Does the Law Promote Women Entrepreneurship?

Informal institutions are believed to hinder women’s entrepreneurship. However, some formal (legal) institutions (laws) may support women entrepreneurs’ endeavors, yet it is not clear which ones. In this article, we analyze whether the purportedly women entrepreneurship-friendly legal changes introduced in some Sub-Saharan African countries have delivered on their promises. We quantitatively determine if laws intended to promote women’s entrepreneurship do what they are intended to do. We found that formal institutions, such as those that prohibit credit discrimination, enhance mobility, make marriages and asset access more equal, and increase the number of women who engage in entrepreneurship.