Money for female entrepreneurs does not grow on trees: start-ups’ financing implications in times of COVID-19

Abstract

Purpose The purpose of this paper is to understand women’s approaches to acquiring financial and other resources is essential for closing the entrepreneurship gender gap. In nearly 40% of economies, women’s early-stage entrepreneurial activity is half or less than half of that of men’s. Design/methodology/approach Even when there is extensive literature on female entrepreneurs, the authors review the findings through a Coronavirus Disease 2019 (COVID-1)9 crisis lens, trying to find new perspectives and solutions. With the approach of a systematic review of 4,520 publications on financing topics related to female entrepreneurs, various sources of financing available to female entrepreneurs are considered: bootstrapping, banks, business angels, venture capital and crowdfunding. Findings Identifying potential gender bias both on the supply and the demand side of financing, this research highlights new directions in encouraging female entrepreneurship and gives guidelines to public organisations on how to foster advanced forms of financing for female entrepreneurs in COVID-19 times. Social implications The COVID-19 pandemic has posed an unprecedented challenge for economies and companies. Female entrepreneurs are the ones who have been hit harder, as they overcome pre-existing barriers, such as lack of access to finance, lack of networks and mentors and gendered priorities, among others. Without ensuring gender policies to counter these incremental negative effects, the authors face the risk of widening the gender gap. Originality/value Regarding previous systematic reviews of literature, this paper focusses on a specific challenge, how women entrepreneurs finance their activity, with a double vision: supply and demand of money.

Women Entrepreneurs and The usage of social Media for Business Sustainability In the time of Covid-19

“…These findings are important, as they offer insight into how women entrepreneurs in a developing economy face the challenge of economic instability. The knowledge generated through this work may help reduce the unplanned losses that businesses face during times of crisis and help policymakers address the economic and social vulnerabilities of women entrepreneurs-especially when they are disproportionately affected, as in the current pandemic (Etim, 2020;Villaseca et al, 2020). Future research must therefore consider how women deal with gender issues while managing their businesses.…”

Guest editorial

“…Pandemic-related restrictions limit business operations and challenge business owners to secure even more cash to cover their short-term drop-outs in monetary inflows to avoid bankruptcy. Villaseca et al (2020) suggest in their conclusions several policy implications. For example, they propose that governments develop instruments providing credit for favourable conditions during these turbulent times to mitigate business closures rates.…”

“…Both Villaseca et al (2020) and Croteau et al (2021) focussed on the availability of financial capital. Villaseca et al (2020) conducted a systematic literature review on financing female entrepreneurship to derive implications for the COVID-19 crisis.…”

“…Both Villaseca et al (2020) and Croteau et al (2021) focussed on the availability of financial capital. Villaseca et al (2020) conducted a systematic literature review on financing female entrepreneurship to derive implications for the COVID-19 crisis. The search took place in the Web of Science database, was targeted at publications from 1990 to 2019 and resulted in 4,250 potentially relevant documents that were analysed.…”

On the Relationship between Economic Dynamics and Female Entrepreneurship: Reflections for the Visegrad Countries

“…The authors further add that the level of economic development of the country under study does not matter, as women in both developed and less developed countries in crisis view entrepreneurship primarily as a necessity. On the other hand, Villaseca et al (2020) address the issue of financing women's entrepreneurship during the crisis caused by COVID-19 pandemic. The authors point out that women have always been discriminated against in this area, which may mean that the pandemic situation will further disqualify women as entrepreneurs.…”