Money for female entrepreneurs does not grow on trees: start-ups’ financing implications in times of COVID-19

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
David Villaseca ◽  
Julio Navío-Marco ◽  
Ricardo Gimeno
Keyword(s):  
Gender Gap ◽  
Early Stage ◽  
Supply And Demand ◽  
Entrepreneurial Activity ◽  
Extensive Literature ◽  
Negative Effects ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Public Organisations ◽  
Start Ups

Purpose The purpose of this paper is to understand women’s approaches to acquiring financial and other resources is essential for closing the entrepreneurship gender gap. In nearly 40% of economies, women’s early-stage entrepreneurial activity is half or less than half of that of men’s. Design/methodology/approach Even when there is extensive literature on female entrepreneurs, the authors review the findings through a Coronavirus Disease 2019 (COVID-1)9 crisis lens, trying to find new perspectives and solutions. With the approach of a systematic review of 4,520 publications on financing topics related to female entrepreneurs, various sources of financing available to female entrepreneurs are considered: bootstrapping, banks, business angels, venture capital and crowdfunding. Findings Identifying potential gender bias both on the supply and the demand side of financing, this research highlights new directions in encouraging female entrepreneurship and gives guidelines to public organisations on how to foster advanced forms of financing for female entrepreneurs in COVID-19 times. Social implications The COVID-19 pandemic has posed an unprecedented challenge for economies and companies. Female entrepreneurs are the ones who have been hit harder, as they overcome pre-existing barriers, such as lack of access to finance, lack of networks and mentors and gendered priorities, among others. Without ensuring gender policies to counter these incremental negative effects, the authors face the risk of widening the gender gap. Originality/value Regarding previous systematic reviews of literature, this paper focusses on a specific challenge, how women entrepreneurs finance their activity, with a double vision: supply and demand of money.

Performance and financing strategies of female and male entrepreneurs in the Republic of Serbia

2017 ◽  
Vol 9 (2) ◽  
pp. 136-156 ◽  
Author(s):  
Danijela Stošic Panić
Keyword(s):  
Gender Differences ◽  
Gender Gap ◽  
Statistical Significance ◽  
Entrepreneurial Activity ◽  
Categorical Variables ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Net Profit ◽  
The Republic ◽  
The Relationship

Purpose The paper examines gender differences in the performance and financing strategies of female and male entrepreneurs in the Republic of Serbia. The aim of this study is to explore the gender dimension – a much under-researched aspect of entrepreneurship in the Republic of Serbia – and to link the findings with those of other environments. Design/methodology/approach To explore gender-based differences in entrepreneurial activity, a random sample of 327 units was drawn from the Serbian Business Registers Agency’s Register of Companies. In total, 101 completed questionnaires were received. The chi-square test of association was used to assess the relationship between two categorical variables, while the non-parametric Mann–Whitney U test was used to assess the statistical importance of the differences between groups of female and male entrepreneurs. The relationship between the performance and different sources of financing was assessed by multiple regression analysis. Findings The results confirm the existence of a gender gap in the net profit, employment growth rate, return on assets (ROA) and in use of various types of alternative financing sources. The evidence shows that those male entrepreneurs who use personal funds achieve lower levels of net profit and ROA compared to those who use internal business sources. Lower ROA is also achieved by those male entrepreneurs who use alternative sources of financing, relative to those who do not use these sources. Female entrepreneurs who applied for bank loans realized higher net profit value compared to those who did not apply for a loan. Moreover, female entrepreneurs who use some kind of state-supported funding achieve higher ROA than those who do not. Other gender differences found regarding the various aspects of the financing practices lacked statistical significance. Originality/value Although the generalizability of part of the findings is weakened due to the lack of statistical significance, most of the expected gender differences were found to exist at the sample level. This encourages further studies of similarities and differences between female and male entrepreneurs’ financing strategies and their impact on business performance. This is particularly important for the environments in which the gender aspect of entrepreneurial activity is under-researched.

scholarly journals Assessment of Women’s Early-stage Entrepreneurial Activity in 2018

2020 ◽  
Vol 23 (1) ◽  
pp. 35-49
Author(s):  
Iuliia S. Pinkovetskaia ◽  
Tatiana V. Gromova ◽  
Irina N. Nikitina
Keyword(s):  
Comparative Analysis ◽  
Gender Gap ◽  
Early Stage ◽  
Educational Process ◽  
Entrepreneurial Activity ◽  
Female Entrepreneurship ◽  
Female Entrepreneurs ◽  
New Methods ◽  
Modeling Process ◽  
Entrepreneurial Activities

AbstractThe analysis of the regularities characterizing the existing rate of female early-stage entrepreneurial activity, as well as the identification of reserves for female entrepreneurship growth is relevant nowadays. The purpose of the work is to assess the rates of entrepreneurial activity of women, their motivational preferences, and comparative analysis of female and male early-stage entrepreneurial activities. The study is based on the economic analysis of the data on 48 countries, presented in the Global Entrepreneurship Monitor report for 2018. Normal distribution density functions are used in the modeling process. The research reveals features of female entrepreneurship and the barriers to its development. The paper defines countries with high and low values of the considered indicators. The study estimates the existing rates of opportunity and necessity motivation of female entrepreneurs, presents the analysis of the ratio of female to male participation in early-stage entrepreneurial activity, and proves the hypothesis on substantial differentiation of these indicators across countries. The obtained knowledge can be used in future scientific research, in the educational process of bachelors and masters training. The scientific novelty lies in the study of the distribution of indicators characterizing female entrepreneurs’ motivation and the existing gender gap in early-stage entrepreneurship. The study proposes new methods and tools for the analysis and presents a comparative analysis of the development of female and male early-stage entrepreneurship.

scholarly journals The early growth of start-ups: innovation matters. Evidence from Italy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Raffaele Fiorentino ◽  
Sergio Longobardi ◽  
Alessandro Scaletti
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Firm Growth ◽  
Ad Hoc ◽  
Early Stage ◽  
New Ventures ◽  
Objective Measure ◽  
Content Type ◽  
Start Up ◽  
Start Ups

PurposeDespite the relevance of innovation in entrepreneurship literature, empirical research on the innovation-performance relationship in start-ups is underdeveloped and shows controversial results. To bridge this gap, the aim of this paper is to investigate the role of innovativeness on new venture performance in the early stage of the life cycle.Design/methodology/approachRegression modelling and propensity score matching are used to reveal systematic differences in growth between innovative start-ups (ISUPs) and non-innovative start-ups. We use an ad hoc dataset obtained through merging the financial database AIDA with data from administrative sources (Italian Chambers of Commerce and the Italian Ministry for Economic Development).FindingsThe results show that differences in growth can be explained by the different levels of innovativeness in new ventures. Moreover, unlike in prior studies, the innovation inputs matter more than innovation outputs. Indeed, the results support the idea that innovation policies can contribute to maximising the potential of start-ups.Practical implicationsThe findings provide suggestions for policy makers and entrepreneurs to help firms configure ex ante appropriate actions to support the growth of new ventures in the start-up stage.Originality/valueThis study is the first to use the new objective measure of start-up innovation, available from the Italian LD 221 register. Second, different types of innovation are investigated as antecedents of firm growth. Third, we employ propensity score matching, which favours revealing systematic differences in growth between ISUPs and non-innovative start-ups. Fourth, the results of our study are the first to offer evidence on the effectiveness of the new Italian sustaining ISUPs policy.

The perceptions of Australian senior entrepreneurs on the drivers of their entrepreneurial activity

2018 ◽  
Vol 24 (1) ◽  
pp. 81-103 ◽  
Author(s):  
Aron Perenyi ◽  
Roxanne Zolin ◽  
Alex Maritz
Keyword(s):  
Mixed Methods ◽  
Mixed Methods Study ◽  
Policy Implications ◽  
Policy Support ◽  
Entrepreneurial Activity ◽  
Career Stage ◽  
Content Type ◽  
Self Employment ◽  
Start Up ◽  
Start Ups

Purpose Why is self-employment an attractive option for certain seniors and what drives seniors into business start-ups? In this study, the motivations and preferences of senior entrepreneurs in Australia, to become self-employed, by means of business start-ups, are explored. The purpose of this paper is to provide empirical basis for policy implications. Design/methodology/approach A mixed methods study is conducted. Members of the National Senior’s Association in Australia were interviewed and surveyed. The semi-structured interviews identified the key factors influencing senior entrepreneurs in relation to self-employment and entrepreneurial choices at a later career stage. The survey collected information on intentionality, motivation, skills, opportunities, success, satisfaction, participation, barriers, benefits, education and training, and perceptions of policy support for senior entrepreneurs. Findings Respondents gave an account of the prevalence of pull factors motivating their choice of an entrepreneurial career. Multivariate statistical analysis of survey responses showed that senior entrepreneurs are more driven by opportunity than necessity and are primarily internally motivated. Research limitations/implications Results of this study suggest a weak link between motivation by others and the act of start-up, but this may also imply that those seniors who are more likely to become entrepreneurs are more likely to ignore the impulses from their social context. This requires further investigation to ensure a robust identification of drivers and an elimination of contextual effects. Further research is suggested to compose a relevant model structure in different contexts and a representative sample to confirm the model outcomes. Originality/value This is the first mixed methods study of the antecedents of senior entrepreneurs’ start-up intentions in Australia. The study also uses entrepreneurial activity as opposed to intention as its dependent variable, which allows for a more accurate evaluation of antecedents to the senior entrepreneurship phenomenon.

Cultural configurations and entrepreneurial realisation

2019 ◽  
Vol 25 (1) ◽  
pp. 112-128 ◽  
Author(s):  
Pedro Torres ◽  
Mário Augusto
Keyword(s):  
Organizational Behavior ◽  
Early Stage ◽  
Qualitative Comparative Analysis ◽  
Entrepreneurial Intentions ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
Antecedent Conditions ◽  
Entrepreneurial Behaviour

Purpose The purpose of this paper is to better understand the connection between culture and entrepreneurship in proposing and testing complex configurations of culturally endorsed implicit leadership theories (CLTs) and cultural practices that lead to entrepreneurial behaviour by studying entrepreneurial intentions (EI) and early-stage entrepreneurial activity (TEA) separately. Design/methodology/approach Using data from Globe Leadership and Organizational Behavior Effectiveness (GLOBE) and Global Entrepreneurship Monitor (GEM) studies, a sample of 44 countries, and a fuzzy-set qualitative comparative analysis, several models for EI and TEA were developed. Findings The main findings provide a way of distinguishing between complex antecedent conditions that are required for each stage of the entrepreneurial realisation. The results empirically show that there is no ideal context – the path to stimulate entrepreneurship that works best for one country does not necessarily works the same for other countries. There are multiple paths to achieve the desired outcome. Research limitations/implications The data from the GLOBE study were not completely up to date, the effect of which was minimised by considering data from GEM that respects temporal ordering. Nevertheless, data from GEM suggest that there is a degree of stability in the data over time. Future research could replicate this study with a larger selection of countries and with new data, collected in a different way. Additionally, the inclusion of CLTs proposed in this study opens new opportunities for future research, by providing a new angle to look at the entrepreneurial realisation process. Practical implications This study advances research into the association of culture and entrepreneurship, and develops testable models using a configurational approach, thus confirming the suitability of asymmetric configuration analysis for entrepreneurial research. The results expand an understanding of the entrepreneurial process by showcasing the different complex antecedent conditions for EI and TEA. Depending on a country’s cultural profile, policy-makers should invest in the dimensions that enable their society to align with the model that best suits their own culture. The obtained models offer a framework for evaluating new interventions that aim to develop entrepreneurial behaviour in a specific country. Originality/value Different configurations showcase that there are alternative paths to achieving high levels of EI and TEA. The differences among the possible configurations for each stage of the entrepreneurial realisation are uncovered. Country profiles are identified, quantified, and then compared providing guidance for policy-makers.

I have a dream: Ayuvayur Pharmaceuticals

2013 ◽  
Vol 3 (1) ◽  
pp. 1-10 ◽  
Author(s):  
Manoj Joshi ◽  
Apoorva Srivastava
Keyword(s):  
Business Models ◽  
Subject Area ◽  
Pharmaceutical Products ◽  
Capital City ◽  
Entrepreneurial Activity ◽  
Small Enterprise ◽  
Content Type ◽  
Mba Students ◽  
Indian State ◽  
Start Ups

Subject area Start-ups, entrepreneurship, innovation and innovative practices, risks, uncertainties, differentiation, internationalization, competition, business models, operationalizing and implementing strategy. Study level/applicability The case is suitable for MBA students. Case overview Vinay moved to the capital city of a Northern Indian state, which also happened to be a commercial hub, after his family business failed. The family succumbed to living in a room without electricity and doors. Vinay had dreamt of establishing his own business empire by being a successful entrepreneur. Steered by this intent, he established a pharmaceutical company with the name of Ayuvayur Pharmaceuticals. The challenge was to establish an innovative Ayurveda-based pharmaceutical products-based firm and to build a leading business empire with a customer focus. Progress was not smooth and the challenges ahead multiplied. Despite his ability to cope with barriers, risks and uncertainties, Vinay and his business, was challenged to grow globally and emerge from its nascent structure. How should the business expand? Expected learning outcomes Students can discover the following key learning points: how an enterprise is born; the importance of entrepreneurial recognition and orientation; the lead characteristics of an entrepreneur; how a start-up is born despite the unfamiliarity of the entrepreneur with the field he enters; the role of innovation in a small enterprise; and the risks, barriers, uncertainties and challenges associated with entrepreneurial activity. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Journey's end: a dynamic framework of entrepreneurial processes and capitals relating to early stage business exit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Hanage ◽  
Pekka Stenholm ◽  
Jonathan M. Scott ◽  
Mark A.P. Davies
Keyword(s):  
Case Studies ◽  
Early Stage ◽  
Theory Building ◽  
Cross Sectional ◽  
Content Type ◽  
Dynamic Framework ◽  
Longitudinal Dynamic ◽  
Start Up ◽  
New Business ◽  
Start Ups

PurposeThe purpose of this paper is to respond to the call by McMullen and Dimov (2013) for a clearer understanding of entrepreneurial journeys by investigating the entrepreneurial capitals and micro-processes of seven young early stage entrepreneurs who all exited their businesses within 3 years of start-up.Design/methodology/approachThe authors analysed empirical data from concurrent in-depth interviews which generated rich longitudinal case studies. Theory-building then led to a proposed “Longitudinal Dynamic Process Framework” of entrepreneurial goals, processes and capitals.FindingsThe framework builds on prior studies by integrating entrepreneurial processes and decisions into two feedback loops based on continuous review and learning. It thereby enhances understanding of the dynamics of new business development and unfolds the early stage ventures entrepreneurs' business exits.Research limitations/implicationsThe findings are based on a small purposive sample. However, the main implication for research and theory is showing how the entrepreneurial capitals are dynamic and influenced by entrepreneurs' environment, and also separating entrepreneurs' personal issues from their business issues.Practical implicationsThe findings challenge some assumptions of policymakers and offer new insights for practitioners and early stage entrepreneurs. These include having more realistic case-studies of the entrepreneurial journey, recognizing the need to be agile and tenacious to cope with challenges, understanding how capitals can interact in complementary ways and that entrepreneurial processes can be used to leverage them at appropriate stages of the start-ups.Originality/valueThe concurrent longitudinal analysis and theory-building complements extant cross-sectional studies by identifying and analysing the detailed processes of actual business start-ups and exits. The proposed framework thereby adds coherence to earlier studies and helps to explain early stage entrepreneurial development, transformation of capitals and business exit.

Entrepreneurial bricolage: crowdfunding for female entrepreneurs during COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edgar Alva ◽  
Vanina Vivas ◽  
María Urcia
Keyword(s):  
Developing Countries ◽  
Resource Constraints ◽  
Financial Resource ◽  
Policy Implications ◽  
Entrepreneurial Activity ◽  
Growth Strategies ◽  
Female Entrepreneurs ◽  
New Normal ◽  
Content Type ◽  
Entrepreneurial Bricolage

Purpose The crisis generated by the COVID-19 pandemic has had unprecedented effects around the world and particularly on vulnerable populations, such as female entrepreneurs in developing countries. They are facing a new normal, characterized by high uncertainty and resource constraints. This paper aims to use the experiential learning theory applied to entrepreneurship to propose the entrepreneurial bricolage approach to study how female entrepreneurs can overcome this type of crisis. Design/methodology/approach Within the research designs of conceptual papers, the study is situated within the model approach because the authors propose novel relationships between constructs to answer the research questions through the development of theoretical propositions. Findings The analysis suggests that the entrepreneurial bricolage process represents a type of strategy that allows these women to adapt to this new normal. Based on this approach, the authors suggest that crowdfunding represents a financial resource at hand for both pre-existing female entrepreneurs and new female entrepreneurs. Practical implications The theoretical implications suggest an alternative conceptual framework of the entrepreneurial bricolage process to analyse the female entrepreneurial activity in developing countries and during crisis’ contexts. The managerial implications suggest that crowdfunding is a financial resource at hand for female entrepreneurs that allow them to perform well, innovate or implement growth strategies and have more chances of surviving and growing during the crisis. Finally, the policy implications are oriented to the promotion of this kind of financial alternative and the generation of trust for users, along with the strengthening of a regulatory framework to attract more investors and entrepreneurs. Originality/value This study provides useful information on how the crisis generated by the COVID-19 pandemic has been affecting female entrepreneurs in developing countries. It also expands on the literature on crowdfunding in terms of its advantages as a non-traditional funding source for women.

Mother nature’s son?

2016 ◽  
Vol 8 (2) ◽  
pp. 137-172 ◽  
Author(s):  
Diana M. Hechavarría
Keyword(s):  
Cultural Values ◽  
Large Scale ◽  
Covariance Structure ◽  
Gender Socialization ◽  
Entrepreneurial Activity ◽  
Future Research ◽  
Female Entrepreneurs ◽  
Data Set ◽  
Content Type ◽  
Country Level

Purpose Drawing on the multiplicity of context approach, this study investigates whether female entrepreneurs are more likely than male entrepreneurs to create environmentally oriented organizations. This study aims to examine how context, measured by gender socialization stereotypes and post-materialism, differentially affects the kinds of organizations entrepreneurs choose to create. Design/methodology/approach To test the hypotheses, this study utilizes Global Entrepreneurship Monitor data from 2009 (n = 17,364) for nascent entrepreneurs, baby businesses owners and established business owners in 47 counties. This study also utilizes the World Values Surveys to measure gender ideologies and post-materialist cultural values at the country level. To test the hypotheses, a logistic multi-level model is estimated to identify the drivers of environmental venturing. Data are nested by countries, and this allows random intercepts by countries with a variance components covariance structure. Findings Findings indicate that female entrepreneurs are more likely to engage in ecological venturing. Societies with high levels of post-materialist national values are significantly more likely to affect female entrepreneurs to engage in environmental ventures when compared to male entrepreneurs. Moreover, traditional gender socialization stereotypes decrease the probability of engaging in environmental entrepreneurship. Likewise, female entrepreneurs in societies with strong stereotypes regarding gender socialization will more likely engage in environmental entrepreneurship than male entrepreneurs. Research limitations/implications The present study uses a gender analysis approach to investigate empirical differences in environmental entrepreneurial activity based on biological sex. However, this research assumes that gender is the driver behind variations in ecopreneurship emphasis between the engagement of males and females in venturing activity. The findings suggest that female entrepreneurs pursuing ecological ventures are more strongly influenced by contextual factors, when compared to male entrepreneurs. Future research can build upon these findings by applying a more nuanced view of gender via constructivist approaches. Originality/value This study is one of the few to investigate ecologically oriented ventures with large-scale empirical data by utilizing a 47-country data set. As a result, it begins to open the black box of environmental entrepreneurship by investigating the role of gender, seeking to understand if men and women entrepreneurs equally engage in environmental venturing. And it responds to calls that request more research at the intersection of gender and context in terms of environmental entrepreneurship.

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