The Different Between Male and Female Entrepreneur
Are Male and Female Entrepreneurs Really That Different? by Erin Kepler & Scott Shane Shaker Heights, OH 44122 for under contract number SBAHQ-06-M-0480
Release Date: September 2007
The statements, findings, conclusions, and recommendations found in this study are those of the authors and do not necessarily reflect the views of the Office of Advocacy, the United States Small Business Administration, or the United States government.
September 2007
No. 309
Are Male and Female Entrepreneurs Really That Different?
An Office of Advocacy Working Paper by Erin Kepler and Scott Shane, Shaker Heights, OH [61] pages. Under contract number SBAHQ-06-M-0480
Previous research has shown the performance of women-owned firms lagging male-owned firms on factors such as annual sales, employment growth, income, and venture survival. Reasons for the differences are often hypothesized, but empirical tests have historically suffered from data with a limited number of control variables on the motivations and characteristics of the owners. Moreover, many of the previous studies have suffered from survivor bias as they study existing (or surviving) businesses. This study seeks to determine why a performance difference exists for female- and male-owned ventures.
Overall Findings
When other factors are controlled for, gender does not affect new venture performance. However, several factors—differing expectations, reasons for starting a business, motivations, opportunities sought and types of businesses—vary between the genders, and these result in differing outcomes. Such observations should be taken into account when comparing the outcomes of ventures across genders.
Highlights
While gender was shown not to affect new venture performance when preferences, motivation, and expectations were controlled for, the differences observed among men’s and women’s new business ventures include the following: • Men had more business experience prior to opening the
Release Date: September 2007
The statements, findings, conclusions, and recommendations found in this study are those of the authors and do not necessarily reflect the views of the Office of Advocacy, the United States Small Business Administration, or the United States government.
September 2007
No. 309
Are Male and Female Entrepreneurs Really That Different?
An Office of Advocacy Working Paper by Erin Kepler and Scott Shane, Shaker Heights, OH [61] pages. Under contract number SBAHQ-06-M-0480
Previous research has shown the performance of women-owned firms lagging male-owned firms on factors such as annual sales, employment growth, income, and venture survival. Reasons for the differences are often hypothesized, but empirical tests have historically suffered from data with a limited number of control variables on the motivations and characteristics of the owners. Moreover, many of the previous studies have suffered from survivor bias as they study existing (or surviving) businesses. This study seeks to determine why a performance difference exists for female- and male-owned ventures.
Overall Findings
When other factors are controlled for, gender does not affect new venture performance. However, several factors—differing expectations, reasons for starting a business, motivations, opportunities sought and types of businesses—vary between the genders, and these result in differing outcomes. Such observations should be taken into account when comparing the outcomes of ventures across genders.
Highlights
While gender was shown not to affect new venture performance when preferences, motivation, and expectations were controlled for, the differences observed among men’s and women’s new business ventures include the following: • Men had more business experience prior to opening the