Navigating the crowdfunding landscape for women entrepreneurs in India: Opportunities and barriers

Abstract

The proliferation of advanced technologies has ushered in diverse and accessible fundraising avenues for entrepreneurs, profoundly influencing the burgeoning startup landscape in India. Among these innovative fundraising mechanisms, crowdfunding has emerged as a prominent platform with the potential to alleviate funding challenges and catalyze the Indian startup revolution. This research endeavors to discern disparities between male and female entrepreneurs concerning their fundraising attitudes, crowdfinancing method preferences, and perceptions of crowdfinancing's viability as a funding mechanism. Our study encompasses a sample of Indian entrepreneurs with basic knowledge of various crowdfunding options, comprising a dataset of approximately 300 respondents. Of this sample, 224 are Indian entrepreneurs, with 116 being female entrepreneurs. Hypothesis testing, employing Chi-square and Discriminant Analysis, was conducted to assess gender-based distinctions. Our findings reveal that female entrepreneurs exhibit a stronger inclination toward specific funding methods compared to their male counterparts. Additionally, our study elucidates the aspects of crowdfinancing that women entrepreneurs view favorably, suggesting a greater affinity for crowdfinancing among female entrepreneurs. This research sheds light on gender-related nuances in fundraising attitudes and preferences, offering valuable insights into the dynamics of entrepreneurship and funding strategies in the Indian context.