The Rise of Female Entrepreneurs: New Evidence on Gender Differences in Liquidity Constraints
19 Pages Posted: 27 Apr 2015
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
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