Crowdfunding has emerged as a pivotal financial avenue for entrepreneurs seeking funding. This study delves into the dynamics of gender in securing business loans through crowdfunding platforms. Researchers used comprehensive data from three prominent Dutch crowdfunding platforms to conduct a survival analysis on 934 business loan campaigns. The findings reveal a notable trend: female entrepreneurs achieve campaign completion 20% faster than their male counterparts. Interestingly, couples-led campaigns are similar to those led by male entrepreneurs.

The persistence of this gender effect across diverse crowdfunding platforms underscores its robustness. Furthermore, subsequent analysis delves into the underlying mechanisms at play. It becomes evident that female entrepreneurs, unlike traditional lending channels, encounter different barriers when soliciting funds through crowdfunding. Moreover, the study identifies herding behaviour among investors as a pivotal factor in amplifying the advantages for female entrepreneurs.

This research sheds light on these dynamics, contributing to understanding the evolving landscape of entrepreneurial finance. It underscores the transformative potential of crowdfunding in mitigating gender disparities in access to capital. The materials analysed offer a comprehensive view of how crowdfunding platforms can serve as catalysts for equitable financial opportunities in entrepreneurship.

More information: Pomme Theunissen et al, Gender effects in crowdfunded business loan campaigns, PLoS ONE. DOI: 10.1371/journal.pone.0305601

Journal information: PLoS ONE Provided by PLOS