A comparison of new firm financing by gender: evidence from the Kauffman Firm Survey data

By Susan L. Coleman, Alicia Robb. 2009

414 citations recorded by the source corpus.

This study uses data from the new Kauffman Firm Survey to explore gender differences in the use of start-up capital and subsequent financial injections by new firms. We find that, consistent with previous studies, women start their businesses with significantly lower levels of financial capital than men. A new finding from this research is that women go on to raise significantly lower amounts of incremental debt and equity in years two and three. These results hold even controlling for a variety of firm and owner characteristics, including the level of initial start-up capital and firm sales. Our findings also reveal that women rely heavily on personal rather than external sources of debt and equity for both start-up capital as well as follow-on investments. Our findings have implications for further research into gender differences in financing sources and strategies and business outcomes.

Subfields: Accounting, Management of Technology and Innovation, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/7746aefe42deca91b26ca228f7524ecef3da6c20

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Citations in the corpus

The gender gap in venture capital- progress, problems, and perspectives (2018, background): “In general, women entrepreneurs are less likely to utilize external financing equity (Orser, Riding, and Manley 2006; Coleman and Robb 2012), and when they do raise money, they raise less money (Coleman and Robb 2009).”
Gender stereotyping effects on entrepreneurial self‐efficacy and high‐growth entrepreneurial intention (2013, background): “…lag behind their male counterparts in crucial areas associated with high-growth entrepreneurship (HGE), including total revenues, access to and use of capital, and access to markets and networks of decision-makers (Coleman and Robb, 2009; Committee on Small Business and Entrepreneurship, 2008).”
Gender differences in the contribution patterns of equity-crowdfunding investors (2017, neutral): “Traditional investors of venture capital firms significantly underrepresent women (Greene et al. 2001; Harrison and Mason 2007; Coleman and Robb 2009), which might lead to barriers in the exchange of information regarding investment opportunities for women investors not sharing the same social…”
Inside the black box of outcome additionality: Effects of early-stage government subsidies on resource accumulation and new venture performance (2015, background): “, Coleman and Robb (2009)) are now publically available for scholars to be used.”
Women's Perceived Empowerment in Entrepreneurial Efforts: The Role of Bricolage and Psychological Capital (2019, background): “We draw on firm revenues as an outcome variable because businesses managed by women entrepreneurs are smaller and tend to have lower revenues even in samples from developed countries (Coleman and Robb 2009).”
The gender gap in bank credit access (2019, neutral): “…to approximate it by control variables such as, age, experience, education, personal delinquency, personal bankruptcy, legal judgments, or personal wealth, as is usually done in the literature (Blanchflower et al., 2003; Cavalluzzo and Wolken, 2005; Cole and Mehran, 2009; Coleman and Robb, 2009).”