Why do Male Owner-managers Perform Better than Female Owner-Managers: An Investigation in a Transition Economy Context

There is growing confidence among researchers in the ability of small businesses to play a vital role in economic development. This role is manifested through the process of innovation, job creation, income generation and business dynamics. In transitional economies such as Ghana small businesses comprise about 90 percent of all enterprises and are recognised as a crucial and integral component of economic development aimed at sustained poverty reduction. The ability of these firms to contribute to economic development is in turn influenced by business strategies, determined by the owner-manager's personality and demographic characteristics. Personal values originate from the prevailing cultural and socialization processes in the country concerned. In Ghana, women form the majority of operators in the small business sector but their educational levels and managerial experiences are lower than those of their male counterparts. The study examines the direct and indirect effects of gender on the personal values, strategies and performance of small firms in Ghana.