GENDER-SPECIFIC FINANCIAL DECISION MAKING: ANALYZING AWARENESS LEVELS AND INVESTMENT ATTITUDES AMONG WOMEN ENTREPRENEURS IN THOOTHUKUDI
DOI:
https://doi.org/10.29121/shodhkosh.v5.i3.2024.5589Keywords:
Gender-Specific Finance, Women Entrepreneurs, Financial Decision-Making, Investment Attitudes, Cluster AnalysisAbstract [English]
This study examines the financial decision-making patterns, awareness levels, and investment attitudes among women entrepreneurs in Thoothukudi district, Tamil Nadu, India. Using a snowball sampling technique with 384 respondents, the research employs advanced statistical methods including cluster analysis and logistic regression to identify distinct entrepreneur profiles and predict financial behaviors. The cluster analysis reveals four distinct groups: Emerging Entrepreneurs (30.7%), Traditional Operators (37.0%), Growth-Oriented Leaders (23.2%), and Struggling Survivors (9.1%). Logistic regression models demonstrate that financial literacy, collateral availability, and family support are primary determinants of credit access, while business experience and education significantly influence investment attitudes. The study reveals critical gaps in financial literacy (average 48% score) and limited formal credit access (42.7%), despite widespread financing needs (73.4%). Key findings indicate that women entrepreneurs with higher financial sophistication achieve superior business outcomes, with Growth-Oriented Leaders showing 56.2% high growth rates compared to 8.6% among Struggling Survivors. The research contributes to understanding gender-specific financial behavior in entrepreneurial contexts and provides evidence-based recommendations for targeted interventions to enhance women's entrepreneurial success.
References
Alesina, A. F., Lotti, F., & Mistrulli, P. E. (2013). Do women pay more for credit? Evidence from Italy. Journal of the European Economic Association, 11(2), 45-66. https://doi.org/10.1111/j.1542-4774.2012.01100.x DOI: https://doi.org/10.1111/j.1542-4774.2012.01100.x
Bain & Company. (2019). Empowering women entrepreneurs in India. Mumbai: Bain & Company India.
Bem, S. L. (1981). Gender schema theory: A cognitive account of sex typing. Psychological Review, 88(4), 354-364. https://doi.org/10.1037/0033-295X.88.4.354 DOI: https://doi.org/10.1037//0033-295X.88.4.354
Brinton, J., Singh, S., & Yadav, A. (2020). Neurological differences in financial risk processing between men and women: An fMRI study. Journal of Behavioral Finance, 21(3), 234-248. https://doi.org/10.1080/15427560.2019.1692346 DOI: https://doi.org/10.1080/15427560.2019.1692346
Brush, C., Greene, P., Balachandra, L., & Davis, A. (2019). The gender gap in venture capital: Progress, problems, and perspectives. Venture Capital, 21(4), 261-280. https://doi.org/10.1080/13691066.2019.1651065
Carter, S., & Shaw, E. (2006). Women's business ownership: Recent research and policy developments. Small Business Service Research Report, DTI/SBS, London.
Charness, G., & Gneezy, U. (2012). Strong evidence for gender differences in risk taking. Journal of Economic Behavior & Organization, 83(1), 50-58. https://doi.org/10.1016/j.jebo.2011.06.007 DOI: https://doi.org/10.1016/j.jebo.2011.06.007
Coleman, S., & Robb, A. (2009). A comparison of new firm financing by gender: Evidence from the Kauffman Firm Survey data. Small Business Economics, 33(4), 397-411. https://doi.org/10.1007/s11187-009-9205-7 DOI: https://doi.org/10.1007/s11187-009-9205-7
Croson, R., & Gneezy, U. (2009). Gender differences in preferences. Journal of Economic Literature, 47(2), 448-474. https://doi.org/10.1257/jel.47.2.448 DOI: https://doi.org/10.1257/jel.47.2.448
Deshpande, A. (2002). Assets versus autonomy? The changing face of the gender-wealth nexus in India. Feminist Economics, 8(2), 19-35. https://doi.org/10.1080/13545700210150265 DOI: https://doi.org/10.1080/13545700210160005
Huang, J., & Kisgen, D. J. (2013). Gender and corporate finance: Are male executives overconfident relative to female executives? Journal of Financial Economics, 108(3), 822-839. https://doi.org/10.1016/j.jfineco.2012.12.005 DOI: https://doi.org/10.1016/j.jfineco.2012.12.005
Kanze, D., Huang, L., Conley, M. A., & Higgins, E. T. (2018). We ask men to win and women not to lose: Closing the gender gap in startup funding. Academy of Management Journal, 61(2), 586-614. https://doi.org/10.5465/amj.2016.1215 DOI: https://doi.org/10.5465/amj.2016.1215
Klapper, L., & Lusardi, A. (2020). Financial literacy and financial resilience: Evidence from around the world. Financial Management, 49(3), 589-614. https://doi.org/10.1111/fima.12283 DOI: https://doi.org/10.1111/fima.12283
KPMG. (2020). Women entrepreneurship in India: Powering the economy with her. KPMG India Private Limited.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44. https://doi.org/10.1257/jel.52.1.5 DOI: https://doi.org/10.1257/jel.52.1.5
Mani, S. (2011). The role of women entrepreneurs in India's economic growth. International Journal of Social Economics, 38(9), 788-800. https://doi.org/10.1108/03068291111157220
Marlow, S., & Patton, D. (2005). All credit to men? Entrepreneurship, finance, and gender. Entrepreneurship Theory and Practice, 29(6), 717-735. https://doi.org/10.1111/j.1540-6520.2005.00105.x DOI: https://doi.org/10.1111/j.1540-6520.2005.00105.x
Niederle, M., & Vesterlund, L. (2007). Do women shy away from competition? Do men compete too much? The Quarterly Journal of Economics, 122(3), 1067-1101. https://doi.org/10.1162/qjec.122.3.1067 DOI: https://doi.org/10.1162/qjec.122.3.1067
Rajendran, K., & Jayashree, S. (2017). Women entrepreneurship in Tamil Nadu coastal districts: Challenges and opportunities. International Journal of Management Studies, 4(2), 45-62.
Sengupta, R. (2013). Women entrepreneurs in Indian MSMEs: Challenges and opportunities. Economic and Political Weekly, 48(19), 55-63.
Welsh, D. H., Memili, E., Kaciak, E., & Ahmed, S. (2014). The influence of family moral support on Arab women entrepreneurs. International Business Review, 23(4), 808-820. https://doi.org/10.1016/j.ibusrev.2013.12.007
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 M. Maria Auxiliya Joescy, Dr. S. Vanitha
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
