How gender stereotypes shape venture growth expectations

Abstract

Drawing on gender role theories and related evidence of the influence of stereotypes on individual judgments and behaviors, this study examines how masculine stereotyping of entrepreneurs might affect business owners’ expectations of their firms’ growth. In particular, it explores several moderating effects: individual-level factors, such as the gender traits that business owners ascribe to other entrepreneurs and their own gender identity, as a psychological construct, as well as the industrial context in which the businesses operate. An empirical analysis of business owners in 10 countries reveals that women entrepreneurs who identify with feminine traits and ascribe strongly masculine characteristics to entrepreneurship expect their businesses to grow at a lower rate. The influence of stereotypes is relevant only in industries in which the representation of women entrepreneurs is low though, presumably because gender salience, as amplified by women’s minority status condition in the industry, triggers stereotype threats.