Analysing the influence of gender and gender diversity in network-building behaviour and entrepreneurial ecosystem

Abstract

This paper investigates the interplay between gender, entrepreneurial ecosystem domains, and network-building behaviors of startuppers. Leveraging data from the PSED (Panel Study of Entrepreneurial Dynamics), we focus on how women navigate the entrepreneurial landscape. Our research design employs a novel approach to analyze both ecosystem domains and the micro-networks of entrepreneurs using Social Network Analysis (SNA). The results reveal key distinctions between male and female network-building behaviors. Women tend to build networks with a higher concentration of relatives, particularly spouses. This network structure, while smaller, fosters greater gender diversity within the network, potentially leading to new business opportunities. Furthermore, we find that gender significantly influences access to specific ecosystem resources. Female entrepreneurs exhibit lower access to informal financial capital and support from professionals. However, a more gender diversity appears to mitigate this disadvantage by facilitating access to informal financial capital and support from owners. Our experiment on ecosystem measurement identifies prevailing bi-directional relationships between most domain variables, highlighting the interconnected nature of the ecosystem. Within the micro-networks, the strength of ties among owners emerges as the most influential factor impacting various ecosystem domains. Additionally, the openness of an entrepreneur’s network plays a critical role in enhancing expected market innovation and fostering a focus on broader market targets beyond the local marketplace. This study contributes to the literature by providing empirical evidence on how gender shapes network-building behaviors, highlighting the importance of gender diversity within networks and suggesting potential strategies to bridge the gender gap in entrepreneurship.