When the Odds are Stacked Against You: Female Entrepreneurs in Male-dominated Industries

Abstract

One of the most well-documented gaps in entrepreneurship is the gender gap which manifests itself in various ways—females are less likely to become entrepreneurs, less likely to attract external capital and less likely to scale up their ventures. In spite of the growing empirical evidence suggesting that the current entrepreneurial system might favor men, we know less about the drivers of these gender disparities. In this project, we study female entrepreneurs in male-dominated industries—industries where women might face additional challenges. We find that in the first two years after venture creation, female founders exit at higher rates than their male counterparts. The data patterns do not seem to validate the gender underperformance hypothesis though—while few women enter male-dominated industries, the ones that do perform as well as the men. Further analysis suggests that one of the reasons for higher exit rates among women might be related to the way the entrepreneurial process unfolds for both genders (for example, women seem to encounter more hurdles and benefit less from pre-existing relations with clients and suppliers). This project highlights the importance of delving into the entrepreneurial process when examining gender disparities.