The Influence of Funding Approaches, Growth Expectations, and Industry Gender Distribution on High‐Growth Women Entrepreneurs^*

* We would like to thank the Ewing Marion Kauffman Foundation and the data scientists responsible for compiling the Kauffman Firm Survey; Joseph Farhat and Alicia Robb for their thorough guide to working with the dataset (Farhat and Robb 2014); Tim Mulcahy, the NORC Data Enclave and staff for their assistance and provision of access to the comprehensive version of the dataset; and the editors and reviewers for their helpful feedback.

Abstract

This study examines three key aspects of entrepreneurship associated with women business owners and their ability to achieve high growth: debt versus equity financing, growth expectations, and industry gender distribution. We present a number of theoretical lenses spanning disciplines such as gender studies, entrepreneurship, social psychology, and finance. Using longitudinal data from U.S. startups over an eight‐year period, our research reveals a number of interesting findings. We find that, proportionally, high‐growth women entrepreneurs are more likely to finance their growth with personal and business equity funding. Additionally, women‐owned firms in “feminine industries” are more likely to achieve high growth than women‐owned firms in “non‐feminine industries.”

* We would like to thank the Ewing Marion Kauffman Foundation and the data scientists responsible for compiling the Kauffman Firm Survey; Joseph Farhat and Alicia Robb for their thorough guide to working with the dataset (Farhat and Robb 2014); Tim Mulcahy, the NORC Data Enclave and staff for their assistance and provision of access to the comprehensive version of the dataset; and the editors and reviewers for their helpful feedback.

* We would like to thank the Ewing Marion Kauffman Foundation and the data scientists responsible for compiling the Kauffman Firm Survey; Joseph Farhat and Alicia Robb for their thorough guide to working with the dataset (Farhat and Robb 2014); Tim Mulcahy, the NORC Data Enclave and staff for their assistance and provision of access to the comprehensive version of the dataset; and the editors and reviewers for their helpful feedback.

Notes

* We would like to thank the Ewing Marion Kauffman Foundation and the data scientists responsible for compiling the Kauffman Firm Survey; Joseph Farhat and Alicia Robb for their thorough guide to working with the dataset (Farhat and Robb 2014); Tim Mulcahy, the NORC Data Enclave and staff for their assistance and provision of access to the comprehensive version of the dataset; and the editors and reviewers for their helpful feedback.

14. Frequently Asked Questions About Small Business, August 2017, U.S. Small Business Administration, https://www.sba.gov/category/advocacy-navigation-structure/faqs

15. Data included herein are derived from the Kauffman Firm Survey (KFS). Any opinions, findings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the views of the Ewing Marion Kauffman Foundation. For additional details on the Kauffman Firm Survey, visit http://www1.kauffman.org/kfs/.

16. See https://www.census.gov/eos/www/naics/ for additional details on the NAICS coding system.

Additional information

Notes on contributors

Amy M. Yacus

Amy M. Yacus is a doctoral student in Entrepreneurship in the Manning School of Business, Department of Marketing, Entrepreneurship and Innovation, University of Massachusetts Lowell.

Saadet Elif Esposito

Saadet Elif Esposito is a doctoral candidate in Leadership and Organization Studies in the Manning School of Business, Department of Management, University of Massachusetts Lowell.

Yi Yang

Yi Yang, Ph.D. is Chair of the Marketing, Entrepreneurship and Innovation Department and Associate Professor of Entrepreneurship and Innovation in the Manning School of Business, University of Massachusetts Lowell.