By: University of Stirling
It is difficult for an aspiring entrepreneur, or current business owner, to obtain the funds necessary to start a business or expand an existing one. Labor Force Surveys show that from 2009 to 2014, the proportion of men in self-employment increased by 6 percent. Over the same period, the proportion of self-employed females jumped by a remarkable 22 percent.
Despite the relatively large growth rate in self-employed females, obstacles for women that want to engage in entrepreneurial activities still remain. In the area of small business operations, one of the main problems many entrepreneurs face is how to maintain a flow of cash through the business.
Using previously unexplored data from the Wealth and Assets Survey, researchers found evidence that there are substantial differences in liquidity between the genders. This is based on the finding that the willingness to start a new business increases with personal wealth, and this relationship is stronger among women than men. The relationship is strongest among single women.
Researchers found that $1,000 dollars more in the bank would lead to an 8.5 per cent increase in the probability a single woman starts a new business.
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