Are women-owned enterprises better for employees?

Abstract

This study provides novel survey-based insights from an under-researched developing market perspective into whether women-owned enterprises offer better working environments despite being resource-constrained and subject to engendered restrictions. Using a hand-collected survey-based dataset from Kenya and Tanzania, we find that women-owned enterprises provide more formal training programs, pension coverage, health insurance, female and youth employment opportunities, and are more innovative. We attribute these findings to the fact that female participation leads to a more empathic and socially responsible approach to decision-making, resulting in better employee welfare outcomes. Our findings echo the need to spur equitable and sustained economic growth by eliminating engendered restrictions and providing more resources to female entrepreneurs in developing markets.

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