The Role of Entrepreneurial Stereotypes for Commercial and Social Startup Intentions

Abstract

Research has found that stereotypes affect occupational choices, but there has been almost no research on how they specifically affect the choice of becoming an entrepreneur. This study bridges different fields of research by combining theories on entrepreneurial intent, self-esteem, and stereotypes. The author argues that in situations of insufficient information individuals assess prospective careers in commercial and social entrepreneurship by means of stereotypes, and the author is the first to explore the influence of commercial and social entrepreneurial stereotypes on an individual’s intention to start a commercial (for-profit) or social (not for-profit) venture. The author uses the framework outlined by the stereotype content model to disclose the existence of distinct stereotypes for commercial and social entrepreneurs exist and, thereafter, the author analyzes the influences of both entrepreneurial stereotypes on the specific startup intentions. The author test the hypotheses with unique survey data from a sample of German non-entrepreneurs which reveals that commercial entrepreneurs are seen as competent but cold, whereas social entrepreneurs are regarded as warm but incompetent. Using structural equation modeling and multi-group analysis, the data implies that higher levels of perceived warmth and competence of commercial entrepreneurs have a positive indirect effect on commercial startup intentions. No such effect was found for social startup intentions; however, the results indicate that a higher societal status of social entrepreneurs exerts a positive indirect impact on the intention to start a social business. The author discusses the practical implications of our approach and point out avenues for future research.