Abstract
The role of gender in entrepreneurship has been thoroughly investigated. However, less is known about gender differences in access to private investment when attempting to develop a new technology. In this paper, we use data collected by the National Research Council of the National Academies to estimate differences between the probability that a female-owned firm and a male-owned firm, both conducting research funded by the Small Business Innovation Research program, will receive private investment funding to help to commercialize the funded technology. We find that female-owned firms are disadvantaged in their access to private investment, especially in the West and Northeast regions of the USA.
Similar content being viewed by others
Notes
These are five largest agencies with SBIR programs. Collectively, they account for over 97 % of all SBIR awards.
See Wessner (2008) for more detail about the NRC’s sampling procedure. Selection is not an econometric problem (Link and Scott 2010, 2012). Nevertheless, we did control for selection in the models presented in Table 2, and we rejected that selection was present. Our selection model controlled for the time since receiving the award and the amount of the award.
Beginning with Chinitz (1961), and following by, for example, Audretsch et al. (2006), Frisch and Schroeter (2011), and Glaeser et al. (2015), the establishment of large-scale industries inhibits the development of an entrepreneurial culture. We approximate this effect through regional binary controls.
Relatedly, see Goel et al. (2015).
These predicted probabilities are weighted averages over funding agency, Age, and the Nascent indicator.
References
Audretsch, D. B., Klelbach, M., & Lehmann, E. (2006). Entrepreneurship and economic growth. New York: Oxford University Press.
Blanchflower, D. G., & Meyer, D. B. (1994). A longitudinal analysis of the young self-employed in Australia and the United States. Small Business Economics, 6, 1–19.
Blanchflower, D. G., & Oswald, A. J. (1998). What makes an entrepreneur? Journal of Labor Economics, 16, 26–60.
Bradley, S. R., Gicheva, D., Hassell, L., & Link, A. N. (2013). Gender Differences in access to private investment funding to support the development of new technologies. Final report to the Ewing Marion Kauffman Foundation.
Chen, H., Gompers, P., Kovner, A., & Lerner, J. (2010). Buy local? The geography of successful and unsuccessful venture capital expansion. Journal of Urban Economics, 57, 90–102.
Chinitz, B. (1961). Contrast in agglomeration: New York and Pittsburgh. American Economic Review, 51, 279–289.
Fritsch, M., & Schroeter, A. (2011). Why does the effect of new business formation differ across regions. Small Business Economics, 36, 383–400.
Gicheva, D., & Link, A. N. (2013). Leveraging entrepreneurship through private investments: Does gender matter? Small Business Economics, 40, 199–210.
Glaeser, E. L., Kerr, S. P., & Kerr, W. R. (2015). Entrepreneurship and urban growth: An empirical assessment with historical mines. Review of Economics and Statistics, 97, 498–520.
Goel, R. K., Göktepe-Hultén, D., & Ram, R. (2015). Academics’ entrepreneurship propensities and gender differences. Journal of Technology Transfer, 40, 161–177.
Link, A. N., & Scott, J. T. (2010). Government as entrepreneur: Evaluating the commercialization success of SBIR projects. Research Policy, 39, 589–601.
Link, A. N., & Scott, J. T. (2012). Employment growth from public support of innovation in small firms. Kalamazoo, MI: W. E Upjohn Institute for Employment Research.
National Venture Capital Association (NVCA). (2012). MoneyTree™ report, data: Thomson Reuters investments by region Q1 1995–Q4 2012. http://www.nvca.org/index.php?option=com_content&view=article&id=344&Itemid=103.
Reynolds, P. D. (1997). Who starts new firms? Preliminary explorations of firms in-gestation. Small Business Economics, 9, 449–462.
Wessner, C. W. (2008). An assessment of the SBIR program. Washington, DC: National Academy Press.
Acknowledgments
This research was funded through a grant from the Ewing Marion Kauffman Foundation. We also thank Samantha Bradley and Lydia Hassell for their research assistance on this study. See Bradley et al. (2013).
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Gicheva, D., Link, A.N. The gender gap in federal and private support for entrepreneurship. Small Bus Econ 45, 729–733 (2015). https://doi.org/10.1007/s11187-015-9664-y
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11187-015-9664-y