Gender, Entrepreneurship and Bank Lending

Gender, Entrepreneurship, and Bank Lending: The Criteria and Processes Used by Bank Loan Officers in Assessing Applications (Entrepreneurship: Theory and Practice; May2007, Vol. 31 Issue 3, p427-444)

Research  indicates that women-owned businesses start with both lower levels of capitalization and lower ratios of debt finance.  In May 2007, the academic journal, Entrepreneurship: Theory & Practice, published the results of culminated studies which indicate that gender discrimination exists among the lending officers of banks.

Topic:  Should the new administration offer incentives for investing in women-owned businesses?

Category:  Academic Research

What is it?  An online article from the peer-reviewed journal, Entrepreneurship: Theory and Practice

Publication Information:  Entrepreneurship: Theory and Practice; May2007, Vol. 31 Issue 3, p427-444

ISSN:  1042-2587

Accession Number:  24826098

Authors:  Sara Carter, Eleanor Shaw, Wing Lam, Fiona Wilson

Location:  Below is a link to the article abstract.  I accessed the full text through the Business Source Premier Database

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=982703

Accessed:  February 26, 2009.  17:30 PST

Support:

Small Business Service Bureau INC.- The bureau’s research regarding labor force statistics of men and women is referenced in the article.

Brush, C.-  Reporter for the U.S. Small Business Administration Office of Advocacy and The National Women’s Business Council

Carter, S. and Rosa, P.-  These two authors have published their research in the academic journal, Entrepreneurship and Regional Development.

The article uses the surveys and research of scholars to solidify the assertions and theories presented.  Brush’s research provides the facts concerning the differences in financing patterns of male-owned and female-owned businesses.  Carter and Rosa found that women-owned businesses tend to start up with lower levels of overall capitalization than men.  The article analyzes and synthesizes the information from previous studies.

Audience and Agenda: Entrepreneurship: Theory & Practice publishes results of research in entrepreneurship, small business, and family business.  It is the official journal of the United States Association for Small Business and entrepreneurship. According to Ulrich’sweb.com, the publication has a circulation of 1600 paid.  The publishing body is Wiley-Blackwell Publishing Inc. Wiley-Blackwell’s programs encompass journals, books, major reference works, databases, and laboratory manuals, offered in print and electronically.  Wiley-Blackwell relies on advertising revenue from sponsors published within the journals and from subscription dues from members.

Usefulness:  The research contained within this article provides evidence of the disadvantages that women entrepreneurs and business owners face.  There is no evidence of systematic gender discrimination by banks, and yet most women perceive that they are being treated differently by bank lending officers.  One study within the article suggests that the difficulties women entrepreneurs face is simply due to the historical lack of business ownership experience that most women have. It would make economic sense that the new wave of women entrepreneurs within the past two decades should constitute an important new market for banks.  All of the statistics concerning the disadvantages that women business owners are faced with are evidence that government policy should work to bring forth the largely untapped business talent of women.

Works Cited:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=982703

http://search.ebscohost.com/

http://www.wiley.com/bw/journal.asp?ref=1042-2587

http://sbsb.com/

http://www.usasbe.org/

http://www.ulrichsweb.com/ulrichsweb/

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2 Responses

  1. thanks for your article …

    This is a very help me ….

  2. [...] Gender, Entrepreneurship and Bank Lending [...]

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