this unexplained part subsumes the effects of group differences in unobserved predictors such as the ability or other personal characteristics of female and male business owners enterprises are defined as women menowned if one or more women men own more than of the shares as discussed in chapter the single most decisive factor in the gender productivity gap is the lower capital intensity of womenowned enterprises it accounts for of the gap the lower average size of womenowned enterprises explains a large part of the gender differential in profits and in employment growth