Index and Abstracts

Volume 11, Number 2
June 2006

Differences in Reported Firm Performance by Gender: Does Industry Matter?
Jane L. Swinney, Rodney C. Runyan and Patricia Huddleston

Using Individual Development Accounts for Microenterprise Development
Fred M. Ssewamala, Margaret Lombe and Jami C. Curley

Raising Capital for Microfinance: Sources of Funding and Opportunities_for Equity Financing
David Fehr, Gaamaa Hishigsuren

Retail Service Quality Expectations and Perceptions Among Philippine Small/Medium Enterprises 
J.Mark Munoz, Peter Raven and Dianne H.B. Welsh

The Influence of Role Models on Entrepreneurial Intentions
Howard Van Auken, Fred L. Fry and Paul Stephens

Differences in Reported Firm Performance by Gender: Does Industry Matter?

Business performance results were collected from small business entrepreneurs in one Mid-western state operating in the retail and services industries. These industries account for more than 80 percent of female entrepreneurs' fields of operation. The pattern of reported firm performance between the genders indicated that male entrepreneurs with a high school education reported the highest firm performance scores overall. Female entrepreneurs with a college degree reported the highest firm performance scores among female entrepreneurs. Aspiring female entrepreneurs need to be encouraged to complete higher education as it translates into strong future business performance.

Using Individual Development Accounts for Microenterprise Development

This study examines whether there is a role for microenterprise development as an anti-poverty strategy in the United States. This question is important because skeptical views exist regarding whether, generally, poor Americans would have the enthusiasm to undertake the risk of dealing with small-businesses, especially given that the United States has a public welfare system to take care of the poor and “abundant jobs” for those with the skills. Using data from 14 community-based programs promoting small-business investment through Individual Development Accounts (IDAs), this study finds that, overall, there is a considerable level of interest in saving for and investing in small-businesses among poor Americans, including those who are less advantaged in terms of income poverty and employment. Policy makers should thus consider promoting IDAs/subsidized savings for small-businesses development as a potentially viable strategy to address income poverty and inequality in the United States.

Raising Capital for Microfinance: Sources of Funding and Opportunities for Equity Financing

On a worldwide basis, microfinance institutions (MFIs) provide financial services to the poorest households. To date, funding of MFI activities has come primarily from outright donor grants, government subsidies, and often debt capital, including debt with non-market terms favorable to the MFI. These traditional sources of MFI financing may not be sufficient to allow MFIs to provide maximum services. There is a subset of the pool of mainstream equity investors who would consider investing in MFI opportunities, even knowing that they would not expect to earn the full economic rate of return that such investments would otherwise require. However, as part of their investment evaluation process, these investors would ask: What would the market determined required expected rate of return for my MFI investment be? What return on investment (ROI) do I expect to earn on my MFI investment? Is the difference in the above two returns acceptable given my level of social motivation? How will I “monetize” my investment and when? The purpose of this article is to employ modern corporate finance techniques to address these questions. 

Retail Service Quality Expectations and Perceptions Among Philippine Small/Medium Enterprises

J. Mark Munoz, Peter Raven and Dianne H.B. Welsh

The Philippines is among the emerging markets in the world. Along with China, the Philippines attracts international enterprises seeking to establish a presence in Asia. This study examines small/medium enterprises (SMEs) management and employee perceptions of customer service on a number of dimensions. The results suggest that managers and employees in the Philippines behave in similar ways to those in Western countries, but there are differences, probably related to cultural characteristics. As the Philippine market becomes more involved with global business, the importance of service quality increases. The results can be valuable in the formulation of training, sales and marketing, business development, human resources management, and strategic planning. Implications for practice are discussed.

This study examines the impact of role model activities on potential entrepreneur’s desire to own a business. A group of students, whose role model owned a business, were asked to rank the influence on career intentions of twenty specific activities in which role models and potential entrepreneurs might engage. The study looks at the relationship between these activities and the desire to own a business. Role model activities related to involving the respondent in professional activities, employment in the business, and discussions about the business were found to be significantly related with interest in starting a business. The results can be useful to those involved in teaching entrepreneurship courses, owners of businesses who are interested in encouraging entrepreneurship, and providers of assistance who council owners of firms.