Are Women More Likely Venture Funders? Theory and Evidence from Migrants Remitting to Developing Countries

Abstract

There is substantial research on how women differ from men as new business (venture) founders, but little on how women may differ from men as venture funders. We respond with theory and evidence from an unconventional context: migrant remittances to developing countries. Analyses of remittances to 48 developing countries from 2001-2010 indicate that: 1) remittances increase home-country venture funding availability more when they come from diasporas with higher percentages of women; and 2) such gender-related effects are magnified for remittances to poorer developing countries where there is less gender inequality in employment opportunity and greater need for remittance-based venture investing.