Effects of Role Models and Financing Barriers on Women Entrepreneurship
Abstract
Entrepreneurship has attracted the attention of many and is seen as the economic engine that has the potential to deliver future job growth. Because of this potential it is crucial to identify what drives entrepreneurship. Extant literature has focused on entrepreneurial wealth--sufficient collateral—as a liquidity constraint hindering small business capitalization. Our study empirically investigates the expected linkage between personal wealth constraints and intention to start a business for women entrepreneurs. Further we examine the moderating effect of successful role models on women entrepreneurship. Funded by a research grant, data has been collected in the state of Alabama from women intending to start a business. The data is now analyzed to test the research hypotheses in this study. The student participation is in data analysis and writing of the manuscript under the guidance of two NSU faculty. The data analysis approach uses Baron and Kelly (1986) methodology to assess the statistical significance of moderating variables. Our results, based on a sample of 1200 women intending to start a business in Alabama, reveal that successful role models can inspire potential entrepreneurial aspirants and significantly mitigate the lack of personal wealth and liquidity constraints that thwart business start-ups. Thus, it is important to widely share the success stories of successful entrepreneurs to potential entrepreneurs, especially those who are constrained by constraints of personal wealth. We conclude our study with implications for women entrepreneurs, policy makers and for future research.
Faculty Sponsors
Dr. Ramdas Chandra
Project Type
Event
Location
Alvin Shermany Library
Start Date
4-5-2019 1:00 PM
End Date
4-5-2019 5:00 PM
Effects of Role Models and Financing Barriers on Women Entrepreneurship
Alvin Shermany Library
Entrepreneurship has attracted the attention of many and is seen as the economic engine that has the potential to deliver future job growth. Because of this potential it is crucial to identify what drives entrepreneurship. Extant literature has focused on entrepreneurial wealth--sufficient collateral—as a liquidity constraint hindering small business capitalization. Our study empirically investigates the expected linkage between personal wealth constraints and intention to start a business for women entrepreneurs. Further we examine the moderating effect of successful role models on women entrepreneurship. Funded by a research grant, data has been collected in the state of Alabama from women intending to start a business. The data is now analyzed to test the research hypotheses in this study. The student participation is in data analysis and writing of the manuscript under the guidance of two NSU faculty. The data analysis approach uses Baron and Kelly (1986) methodology to assess the statistical significance of moderating variables. Our results, based on a sample of 1200 women intending to start a business in Alabama, reveal that successful role models can inspire potential entrepreneurial aspirants and significantly mitigate the lack of personal wealth and liquidity constraints that thwart business start-ups. Thus, it is important to widely share the success stories of successful entrepreneurs to potential entrepreneurs, especially those who are constrained by constraints of personal wealth. We conclude our study with implications for women entrepreneurs, policy makers and for future research.
