A comparison of assistance needs of male and female pre-venture entrepreneurs☆

Abstract In spite of the proliferation of studies of female entrepreneurs, few researchers have attempted to directly compare female and male entrepreneurs in terms of their problems, the assistance received in addressing these problems, the value of outside consulting services, and the number of startups subsequent to counseling. Such studies are needed, not only to determine if there are differences in the problems male and female entrepreneurs face, but more importantly, to determine if any of these differences affect the successful development of new ventures. The fact that the SBA recently established a special training program for women entrepreneurs funded by a new $10 million grant, approved by Congress in 1988 (H.R. 5050), makes the issue even more timely and pertinent. To address this issue, this article compares samples of aspiring male and female entrepreneurs who received consulting assistance from a state-level Small Business Development Center (SBDC). The two groups were compared in terms of: (1) the strategic, administrative, and operating assistance received; (2) their evaluation of the value of the consulting services; and (3) their propensity to initiate ventures after receiving SBDC assistance. The study was based on the results of two surveys of the entire population of 457 long-term pre-venture clients that received counseling from one SBDC state system between July 1, 1985, and June 30, 1987. All clients were asked to complete a questionnaire concerning the kinds of assistance sought, the quality of the service received, and whether or not they subsequently went into business. We received 162 (35.4%) usable responses, of which 94 were from males (58.0%) and 68 were from females (42.0%). T-tests and chi-square tests of independence and goodness-of-fit were used to test hypotheses pertaining to the assistance needs of aspiring male and female entrepreneurs. Results indicated that male and female clients of the SBDC are virtually identical in terms of their assistance needs. Females do not appear to need more assistance than males, nor do they appear to require different types of assistance. The virtually identical ratings of service value among males and females also indicates that both genders are equally satisfied with the assistance received. Taken together, these findings suggest that females suffer no significant entrepreneurial disadvantages compared to males. If they had, it would be logical to assume that females, who received the same types and amounts of assistance as males, would find such levels of service inadequate, and consequently, rate it less favorably. Furthermore, the fact that the proportion of female clients was statistically equal to the proportion of net new businesses operated by women refutes the notion that general-assistance programs such as the SBDC are not equally accessible to both genders. The fact that female client start-ups were significantly higher than their proportional representation in the region further supports this conclusion. The primary implication for public policy makers and outside consultants is that little evidence exists to warrant special treatment or special programs for females, especially at a cost of $10 million. In terms of research implications, our results suggest that it would be better if future studies concentrated on behaviors and strategic factors affecting the performance of new ventures (whether male-or female-owned), rather than merely comparing the characteristics of the entrepreneurs who start them.