Unlocking the Pathways to Female Entrepreneurship: Analyzing the Impact of Psychological Perceptions, Family Situations, and Gender Equality in Developing Countries

This paper explores how psychological perceptions (capability perception and opportunity perception) and family situations (family responsibility burden and household income) drive women into necessity- or opportunity-based female entrepreneurship (NBFE or OBFE) and the moderating role of gender equality. Based on a sample of 6,843 women across eight developing countries, this study adopts multilevel logistic regression analysis to examine relationships. The findings suggest that capability perception and opportunity perception positively affect NBFE and OBFE. Family responsibility burden positively affects NBFE and has a U-shaped relationship with OBFE. Household income negatively affects NBFE but positively affects OBFE. Gender equality weakens the U-shaped relationship between family responsibility burden and OBFE but strengthens the positive relationship between capability perception and NBFE and between opportunity perception and NBFE. This study deepens the understanding of antecedents of NBFE and OBFE, breaking through the existing literature that neglects the heterogeneity of different types of female entrepreneurship. The findings can guide women’s entrepreneurial decision-making and enlighten policymaking to promote female entrepreneurship.