Research: How to Close the Gender Gap in Startup Financing

Three ways policymakers, financiers, and other stakeholders can mitigate gender bias in entrepreneurial funding.

by

and

Joakim Wincent

by

and

Joakim Wincent

April 12, 2024

Illustration by Virginia Gabrielli

Summary.

A global analysis of previous research over the last three decades shows that women entrepreneurs face a higher rate of business loan denials and increased interest rates in loan decisions made by commercial bankers. Interestingly, the data also reveals that the formal and informal standing of women in a particular society can provide clues to some of the true hurdles to positive change. This article reviews these hurdles, and offers three recommendations for change.

Gender disparities persist in entrepreneurship and statistics reveal the severity of the issue. Globally, only one in three businesses is owned by women. In 2019, the share of startups with at least one female founding member was a mere 20%.

MM

Malin Malmström is a professor of entrepreneurship and innovation at Luleå University of Technology, and a director of the research center Sustainable Finance Lab in Sweden.
BB

Barbara Burkhard is a postdoctoral researcher of entrepreneurship at the Institute of Responsible Innovation at the University of St.Gallen.
CS

Charlotta Sirén is an associate professor of management at the Institute of Responsible Innovation at the University of St.Gallen.
DS

Dean Shepherd is a professor of entrepreneurship, management, and organization at The Mendoza College of Business, University of Notre Dame.
JW

Joakim Wincent is a professor of entrepreneurship and management at the Hanken School of Economics and the Global Center for Entrepreneurship and Innovation at the University of St.Gallen.

Research: How to Close the Gender Gap in Startup Financing

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