Keywords: Small business, financing, gender
Abstract: Differences in financing patterns and financial characteristics between female- and male-owned firms are often attributed to imperfections in credit markets. However, these differences could arise for many reasons, such as differences in the characteristics and preferences of owners and firms. The differences in lending patterns by gender may in fact have little or nothing to do with supply side factors or market imperfections.
The goal of our paper is to test the hypothesis that differences in
financing patterns between female- and male-owned small businesses can
be explained by differences in business, credit history, and owner
characteristics other than gender. In what follows, we first describe
how owner, business, and financing characteristics of female-owned
businesses differ from male-owned businesses. We then conduct a
multivariate analysis of indicators of credit use and recent lending
experiences, modeling each of these as a function of firm, owner, and
credit history characteristics.
Full paper (90 KB PDF)
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Last update: April 5, 2002