Small Firms' Credit Access in the Euro Area: Does Gender Matter?

Stefani, Maria Lucia; Vacca, Valerio

doi:10.1093/cesifo/ifu031

Cited by 24 publications

(17 citation statements)

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“…The Female is one if one of the owners among the owners of the firm is a female and zero otherwise. It is found that female borrowers are less likely to apply for bank loans due to fear of loan rejection (Stefani & Vacca, 2015). Similarly, the rejection rate is also higher for female borrowers' due to a high-risk perception by banks (Hanedar, 2013).…”

Section: Independent Variablesmentioning

confidence: 96%

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Belás

Rahman

et al. 2017

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This paper empirically investigates financial constraints experienced by innovative small and medium enterprises (SMEs) in the context of Visegrad countries: Czech Republic, Slovak Republic, Hungary, and Poland. At first, we examine whether innovative (product and process innovation) SMEs seek more external finance than the non-innovative firms and then we examine the likelihood of being successful with a loan application. This study uses the dataset from the Business Environment and Enterprise Performance Survey (BEEPS V), which was conducted by the World Bank and the European Bank for Reconstruction and Development (EBRD) during the period of 2012-2014. With respect to firm-level analysis, we find that innovative SMEs are likely to seek external finance to support their innovative ideas but the results are not statistically significant. We also did not find any evidence that innovative SMEs experience more credit constraints as compared to noninnovative firms. However, a country-level analysis suggests that firms in the Slovak Republic and Hungary are more likely to seek external finance for process and product innovation. Further, we find that mature firms, firms having audited financial statements, and risky borrowers are highly likely to apply for external finance while service-oriented firms are less likely to apply for bank finance. Finally, we find that loan application of the experienced borrowers and service firms are more likely to be accepted.

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Section: Independent Variablesmentioning

confidence: 96%

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Belás

Rahman

et al. 2017

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“…Studies that have considered the role of gender in entrepreneurship (e.g., Van Der Zwan et al 2011;Caliendo et al 2015;Stefani and Vacca 2015) also show that lower levels of female education are a crucial factor in explaining the gender differences in entrepreneurial activity. However, Fig.…”

Section: Human Capital Gender and Entrepreneurshipmentioning

confidence: 99%

How institutions and gender differences in education shape entrepreneurial activity: a cross-national perspective

Dilli

Westerhuis

2018

Small Bus Econ

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Previous studies offer evidence that human capital obtained through education is a crucial explanation for cross-national differences in entrepreneurial activity. Recently, scholar attention has focused on the importance of education in subjects such as science, technology, engineering, and math (STEM) for the promotion of entrepreneurial activity. To our knowledge, empirical evidence for this link is scarce, despite the emphasis made in the literature and by policy makers on the choice of study at the tertiary level. Given that differences in STEM education are particularly large between men and women, we utilize data from the Global Entrepreneurship Monitor for 19 European countries and the USA. We study the role of these differences in STEM education at the national level for three stages of the entrepreneurial process: entrepreneurial awareness, the choice of sector for entrepreneurial activity, and entrepreneurial growth aspirations. We also test whether the effects of gender differences in education is moderated by the nature of the institutional environment in which entrepreneurs operate. Our findings show that individual-level explanations including education account for the gender differences during all three stages of early-stage entrepreneurial activity. Moreover, countries with greater gender equality in science education are characterized by higher entrepreneurial activity in knowledge-intensive sectors and high-growth aspirations. Thus, next to individual-level education, closing the gender gap in science at the national level can benefit a country as a whole by stimulating innovative entrepreneurial activity.

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“…Young entrepreneurs have to pay higher loan rates than older ones because of lacking liquidity and smaller businesses (Neuberger and Räthke-Döppner 2015). Female entrepreneurs apply less often for bank loans due to fear of rejection and are more often denied credit than male entrepreneurs (Stefani and Vacca 2014). However, there is weak evidence for discrimination, because these differences can be largely explained by differences in risk factors.…”

Section: Financial Inclusionmentioning

confidence: 99%

Financial Inclusion, Regulation, and Education in Germany

Neuberger

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The author would like to thank Naoyuki Yoshino, Ganeshan Wignaraja, Peter Morgan, Udo Reifner, and Stefanie Lämmermann for helpful discussions, and Lisa Düngel for valuable research assistance.The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractGermany's bank-based financial system provides a high level of financial inclusion, measured by bank outreach and use of financial services. However, the most vulnerable individuals and small enterprises in Germany tend to be excluded or credit constrained. The quality of financial inclusion is impaired by a low level of financial literacy, which is also concentrated among specific population subgroups. The high level of financial inclusion can be attributed to relationship lending by public savings banks, credit cooperatives, public promotional banks, and guarantee banks using the "housebank" model, and financial consumer protection and credit reporting regulations and institutions. Programs involving microfinance institutions have been stopped. Financial inclusion of consumers with the aim of responsible finance may be improved by implementing the right to a basic bank account with an overdraft facility and protection against attachment, establishing public credit bureaus, redirecting banking regulation toward the protection of borrowers in long-term credit relationships, and stren...

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Small Firms' Credit Access in the Euro Area: Does Gender Matter?

Cited by 24 publications

References 10 publications

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

Financial Constraints on Innovative SMEs: Empirical Evidence from the Visegrad Countries

How institutions and gender differences in education shape entrepreneurial activity: a cross-national perspective

Financial Inclusion, Regulation, and Education in Germany

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