A Comparison of New Firm Financing by Gender: Evidence from the Kauffman Firm Survey Data

Coleman, Susan; Robb, Alicia

doi:10.2139/ssrn.1260980

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A Comparison of New Firm Financing by Gender: Evidence from the Kauffman Firm Survey Data

30 Pages Posted: 31 Aug 2008 Last revised: 27 Feb 2009

See all articles by Susan Coleman

Susan Coleman

University of Hartford - Barney School of Business

Alicia Robb

University of Colorado at Boulder; Next Wave Impact; Federal Reserve Banks - Federal Reserve Bank of Atlanta

Date Written: February 20, 2009

Abstract

This study uses data from the new Kauffman Firm Survey to explore gender differences in the use of start-up and follow-on capital by new firms. Our findings reveal that women rely heavily on personal rather than external sources of debt and equity. Further, our results demonstrate that women start their firms with significantly lower amounts of capital than men. Finally, women went on to raise significantly lower amounts of incremental debt and equity in years two and three even controlling for a variety of firm and owner characteristics including the level of initial start-up capital and firm sales.

Keywords: entrepreneurial finance, gender, women-owned businesses, small business finance

JEL Classification: D51, D53, J16, L26

Suggested Citation: Suggested Citation

Coleman, Susan and Robb, Alicia, A Comparison of New Firm Financing by Gender: Evidence from the Kauffman Firm Survey Data (February 20, 2009). Available at SSRN: https://ssrn.com/abstract=1260980 or http://dx.doi.org/10.2139/ssrn.1260980