1. Financing women’s enterprise: challenges and opportunities Professor Susan Marlow De Montfort University Leicester UK smhum@dmu.ac.uk

2. Setting the scene – the influence of gender Gender – socially constructed concept which shapes our understanding of masculinity and femininity Characteristics associated with women are usually coded negatively Stereotypes inform our expectations and presumptions

3. The Challenges: Gender and self employment Normative notions of entrepreneurship Fewer women enter self employment (approximately 14 % firm owners; 28 % self employed) Sector differences (lower order services) Location preferences (home based) Operational preferences (30 % part time) Business expectations (life style/flexibility)

4. Gender, self employment and finance Under capitalisation at start up and growth – women use about one third as much of the financial capital as their male counterparts This promotes underperformance for the life of the business This does not signify female incompetence Note Watson (2002)

5. Supply of finance Debt Finance – bank loans, over drafts Equity finance – Venture capital, business angels Soft loans and government grants Informal finance – Personal savings plus the three ‘F’s’ – family, friends and fools

6. Gender related challenges in accessing funding Debt funding – no evidence for a supply gap – need to focus on demand and credibility Equity – women are invisible in the debate – women gain approximately 2% of VC funding in the US for example Soft loans/grants – problem of disaggregated data Informal funding – lower levels of savings and credibility

7. Overcoming the problems The broader debate – gender in a socio- economic context Support examples from member states: Prowess (UK) Women network (Austria) broader funding Finnvera oyj (Finland) start up loans Local savings Club (France)

8. Funding support cont’d DtA Start up finance (Germany) Federal Programmes; for example, Investitionsbank Schleswig-Holstein (Germany) Sector focused; for example, Hellenic Organisation of SME and Handicrafts (Greece) Soft loans; Women’s Loan Guarantee Fund (Iceland)

9. Funding priorities Focus is on start up funding, micro enterprises, support and advice Considerable attention on deprivation, social exclusion, social problems Few policy initiatives or promotions aimed at business growth or ‘investment readiness for women’ Example, ‘Mustard.com’ (UK), ‘Springboard’ (USA).

10. Final Remarks Women’s role in enterprise reflects that in broader society There are specific gender related challenges regarding business ownership and growth Dedicated funding support is essential; the evidence suggests that there are a multitude of schemes in evidence Problems – counting female enterprises, failure and closure, growth and consolidation.