to trail male-led businesses in performance outcomes, both female- and male-led businesses are improving and in some cases performance improvements by female-led businesses are out-pacing their male-led counterparts.