Does gender affect business continuity? An analysis with hierarchical modeling

Introduction : Gender differences, which are socially and culturally created, determine how women and men will perform and the more appropriate activities for each person. As cultural and social aspects emphasize the differences in men’ and women’s roles, culture and gender stereotypes may influence the difference in the probability of success of business headed by men or women. The objective of this article is to explore whether the impact of the determinants of micro-businesses continuity varies between men and women in the Metropolitan Area of Monterrey, Mexico. Method : We use hierarchical modeling with Bernoulli distribution using the sex of the micro entrepreneur as a variable in the second level. Results : Results indicate that sex moderates the effect of schooling, having the micro-business to exercise his or her career or profession, if the micro-entrepreneur is willing to change the business activity to a job with similar income, but with access to social security, and if the micro-business is in the manufacturing sector. Discussion : Women entrepreneurs can feel disadvantaged as entrepreneurs or make choices that emphasize traditional gender roles. As a consequence, the social and cultural restrictions faced by women restrict their participation and performance in the business world.