Exploring firm performance and growth among own-account and micro enterprises in Ghana

Abstract

Using micro-level data from the 2013 nationally-representative GENDA survey on approximately 1,200 own-account and micro enterprises, we examine firm performance and business growth between men and women entrepreneurs in Ghana. Using OLS and multinomial logit (MNL) regression techniques, we find differential effects and constraints for men and women-owned businesses: men generally perform better than women, controlling for a host of characteristics. We find that among women-operated firms, locating a business at home has negative performance implications. Additionally, women-operated firms report more positive growth experiences when their businesses are formally-registered. While credit constraint has negative effects for both male and female-operated firms, the effects are felt stronger among men. We also find some evidence of ICT use-age on performance of firms, with differential effects for men and women. These findings provide significant scope for policy targeting in order to enhance business performance and growth among own-account and micro enterprises in Ghana.