Financing women

1
Financing womens enterprise challenges and
opportunities

• Professor Susan Marlow
• De Montfort University
• Leicester
• UK
• smhum_at_dmu.ac.uk

2
Setting the scene the influence of gender

• Gender socially constructed concept which
  shapes our understanding of masculinity and
  femininity
• Characteristics associated with women are usually
  coded negatively
• Stereotypes inform our expectations and
  presumptions

3
The Challenges Gender and self employment

• Normative notions of entrepreneurship
• Fewer women enter self employment (approximately
  14 firm owners 28 self employed)
• Sector differences (lower order services)
• Location preferences (home based)
• Operational preferences (30 part time)
• Business expectations (life style/flexibility)

4
Gender, self employment and finance

• Under capitalisation at start up and growth
  women use about one third as much of the
  financial capital as their male counterparts
• This promotes underperformance for the life of
  the business
• This does not signify female incompetence Note
  Watson (2002)

5
Supply of finance

• Debt Finance bank loans, over drafts
• Equity finance Venture capital, business angels
• Soft loans and government grants
• Informal finance Personal savings plus the
  three Fs family, friends and fools

6
Gender related challenges in accessing funding

• Debt funding no evidence for a supply gap
  need to focus on demand and credibility
• Equity women are invisible in the debate
  women gain approximately 2 of VC funding in the
  US for example
• Soft loans/grants problem of disaggregated data
• Informal funding lower levels of savings and
  credibility

7
Overcoming the problems

• The broader debate gender in a socio-economic
  context
• Support examples from member states
• Prowess (UK)
• Women network (Austria) broader funding
• Finnvera oyj (Finland) start up loans
• Local savings Club (France)

8
Funding support contd

• DtA Start up finance (Germany)
• Federal Programmes for example, Investitionsbank
  Schleswig-Holstein (Germany)
• Sector focused for example, Hellenic
  Organisation of SME and Handicrafts (Greece)
• Soft loans Womens Loan Guarantee Fund (Iceland)

9
Funding priorities

• Focus is on start up funding, micro enterprises,
  support and advice
• Considerable attention on deprivation, social
  exclusion, social problems
• Few policy initiatives or promotions aimed at
  business growth or investment readiness for
  women
• Example, Mustard.com (UK), Springboard (USA).
  

10
Final Remarks

• Womens role in enterprise reflects that in
  broader society
• There are specific gender related challenges
  regarding business ownership and growth
• Dedicated funding support is essential the
  evidence suggests that there are a multitude of
  schemes in evidence
• Problems counting female enterprises, failure
  and closure, growth and consolidation.