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

– Australia– Bulgaria– Canada– Chile– China– Denmark– Finland– Ireland

– Germany – Hungary– Ireland– Korea – Netherlands– New

Zealand– Northern

Ireland

– Norway– Scotland– Slovenia– Spain– Sweden– United

Kingdom– USA

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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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