Policy and entrepreneurs in MSEs in Ethiopia: Does gender moderate the relationship between policy component of the entrepreneurial ecosystem and the performance of MSEs?

Abstract

The entrepreneurial ecosystem’s policy dimensions contribute to the performance improvement of Micro and Small Enterprises (MSEs). The social feminist theory argues that females fundamentally differ from males in their entrepreneurial attitude and business performance. Studies in the area are coming up with contradictory results in this regard. Investigations that addressed the moderating effect of gender on the relationship between the policy component of the entrepreneurial ecosystem and the performance of MSEs are not adequately available. Based on a sample of 498 MSEs in the metropolitan cities of Amhara Region, Ethiopia, the result suggests that the entrepreneurial ecosystem’s policy component is less conducive to MSEs. We also found that gender does not moderate the relationship between policy and MSEs’ performance. There exists no difference in the entrepreneurial ecosystem among the metropolitan cities and the sectors that MSEs are engaged. The study contributes to a greater understanding of the policy component of the Entrepreneurial Ecosystems, its significance for women entrepreneurs in MSEs and gender differences attributed to policy direction.