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The Rise of Female Entrepreneurs: New Evidence on Gender Differences in Liquidity Constraints

19 Pages Posted: 27 Apr 2015  

Robert M. Sauer

University of London - Royal Holloway College

Tanya Wilson

University of London - Royal Holloway College

Abstract

Small business activity and female entrepreneurship have become increasingly important features of the UK economy since the start of the Great Recession. In this paper, we re-examine the impact of liquidity constraints on new business formation in an instrumental variables framework, using a previously unexplored data set from the UK. The new results indicate that it is primarily single women that drive the well-established empirical relationship between personal wealth and business start-ups. Therefore, public policies specifically targeted at relieving the liquidity constraints of women could help further accelerate the rise of female entrepreneurship.

Keywords: entrepreneurship, liquidity constraints

JEL Classification: J23, L26, M13

Suggested Citation

Sauer, Robert M. and Wilson, Tanya, The Rise of Female Entrepreneurs: New Evidence on Gender Differences in Liquidity Constraints. IZA Discussion Paper No. 8981. Available at SSRN: https://ssrn.com/abstract=2598921

Robert M. Sauer (Contact Author)

University of London - Royal Holloway College ( email )

Senate House
Malet Street
London, TW20 0EX
United Kingdom

Tanya Wilson

University of London - Royal Holloway College ( email )

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