How Well Do Agency and Technology Work for Women Entrepreneurs? Insights from a Panel Data Model Using Capability Approach
Meenakshi Rajeev and Pranav Nagendran
Abstract
The role of technology in Amartya Sen’s (1993) capability approach framework to development is a subject of academic debate, with recent research highlighting that it can play a dual role as an input as well as a conversion factor. One area in which technology plays a key role is in the field of entrepreneurship, especially in spring-boarding small businesses. The important question that arises in this context is whether the dual role of technology is prominent in facilitating entrepreneurial success. This paper looks at a prominent and socially valuable micro-entrepreneurship programme in India – the Common Services Centres (CSCs), which bridges the digital divide and provides entrepreneurship opportunities to the poor, in terms of its ability to facilitate women empowerment in a developing country. A primary data set gathered from a region with relatively developed internet infrastructure is considered – the southern Indian state of Karnataka, including Bangalore city and two other surrounding towns. A two-period panel data regression with random effects is utilized to isolate the impacts that inputs, conversion factors, and agency have on enterprise success – measured in terms of profits. The results reveal that while the transformative dimension of technology in acting as a conversion factor is observable, women are currently more reliant on interactive rather than static platforms. Consequently, the study recommends the development of bespoke technology platforms that are aimed at catering to women entrepreneurs, as well as focusing on expanding CSC networks among poorer communities.