Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Change needed to ensure women secure business loans

16.08.2006
Access to and the use of finance in the UK are seen as major barriers preventing more women from developing successful businesses. However, research funded by the Economic and Social Research Council, found no evidence that banks deliberately discriminate against women business owners, but it is calling for changes in the training of bank loan officers, small business advisers and women entrepreneurs.

The research was conducted at the University of Glasgow and the University of Stirling. It aimed to determine the impact of gender on the lending decisions of a UK bank and to study the experience and perception of bank lending of existing business owners of both sexes.

Research was set against a background of public policy initiatives undertaken in the UK in recent years intended to increase female self-employment. Despite these, only 15 per cent of businesses are women-owned and the 26 per cent share of self-employed women has not changed in 15 years. This modest record contrasts sharply with other countries, particularly the USA where female self-employment has risen each year since 1976 and currently stands at a share of 39.6 per cent.

"We thought a fresh study of how gender impacts on the lending decisions of a UK bank was long overdue, particularly in the light of widespread automated credit scoring and over half of all bank employees now being women," said Professor Fiona Wilson, one of the three researchers who carried out the study. "It's particularly timely, as other recent research has found that female owned businesses pay a 1.1 per cent point premium relative to male owned businesses."

As a result of the findings, the research team recommend changes are made in training to ensure:

. Bank loan officers and small business advisers advise women business owners to have sufficient capital to start and sustain their businesses.

. The networks used by men and women bank loan officers are similar, as women officers were found to have less effective personal contacts for introducing new business loan applications than their male equivalents.

. All loan officers use the same processes when negotiating credit approval within the bank as women loan officers were found to have less strong internal communications with credit controllers than their male equivalents.

Many banks in the UK regard women-owned businesses as an important market. However, the research suggested that lending decisions by individual bank loan officers can reflect biased gender perceptions and opinions. It also found that bias is just as likely among male and female officers.

Commenting on work carried out with matched pairs of male and female business owners, Professor Wilson said, "Gender really does permeate and affect women's experience of business ownership. Our observations suggest that because of differences in age and industry experience, women can be viewed as possessing significantly less human and social capital prior to setting up their businesses than men."

Annika Howard | alfa
Further information:
http://www.esrc.ac.uk

More articles from Social Sciences:

nachricht Internet use in class tied to lower test scores
16.12.2016 | Michigan State University

nachricht Geographers provide new insight into commuter megaregions of the US
01.12.2016 | Dartmouth College

All articles from Social Sciences >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

Im Focus: How to inflate a hardened concrete shell with a weight of 80 t

At TU Wien, an alternative for resource intensive formwork for the construction of concrete domes was developed. It is now used in a test dome for the Austrian Federal Railways Infrastructure (ÖBB Infrastruktur).

Concrete shells are efficient structures, but not very resource efficient. The formwork for the construction of concrete domes alone requires a high amount of...

Im Focus: Bacterial Pac Man molecule snaps at sugar

Many pathogens use certain sugar compounds from their host to help conceal themselves against the immune system. Scientists at the University of Bonn have now, in cooperation with researchers at the University of York in the United Kingdom, analyzed the dynamics of a bacterial molecule that is involved in this process. They demonstrate that the protein grabs onto the sugar molecule with a Pac Man-like chewing motion and holds it until it can be used. Their results could help design therapeutics that could make the protein poorer at grabbing and holding and hence compromise the pathogen in the host. The study has now been published in “Biophysical Journal”.

The cells of the mouth, nose and intestinal mucosa produce large quantities of a chemical called sialic acid. Many bacteria possess a special transport system...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

Nothing will happen without batteries making it happen!

05.01.2017 | Event News

 
Latest News

Water - as the underlying driver of the Earth’s carbon cycle

17.01.2017 | Earth Sciences

Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

17.01.2017 | Materials Sciences

Smart homes will “LISTEN” to your voice

17.01.2017 | Architecture and Construction

VideoLinks
B2B-VideoLinks
More VideoLinks >>>