The government is currently trying to improve the landscape for small and medium business access to finance through a number of initiatives in a bid to continue stimulating UK markets.

Current evidence relating to the availability of start-up and growth financing for women in business appears paradoxical and is often based on small sample sizes. While some research suggests that women entrepreneurs who succeed in obtaining external financing gain access to better deals as they have a better record of repayment than their male counterparts, others suggest that there is a possibility of institutionalised discrimination arising from front-line bank officials regarding “credible entrepreneurship”.

There is also anecdotal evidence pointing to the gender differences in the availability of networking opportunities as a method of accessing finance and procurement contracts; which is heavily biased towards men.

The current evidence base may be too small for an accurate aggregate picture of gender differences in the UK entrepreneurial market with respect to the issue of Access to Finance.

Further work in this area is required to ensure that women in business receive equitable access and terms to financing for every stage of their development.

NEW POLICY PAPER:

Women’s Enterprise and Access to Finance

Professor Sara Carter, Hunter Centre for Entrepreneurship, University of Strathclyde, March 2009

This paper examines access to finance for women entrepreneurs in the UK. While the sources of business finance used by women and men are very similar, research has shown that women start with lower levels of overall capitalization, use lower ratios of debt finance, and are much less likely to use private equity or venture capital. Reasons for these differences are explored, and illustrative case studies are included. The paper speculates the likely impact on women entrepreneurs of the economic recession and crisis in the financial sector. Finally, recommendations are made to facilitate the start-up and growth of women-owned businesses.

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