Women’s Entrepreneurship: The Research Based View
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Transcript of Women’s Entrepreneurship: The Research Based View
Women’s Entrepreneurship:
The Research Based View
Elizabeth Gatewood, Wake Forest University
Candida Brush, Babson CollegeNancy Carter, Catalyst
Patricia Greene, Babson CollegeMyra Hart, Harvard University (retired)
ESBRI 2012
The Diana Partners
Magnus Aronsson and ESBRI
Kauffman Foundation
U.S. Small Business Administration
National Women’s Business Council
Numerous Universities
Motivation
• News article----”Women receive less than 5% of venture capital investment in
the U.S.”• We were friends and colleagues and
interested in a joint project that would have impact---especially on women entrepreneurs
Women and VC Investments1957-1996
3.5 % for all years (290 of 8298)
• 3.8% in 1996 n= 43 • 3.5% in 1997 n= 52• 4.1% in 1998 n= 54
Myths
• Women don’t want to run high growth businesses• Women lack the human capital • Women are unable to build strong management
teams• Women are in industries unattractive to equity
providers• Women lack the commitment• Women lack the financial savvy and resources • Women aren’t in the “network”• Women aren’t a force in the venture capital
industry
D
Working Model
Financial Capital
Social Capital
Human Capital
Personal Goals
DEAL
Facilitators
Structural Barriers
Financial Providers
Strategic Choice
Firm
Strategic Choice
Financial Capital
Social Capital
Human Capital
Personal Goals
Financial Suppliers
Context Capital Seekers
Findings: Demand Side
Human Capital:Women in U.S. generally well educated, and increasingly acquiring business experience; Women seekers were very well educated and had appropriate experience
Social Capital: Women’s networks are more diverse than men’s; Women focus on friendship & obligation in network relationships; men on exchange; Women seekers networked extensively
Findings: Demand Side
Financial Capital:Women in U.S. generally preferred internal sources of capital; many women seekers used sophisticated bootstrap financing to position company for VC
Personal Goals:Women’s growth goals may differ from men’s; like men, varying motives; Women have slightly lower aspirations for business size; Women seekers were interested in growing their businesses
Findings: Demand Side
Strategic Choice:Women’s business concentrated in service and retail sector; Women more likely to start in health, education and medical field; Men in construction, manufacturing, transportation/communication; Increasing numbers of women starting ventures in technology sectors; Many Women seekers were in investment attractive industries
Findings: Supply Side
It’s the Industry:• Only 10% of decision makers in venture capital industry
are women• Industry increased 62% between 1995-2000; number of
men increased 64%; women 47%• Attrition rate among women in industry higher than for men
(64% vs. 33%)• Gender of entrepreneur doesn’t influence women VC
vetting
Growth Influencers
Growth
Venture Concept industry, potential
IndividualGoals, capabilities
ResourcesFinancial, social, organizational
Diana International
To provide a platform to develop, conduct and share a global research agenda
To create an international community of scholars dedicated to answering questions about women entrepreneurs
History
2003 a & b ESBRI, Stockholm, Workshops2004 ESBRI, Stockholm- Int’l
Conference2006 ESBRI, Stockholm - Int’l
Conference2007 Madrid - Int’l Symposium2008 Belfast - Int’l Symposium2010 Banff – Int’l Symposium2012 Fremantle – Int’l Symposium2014 ?
Diana International
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– Germany – Hungary– Ireland– Korea – Netherlands– New
Zealand– Northern
Ireland
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Kingdom– USA
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Factor-Driven Economies Efficiency-Driven Economies Innovation-Driven Economies
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Female Participation by Economic Group: GEM 2010
Growth Influencers
Growth
Venture Concept industry, potential
IndividualGoals, capabilities
ResourcesFinancial, social, organizational
EnvironmentCulture, religion, legal and tax system
Environm
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