The financing of male– and female–owned businesses

Abstract

Whether female entrepreneurs are disadvantaged in financing their business has been an important policy theme within the gender and enterprise literature. The question has remained controversial, as different methodological approaches have yielded contradictory results. A particular challenge is how we can best move on from exploratory research to more rigorous methods needed to separate gender differences from other causative agents. This paper presents new data on the sources and uses of finance by male and female proprietors using data obtained from a customized academic survey of 600 (300 male–owned and 300 female–owned) British businesses, part of a 3–year study on the impact of gender and small business management. The results show quantifiable gender differences in certain areas of business financing, although intra–sectoral similarities demonstrate that gender is only one of a number of variables that affect the financing process.

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