Exploring intersectionality issues in entrepreneurial finance: Policy responses and future research directions

Abstract

Entrepreneurial finance scholars (and policy makers) need to adopt an intersectional approach to their analysis (and policymaking) and pay more attention to the interplay between the ownermanager characteristics of ethnicity/race, gender, and social class. As most literature on entrepreneurial finance treats ethnicity/race, gender, and class separately, an intersectional approach to analysis is complex, whether social (race, gender, and social class) or situational characteristics (entrepreneur vs. migrant/social or health-care worker). Women, ethnic minorities, and workingclass people are disadvantaged when seeking finance. We integrate the literature and propose intersectionality as a framework for policy makers, because the interplay between these characteristics can be addressed to develop innovative methods of finance. JEL Classification Code: G2, L26, J15, J16.

Not all Entrepreneurship Is Created Equal: Theorising Entrepreneurial Disadvantage through Social Positionality

“…Thus, power differentials within and amongst these groups should not be ignored. While accessing adequate start‐up capital is a known issue for many new ventures, it is more difficult for women, ethnic minorities and working class people (Marlow and Patton, 2005; Scott and Hussain, 2019). Women tend to be economically disadvantaged by the nature of their labour force participation and disproportionate caring responsibilities (Hoffnung, 2004; Rouse and Kitching, 2006; Forson, 2009), employment trends which are reproduced in smaller scale, feminised self‐employment (Carter et al ., 2015).…”

“…The positionality of individuals and groups in these categories, amongst others, clearly shapes life chances and conditions, perpetuating stratification. Yet this is underacknowledged in the entrepreneurship literature; while intersectionality is an emerging area of interest (Forson, 2013; Valdez, 2016; Scott and Hussain, 2019), there is to date a greater focus on its relevance to issues of identity construction (Essers et al ., 2010) rather than concrete resource access, an area for which the concept of positionality holds much explanatory power.…”

Blockchain and other innovations in entrepreneurial finance: Implications for future policy

“…Scott and Hussain () investigate the neglected area of intersectionality in owner‐manager characteristics associated with access to entrepreneurial finance. Focusing on female gender, minority ethnicity, and less advantaged socio‐economic groups (e.g., working class), their literature review finds that while all of these characteristics impact upon social and network capital and contribute to barriers to finance, particularly for earlier stage and smaller ventures, few have considered the exacerbating nature of combinations of these factors.…”

Minority groups in entrepreneurship

“…Until now they have received little attention from the academic research, see e.g. some studies about this minorities groups related with entrepreneurship: women's (Lawton Smith & Owalla, 2021; Khan, 2020; Lock & Lawton Smith, 2016; Malmström et al, 2017; Santos et al, 2021; Swail & Marlow, 2018), third age/retired people (Kautonen et al, 2011), migrants/immigrants (Aliaga‐Isla & Rialp, 2013; Scott & Hussain, 2019; Smallbone et al, 2017; Dabić et al, 2020; Dal Bello et al, 2021;Malerba & Ferreira, 2021), disabled people (Mota et al, 2020; Renko et al, 2016), ethnic minorities (Haq et al, 2021; Verduijn & Essers, 2013), indigenous populations (Colbourne & Anderson, 2017; Macpherson et al, 2021; Padilla‐Meléndez et al, 2022), gay, lesbian, and transgender (Cavalcanti & Ferreira, 2021; Galloway, 2011; Kidney, 2021; Maslow et al, 2018).…”