COVID-19 Outbreak and Credit Constraints for Women-Led Firms

Studying whether gender matters in bank–firm relationships is very relevant if we consider that the availability of external finance, especially debt provided by financial intermediaries, is crucial for the growth and development of firms. A strand of the literature shows the existence of gender-based discrimination in access to finance, thus limiting investment opportunities and initiatives for women-led firms. Although some studies (Fabowale et al., 1995) argue that the lower likelihood of accessing credit is due to structural characteristics of these firms that lower their creditworthiness (age, sector of activity, and so on), there is growing research showing discrimination in access to external financing due to culturally rooted prejudices and values about gender differences (Cavalluzzo et al., 2002). In this context, we intend to investigate whether gender-based discrimination exists and whether the phenomenon has changed since the COVID-19 outbreak.