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Start-Up Capital: "Does Gender Matter?"

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Author Info
Verheul, Ingrid
Thurik, Roy

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Abstract

Female and male entrepreneurs differ in the way they finance their businesses. This difference can be attributed to the type of business and the type of management and experience of the entrepreneur (indirect effect). Female start-ups may also experience specific barriers when trying to acquire start-up capital. These may be based upon discriminatory effects (direct effect). Whether gender has an impact on size and composition of start-up capital and in what way, is the subject of the present paper. The indirect effect is represented by the way women differ from men in terms of type of business and management and experience. The direct effect cannot be attributed to these differences and is called the gender effect. We use of a panel of 2000 Dutch starting entrepreneurs, of whom approximately 500 are female to test for these direct and indirect effects. The panel refers to the year 1994. We find that female entrepreneurs have a smaller amount of start-up capital, but that they do not differ significantly with respect to the type of capital. On average the proportion of equity and debt capital (bank loans) in the businesses of female entrepreneurs is the same as in those of their male counterparts. Copyright 2001 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Small Business Economics.

Volume (Year): 16 (2001)
Issue (Month): 4 (June)
Pages: 329-45
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Handle: RePEc:kap:sbusec:v:16:y:2001:i:4:p:329-45

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  1. Ingrid Verheul & Martin Carree & Roy Thurik, 2008. "Allocation and Productivity of Time in new Ventures of Female and Male Entrepreneurships," Papers on Entrepreneurship, Growth and Public Policy 2006-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
  2. Sabarwal, Shwetlena & Terrell, Katherine, 2008. "Does gender matter for firm performance ? evidence from Eastern Europe and Central Asia," Policy Research Working Paper Series 4705, The World Bank. [Downloadable!]
    Other versions:
  3. Pia Arenius & Stefan Ehrstedt, 2008. "Variation in the level of activity across the stages of the entrepreneurial startup process-evidence from 35 countries," Estudios de Economia, University of Chile, Department of Economics, vol. 35(2 Year 20), pages 133-152, December. [Downloadable!]
  4. Ruta Aidis, 2002. "Why less? The Gendered Aspects of Small- and Medium-sized Enterprise (SME) Ownership under Economic Transition," Tinbergen Institute Discussion Papers 02-055/2, Tinbergen Institute. [Downloadable!]
  5. Ingrid Verheul & Andre van Stel & Roy Thurik, 2004. "Explaining female and male entrepreneurship across 29 countries," Papers on Entrepreneurship, Growth and Public Policy 2004-08, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
    Other versions:
  6. Ingrid Verheul & Andre van Stel & Roy Thurik, 2005. "Explaining female and male entrepreneurship at the country level," Papers on Entrepreneurship, Growth and Public Policy 2005-39, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group. [Downloadable!]
    Other versions:
  7. Verheul, I. & Carree, M.A. & Thurik, A.R., 2007. "Allocation and Productivity of Time in New Ventures of Female and Male Entrepreneurs," Research Paper ERS-2007-009-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
    Other versions:
  8. Maria Minniti & Carlo Nardone, 2007. "Being in Someone Else’s Shoes: the Role of Gender in Nascent Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 223-238, March. [Downloadable!] (restricted)
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