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FEMALE ENTREPRENEURS OF SMEs AND FINANCIAL CREDIT CONSTRAINTS: THE CASE OF MIDDLE INCOME ASEAN COUNTRIES

FEMALE ENTREPRENEURS OF SMEs AND FINANCIAL CREDIT CONSTRAINTS: THE CASE OF MIDDLE INCOME ASEAN COUNTRIES
FOURI RAHMAWATI
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This research investigates whether female-owned and female-led SMEs in 8 middle-income ASEAN countries encounter constraints when applying for financial credit, compared to their male counterparts. Probit estimation is used on cross-sectional data from World Bank Enterprise Surveys 2015. The results find that SMEs’ probability of being credit constrained is significantly determined by firm’s size, age, ownership and legal status, and relation with government. In average, SMEs in Vietnam, Malaysia and Philippines are less likely to be credit constrained compared to SMEs in Indonesia. This condition is also applied to SMEs in Cambodia when variable of female-led SMEs is employed on the model; their probability of being credit constrained is lower relative to SMEs in Indonesia. However, there is not enough evidence of gender effect on credit constraints and the results support the argument that the formulation of female entrepreneur variables should be revisited.