Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality

•There are more female-led firms in areas with better legal structures, more equal gender norms, and individualistic cultures.•Productivity disadvantage for female-led firms exists in manufacturing but not in service firms, and in small firms.•The disadvantage for female-led firms increases with personal networks, competition, and individualistic culture.•More gender equal environments and a lower burden of chores/care duties on women mitigate the female disadvantage.•Women-led firms do not have static efficiency disadvantage; their dynamic disadvantage drops under more gender equality.