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 Fixating on faces
26.01.2017 | California Institute of Technology

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

All articles from Social Sciences >>>

The most recent press releases about innovation >>>

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

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Switched-on DNA

20.02.2017 | Materials Sciences

Second cause of hidden hearing loss identified

20.02.2017 | Health and Medicine

Prospect for more effective treatment of nerve pain

20.02.2017 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>