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Unlocking the Secrets: How Female Entrepreneurs Can Leverage Social Capital for Success

Unlocking the Secrets: How Female Entrepreneurs Can Leverage Social Capital for Success

The landscape of entrepreneurship is rapidly evolving, with female entrepreneurs emerging as a formidable force in the business world. Despite their growing presence, many women face unique challenges, particularly when it comes to securing external financing. A recent study titled "Female Entrepreneurs’ Gender Roles, Social Capital and Willingness to Choose External Financing" sheds light on this issue, offering valuable insights for practitioners looking to improve their skills and expand their businesses.

The Interplay Between Gender Roles and Social Capital

The study explores how gender roles influence female entrepreneurs' access to social capital and their willingness to pursue external financing. It identifies four gender role types: masculinity, femininity, androgyny, and undifferentiated. Each type has distinct impacts on social capital attainment and financing choices.

The Power of Social Capital

The research highlights the crucial role of social capital as an intermediary between gender roles and external financing. Social capital encompasses relationships, resources, and assets within social networks. It can significantly reduce information asymmetry, provide credit guarantees, and enhance cultural identity among entrepreneurs and investors.

For female entrepreneurs, building robust social networks can facilitate access to financial resources. Those with strong androgynous or masculine traits tend to have broader social capital, which is essential for securing external funding.

Practical Strategies for Female Entrepreneurs

To leverage these insights effectively, female entrepreneurs can adopt the following strategies:

The Role of Policy and Society

The study also emphasizes the need for supportive policies and societal changes. Governments should provide institutional support to encourage female entrepreneurship. Additionally, fostering a culture of gender equality in financial environments is crucial for ensuring fair access to resources.

By understanding the dynamics of gender roles and social capital, female entrepreneurs can strategically position themselves for success. Embracing these insights not only empowers individual businesswomen but also contributes to broader economic growth.

Female entrepreneurs’ gender roles, social capital and willingness to choose external financing


Citation: Cai, L., Wang, X., Zhu, X., & Deng, S. (2020). Female entrepreneurs’ gender roles, social capital and willingness to choose external financing. Asian Business & Management. https://doi.org/10.1057/s41291-020-00131-1
Marnee Brick, President, TinyEYE Therapy Services

Author's Note: Marnee Brick, TinyEYE President, and her team collaborate to create our blogs. They share their insights and expertise in the field of Speech-Language Pathology, Online Therapy Services and Academic Research.

Connect with Marnee on LinkedIn to stay updated on the latest in Speech-Language Pathology and Online Therapy Services.

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