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The performance of Kuwaiti small firms was examined, with specific attention paid to gender as a differentiating factor. Differences and similarities between the two gender groups were discussed with respect to human capital variables, family situation factors, business characteristics, and financial performance indicators. The results showed that women had less business experience, higher education levels, and were older than their male counterparts. Furthermore, the results showed that women‐owned firms suffered from liability of newness and their financial performance was significantly lower than men‐owned firms.