IDEAS home Printed from https://ideas.repec.org/a/sae/entthe/v30y2006i5p667-686.html
   My bibliography  Save this article

New Venture Financing and Subsequent Business Growth in Men– and Women–Led Businesses

Author

Listed:
  • Gry Agnete Alsos
  • Espen John Isaksen
  • Elisabet Ljunggren

Abstract

This study investigates the possible funding gap for women–owned compared with men–owned new businesses. With longitudinal data from new businesses in Norway, gender differences in funding perceptions and behaviors, as well as in actually obtained amounts of funding, are explored. While there are few detected gender differences with respect to funding perceptions and behavior, women obtain significantly less financial capital to develop their new businesses. Moreover, the results indicate that the lower levels of financial capital that women business founders achieve are associated with lower early business growth compared with their male counterparts.

Suggested Citation

  • Gry Agnete Alsos & Espen John Isaksen & Elisabet Ljunggren, 2006. "New Venture Financing and Subsequent Business Growth in Men– and Women–Led Businesses," Entrepreneurship Theory and Practice, , vol. 30(5), pages 667-686, September.
    • Handle: RePEc:sae:entthe:v:30:y:2006:i:5:p:667-686
    DOI: 10.1111/j.1540-6520.2006.00141.x
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1111/j.1540-6520.2006.00141.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1540-6520.2006.00141.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fay, Michael & Williams, Lesley, 1993. "Gender bias and the availability of business loans," Journal of Business Venturing, Elsevier, vol. 8(4), pages 363-376, July.
    2. Kolvereid, Lars, 1992. "Growth aspirations among Norwegian entrepreneurs," Journal of Business Venturing, Elsevier, vol. 7(3), pages 209-222, May.
    3. Lola Fabowale & Barbara Orser & Allan Riding, 1995. "Gender, Structural Factors, and Credit Terms between Canadian Small Businesses and Financial Institutions," Entrepreneurship Theory and Practice, , vol. 19(4), pages 41-65, July.
    4. John Watson, 2002. "Comparing the Performance of Male-and Female-Controlled Businesses: Relating Outputs to Inputs," Entrepreneurship Theory and Practice, , vol. 26(3), pages 91-100, April.
    5. Nykvist, Jenny, 2005. "Entrepreneurship and Liquidity Constraints: Evidence from Sweden," Working Paper Series 2005:21, Uppsala University, Department of Economics.
    6. Arnold C. Cooper & William C. Dunkelberg, 1986. "Entrepreneurship and paths to business ownership," Strategic Management Journal, Wiley Blackwell, vol. 7(1), pages 53-68, January.
    7. Colin Mason, 1999. "Editorial. Venture Capital: Rationale, aims and scope," Venture Capital, Taylor & Francis Journals, vol. 1(1), pages 1-46, January.
    8. Danny Miller & Peter H. Friesen, 1982. "Innovation in conservative and entrepreneurial firms: Two models of strategic momentum," Strategic Management Journal, Wiley Blackwell, vol. 3(1), pages 1-25, January.
    9. Peter Rosa & Daphne Hamilton, 1994. "Gender and Ownership in UK Small Firms," Entrepreneurship Theory and Practice, , vol. 18(3), pages 11-27, April.
    10. Brush, Candida G. & Chaganti, Radha, 1999. "Businesses without glamour? an analysis of resources on performance by size and age in small service and retail firms," Journal of Business Venturing, Elsevier, vol. 14(3), pages 233-257, May.
    11. Riding, Allan L. & Swift, Catherine S., 1990. "Women business owners and terms of credit: Some empirical findings of the Canadian experience," Journal of Business Venturing, Elsevier, vol. 5(5), pages 327-340, September.
    12. Patricia G. Greene & Candida G. Brush & Myra M. Hart & Patrick Saparito, 2001. "Patterns of venture capital funding: Is gender a factor?," Venture Capital, Taylor & Francis Journals, vol. 3(1), pages 63-83, January.
    13. Landström, Hans & Johannisson, Bengt, 2001. "Theoretical foundations of Swedish entrepreneurship and small-business research," Scandinavian Journal of Management, Elsevier, vol. 17(2), pages 225-248, June.
    14. Nancy Carter & Candida Brush & Patricia Greene & Elizabeth Gatewood & Myra Hart, 2003. "Women entrepreneurs who break through to equity financing: The influence of human, social and financial capital," Venture Capital, Taylor & Francis Journals, vol. 5(1), pages 1-28, January.
    15. Cooper, Arnold C. & Gimeno-Gascon, F. Javier & Woo, Carolyn Y., 1994. "Initial human and financial capital as predictors of new venture performance," Journal of Business Venturing, Elsevier, vol. 9(5), pages 371-395, September.
    16. Susan Marlow & Dean Patton, 2005. "All Credit to Men? Entrepreneurship, Finance, and Gender," Entrepreneurship Theory and Practice, , vol. 29(6), pages 717-735, November.
    17. Barbara Bird & Candida Brush, 2002. "A Gendered Perspective on Organizational Creation," Entrepreneurship Theory and Practice, , vol. 26(3), pages 41-65, April.
    18. Cliff, Jennifer E., 1998. "Does one size fit all? exploring the relationship between attitudes towards growth, gender, and business size," Journal of Business Venturing, Elsevier, vol. 13(6), pages 523-542, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pourya Darnihamedani & Siri Terjesen, 2022. "Male and female entrepreneurs’ employment growth ambitions: the contingent role of regulatory efficiency," Small Business Economics, Springer, vol. 58(1), pages 185-204, January.
    2. Geiger, Mark, 2020. "A meta-analysis of the gender gap(s) in venture funding: Funder- and entrepreneur-driven perspectives," Journal of Business Venturing Insights, Elsevier, vol. 13(C).
    3. Caglayan, Mustafa & Talavera, Oleksandr & Xiong, Lin, 2022. "Female small business owners in China: Discouraged, not discriminated," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    4. Elitzur, Ramy & Solodoha, Eliran, 2021. "Does gender matter? Evidence from crowdfunding," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    5. Chiara Cannavale & Giorgia Rivieccio & Lorenza Claudio & Iman Zohoorian Nadali, 2023. "The impact of gender egalitarianism on entrepreneurial cognition: a multilevel analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4803-4826, October.
    6. Vazirani, Ashish & Sarkar, Subhro & Bhattacharjee, Titas & Dwivedi, Yogesh K & Jack, Sarah, 2023. "Information signals and bias in investment decisions: A meta-analytic comparison of prediction and actual performance of new ventures," Journal of Business Research, Elsevier, vol. 155(PB).
    7. Zhao, Xi & Lin, Chunyi & Knerr-Sievers, Beatrice & Lu, Qiuting & Mardani, Abbas, 2023. "The impact of institutional environment on entrepreneurial performance in micro E-commerce for Women: The mediating role of entrepreneurial network," Journal of Business Research, Elsevier, vol. 154(C).
    8. Vladasel, Theodor & Lindquist, Matthew J. & Sol, Joeri & van Praag, Mirjam, 2021. "On the origins of entrepreneurship: Evidence from sibling correlations," Journal of Business Venturing, Elsevier, vol. 36(5).
    9. Irene Comeig & Ainhoa Jaramillo-Gutiérrez & Federico Ramírez, 2022. "Are credit screening contracts designed for men?," Service Business, Springer;Pan-Pacific Business Association, vol. 16(4), pages 883-905, December.
    10. Blount, Ian & Triana, Maria del Carmen & Richard, Orlando & Li, Mingxiang, 2023. "How women CEOs’ financial knowledge and firm homophily affect venture performance," Journal of Business Research, Elsevier, vol. 155(PA).
    11. Naegels, Vanessa & Mori, Neema & D'Espallier, Bert, 2022. "The process of female borrower discouragement," Emerging Markets Review, Elsevier, vol. 50(C).
    12. Pavlova, Elitsa & Gvetadze, Salome, 2023. "Female access to finance: A survey of literature," EIF Working Paper Series 2022/87, European Investment Fund (EIF).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John R. Becker–Blease & Jeffrey E. Sohl, 2011. "The Effect of Gender Diversity on Angel Group Investment," Entrepreneurship Theory and Practice, , vol. 35(4), pages 709-733, July.
    2. Watson, John & Stuetzer, Michael & Zolin, Roxanne, 2017. "Female underperformance or goal-oriented behavior?," MPRA Paper 88403, University Library of Munich, Germany.
    3. S. Brana, 2013. "Microcredit: an answer to the gender problem in funding?," Small Business Economics, Springer, vol. 40(1), pages 87-100, January.
    4. Becker-Blease, John R. & Sohl, Jeffrey E., 2007. "Do women-owned businesses have equal access to angel capital?," Journal of Business Venturing, Elsevier, vol. 22(4), pages 503-521, July.
    5. Helene Ahl, 2006. "Why Research on Women Entrepreneurs Needs New Directions," Entrepreneurship Theory and Practice, , vol. 30(5), pages 595-621, September.
    6. Malin Malmström & Jeaneth Johansson & Joakim Wincent, 2017. "Gender Stereotypes and Venture Support Decisions: How Governmental Venture Capitalists Socially Construct Entrepreneurs’ Potential," Entrepreneurship Theory and Practice, , vol. 41(5), pages 833-860, September.
    7. Sara Carter & Eleanor Shaw & Wing Lam & Fiona Wilson, 2007. "Gender, Entrepreneurship, and Bank Lending: The Criteria and Processes Used by Bank Loan Officers in Assessing Applications," Entrepreneurship Theory and Practice, , vol. 31(3), pages 427-444, May.
    8. Richard T. Harrison & Colin M. Mason, 2007. "Does Gender Matter? Women Business Angels and the Supply of Entrepreneurial Finance," Entrepreneurship Theory and Practice, , vol. 31(3), pages 445-472, May.
    9. Barbara J. Orser & Allan L. Riding & Kathryn Manley, 2006. "Women Entrepreneurs and Financial Capital," Entrepreneurship Theory and Practice, , vol. 30(5), pages 643-665, September.
    10. Xuemei Xie & Jiuchang Lv, 2016. "Social networks of female tech-entrepreneurs and new venture performance: the moderating effects of entrepreneurial alertness and gender discrimination," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 963-983, December.
    11. Lakshmi Balachandra & Tony Briggs & Kim Eddleston & Candida Brush, 2019. "Don’t Pitch Like a Girl!: How Gender Stereotypes Influence Investor Decisions," Entrepreneurship Theory and Practice, , vol. 43(1), pages 116-137, January.
    12. Colm O'Gorman & Siri Terjesen, 2005. "Financing the Celtic Tigress: Venture financing and informal investment in Ireland," Venture Capital, Taylor & Francis Journals, vol. 8(1), pages 69-88, September.
    13. Sara Poggesi & Michela Mari & Luisa Vita, 2016. "What’s new in female entrepreneurship research? Answers from the literature," International Entrepreneurship and Management Journal, Springer, vol. 12(3), pages 735-764, September.
    14. 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.
    15. Lindsey N. Godwin & Christopher E. Stevens & Nurete L. Brenner, 2006. "Forced to Play by the Rules? Theorizing how Mixed–Sex Founding Teams Benefit Women Entrepreneurs in Male–Dominated Contexts," Entrepreneurship Theory and Practice, , vol. 30(5), pages 623-642, September.
    16. Fatma El-Hamidi, 2011. "How Do Women Entrepreneurs Perform? Empirical Evidence from Egypt," Working Papers 621, Economic Research Forum, revised 09 Jan 2011.
    17. Anne De Bruin & Candida G. Brush & Friederike Welter, 2007. "Advancing a Framework for Coherent Research on Women's Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 31(3), pages 323-339, May.
    18. Jörg Prokop & Dandan Wang, 2022. "Is there a gender gap in equity-based crowdfunding?," Small Business Economics, Springer, vol. 59(3), pages 1219-1244, October.
    19. Desislava Ivanova Yordanova, 2011. "Growth Plans of Bulgarian Enterprises: An Empirical Investigation of Individual, Organizational and Environmental Influences," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 1(1), pages 1-30.
    20. Francesca Maria Cesaroni & Francesca Lotti & Paolo Emilio Mistrulli, 2013. "Female firms and banks� lending behaviour: what happened during the great recession?," Questioni di Economia e Finanza (Occasional Papers) 177, Bank of Italy, Economic Research and International Relations Area.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:entthe:v:30:y:2006:i:5:p:667-686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.