The Gender Bias within Investors; an opportunity cost of $4 trillion

Abstract

Estimates suggest that $28 trillion could be added to the global GDP/year by 2025 if women play a significant role in businesses. This study focuses on the reasons hindering this phenomenon, while investigating the gender bias within investors, it’s potential impacts, and possible solutions and reforms. The study found that women are disadvantaged due to psychological and cognitive aspects of an individual's behavior. Including different biases, and differences in questioning processes relative to gender which stems from cognitive aspects such as gender stereotypes. The study has concluded that breaking the gender bias requires 3 steps. The first of which requires every investor to be educated about invalid stereotypes influencing their decisions while also being encouraged to break them down. Secondly, there is a requirement for an increase in female investors to mentor and provide women with the necessary tools. Lastly, the pitch process is in urgent need of reformation, whether it is to allocate funds that are categorized according to gender or to remove the pitch in its entirety.