Are Women More Likely Venture Funders? Theory and Evidence from Migrants Remitting to Developing Countries

36 Pages Posted: 12 Aug 2019 Last revised: 18 Jan 2021

See all articles by Michael E. Cummings

Michael E. Cummings

University of Arkansas - Sam M. Walton College of Business

Paul M. Vaaler

University of Minnesota, Twin Cities - Law School and Carlson School of Management

Date Written: December 10, 2020

Abstract

There is substantial research on how women differ from men as new business (venture) founders, but little on how women may differ from men as venture funders. We respond with theory and evidence from an unconventional venture funding context: migrants’ remittances to developing countries. We propose that remitting migrant women are more likely venture funders consistent with a greater interest in assisting family members back home. Complementary empirical analyses of remittances to developing countries largely support our proposition. Cross-sectional data analyses of remitting tendencies among 718 migrants from 49 developing countries in 2011 suggest that migrant women are more likely to remit for investment purposes, particularly when family assistance motivates a specific remittance transaction. Panel data analyses of venture funding availability in 48 developing countries from 2001-2010 suggest that remittances from migrant communities with higher percentages of women increase venture funding more, particularly for migrant communities from developing countries with less wealth and less workplace gender inequality. In this unconventional context, women are more likely than men to step into (international) venture funding roles, particularly when socio-economic need and opportunity are greater.

Keywords: migrant remittances; gender; developing countries; venture funding

JEL Classification: F22, F23, F65, G24, J15, J16, M13, O16, O43

Suggested Citation

Cummings, Michael E. and Vaaler, Paul M., Are Women More Likely Venture Funders? Theory and Evidence from Migrants Remitting to Developing Countries (December 10, 2020). Available at SSRN: https://ssrn.com/abstract=3434076 or http://dx.doi.org/10.2139/ssrn.3434076

Michael E. Cummings (Contact Author)

University of Arkansas - Sam M. Walton College of Business ( email )

Fayetteville, AR 72701
United States

Paul M. Vaaler

University of Minnesota, Twin Cities - Law School and Carlson School of Management ( email )

229 19th Avenue South
Minneapolis, MN 55455
United States
612-625-4951 (Phone)
612-626-1316 (Fax)

HOME PAGE: http://carlsonschool.umn.edu/faculty/paul-vaaler

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