The process of female borrower discouragement

Vanessa Naegels, Neema Mori and Bert D'Espallier

Emerging Markets Review, 2022, vol. 50, issue C

Abstract: Recent entrepreneurial finance literature identifies ‘borrower discouragement’ as an important phenomenon explaining why female entrepreneurs hold less capital to grow their venture. But how do you become a discouraged borrower? We apply grounded theory to interviews with Tanzanian female entrepreneurs and model the process via which these entrepreneurs become discouraged. Our model suggests that entrepreneurs hold negative perceptions regarding loan application, allocation and payback procedures shaped by both internal and external information sources. We demonstrate that negative perceptions cause an unfavorable attitude towards formal loans which together with entrepreneurs' perceptions of societal norms lead to a low intention to apply.

Keywords: Entrepreneurial finance; Borrower discouragement; Female entrepreneurship; Grounded theory (search for similar items in EconPapers)
JEL-codes: G21 G41 O16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:50:y:2022:i:c:s1566014121000455

DOI: 10.1016/j.ememar.2021.100837

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