Gender, Entrepreneurship, and Bank Lending: The Criteria and Processes Used by Bank Loan Officers in Assessing Applications

18 Pages Posted: 2 May 2007

See all articles by Sara Carter

Sara Carter

University of Strathclyde - Department of Marketing

Eleanor Shaw

University of Strathclyde - Department of Marketing

Wing Lam

University of Central Lancashire - Lancashire School of Business and Enterprise

Fiona M. Wilson

University of Glasgow - Department of Business and Management

Abstract

Previous research provides unequivocal evidence that women-owned businesses start with both lower levels of overall capitalization and lower ratios of debt finance. Structural dissimilarities between male-owned and female-owned businesses explain most, but by no means all, of these contrasting funding profiles. Explanations of residual differences, viewed in terms of supply-side discrimination or demand-side debt and risk aversion, remain controversial. Using experimental and qualitative methodologies, this study explores the role of gender in bank lending decisions, focusing on the criteria and processes used by male and female loan officers. Results reveal similarities in the criteria used to assess male and female applicants but show modest differences in the emphasis given to certain criteria by male and female lending officers. The processes used by male and female lending officers to negotiate loan applications revealed the greatest differences.

Suggested Citation

Carter, Sara and Shaw, Eleanor and Lam, Wing and Wilson, Fiona M., Gender, Entrepreneurship, and Bank Lending: The Criteria and Processes Used by Bank Loan Officers in Assessing Applications. Entrepreneurship Theory and Practice, Vol. 31, No. 3, pp. 427-444, May 2007, Available at SSRN: https://ssrn.com/abstract=982703 or http://dx.doi.org/10.1111/j.1540-6520.2007.00181.x

Sara Carter (Contact Author)

University of Strathclyde - Department of Marketing ( email )

Glasgow, Scotland
United Kingdom

Eleanor Shaw

University of Strathclyde - Department of Marketing ( email )

Glasgow, Scotland
United Kingdom

Wing Lam

University of Central Lancashire - Lancashire School of Business and Enterprise ( email )

Preston, PR1 2HE
United Kingdom
+01772 894640 (Phone)

HOME PAGE: http://www.uclan.ac.uk/facs/lbs/research/staff_research/individual/strategy/lam.html

Fiona M. Wilson

University of Glasgow - Department of Business and Management ( email )

Adam Smith Business School
University of Glasgow
Glasgow, Scotland G12 8QQ
United Kingdom

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