Business advisory services and risk among start-ups and young companies: a gender perspective

Abstract

This study aims to investigate the demand for business advisory services by owners of start-ups and young companies by taking a gender perspecitve. The study also examines whether risk-taking is more characteristic of masculine than feminine behaviour in this context. Design/methodA literature review examines business advisory services and risk aversion from a gender perspective. The empirical data are derived from interviews with owners of more than 2700 start-ups and young companies in Sweden. A number of key variables compare how the company owners (women and men) view business advisory services as a way to overcome risk and to gain access to information in networks. Several statistical tests are used to analyse these data. FindingsWomen owners of start-ups and young companies use more and different business advisory services than men owners. There are differences among the men owners and women owners as far as the amount of start-up capital, company size, and industry sector. Given the risks associated with start-up, business advisory services are important to women in helping them reduce their risk in the start-up and early stages of their companies. Research limitationCompanies in Sweden's largest city, Stockholm, were not included in the sample. Financial data were not used as variables. ImplicationsPolicy makers should address women owners' greater demand for business advisory services in their companies' early stages. Value/originalityThis study's originality is its gender perspective on the demand for business advisory services by startups and young companies, and its challenge to previous findings about entrepreneurial behaviour and risk taking.

Gender Stereotypes and Venture Support Decisions: How Governmental Venture Capitalists Socially Construct Entrepreneurs’ Potential

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“…Several studies suggest that the credit requirements imposed by banks are more likely to favor male rather than female-led firms, mainly because lenders have different perceptions about the entrepreneurs' potential (Alsos & Ljunggren, 2017;Carter et al, 2007;Marlow & Patton, 2005). Compared to male-led enterprises, female-led firms may indeed face a higher rate of rejection of their loan applications (Cavalluzzo et al, 2002), partial rejection by the lender (Kremel & Yazdanfar, 2015;Treichel-Zimmerman & Scott, 2006), higher price conditions, or be required to provide higher collateral for the credit supplied (Alesina et al, 2013;Bellucci et al, 2010;Mascia & Rossi, 2017;Muravyev et al, 2009;Wu & Chua, 2012). It is worth noting, however, that this evidence is far from conclusive.…”

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