Failure Rates for Female-Controlled Businesses : Are They Any Different?

Past research has indicated the female-owned businesses are outperformed by male-owned businesses on a number of measures including revenue, profit, and growth.However, much of this research has been based upon data using limited samples, possibly skewing the results.This study analyzes the industry differences between male- and female-owned businesses and how these differences affect firm performance. The literature review discusses the previous research regarding the failure rates of small and medium-sized enterprises (SMEs) and the performance differences between male- and female-owned businesses.The data for the study were obtained from the 1994-95, 1995-96, 1996-97, and 1997-98 Business Growth and Performance Surveys performed by the Australian Bureau of Statistics (ABS).Questionnaires were submitted and self-administered to Australian SMEs.Three hypotheses are presented, and the findings of the analyses are discussed. The results of the analyses indicate the following:1) the rate of failure among female-controlled businesses was higher, but not as strong as expected; 2)industries in which female-owned businesses were overrepresented had higher failure rates that corresponding industries for males; and 3) after controlling for industry effects, the failure rate of male- and female-controlled businesses was the same.The implications, limitations, and areas of future research are all discussed. (AKP)