Whether a woman can get a business loan depends a lot on how 'strict' the social rules are in her country.
March 26, 2026
Original Paper
Tight Culture, Loose Money? The Impact of Cultural Tightness on Women’s Access to Credit
SSRN · 6467479
The Takeaway
In countries that strictly punish deviation from social order, women are significantly more likely to be discouraged from even applying for credit, regardless of the country's actual laws or wealth. This suggests that financial exclusion is often driven by invisible social pressure rather than formal institutional barriers.
From the abstract
This study examines how cultural tightness–looseness influences women-led firms’ access to credit across countries. Using data from the World Bank Enterprise Surveys covering firms in 30 countries, we analyze both credit discouragement and credit obtaining. We find that women-led firms in culturally tighter countries are significantly more likely to be discouraged from applying for credit and less likely to obtain credit than those in culturally looser countries. Furthermore, we show that the ef