Youth entrepreneurship in Algeria: determinants and gender inequalities

Abstract

The study uses a sample of 1004 active young people including 127 entrepreneurs and identifies, with probit models, the determinants of
the choice of entrepreneurship. The socio-demographic characteristics of young people and their family network play an important role in the
access to entrepreneurship. Men, the less educated and individuals with a father who is already an entrepreneur or from wealthy social classes are
more likely to be entrepreneurs. The typology of entrepreneurs, developed with an ascending hierarchical classification, reveals inequalities between
men and women. The latter are characterised by lower incomes and the absence of support networks. Among men, purely informal entrepreneurs,
poorly educated, with modest incomes and without support networks stand out from formal entrepreneurs, who are highly educated, from privileged
families, earning higher incomes and benefiting from the family network.
Targeted and gender-focused policies are needed to promote youth entrepreneurship in general and that of women in particular.