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

nachricht Sustainable Development Goals lead to lower population growth
30.11.2016 | International Institute for Applied Systems Analysis (IIASA)

All articles from Social Sciences >>>

The most recent press releases about innovation >>>

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

Im Focus: Electron highway inside crystal

Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.

Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Researchers identify potentially druggable mutant p53 proteins that promote cancer growth

09.12.2016 | Life Sciences

Scientists produce a new roadmap for guiding development & conservation in the Amazon

09.12.2016 | Ecology, The Environment and Conservation

Satellites, airport visibility readings shed light on troops' exposure to air pollution

09.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>