Women entrepreneurs’ progress in the venturing process: the impact of risk aversion and culture

Abstract

We explore the gendered impact of risk aversion and country-level culture on nascent student entrepreneurs’ progress in the venturing process. Combining country-level cultural normative variables from the 2004 Global Leadership and Organizational Behavior Effectiveness (GLOBE) survey with data from the 2013/2014 Global University Entrepreneurial Student Spirit Study (GUESSS), our sample consists of 1552 nascent student entrepreneurs from 11 countries. We start with the assumption that perceptions of risk-taking behaviors are not gendered. We then split our sample, finding that, for women, perceptions of risk-taking behaviors are associated with less progress in the venturing process; however, starting a new venture in a socially supportive culture moderates that relationship. For men, neither risk-taking behavior nor country cultural variables are related to their progress in the venturing process. Our study highlights both the importance of country-level contextual variables in entrepreneurship and the need to employ a gendered perspective when studying nascent entrepreneurship.

The Risk of Undertaking Business Activity from the Perspective of Women in the Context of Covid-19 Pandemic

“…Research shows that the higher the risk, the smaller the number of actions taken by women starting a career as an entrepreneur (Gimenez-Jimenez et al, 2020). A similar relationship does not exist in male young entrepreneurs (nascent entrepreneurs).…”

“…Moreover, studies of the literature on the subject indicate that the attitude towards risk is influenced by the cultural norms of the country in which the entrepreneur operates. In addition, these impacts may apply differently to representatives of different sexes (Gimenez-Jimenez et al, 2020). Cultural norms define what is valuable and desirable in society and what is not, influencing the way citizens perceive reality (Javidan and House, 2001).…”

Mind the gender gap: the impact of university education on the entrepreneurial entry of female and male STEM graduates

“…The first group includes a series of individual characteristics more frequently associated with the female gender. For instance, women are typically more risk adverse than men, and risk aversion limits their propensity towards entrepreneurial entry (e.g., Gimenez-Jimenez et al, 2020;Jianakoplos & Bernasek, 1998). Similarly, differences in genetic aspects, personality traits (e.g., extraversion), selfperception (e.g., self-confidence), education, and personal relationships might reduce women's tendency to become entrepreneurs compared to men's (e.g., Brush, 1992;Verheul et al, 2005;Zhang et al, 2009).…”

Level of Education and Entreprenuerial Risk Attitudes of Market Women in Lagos, Nigeria

“…The huge roles, tasks, responsibilities, and duties being assumed by women in modern family, communities, and at national level cannot be underestimated. Studies have shown that women with education, skills, and drives around the globe have energetic capacities as major contributors to both national and world economy (Alsos & Ljunggren, 2017;Gimenez & Calabro, 2018;Gimenez-Jimenez, Edelman, Dawson, & Calabro, 2020;Ozgen, 2012;Siba, 2019). Women have continued to display appreciable professionalism and tenacity to drive micro, small and medium enterprises in every facet of any nation's economy (Mozumdar, Hagelaar, Velde, &Omta, 2020;Schiff, Fries, & Chambers, 2013;Zhu, Kara, & Zhu, 2019).…”