The Diana Project: Women Business Owners and Equity Capital: The Myths Dispelled

24 Pages Posted: 5 Sep 2008

See all articles by Candy Brush

Candy Brush

Babson College - Arthur M. Blank Center for Entrepreneurship

Nancy M. Carter

Catalyst Associates, Inc.

Elizabeth J. Gatewood

Independent

Patricia G. Greene

Babson College

Myra Hart

affiliation not provided to SSRN

Abstract

This report from the Diana Project explores the extent of equity investments in women-owned businesses. Surveyed were 1,700 applicants to the 2000 Springboard forums to examine the current state of venture capital for women entrepreneurs interested in, and capable of, high growth venturing, in hopes of debunking myths about women and venture capital.

Eight myths about women and equity capital are identified: (1) women don't want to own high growth businesses; (2) women don't have the right educational backgrounds to build large ventures; (3) women don't have the right types of experience to build large ventures; (4) women aren't in the network and lack the social contacts to build a credible venture; (5) women don't have the financial savvy or resources to start high growth businesses; (6) women don't submit business plans to equity providers; (7) women-owned ventures are in industries unattractive to venture capitalists; and (8) women are not a force in the venture capital industry.

Each of these myths is examined, and many are shown to be false or undergoing change. Nonetheless, a disparity exists between men- and women-owned ventures and their access to funding. Six recommendations to ensure equity investment in all entrepreneurial ventures are offered.

Keywords: Firm growth, Equity capital, Venture capital, Gender, Female owned businesses, Female entrepreneurs

Suggested Citation

Brush, Candida and Carter, Nancy M. and Gatewood, Elizabeth J. and Greene, Patricia G. and Hart, Myra, The Diana Project: Women Business Owners and Equity Capital: The Myths Dispelled. Babson College Center for Entrepreneurship Research Paper No. 2009-11. Available at SSRN: https://ssrn.com/abstract=1262312 or http://dx.doi.org/10.2139/ssrn.1262312

Candida Brush (Contact Author)

Babson College - Arthur M. Blank Center for Entrepreneurship ( email )

Babson Park, MA 02457-0310
United States

Nancy M. Carter

Catalyst Associates, Inc. ( email )

120 Wall Street, 15th Floor
New York, NY 10005
United States
2125147600 x 307 (Phone)
2125148470 (Fax)

HOME PAGE: http://www.catalystwomen.org/about/staff.shtml#3

Elizabeth J. Gatewood

Independent ( email )

No Address Available

Patricia G. Greene

Babson College ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States

Myra Hart

affiliation not provided to SSRN

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