Gender, small firm ownership, and credit access: some insights from India

Using a comprehensive dataset on micro, small, and medium enterprises in India, we examine whether the gender of the owner matters in firm performance and in credit access from institutional sources. The study finds significant underperformance in the size, growth, and efficiency of firms owned by women when compared to those owned by men. In line with the evidence in the existing literature, our findings also support the view that women-owned firms are disadvantaged in the market for small-business credit. These findings suggest that addressing gender discrimination in the small-business credit market could help, partly, in bridging the performance gap between male- and female-owned firms.