0000000000353404
AUTHOR
Vanessa Naegels
showing 3 related works from this author
Perceived problems with collateral: The value of informal networking
2020
Abstract Many businesses in emerging economies are financially constrained due to their limited use of formal loans. Recent evidence suggests that negative perceptions discourage entrepreneurs from applying for loans. One of the main issues entrepreneurs mention is unattainable collateral requirements. In this paper, we contribute to this line of research by investigating the effect of networking with fellow entrepreneurs on perceived collateral problems. Drawing on quantitative and qualitative data originating from female entrepreneurs in Tanzania, we find that through networking, entrepreneurs are exposed to stories of their peers’ experiences with loans which influence their perceptions …
An institutional view on access to finance by Tanzanian women-owned enterprises
2017
We investigate the limited use of bank and microfinance loans by Tanzanian female entrepreneurs. Using survey data, we observe that female entrepreneurs mainly use informal sources to finance their businesses. We analyze how “perceptions” of gendered cognitive and normative institutions determine whether a female entrepreneur applies for a formal loan. Following results stand out: first, we find that high collateral requirements, interest rates and personal guarantee requirements make formal loans unattractive. Second, female entrepreneurs only apply when they expect to be successful. Since they “perceive” access to finance to be more problematic for women,female entrepreneurs are discourag…
The process of female borrower discouragement
2022
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 …