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Financing the Celtic Tigress: Venture financing and informal investment in Ireland

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  • Colm O'Gorman
  • Siri Terjesen

Abstract

This study explores gender differences in entrepreneurship and informal investment in Ireland, a country with one of the lowest rates of female entrepreneurship in the developed world. Females in Ireland are less likely than males to be engaged in either the demand for (as entrepreneurs), or the supply of (as informal investors), entrepreneurial finance. Using Global Entrepreneurship Monitor data from a telephone survey of nearly 6 000 individuals, we present a comparative analysis of 73 female and 172 male nascent entrepreneurs, and 40 female and 91 male informal investors. We find no differences in the planned absolute financial capitalization of new ventures of female and male nascent entrepreneurs or in the investments made by female and male informal investors. We compare the full sample (from which we identified the nascent entrepreneurs) and find that females, when compared to males, are less likely to report perceiving opportunities, less likely to perceive they have the skills and knowledge required to start a business, and are less likely to know a recent entrepreneur. We argue that this might suggest that there may be less demand for start-up capital from females. We conclude by suggesting that policies that focus narrowly on the provision of finance to female entrepreneurs may have limited impact on the levels of female entrepreneurial activity.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:veecee:v:8:y:2005:i:1:p:69-88
    DOI: 10.1080/13691060500453742
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    References listed on IDEAS

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    1. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
    2. Candida G. Brush & Nancy M. Carter & Patricia G. Greene & Myra M. Hart & Elizabeth Gatewood, 2002. "The role of social capital and gender in linking financial suppliers and entrepreneurial firms: A framework for future research," Venture Capital, Taylor & Francis Journals, vol. 4(4), pages 305-323, October.
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    7. 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.
    8. Cowling, Marc & Taylor, Mark, 2001. "Entrepreneurial Women and Men: Two Different Species?," Small Business Economics, Springer, vol. 16(3), pages 167-175, May.
    9. 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.
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    Cited by:

    1. Gianni Romani & Miguel Atienza & Ernesto Amorós, 2011. "Financing needs of nascent entrepreneurs in Chile: does gender matter?," ERSA conference papers ersa10p1425, European Regional Science Association.
    2. Zoltán J. Ács & Colm O'Gorman & László Szerb & Siri Terjesen, 2015. "Could the Irish Miracle be Repeated in Hungary?," Chapters,in: Global Entrepreneurship, Institutions and Incentives, chapter 30, pages 584-603 Edward Elgar Publishing.
    3. Vanessa Diaz-Moriana & Colm O’Gorman, 2013. "Informal Investors and the Informal Venture Capital Market in Ireland," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 3(6), pages 630-643, June.
    4. Andrew Burke & André Stel & Chantal Hartog & Abdel Ichou, 2014. "What determines the level of informal venture finance investment? Market clearing forces and gender effects," Small Business Economics, Springer, vol. 42(3), pages 467-484, March.
    5. De Clercq, Dirk & Meuleman, Miguel & Wright, Mike, 2012. "A cross-country investigation of micro-angel investment activity: The roles of new business opportunities and institutions," International Business Review, Elsevier, vol. 21(2), pages 117-129.

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