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Closing the Finance Gap by Nudging: Impact Assessment of Public Grants for Women Entrepreneurs

Stjepan Srhoj orcid.org/0000-0002-7105-8088 ; Department of Economics and Business Economics, University of Dubrovnik
Bruno Škrinjarić orcid.org/0000-0002-5969-1948 ; The Institute of Economics, Zagreb
Sonja Radas ; The Institute of Economics, Zagreb
Janette Walde orcid.org/0000-0002-1241-5292 ; Department of Statistics, Faculty of Economics and Statistics, University of Innsbruck

Abstract

Several recent papers draw attention to a lack of rigorous research on public policies supporting women entrepreneurs’ competitiveness. This paper evaluates the effect of small business development gender specific matching grants using a quasi-experimental approach. The grants have a positive effect on firm survival, as well as positive effects on obtaining bank loans, turnover, value added, employment, and total factor productivity. Heterogeneous treatment effects show that the grants increase the chance of young women entrepreneurs’ firm survival and are even more effective for firms owned by mature women. Cost-benefit analysis estimates an increase in value added, which outweighs scheme-induced costs by 80% in the short-run and 170% in the long run.

Keywords

women entrepreneurship; public grants; policy evaluation; gender financing gap; behavioral additionality; nudging

Hrčak ID:

221665

URI

https://hrcak.srce.hr/221665

Publication date:

28.6.2019.

Article data in other languages: croatian

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