While women in wealthier nations are more likely to grow their businesses beyond the startup stage, women in Latin America and the Caribbean are launching new businesses at a higher rate, a new report shows.
As many as 14 percent of women in Latin America and the Caribbean are involved in entrepreneurial activity, compared to just four percent in higher-income countries, according to researchers at Boston-based Babson College and New York City-based Baruch College.
Based on a study of nearly 150,000 entrepreneurs in 41 countries, researchers found that men in wealthy regions were twice as likely as women to start businesses, though businesses owned by men and women were equally likely to make it past the first 42 months.
While women in Latin America and the Caribbean often start businesses out of a financial necessity, those in wealthier countries tend to do so as a result of unique business opportunities, according to Elaine Allen, a Babson College researcher.
"Countries in warmer climates have more opportunity for consumer goods and services companies with low barriers to entry," Allen said. "As we do future surveys, we will need to see if these companies are actually sustainable."
The study also found that start-up rates in lower-income countries were more even among men and women, though men were more likely to grow their businesses.