Gender, trust and risk-taking: a literature review and proposed research model

Abstract

Purpose – This paper aims to review and discuss recent literature on gender, trust, risk-taking and entrepreneurship. On this basis, a hypothetical model as a basis for theoretical and hypothetical development in future research is proposed. Design/methodology/approach – This paper presents a review of the literature on gender, trust, risk-taking and entrepreneurship. A hypothetical model that can form the basis of future research in the field of entrepreneurship is developed. Findings – In recent years, the issue of gender and its effect on entrepreneurship has been the subject of much debate and controversies. While some studies have shown that gender differences tend to affect intentions to become an entrepreneur, other studies deny any significant differences in this regard. Among these, a significant number of studies reveal that women are less likely to engage in entrepreneurial activities than their male counterparts. One of the major reasons provided for these gender disparities is the tendency of women to be less predisposed to taking risk than their male counterparts. This may in itself be the resultant of gender differences in their predisposition to trust. Research limitations/implications – The arguments and proposed model are in need of empirical testing and verifications. Future research may consider and test the validity of the model. Use of structural equation modeling in this regard may prove beneficial. Practical implications – The proposed model may also be considered by governments and stakeholders vested with tasks of promoting the participation of females in entrepreneurial activities in various contexts. This would entail that the factors of risk-taking/aversion and propensity to trust be considered and alleviated. Originality/value – In examining the underlying reasons for gender differences in entrepreneurial activities, the research to date has not incorporated the interplay of risk propensity and the propensity to trust. The proposed model incorporates these to help unravel the “enigma” of gender differences in entrepreneurship.