Alone or Along: Unveiling the Performance Differences between Individually Founded and Co-Founded Businesses by Married Couples

Abstract

Husbands and wives are the main pillars of families, and their belongingness can greatly impact the development of businesses. In this vein, this study aims to explore whether there are differences in the business performance started by a husband and wife separately or co-founded. The survey data was collected from Chinese national private enterprises from 2016 to 2023. Based on the agency theory perspective, the findings revealed that the performance of businesses started separately by husband and wife is significantly superior to that of the one co-founded. Furthermore, women's businesses perform better than men independently. The findings provide important insights for married couples considering entrepreneurship, suggesting that pursuing separate business ventures may result in better performance. The superior performance of women-led businesses further emphasizes the need for targeted support and policies to empower women entrepreneurs. This study lays the groundwork for policymakers and business support organizations to develop strategies that acknowledge and utilize the strengths of individual entrepreneurial efforts by both men and women.