Gender Disparities in Entrepreneurial Funding: A Comparative Study Exploring the Lived Experiences of Female and Male Entrepreneurs in Their Journey of Securing External Early-stage Funding

Abstract

Background: Gender disparities persist in the entrepreneurial landscape despite notable progress and a narrowing gender gap. Women still face challenges in securing early-stage funding, with research indicating the presence of gender bias among investors. This study aims to conduct an in- depth exploration into how gender bias influences funding experiences and outcomes for entrepreneurs. Purpose: This research explores the experiences of female entrepreneurs in securing funding from venture capitalists (VCs) and angel investors compared to their male counterparts. It seeks to understand the influence of gender bias on these experiences. Method: Adopting an interpretivist approach with inductive reasoning, this study employs a qualitative methodology. Two case study groups, consisting of female and male entrepreneurs, are investigated using grounded theory. Data collection involves semi-structured interviews, employing purposive and theoretical sampling to achieve saturation. Findings: Two research questions guide the analysis, resulting in separate examinations of key themes for female and male entrepreneurs, followed by a comparative analysis. While common experiences are shared between the two groups, differences emerge, with female entrepreneurs facing more significant challenges in securing funding. Conclusion: While both case groups shared common funding experiences, gender disparities were evident among the entrepreneurs. The findings suggest a tendency for gender bias among investors, especially directed towards female entrepreneurs, consistent with prior research. Additionally, a broader bias favoring entrepreneurs conforming to the "ideal" stereotype was observed. Interestingly, some investors expressed a positive attitude towards female entrepreneurs, reflecting the evolving demand for gender diversity in entrepreneurship. These complexities underscore the need for continued efforts to address bias and promote inclusivity in funding experiences.