Gender Differences in the Causes of Business Failure (Study)
Journal of Global Entrepreneurship Research, Winter & Spring, 2011, Vol.1, No.1, pp.95-106
Gender Differences in the
Causes of Business Failure
Zahra Arasti1
Entrepreneurship is a newly developed topic in Iran. The main purpose of the current
empirical study is to compare unsuccessful men and women with the help of a
questionnaire implemented face to face on a sample of 62 failed business-owners
managers in Iran. The results point out the similarities and differences in characteristics
of failed-business-owners managers by gender. Accordingly, it shows that men and
women have different perceptions about the causes of business failure. The results
produced in the context of an Iranian community with a high level of unemployment
among women can provide critical information for individual entrepreneurs, venture
financiers, and government policymakers.
Keywords: Entrepreneurship, Business Failure, Gender Differences, Failed Entreprenurs
ew firms create new jobs, open up opportunities for upward social mobility, foster
Neconomic flexibility, and contribute to competition and economic efficiency (Liao
et al., 2009). Business discontinuation is an important feature of dynamic
economies, and entries and exits of businesses are closely linked (Bosma et al.,
2009). Our understanding of entrepreneurship will never be completed until we
have a clear understanding of what caused its discontinuation. Developing a deeper
understanding of new venture failures, would provide critical information for several key
stakeholders in a new venture -individual entrepreneurs, venture financiers, and government
policymakers (Liao et al., 2009).
There is a limited but growing body of knowledge on the topic of failure on which
researchers can base their investigations, especially in the small business domain. The research
articles are, however, published in business, management, financial, psychological,
entrepreneurial and many other journals and no proof could be found that these investigations
have ever been comprehensively reviewed. There is no specific body of science to which
failure exclusively belongs (Pretorius, 2009).
The health of a firm in a highly competitive business environment is dependent upon its
capability of achieving profit and financial solvency. This means that a firm becomes
unhealthy, or deteriorates to the point where it is in danger of suffering business failure, when
it loses its competence to maintain profit and financial solvency. Business failure is not only
1. Assistant Professor, University of Tehran; Corresponding Author's email: [email protected]
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