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1822 JOURNAL OF COMPUTERS, VOL. 6, NO. 9, SEPTEMBER 2011 TABLE 4-3 FACTORS MATRIX AFTER ROTATION Component 1 2 3 4 5 F10 Post in Private Entrepreneur Association .841 F11 Level in Private Entrepreneur Association .815 F3 No. of social networks .638 F8 Industry and Commerce Level .511 F9 Industry and Commerce Post .444 F6 CPPCC Post .897 F7 CPPCC Level .873 F4 NPC Post .887 F5 NPC Level .882 F2 Work experience -.763 F1 Education .761 F12 Cost for social activities .681 F13 Time spends on social activities .530 To further study the factors those impact women entrepreneurs’ financing strategy, we tried to establish a Logistic Regression Model. The results are as follows, shown in table 4-4, 4-5, and 4-6: Table 4-4 Hosmer and Lemeshow Test Step Chi-square df Sig. 1 3.798 5 .579 2 2.955 6 .814 3 1.076 6 .983 4 6.893 7 .440 According to above tables, we can conclude our equation: P=1/(1+e-z) And z=-3.383 +0.504*Work experience+0.057*Cost for social activities+0. 774*Industry and Commerce+0. .375*Level in Private Entrepreneur Association+21.669*NPC Post. We may notice that the coefficients of work experience, cost for social activities, whether to join the Industry and Commerce, Level in Private Entrepreneur Association and the NPC Post, which are as measures of human capital and social capital, are positively correlated with external financing. Thus, this result confirmed hypothesis H2 and H3, that is the more human capital and social capital women entrepreneurs have, the more they tend to use external financing. We can explain these results from the previous literature and the social status. (a) human capital: The work experience, as an indicator of human capital, may promote using external financing. From the demand side, it may enhance the relevant skills and accumulate of the managerial experience. From the investors’ points of view, whether having relative work experience is considered an © 2011 ACADEMY PUBLISHER important measure, when applying bank’s loan and attracting venture investment, which has also been confirmed in previous research. However, another measure of human capital, education background, was not evolved in our final model equation. Therefore, the higher education of women entrepreneurs does not means they would tend to use external financing. But this result is in accordance with Hu Huaimin's finding, that is the number of women entrepreneurs and their education level distributed in inverted “U ", that is to say, both less educated and higher educated women are not that interested in starting their own business. (b) the intensity of network: Cost for social activities, as an indicator of the intensity of network, may reflect the maintenance of social networks by women entrepreneurs to some extent. Scholars have found that there are triangular interactions among emotions, resources and interactive reciprocal relationship, which is the more the interaction between individuals; the more likely they are to participate in group activities to share feelings, the more likely to exchange resources. Therefore, spending more on social activities and participating in more interactive activities, women entrepreneurs may obtain external financing resources easier. (c) networks between enterprises and industries: Although Chinese people values family relationship deeply, family network still cannot meet the needs of enterprises’ development. Therefore, joining in the Industry and Commerce, Association of Private Entrepreneurs may expand women entrepreneurs’ social circle and benefit their career. On one hand, among these networks between enterprises and industries, network members are engaged in similar activities, and exchange information of different market, related technical advice and financing with women entrepreneurs. On the other hand, female entrepreneurs have more opportunity to the key figures mastering scarce financial resources by these networks. (d) Administrative impact:The coefficient of NPC Post, a measure of administrative impact, is much greater than the other three, which explains this factor has larger impact of using external financing. In China, the people's congress is China's highest authority. Deputies generally have high social reputation in social life, and also have some administrative influence in the administrative system. Therefore, when women entrepreneurs take some deputies duties, such as director or deputy director of the Standing Committee, it will increase their personal reputation to a large extent. Because of financial market imperfections and lack of policy stability, informal constraints in the economy during the transition period has played an important role in society, and network and people's trust has become extremely important. Thus, taking some duties in NPC is beneficial to attract external financing. Besides, based on previous studies, women, lacking of access to critical resources to grasp chances, are often disadvantaged in the network status. In China, about 75% of the deputies to the NPC are officials. Therefore, by serving as a certain NPC Post, women entrepreneurs will have an access to the
JOURNAL OF COMPUTERS, VOL. 6, NO. 9, SEPTEMBER 2011 1823 some scarce financial resources and optimize their network infrastructure. According to above analysis, we establish our model as follows. Figure.2 Women entrepreneur’s financing strategy V. CONCLUSION The main finding of this paper including: (a) From the result of ANOVA, we may notice that during the development of enterprise, men and women Table 4-5 Variable in equation entrepreneurs have a significant difference in using internal or external financing. (b) Female entrepreneurs who have more human capital are more likely to use external financing. Work experience of women entrepreneurs has positive correlation to external financing, while education background is not significant in China. (c) Social capital on entrepreneurial financing strategies was significant. From the logistic regression equation, we find that Cost for social activities, Industry and Commerce, Association of Private Entrepreneurs and NPC Post are the key factors of promoting using external capital for Chinese women entrepreneurs. ACKNOWLEDGMENT This research is supported by NSFC (Project 70603021) and Royal Society of Edinburgh and National Natural Science Foundation of China for financial support (Project 70911130020). B S.E. Wald df Sig. Exp(B) Step 1 a Cost for social activities .062 .023 7.664 1 .006 1.064 Constant -.707 .152 21.555 1 .000 .493 Step 2 b Cost for social activities .062 .023 7.052 1 .008 1.064 Level in Private Entrepreneur Association .428 .159 7.216 1 .007 1.534 Constant -.844 .164 26.611 1 .000 .430 Step 3 c Cost for social activities .061 .023 6.966 1 .008 1.062 NPC Post 21.636 19923.521 .000 1 .999 2.491E9 Level in Private Entrepreneur Association .422 .160 6.948 1 .008 1.525 Constant -.881 .165 28.519 1 .000 .415 Step 4 d Work experience .495 .242 4.185 1 .041 1.641 Cost for social activities .060 .023 6.758 1 .009 1.061 NPC Post 21.502 19939.319 .000 1 .999 2.178E9 Level in Private Entrepreneur Association .409 .162 6.423 1 .011 1.506 Constant -2.719 .928 8.591 1 .003 .066 Step 5 e Work experience .504 .245 4.241 1 .039 1.655 Cost for social activities .057 .022 6.625 1 .010 1.059 Industry and Commerce .774 .401 3.730 1 .053 2.169 NPC Post 21.669 19544.921 .000 1 .999 2.575E9 Level in Private Entrepreneur Association .375 .164 5.259 1 .022 1.455 Constant -3.383 1.004 11.359 1 .001 .034 a. Variable(s) entered on step 1: Cost for social activities. b. Variable(s) entered on step 2: Level in Private Entrepreneur Association.c. Variable(s) entered on step 3: NPC Post. d. Variable(s) entered on step 4: Work experience. e. Variable(s) entered on step 5: Industry and Commerce. © 2011 ACADEMY PUBLISHER
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