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716 DEMIRALP ET AL.

fields. However, the racial break-up within minority business owners of non-STEM firms more often iden-
entrepreneurs differs between the two groups. In par- tify as racial or ethnic minorities than owners in
ticular, self-employed women in STEM are almost STEM fields, a trend that is particularly pronounced
twice as likely to be Asian compared to self-employed among Black women. Further, trends in owner age
women in non-STEM fields (11.9% vs. 6.3%). On the reveal a slight gender gap; at later ages (age 55 and
other hand, women who are self-employed in non- above), men-owned businesses are more prevalent
STEM fields are almost twice as likely to be of other than women-owned businesses in both STEM and
race compared to self-employed women in STEM non-STEM fields. However, at younger ages (age 25
(7.3% vs. 3.8%). Furthermore, self-employed women to 44), STEM and non-STEM business owners are
in STEM are less likely to be Hispanic compared to somewhat more likely to be women than men.
self-employed women in non-STEM fields (6.5% vs.
15.5%). BUSINESS CHARACTERISTICS AND
PERFORMANCE OF WOMEN-OWNED STEM
Survey of Business Owners Analysis Results BUSINESSES
Tables 9 through 12 summarize the characteristics Business characteristics drawn from the 2007 SBO
of firm owners and firms based on SBO data of sin- data suggest that on key firm performance indicators,
gle-owner firms using the adapted plurality business such as number of employees, payroll, and receipts,
owner definition described above. Table 13 uses the men-owned businesses show significantly higher fig-
standard majority owner definition, based on 51% ures than do women-owned businesses (Table 11). In
ownership, to explore commercialization outputs. both STEM and non-STEM fields, men-owned busi-
The analysis of SBO data reveals significant dif- nesses, on average, employ nearly three times as many
ferences in educational attainment and previous employees than women-owned businesses. Using
entrepreneurial experience between men and women number of employees as a proxy for firm size, other
in STEM fields, echoing themes found in the educa- firm-level performance indicators, such as payroll
tion and training literature (Table 9). Male owners of and receipts, follow a similar trend. While men- and
single-owner businesses more often hold advanced women-owned STEM businesses have a higher aver-
degrees than women in all industries, a disparity that age payroll than non-STEM businesses, men-owned
increases when considering graduate degrees (i.e., businesses, regardless of STEM status, have higher
Master’s, Doctorate) among STEM fields in partic- payroll and receipts than women-owned businesses
ular. Across genders, entrepreneurs in STEM fields in similar fields.
attain higher educational degrees than owners in Women-owned businesses are more likely to have
non-STEM fields, highlighting the importance of been established for a shorter period of time than
education and training in STEM entrepreneurship. men-owned businesses in both STEM and non-
Further, men owners are also more likely, across STEM fields. In particular, this variation is greatest
STEM and non-STEM businesses, to have previously among businesses operating for 18 years or more. The
been self-employed or owned their own businesses sharp disparity in years of firm ownership by gender
than women owners. In STEM and non-STEM fields, suggests that several dynamics may be at play. First,
previous entrepreneurial experience is less common women business owners may face fewer barriers to
among female business owners than male business firm start-up and entry in recent years compared to
owners. 15 or 20 years ago. Second, women starting businesses
Examining racial and ethnic background among 15 or 20 years ago may have faced greater barriers to
owners of single-owner businesses identifies more survival than those starting more recently and did
white business owners, in STEM and non-STEM not continue to operate into 2007.
fields, than minority business owners (Table 10). A widely cited barrier to business entry and sur-
Interestingly, Black, Asian, and Hispanic women own vival is access to start-up and expansion financing.
a greater proportion of STEM firms than men STEM The analysis of 2007 SBO data suggests that the role of
business owners of the same race. Men and women financing in motivating successful entrepreneurship