Entrepreneurial initiative in Islamic economics – the role of gender. A multi-country analysis

The entrepreneurial initiative is believed as being a prosperity engine. Islamic organizations are presently committed to promoting entrepreneurship to generate economic growth, provide job opportunities, reduce government centrality, enhance innovation and sustainable development. The purpose of this paper is to identify which factors affect Islamic entrepreneurial endeavors with particular emphasis on the role of gender. Additionally, how education, age, moral constraints, self-perception and social support will affect those entrepreneurial intentions based on Islamic principles. Once identified, policy actions will help to overcome extant gaps, reinforcing the entrepreneurial ecosystem.

Determinants of the entrepreneurial initiative will be appraised in the set Islamic countries present in the Global Entrepreneurship Monitor (GEM) data set from 2016. Following the Organization of Islamic Cooperation list, 14 countries were identified establishing a total sample of 36,407 individuals. Using a set of predictors included in the theoretical framework a statistical analysis was performed followed by logit estimations. The significance of explanatory variables such as gender, age and social context toward entrepreneurial propensity reinforced the importance of specific tools rather than broad policies.

An entrepreneurial propensity is affected by three branches of factors: individual characteristics, individual behavior and individual perceptions along with the economic environment. The analysis shows that holding equal conditions, Islamic women in the sample are less prone to start a business compared to their male counterparts. Knowing other entrepreneurial endeavors enhance the entrepreneurial initiative. Fearing failure unconstraint entrepreneurial projects, but the self-perception of skills strongly triggers these initiatives.

The empirical analysis relates to the GEM database, and, as a consequence, only 14 countries were considered, but it covers 36,407 individuals whose representativeness cannot be statistically proved, however, due to sample dimension the robustness is granted. Second, the sample is sectional covering the 2016 year, as a consequence results may be classified as exceptional.Finally, other factors such as institutional and behavioral determinants were not considered, despite their theoretical importance, due to their absence in the database. Still, the empirical results reinforce the theoretical debate and offer robust evidence to build a policy package, adapted to the Islamic singularities.

Still, the empirical results reinforce the theoretical debate and offer robust evidence to build a policy package, adapted to the Islamic singularities.

The paper identifies gender differences in entrepreneurial propensity among Islamic economics. The potential enhancers of the entrepreneurial initiative are first put in theoretical terms followed by an empirical analysis, encompassing descriptive analysis and econometric estimations. The results allow identification of gender gaps, as well as other individual and context characteristics affecting entrepreneurial endeavors. Empirical evidence casts light on policymakers elaborating accurate policy packages fostering gender equality in entrepreneurship in Islamic economics, aiming to increase overall entrepreneurial activity and leveraging socio-economic development. Finally, the study addresses recommendations to overcome gender differences relating to entrepreneurial activity considering the singularities of the context.