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Women don’t ask: an investigation of start-up financing and gender

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  • Agnieszka Kwapisz
  • Diana M. Hechavarría

Abstract

Are women less likely to ask for help financing their businesses? This study investigates whether gender is a factor that impacts the propensity to ask for financing among nascent entrepreneurs. We also investigate if start-up helpers, who do not have an ownership share, have an impact on the likelihood of asking for financing, specifically between men and women. Our findings suggest that being female significantly decreases the probability of asking for financing and the presence of start-up helpers significantly increases the incidence of asking for financing in the nascent stage. In addition, among those who created new firms or were still in the start-up process, the number of start-up helpers exponentially increased the incidence of asking for financing among female founders. We use the Panel Study of Entrepreneurial Dynamics II data, the largest, nationally representative, and longitudinal database on nascent entrepreneurs for the United States.

Suggested Citation

  • Agnieszka Kwapisz & Diana M. Hechavarría, 2018. "Women don’t ask: an investigation of start-up financing and gender," Venture Capital, Taylor & Francis Journals, vol. 20(2), pages 159-190, April.
    • Handle: RePEc:taf:veecee:v:20:y:2018:i:2:p:159-190
    DOI: 10.1080/13691066.2017.1345119
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    Cited by:

    1. Aracil-Jordá, Jorge & Clemente-Almendros, Jose-Antonio & Jiménez-Zarco, Ana-Isabel & González-González, Inés, 2023. "Improving the social performance of women-led microenterprises: The role of social media marketing actions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. 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).
    3. Booyavi, Zahra & Crawford, G. Christopher, 2023. "Different, but same: A power law perspective on how rock star female entrepreneurs reconceptualize “gender equality”," Journal of Business Venturing Insights, Elsevier, vol. 19(C).

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