Semester Award Granted

Spring 2025

Submission Date

May 2025

Document Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Thesis/Dissertation Advisor [Chair]

Rebel Cole

Thesis/Dissertation Co-Chair

Siri Terjesen

Abstract

This research aims to illuminate the relationship between marital status and entrepreneurial performance among entrepreneurs, focusing on the implications for female entrepreneurs. While existing studies have predominantly examined gender-related challenges, such as disparities in access to financial and social capital, the role of marital status has received limited attention. Drawing on Becker’s seminal work (1965, 1974) on time allocation and human capital investment, this study argues that entrepreneurs face distinct risks and resource constraints compared to employees, who benefit from organizational risk-sharing and stable income. In contrast, entrepreneurs bear the full burden of market uncertainty and opportunity costs, making personal life factors, especially marital support, critical determinants of success.

Leveraging comprehensive data from the Entrepreneurship in the Population (EPOP) surveys conducted in 2022, 2023, and 2024, the study employs advanced econometric techniques, including ordered logistic regression analyses, to test two primary hypotheses. The first hypothesis posits that marital status significantly influences entrepreneurial performance, with married or living with a partner entrepreneur achieving higher profitability and revenue due to shared household resources, risk-sharing, and reduced opportunity costs. The second hypothesis suggests that gender moderates this relationship, as female entrepreneurs encounter compounded challenges, such as intensified work-family conflict and restricted access to capital, which may diminish the benefits of marital support.

The empirical results robustly support the first hypothesis. Across multiple model specifications ranging from baseline models to fully augmented specifications with entrepreneurial and firm-level controls, the findings consistently reveal that entrepreneurs who are single or widowed/divorced/separated report significantly lower profitability and occupy lower revenue tiers compared to their married or living with a partner counterpart. These patterns persist in robustness tests across subsamples defined by legal ownership structures, further underscoring the critical role of spousal support in fostering business success. Although the evidence for the second hypothesis is more preliminary, the consistently negative coefficients associated with the Female indicator suggest that gender-based constraints exacerbate performance disadvantages.

By integrating Becker’s time allocation theory with Social Role Theory, this research bridges a critical gap in the literature and offers actionable policy recommendations. The findings highlight the need for targeted interventions such as subsidized childcare, flexible work arrangements, and enhanced access to credit to mitigate work-family conflict and promote gender equity in entrepreneurship. Ultimately, these insights advance both theoretical debates and practical strategies for fostering a more inclusive entrepreneurial ecosystem.

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