Crisis and Gender Inequality in Entrepreneurial Activity: Evidence from Crowdfunding

Abstract

Crowdfunding provides significant support for women seeking to pursue entrepreneurship, particularly during crises when they face heightened challenges and increased needs. However, research also indicates that crises tend to impose greater constraints on women than on men. To explore the relationship between crisis and gender-specific entrepreneurial activity, we focus on the COVID-19 pandemic as a case study to evaluate its differential impact on the entrepreneurial endeavors of men and women within the context of reward-based crowdfunding. Utilizing a difference-indifferences analysis on data from Kickstarter, we found that women's entrepreneurial activity experienced a notable decline of 26.1% relative to that of men during the lockdown. We find suggestive evidence that the reduced availability of women's time is a plausible driving force. Specifically, the gendered effect was more pronounced in large-scale projects and among entrepreneurs from regions with marked gender disparities in domestic duties. Additionally, female creators took 51.3% longer to respond to comments on launched projects after the lockdown, compared to their male counterparts. As lockdown measures were gradually lifted, the gender gap gradually returned to pre-lockdown levels. Our work sheds light on the disproportionate negative impact of crises on female entrepreneurs and highlights the need for policymakers and organizational managers to implement targeted support measures for women during such challenging times.

Keywords: crisis, lockdown, crowdfunding, entrepreneurial activity, gender inequality, work from home