DISCRIMINATION AGAINST WOMEN IN FORMAL CREDIT MARKETS - REALITY OR RHETORIC

Microenterprises receive several forms of aid but many still report limited access to formal finance. It is often argued that women entrepreneurs face discrimination in formal credit markets. In this study of Ecuadorian microenterprises, the results of a multinomial logit model show that although a smaller number of women than men entrepreneurs applied for loans, a larger percentage of women than men typically apply for loans. The equally small probabilities of both male and female entrepreneurs being quantity rationed for loans implies that this form of credit rationing is not widely practiced in special microenterprise programs in Ecuador.