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.

Citation

Villaseca, D., Navío-Marco, J. and Gimeno, R. (2021), "Money for female entrepreneurs does not grow on trees: start-ups’ financing implications in times of COVID-19", Journal of Entrepreneurship in Emerging Economies, Vol. 13 No. 4, pp. 698-720. https://doi.org/10.1108/JEEE-06-2020-0172