Financing needs of nascent entrepreneurs in Chile: does gender matter?
Funding is critical during new firmsÂ¬Â¥ creation and the most sources of funding in the early stages of entrepreneurial ventures are informal investors (Family, Friends, the Founding entrepreneurs themselves, and the foolhardy strangers, also known as business angels). Entrepreneurs in the initial stages are the main users of informal financing, more specifically those denominated according to the GEM definition as nascent entrepreneurs; that is, those who are involved in establishing a business or those who have made the leap from the conception of the business to its actual gestation (Reynolds et al., 2005). Informal investment has come to the attention of researchers, mostly in the United States and Europe, and very scarcely in Latin America. Nevertheless, in recent years there has been a call to study entrepreneurship taking in consideration the perspective of gender (Brush, 1992; Bird and Brush, 2002). In Chile, studies of this nature are scarce. For this reason in order to find out more of how the nascent entrepreneurs fund theirs ventures, the main objective of this article is to explore the gender differences that could exist in the financing needs of nascent Chilean entrepreneurs with regard to: Amount needed to start the business; outside financing expectations, employment creations expectations, socio-demographic characteristics, perception related to entrepreneurship. The analysis is based on a representative sample of the Chilean adult population between 18 and 64 years of age, using data from the GEM from the years 2007 and 2008. Since this is an exploratory study, we propose separating the nascent entrepreneurs by gender and using descriptive statistics and Mannâ€šÃ„Ã¬Whitney U test (non-parametric test for two independent samples). The results show that there are significant gender differences among nascent entrepreneurs with respect to the amount needed to start a business, socio-demographic characteristics, and in some aspects related to entrepreneurship. These results provide a better understanding of the financial needs of nascent entrepreneurs and the existent differences between women and men. These results can contribute to a better design of public policies to support new venture creations taking into account a gender perspective.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Du Rietz, Anita & Henrekson, Magnus, 2000.
"Testing the Female Underperformance Hypothesis,"
Small Business Economics,
Springer, vol. 14(1), pages 1-10, February.
- Henrekson, Magnus & Du Rietz, Anita, 1999. "Testing the Female Underperformance Hypothesis," Working Paper Series 521, Research Institute of Industrial Economics.
- 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, 02.
- Verheul, Ingrid & Thurik, Roy, 2001. "Start-Up Capital: "Does Gender Matter?"," Small Business Economics, Springer, vol. 16(4), pages 329-345, June.
- Robert Fairlie & Alicia Robb, 2009. "Gender differences in business performance: evidence from the Characteristics of Business Owners survey," Small Business Economics, Springer, vol. 33(4), pages 375-395, December.
- Fairlie, Robert W. & Robb, Alicia, 2008. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," IZA Discussion Papers 3718, Institute for the Study of Labor (IZA).
- Robert Fairlie & Alicia Robb, 2008. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Working Papers 08-39, Center for Economic Studies, U.S. Census Bureau.
- Fairlie, Robert & Robb, Alicia M., 2009. "Gender Differences in Business Performance: Evidence from the Characteristics of Business Owners Survey," Santa Cruz Department of Economics, Working Paper Series qt8rv5w116, Department of Economics, UC Santa Cruz.
- Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
- Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
- Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
- Freear, John & Wetzel, William Jr., 1990. "Who bankrolls high-tech entrepreneurs?," Journal of Business Venturing, Elsevier, vol. 5(2), pages 77-89, March.
- Ingrid Verheul & AndrÃ© Van Stel & Roy Thurik, 2006. "Explaining female and male entrepreneurship at the country level," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(2), pages 151-183, March.
- 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.
- Verheul, I. & van Stel, A.J. & Thurik, A.R., 2005. "Explaining Female and Male Entrepreneurship at the Country Level," ERIM Report Series Research in Management ERS-2005-089-ORG, 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 University Rotterdam.
- Ingrid Verheul & Andre van Stel & Roy Thurik, 2005. "Explaining female and male entrepreneurship at the country level," Papers on Entrepreneurship, Growth and Public Policy 2005-34, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- André van Stel & Roy Thurik & Ingrid Verheul, 2006. "Explaining female and male entrepreneurship at the country level," Scales Research Reports N200510, EIM Business and Policy Research.
- 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.
- Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Christina Constantinidis & Annie Cornet & Simona Asandei, 2006. "Financing of women-owned ventures: The impact of gender and other owner -and firm-related variables," Venture Capital, Taylor & Francis Journals, vol. 8(2), pages 133-157, January.
- 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.
- Myers, Stewart C, 1984. " The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
- Sandra E. Black & Philip E. Strahan, 2002. "Entrepreneurship and Bank Credit Availability," Journal of Finance, American Finance Association, vol. 57(6), pages 2807-2833, December.
- Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
- Susan Coleman & Alicia Robb, 2009. "A comparison of new firm financing by gender: evidence from the Kauffman Firm Survey data," Small Business Economics, Springer, vol. 33(4), pages 397-411, December.
- 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)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p1425. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.