This study shows ample new evidence of a significant gap in access to credit between women and men entrepreneurs in Argentina. According to surveys, only 20.5% of businesses led by women access to bank loans to finance their investment, compared to 42.9% for men, with the gap being even wider in the case of small and medium-sized enterprises. Similarly, it is estimated that in Argentina 17% of male-led firms are financially constrained, compared to 60% of female-led firms. The results of qualitative and quantitative analyses suggest that the observed differences are mainly due to gender differences in behaviour and the way the credit market works. It is through the second channel that discrimination may arise: if women have less transactional relationships with banks and demand more non-financial services such as training and access to networks than men, the failure of banks to provide such services ends up affecting women and their businesses more.
Study on gender and access to entrepreneurial finance in Argentina
Published: May 2020 Editor/s: BID Author/s: Auguste Sebastián, Galetto, Bruno File: Download PDF now