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Differences Between Female And Male Entrepreneurs' Use Of Bootstrap Financing

Author

Listed:
  • LYNN NEELEY

    (Department of Management College of Business, Barsema Hall 245Q, Northern Illinois University DeKalb, IL 60115, USA)

  • HOWARD VAN AUKEN

    (363 Gerdin Business Building Iowa State University Ames, Iowa 50011, USA)

Abstract

Women-owned businesses are increasingly important to the U.S. economy in terms of numbers of firms owned, revenues and employment. Despite the growing role of female-owned business, the ownership, growth and size of female-owned firms is lower than that of male-owned firms. Differences in access to capital have been one reason attributed as an obstacle to women launching and growing small firms. This paper presents the results of an empirical study that examines differences of the use of bootstrap financing between female- and male-owned small firms. Research on the use of bootstrap financing among small firms is limited. The findings show that bootstrap finance methods were similar among female- and male-owned small firms; however, differences were found relative to age, education, sales and overdraft privileges. The results have implications for female entrepreneurs, support persons or agencies and government agencies providing assistance. Female owners should become more informed about financing options available beyond the traditional sources of capital. During periods of declining sales, especially during recessionary periods, female owners may rely on bootstrap sources to supplement capital needs, as well as proactively developing contingency plans for accessing bootstrap capital. These policies could be incorporated into training programs for female business owners. Educators and consultants could help female owners better understand financing alternatives and the importance if developing contingency plans. Government policy may be able to alleviate capital shortages through programs that better inform female entrepreneurs about the capital acquisition process.

Suggested Citation

  • Lynn Neeley & Howard Van Auken, 2010. "Differences Between Female And Male Entrepreneurs' Use Of Bootstrap Financing," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 19-34.
    • Handle: RePEc:wsi:jdexxx:v:15:y:2010:i:01:n:s1084946710001439
    DOI: 10.1142/S1084946710001439
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    Citations

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    Cited by:

    1. Joseph Farhat & Sharon Matusik & Alicia Robb & David T. Robinson, 2018. "New directions in entrepreneurship research with the Kauffman Firm Survey," Small Business Economics, Springer, vol. 50(3), pages 521-532, March.
    2. Avnimelech, Gil & Rechter, Eyal, 2023. "How and why accelerators enhance female entrepreneurship," Research Policy, Elsevier, vol. 52(2).
    3. Ferdinando Giglio, 2020. "Access to Credit and Women Entrepreneurs: A Systematic Literature Review," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 312-335.
    4. Tia Michelle McDonald & Maria I. Marshall, 2018. "Family Business Responses to Household and Business Cash-Flow Problems," Journal of Family and Economic Issues, Springer, vol. 39(1), pages 163-176, March.
    5. Miao, Chao & Rutherford, Matthew W. & Pollack, Jeffrey M., 2017. "An exploratory meta-analysis of the nomological network of bootstrapping in SMEs," Journal of Business Venturing Insights, Elsevier, vol. 8(C), pages 1-8.
    6. Kimberly A. Eddleston & Jamie J. Ladge & Cheryl Mitteness & Lakshmi Balachandra, 2016. "Do you See what I See? Signaling Effects of Gender and Firm Characteristics on Financing Entrepreneurial Ventures," Entrepreneurship Theory and Practice, , vol. 40(3), pages 489-514, May.
    7. Joern H. Block & Christian Fisch & Mirko Hirschmann, 2022. "The determinants of bootstrap financing in crises: evidence from entrepreneurial ventures in the COVID-19 pandemic," Small Business Economics, Springer, vol. 58(2), pages 867-885, February.
    8. Mansi Singh & Sanjay Dhir & Harsh Mishra, 2024. "Synthesizing research in entrepreneurial bootstrapping and bricolage: a bibliometric mapping and TCCM analysis," Management Review Quarterly, Springer, vol. 74(1), pages 487-520, February.
    9. Bede Akorige Atarah & Augustine Awuah Peprah & Abednego F. Okoe Amartey & Bylon Abeeku Bamfo, 2021. "Making do by doing without: bricolage in the funding sources of female entrepreneurs in resource-constrained environments," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 361-378, December.
    10. Sara Poggesi & Michela Mari & Luisa Vita & Lene Foss, 2020. "Women entrepreneurship in STEM fields: literature review and future research avenues," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 17-41, March.
    11. Jayawarna, Dilani & Jones, Oswald & Marlow, Susan, 2015. "The influence of gender upon social networks and bootstrapping behaviours," Scandinavian Journal of Management, Elsevier, vol. 31(3), pages 316-329.
    12. Joana Patrícia Friães dos Santos & Amélia Maria Martins Pires & Paula Odete Fernandes, 2018. "The importance to financial information in the decision-making process in company’s family structure," Contaduría y Administración, Accounting and Management, vol. 63(2), pages 35-36, Junio.

    More about this item

    Keywords

    Finance; Bootstrap; Gender;
    All these keywords.

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