Personal wealth and perceptions of barriers to women’s entrepreneurship in the state of Alabama
Authors: Chinta Ravi , Andall Anthony , Best Shawn 
Published: August 2017

Purpose

For women entrepreneurs, personal wealth is seen as a promoter, but lack of affordable child care is viewed as an inhibitor. Based on data from 1,284 nascent women entrepreneurs in the state of Alabama, the authors aim to investigate the linkage between personal wealth and barriers to start a business for women entrepreneurs in the state of Alabama. The mediating effect of affordable child care is also examined. Results reveal that lack of personal wealth can thwart business start-ups, and lack of affordable child care mediates this adverse relationship. The authors conclude their study with implications for policy makers and future research.

Design/methodology/approach

This is a quantitative survey-based study. This is the largest survey ever done in any state in the USA on the subject of nascent women entrepreneurs. The sample size is 1,284 aspiring women entrepreneurs. (Baron and Kenny 1986) method is used for testing mediating effects. Main effects are tested using regression and ANOVA analyses.

Findings

Results reveal that lack of personal wealth can thwart business start-ups, and lack of affordable child care mediates this adverse relationship. The mediating effect is strong and, thus, becomes a focus for any proposed structural reforms that are suggested in the discussion section of the paper.

Research limitations/implications

No experimental design. Findings pertain to the state of Alabama and hence generalizability is low. Variables are measured as perceptions of respondents.

Practical implications

To mitigate the lack of personal wealth, policy makers should increase resource allocations that will increase external funding for women entrepreneurs through such mechanisms as small business administration grants, minority purchase programs, guaranteed loans, government subsidies, angel investments and venture capital, capturing the amount of capital available to start a business (Jennings et al,, 2013). Even infrastructural support such as incubators and university based entrepreneurial programs would reduce the barriers to start a new business. Affordable child care, via its mediating effect, is another issue that needs to be looked into to promote women entrepreneurship in state of Alabama. Less-expensive community-based child-care programs could provide the necessary fillip to encourage women entrepreneurships to take the initial leap into entrepreneurship. Government funded incubators should include onsite child-care facilities to mitigate the concern about affordable child care.

Social implications

Promoting women entrepreneurship is an integral part of promoting entrepreneurship in the state of Alabama. This study suggests some directions for structural reforms to promote women entrepreneurship in the state of Alabama.

Originality/value

The largest survey on aspiring women entrepreneurs in any state in the USA. In total, 1,284 women completed responses from the survey. This paper provides empirically rooted suggestions for structural reforms to promote women entrepreneurship in the state of Alabama. This paper corroborates a priori hypotheses drawn from extant literature.