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The Rise of Female Entrepreneurs: New Evidence on Gender Differences in Liquidity Constraints

Author

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  • Sauer, Robert M.

    () (Royal Holloway, University of London)

  • Wilson, Tanya

    () (University of Glasgow)

Abstract

Small business activity and female entrepreneurship have become increasingly important features of the UK economy since the start of the Great Recession. In this paper, we re-examine the impact of liquidity constraints on new business formation in an instrumental variables framework, using a previously unexplored data set from the UK. The new results indicate that it is primarily single women that drive the well-established empirical relationship between personal wealth and business start-ups. Therefore, public policies specifically targeted at relieving the liquidity constraints of women could help further accelerate the rise of female entrepreneurship.

Suggested Citation

  • Sauer, Robert M. & Wilson, Tanya, 2015. "The Rise of Female Entrepreneurs: New Evidence on Gender Differences in Liquidity Constraints," IZA Discussion Papers 8981, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8981
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    References listed on IDEAS

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    1. Disney, Richard & Gathergood, John, 2009. "Housing wealth, liquidity constraints and self-employment," Labour Economics, Elsevier, vol. 16(1), pages 79-88, January.
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    Cited by:

    1. Sara Amoroso & Albert N. Link, 2018. "Under the AEGIS of knowledge-intensive entrepreneurship: employment growth and gender of founders among European firms," Small Business Economics, Springer, vol. 50(4), pages 899-915, April.
    2. Ajzenman, Nicolas & Aksoy, Cevat Giray & Guriev, Sergei, 2020. "Exposure to Transit Migration, Public Attitudes and Entrepreneurship," IZA Discussion Papers 13130, Institute of Labor Economics (IZA).
    3. Sara, Amoroso & Albert, Link, 2017. "Under the AEGIS∗ of knowledge intensive entrepreneurship: Employment growth and gender of founders among European Firms," UNCG Economics Working Papers 17-9, University of North Carolina at Greensboro, Department of Economics.

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    More about this item

    Keywords

    liquidity constraints; entrepreneurship;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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