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An institutional perspective on borrowing discouragement among female-owned enterprises and the role of regional female empowerment

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  • Forrester, Juanita Kimiyo
  • Neville, François

Abstract

We develop an institutional perspective to examine the important, albeit largely overlooked, occurrence of borrowing discouragement for female-owned enterprises: the likelihood that they will not seek business financing because they believe their requests will be rejected. Given a prevailing business logic casting the field of entrepreneurship as largely male-typed, we theorize that female-owned enterprises will be more likely than their male-owned counterparts to exhibit borrowing discouragement. However, we also further propose that gender-based borrowing discouragement will be influenced by female empowerment levels in three distinct indicators of female empowerment that vary by geographic region within a society: social and economic autonomy, reproductive rights, and political participation. We find strong support for our predictions using a unique multi-sourced sample of 4090 small businesses operating in the United States.

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  • Forrester, Juanita Kimiyo & Neville, François, 2021. "An institutional perspective on borrowing discouragement among female-owned enterprises and the role of regional female empowerment," Journal of Business Venturing, Elsevier, vol. 36(6).
    • Handle: RePEc:eee:jbvent:v:36:y:2021:i:6:s0883902621000665
    DOI: 10.1016/j.jbusvent.2021.106156
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    4. Wojdan Omran & Shumaila Yousafzai, 2024. "Epistemic Injustice and Epistemic Resistance: An Intersectional Study of Women’s Entrepreneurship Under Occupation and Patriarchy," Entrepreneurship Theory and Practice, , vol. 48(4), pages 981-1008, July.
    5. Lalarukh Ejaz & Vadim Grinevich & Mine Karatas‐Ozkan, 2023. "Women's informal entrepreneurship through the lens of institutional voids and institutional logics," Gender, Work and Organization, Wiley Blackwell, vol. 30(4), pages 1254-1272, July.
    6. David Gaddis Ross & Dong Hyun Shin, 2024. "Do financial market frictions hurt the performance of women‐led ventures? A meta‐analytic investigation," Strategic Management Journal, Wiley Blackwell, vol. 45(3), pages 507-534, March.

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