Financing Strategies of New Technology-Based Firms: A Comparison of Women- and Men-Owned Firms

Journal of Technology Management & Innovation, Vol. 5, No. 1, 2010

21 Pages Posted: 31 Mar 2010 Last revised: 19 Aug 2010

See all articles by Alicia Robb

Alicia Robb

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

Susan Coleman

University of Hartford - Barney School of Business

Date Written: July 1, 2009

Abstract

Fifth in a series of reports using data from the Kauffman Firm Survey.

In this article we used data from the Kauffman Firm Survey to compare the financing strategies of women-and men-owned new technology-based firms. Our findings reveal that women raised dramatically less financial capital than men in the startup year and in the subsequent four years of operation. We also found that women used a significantly higher level of external debt and a significantly lower level of external equity during the startup year. Although our findings do not allow us to definitively rule out the possibility of discrimination, particularly in the market for external equity, our results indicate that women may have different motivations and expectations for their firms. These, in turn, may determine some of their financing choices.

Keywords: gender, startup, entrepreneur, Kauffman Firm Survey, KFS, women, men, high-tech, new technology-based firms, women-owned firm, financing strategies

Suggested Citation

Robb, Alicia and Coleman, Susan, Financing Strategies of New Technology-Based Firms: A Comparison of Women- and Men-Owned Firms (July 1, 2009). Journal of Technology Management & Innovation, Vol. 5, No. 1, 2010. Available at SSRN: https://ssrn.com/abstract=1580142 or http://dx.doi.org/10.2139/ssrn.1580142

Alicia Robb (Contact Author)

University of Colorado at Boulder ( email )

Leeds Business School
Boulder, CO 80309
United States

Next Wave Impact ( email )

7455 Park Lane Road
Longmount, CO 80503
United States

Federal Reserve Banks - Federal Reserve Bank of Atlanta

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

Susan Coleman

University of Hartford - Barney School of Business ( email )

200 Bloomfield Ave
West Hartford, CT 06117
United States
(860) 768 4690 (Phone)

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