The Determinants of Using Bank Loans by Women Entrepreneurs: Comparative Study Between Middle East and Western Europe Countries (original) (raw)
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Asian Business Review
This study conducted to focus the women entrepreneurs' perception of how socioeconomic factors influence at the time of taking a bank loan, whereas perception is the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world. The findings highlighted some socioeconomic factors that influence women in taking a bank loan. Data collected from women entrepreneurs' residing in some major areas of the northern part of Bangladesh. A convenient sampling method was applied to collect response from 112 women entrepreneurs' of which 105 found free from errors; those respondents used for the final study. Our study regarding the perception of the women reveals that religious view of our country, gender discrimination, and low educational qualification, lack of family support hinder their opportunity of taking a bank loan. Besides this research identify that advantageous living area & high social status help women at the time of taking a bank loan. Furthermore, the findings have established that financial solvency, bank's rules & regulations, mortgage criteria and the nature of business carry significant influences on women entrepreneur in taking loan. The foremost contribution of the current study is that it focuses women's observation and suggestion to break the barrier of getting the loan and find out a way to establish a positive attitude of the family as well as the society towards women entrepreneurs.
Entrepreneurship Theory and Practice, 2007
Previous research provides unequivocal evidence that women-owned businesses start with both lower levels of overall capitalization and lower ratios of debt finance. Structural dissimilarities between male-owned and female-owned businesses explain most, but by no means all, of these contrasting funding profiles. Explanations of residual differences, viewed in terms of supply-side discrimination or demand-side debt and risk aversion, remain controversial. Using experimental and qualitative methodologies, this study explores the role of gender in bank lending decisions, focusing on the criteria and processes used by male and female loan officers. Results reveal similarities in the criteria used to assess male and female applicants but show modest differences in the emphasis given to certain criteria by male and female lending officers. The processes used by male and female lending officers to negotiate loan applications revealed the greatest differences.
Perception of women entrepreneurs to accessing bank credit
Journal of Global Entrepreneurship Research
Women entrepreneurs play a substantial role in the sustainable economic development of various developed as well as developing countries in the world. In Bangladesh, the contribution of women entrepreneurs is still insignificant compared to other entrepreneurship due to a number of barriers to their financial inclusion. The current study tried to find out the problems faced with and the opinion of women entrepreneurs regarding the finance from commercial banks. The study used primary data from a sample survey, Key Informant Interview (KII) and in-depth interviews with the selected women entrepreneurs from Sylhet city of Bangladesh to meet the research objectives. Using Exploratory Factor Analysis (EFA), the study brings to life the fact that women entrepreneurs are reluctant to take the loan from banks because they have to face a number of problems there. Some of the major problems they faced are-collateral requirements, terms and conditions of bank loan, business characteristics and some other institution-specific problems to get access to bank finance. The findings of the study can aid the commercial banks in formulating their strategic decision about financing women entrepreneurs. In addition, this study indicates the way forward for the authoritative and supporting organizations of women entrepreneurs to formulate their action plans for the development of women entrepreneurship.
Women entrepreneurs – The Road Ahead: A Perception study of Financial Institutions
In recent years, a lot of attention has been given to the promotion, growth and development of women-owned business by the organizations nationally and internationally. Entrepreneurship development among women is not possible without an effective participation of the banks. In developing countries like India banks play an important role especially when it comes to small and medium enterprises and cottage industries. This paper analyses the role of the financial institutions perception and its contribution to the growth and the performance of the women entrepreneurs engaged in handloom and handicraft industries. A study has been carried out to understand the strength, weaknesses, opportunities and threats, women have in business. As the problems of running a small enterprise can be very different from those encountered at the startup stage, it would also be worthwhile to undertake studies into the factors which encourage or inhibit the growth of women's enterprises in India. Once available, this information will prove to be useful for Government, donor organizations, NGOs, women support organizations, and indeed for the women entrepreneurs themselves. Support for women's businesses in socially and economically marginalized areas should be developed with consideration for the particular challenges faced by women in these areas.
Journal of Entrepreneurship & Management, 2022
Women entrepreneurs play a substantial role in the economic development of the country. However, the contribution of women entrepreneurs is still insignificant due to a number of barriers to their financial inclusion. Finance is the backbone of an enterprise and lack of adequate financial support makes women entrepreneurs invariably struggle for the sustenance and survival of their business. Therefore, this study is focused on the key objectives to assess the level of awareness towards loans offered by State Bank of India (SBI) among women entrepreneurs, to identify the problems faced by women entrepreneurs in accessing loans in SBI, and to analyse the role of SBI in the development of women entrepreneurs. The sample size of 60 small-scale women entrepreneurs was considered using simple random method. The data was collected using semi-structured interviews and a questionnaire using Google Form. The generated data were tabulated with frequency tables and percentages using MS Excel, with analysis such as mean, Likert scale, and Garret ranking. This study revealed that most of the women are influenced by the push factors, such as financial independence, job satisfaction, skill enhancement, and so on, to take up entrepreneurship. The study also analysed that 87% of the entrepreneurs faced problems of lack of information, communication, and awareness in accessing credit in SBI. Furthermore, the study identified the role of SBI in offering credit facilities, and provided recommendations for creating awareness and providing proper training and education to women entrepreneurs to facilitate their growth and development.
Differences in perceptions of access to finance between potential male and female entrepreneurs
International Journal of Entrepreneurial Behavior & Research, 2012
PurposeThe purpose of this study is to examine whether being female increases the probability that an individual feels difficulty in obtaining finance is a barrier to starting a business. The study aims to extend this to examine if a pure gender effect exists or whether it is the interaction of gender with demographic, economic and perceptual characteristics that plays the most important role in the perception of financial constraint.Design/methodology/approachThe data within this study are drawn from the Global Entrepreneurship Monitor (GEM) adult population survey between 2005 and 2007. The first stage of the study splits male and female respondents into separate sub‐samples and runs individual regressions on each portion of the sample. The second stage of the study combines the male and female portions of the sample to directly examine the differences in perceived financial constraint between genders.FindingsThe findings suggest that a greater proportion of women are solely const...
Gender-Based Entrepreneurial Access to Bank Credit: Myth or Reality
The International Journal of Business & Management, 2021
Gender-Based Entrepreneurial Access to Bank Credit: Myth or Reality 1. Introduction Gender investigative research in entrepreneurship has gained increased interest as it helps educators and policymakers to improve the participation of females in the entrepreneurial process (Malmstrom, Johansson & Wincent, 2017). In a market economy, the availability of and accessibility to finance is a major factor in the creative development and survival of any firm (Andrés, Gimeno, & Cabo, 2019). The term entrepreneurship is directly linked to those people who generate or seize opportunities and, from this, develop an organized economic activity, creating value for themselves and society (Carreira et al., 2015). Literature generally indicates entrepreneurship is a male-denominated field (Muntean & Ozkazanc-Pan, 2015). Entrepreneurship is an important pathway for boosting women's economic participation. It offers opportunities for self-employment but can also help meet another global challenge requiring concerted solutions: job creation in the wider economy (World Bank, 2018). Women's entrepreneurship activity rates are greater than men's in only a small number of countries around the world, including Madagascar,
A global review of female entrepreneurial finance
International Journal of Globalisation and Small Business, 2021
This study examines the external financing sources and decisions of small and medium-sized enterprises (SMEs) across 56 countries and shows how SMEs modify their funding channels in response to economic stage and owner's characteristics. We find that entrepreneurs' personal characteristics including owners' age, gender, and business skills are main determinants for the types of external investor funding available to SMEs. We show that access to external financing for female entrepreneurs is more difficult when they have new technology; moreover, the impact increases significantly in poorer economies. The paper displays at a global scale how SMEs modify their funding channels in response to owner's characteristics such as sex and age. Moreover, it contributes to the literature of female entrepreneurship the connections between gender, age, and economic conditions to the sources of external funding and the decisions female entrepreneurs take in accessing it.
Dissertation, 2019
This dissertation serves as a contribution to the existing research surrounding female entrepreneurship in the middle east, it offers a different approach to understanding the entrepreneurial journeys of women in the Middle East. Majority of preliminary research on the topic takes a quantitative approach, hence the researcher decided to conduct the research following a qualitative approach. Women have been able to describe their own individual experiences, by supplying their opinions and detailed stories. 10 women were interviewed, allowing the researcher to investigate and examine the factors encouraging and affecting them and explaining the mechanisms they explored in order to combat any drawbacks. The findings of this analysis has suggested some of the factors encouraging them into entrepreneurship are; the desire to be self-sufficient, passion for the industry they are venturing into, the availability of family support in some cases and the desire to provide quality service provisions. Another factor was flexibility as being an entrepreneur gave them the opportunity to work at home with hours that suited them, especially those that had children. The findings also uncover some of the factors that somewhat impeded their journey. Upon analysis of the intricate details of each interview, gender cultural stereotypes seemed to have been a prominent issue majority of the women faced, which in turn affected some of the starter points of them venturing into entrepreneurship. A few of the women also disclosed some religious implications that impacted the content in which they shared, for those that were using social media, family was another issue raised for the more mature participants, as juggling being a parent and also fulfilling requirements for starting their businesses proved difficult for some of the women. An interesting find was discovered in regards to the demographic of the women as women who were younger had less negative experiences venturing into entrepreneurship and also all of them adopted social media to boost their entrepreneurial activities. Recommendations discussed women leveraging male partnerships to aid in business and combating gender cultural stigmatizations, another recommendation encouraged female empowerment initiatives and successful female entrepreneurs providing training and support for other women. Additionally, user paid advertisements to leverage the maximum benefits of social media were also suggested.
A Study of Assistance Provided By Financial Institutions in Promoting Women Entrepreneurship
Women entrepreneurs make a significant contribution to the Indian economy. There are nearly three million micro, small, and medium enterprises with full or partial female ownership. As with the broader MSME sector, access to formal finance is a key barrier to the growth of women-owned businesses, leading to over 90 percent of finance requirements being met through informal sources. So financial institution aims at tailoring the needs of women owned MSME. The present study endeavors the role of financial institutions in understanding the need of women, the financial gap in accessing the credit and the hurdles faced by them.