Bank lending and financial discrimination from the formal economy: How women entrepreneurs get forced into involuntary bootstrapping

Malin Malmström*, Joakim Wincent

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)

Abstract

The role of banks, their decision models, and their linkages with how entrepreneurs can act as providers to the formal economy have not been focused on much in entrepreneurship research. We explore the trend of transaction-based lending among banks on entrepreneurs’ engagement in informal economic activities (or involuntary bootstrapping activities) and how that relationship is moderated by gender. The results show that women entrepreneurs who encounter banks with transaction-based lending are forced to engage in much more informal economic activities compared to men, while this gender bias vanishes when entrepreneurs face banks with relation-based lending. We associate these results with gender stereotyping and suggest transaction-based lending to be costly for the development of formal economies.

Original languageEnglish
Article numbere00096
Peer-reviewed scientific journalJournal of Business Venturing Insights
Volume10
Issue numberNovember
ISSN2352-6734
DOIs
Publication statusPublished - 01.08.2018
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management

Fingerprint Dive into the research topics of 'Bank lending and financial discrimination from the formal economy: How women entrepreneurs get forced into involuntary bootstrapping'. Together they form a unique fingerprint.

  • Cite this