The process of female borrower discouragement
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Date
2021-06
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
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.
Description
Keywords
Entrepreneurial Finance, Borrower Discouragement, Female Entrepreneurship, Grounded theory
Citation
Naegels, V., Mori, N., & D'Espallier, B. (2021). The process of female borrower discouragement. Emerging Markets Review, 100837. doi:https://doi.org/10.1016/j.ememar.2021.100837