Female Entrepreneurs in Honduras: Factors that Affect their Performance in Microand Small Enterprises

Abstract

Entrepreneurship is an important driver of economic growth in most developing countries and most of the studies conducted on this topic have been done on male entrepreneurs. In the past decades more females are being motivated to start their own businesses. This research examined the effect of factors affecting the performance of 152 female entrepreneurs in micro and small businesses in Honduras by using Partial Least Square SEM. A quantitative approach was used in this study. Based on the existing literature, a self-report questionnaire was designed and composed of six sections. Results indicate that of the motivational factors, economic and personal motivation have a positive effect on performance, while of the human capital factors, business skills and the influence of the area of education. Regarding the use of networks, only the perceived support from mentors had a positive effect on performance. None of the environmental factors had a significant influence on the performance of these female entrepreneurs. Of the demographics only the business sector had significant influence on performance.Entrepreneurship is an important driver of economic growth in most developing countries and most of the studies conducted on this topic have been done on male entrepreneurs. In the past decades more females are being motivated to start their own businesses. This research examined the effect of factors affecting the performance of 152 female entrepreneurs in micro and small businesses in Honduras by using Partial Least Square SEM. A quantitative approach was used in this study. Based on the existing literature, a self-report questionnaire was designed and composed of six sections. Results indicate that of the motivational factors, economic and personal motivation have a positive effect on performance, while of the human capital factors, business skills and the influence of the area of education. Regarding the use of networks, only the perceived support from mentors had a positive effect on performance. None of the environmental factors had a significant influence on the performance of these female entrepreneurs. Of the demographics only the business sector had significant influence on performance.