The purpose of this paper is to investigate the relationship between entrepreneurial engagement and work–life satisfaction among women, an area that has received limited study in existing literature. It aims to explore how human capital composition influences total early stage entrepreneurial activity (TEA), which, in turn, affects work–life satisfaction. Using Path-Structural Equation Modeling (PATH-SEM), the study seeks to comprehensively analyze these relationships using multilayer mediation effects. Specifically, the study explores two primary pathways: (a) the influence of human capital composition on work–life balance, mediated by TEA and (b) the impact of social and institutional structures, also mediated by TEA, on work–life balance outcomes. The research underscores the complexity of these dynamics, highlighting both the impacts of human capital composition and influences of societal and institutional factors on work–life satisfaction among women entrepreneurs.
In this study, the Path Structural Equation Modeling (PATH-SEM) approach is used, using Stata package and following the recommendations of Zhao et al. (2010). This method is used to explore the different pathways through which female/male (TEA) impacts work–life balance. Specifically, PATH-SEM helps analyze both direct and indirect effects, providing a robust framework for examining mediators, such as Human Capital Composition (including Entrepreneurial Education/Training and Individual Perceptions) and Macrolevel Environments (including Social and Institutional Structures), in influencing work–life balance. PATH-SEM, by considering these complex mediating factors, enables a deeper understanding of how both individual-level factors (e.g. skills, training and entrepreneurial perceptions) and macrolevel structures (e.g. legal frameworks and societal support) interact to shape work–life balance through entrepreneurship. The inclusion of these mediators provides richer insights than models examining direct effects alone, aligning with Zhao et al. (2010), who highlight the importance of accounting for mediation to better understand causality in social and behavioral sciences. In sum, PATH-SEM highlights the importance of both individual and macrolevel factors in shaping work–life balance through entrepreneurial activity, revealing how human capital and institutional support interact to influence personal and professional well-being.
The findings demonstrate that while an improved human capital composition generally supports enhanced work–life balance, this effect diminishes when factoring in the indirect effects of gender-specific TEA in opportunity recognition, which adversely impacts work–life balance outcomes. Furthermore, these results remain robust, even when accounting for institutional and societal constraints, where civil society efforts often prioritize broader social issues over gender equity in entrepreneurship, thereby weakening support for women’s entrepreneurial self-confidence.
This study, while providing valuable insights, faces certain limitations. The use of cross-sectional data restricts the ability to capture dynamic changes over time in the relationship between entrepreneurship and work–life balance. Additionally, the study focuses on European economies, potentially limiting the generalizability of the findings to non-European contexts, where institutional and cultural dynamics may differ significantly. Furthermore, the comparison between entrepreneurial and traditional employment remains underexplored, warranting deeper investigation into how these distinct forms of economic engagement differentially affect work–life balance.
The findings of this research hold significant implications for policy development, particularly in creating gender-inclusive entrepreneurial ecosystems. The demonstrated positive effects of entrepreneurial education, perceived capabilities and institutional support on work–life balance highlight the necessity of targeted public policies that provide equitable access to entrepreneurial resources and create enabling environments for women entrepreneurs. Governments and policymakers should consider strengthening family–friendly policies, such as flexible working arrangements, accessible childcare and legal frameworks that promote gender equality in entrepreneurship. These findings are consistent with Yadav and Sharma’s (2021) study, which emphasizes the importance of government initiatives in supporting female entrepreneurs’ work–life balance. Moreover, the relationship between economic development and work–life balance suggests that macroeconomic policies promoting social support systems and gender-sensitive legal frameworks could improve work–life outcomes for entrepreneurs. Institutional policies must address not only access to entrepreneurship but also the broader support systems that enable sustainable entrepreneurial engagement for women.
In terms of civil society’s role, it can help women entrepreneurs strike a balance between their personal and professional obligations by offering them invaluable support. For instance, the civil society can support entrepreneurs in thriving both personally and professionally by offering peer support networks, coaching and mentoring, workshops and training, advocacy and policy reform.
This study makes a substantial contribution to work–life balance literature by using advanced analytical techniques to reveal the intricate macro- and micro-level dynamics affecting women’s economic engagement. It underscores the mediating effects of human capital decomposition and the role of institutional and social structures, including the influence of civil society and gender-based power dynamics. The findings highlight a critical need for policymakers to reexamine and realign their strategies in promoting women’s entrepreneurship, ensuring these initiatives are better tailored to enhance women’s work–life balance.
