The Differential Effect of Men and Women Entrepreneurs’ Human Capital and Networking on Growth Expectancies in Bulgaria

Abstract

Based on expectancy theory and social psychology perspectives, this study looks at the differential effects of men and women entrepreneurs’ human capital and networking on their growth expectancies in the context of a transitional economy. Survey data from men and women new venture owners in Bulgaria (n = 544) suggest that growth expectancy among men is significantly and positively associated with outside advice achieved through networking. Among women entrepreneurs, growth expectancy is significantly and positively associated with perceived benefits from prior experience. A Chow test for coefficient differences reveals that the determinants of growth expectancy for women entrepreneurs are significantly different than those for men, rendering support for perspectives from social psychology, which suggest that women have different socialization experiences and, as a result, conceive of their new venture growth differently. Implications for managerial practice and public policy are discussed.

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