Business Incubator Explanations: Networking and Gender Differences

Research investigating gender differences in small business performance has frequently shown women-owned businesses to be smaller in terms of sales, profits and number of employees (Cooper, Gimeno-Dascon, & Woo, 1994; Kalleberg & Leicht, 1991; Loscocco & Leicht, 1993; Watson & Robinson, 2003). One reason for this may be social networks that are not as diverse and useful as men’s networks, making it more difficult for women to access external business resources. Business incubators attempt to enhance tenants’ networks, and thus increase access to needed resources. In this theoretical paper, it is argued that even though all incubatees are likely to benefit from networking assistance, it may be especially useful for women with less diverse networks. Suggestions for future research based on this conceptual framework are also presented.