Gender differences in evaluation of new business opportunity: A stereotype threat perspective

Abstract

This study draws on stereotype threat theory to explore differences between men and women on evaluation of new business opportunities. Two controlled experiments, one with business students in Turkey and another with working professionals in the United States, were conducted. Participants were randomly assigned to specific experimental conditions and their assessment of a new business opportunity was measured after presentation of stereotypical information. As predicted, men reported higher opportunity evaluation than women when no gender stereotypical information was presented, whereas men and women evaluated the business opportunity equally favorably when entrepreneurs were described using gender-neutral attributes. Interestingly, gender differences in opportunity evaluation were exacerbated when entrepreneurship was linked to masculine stereotypical information, and reversed in favor of women when entrepreneurship was linked to feminine stereotypical information. Practical implications and directions for future research are discussed.