Discrimination against women in formal credit markets : reality or rhetoric?

It is often argued that women entrepreneurs are frequently discriminated against in formal credit markets, but these arguments are often based on rhetoric and advocacy rather than rigorous analysis. This study"s analysis of microenterprise finance in Ecuador showed that: (1) although the total number of women entrepreneurs who applied for loans was smaller that the total number of the men entrepreneurs who applied, the proportion of women entrepreneurs who applied was higher than the proportion of men entrepreneurs who applied; (2) the likelihood of facing loan- quantity rationing was about equal for women and men entrepreneurs; and (3) women were, however, more likely to face loan-size rationing. The small probabilities of both male and female entrepreneurs being quantity rationed implies that this form of credit rationing is not widely exercised in special microenterprise programs in Ecuador. (Author abstract, modified)