Female and male entrepreneurs: Psychological characteristics and their role in gender-related discrimination

Abstract There is good news and bad news about actual gender-related managerial differences. The good news is that some do exist. The bad news is that they are overused as the basis for sexual stereotyping. The increase in the number of female entrepreneurs in the United States has been paralleled by an increase in academic research related to their activities. Published research studies of the female entrepreneur have ranged from psychological and demographic studies to perceived start-up obstacles. These studies gave rise to the perception that although male and female entrepreneurs possessed similar socioeconomic backgrounds, motivations and techniques, the female business owners have been subjected to gender-related discrimination. More recently, research studies have addressed the question, “Is the object of discrimination the woman or is it the type of firm she tends to initiate?” Studies have shown that both females and males possess the characteristics required for effective performance as managers. Yet negative attitudes toward females still exist. Trait analyses studies have found more similarities than differences between the two groups. However, a gap still exists between the actual traits of women business owners and the perception of those traits by others. This gap is even more significant when the impact of the traits on occupational choices is considered. The use of psychological traits as a predisposition to initiate a business as an occupational choice has been well established. In this study, the psychological traits of growth oriented female and male entrepreneurs were measured and tested for significant differences. One hundred five female owners of businesses that rate in the top 10% with respect to sales and number of employees were compared with those of similar male business owners. No significant differences were found on five of the nine traits that were measured. The females did score significantly lower on traits related to energy level and risk taking. They also scored significantly higher on the traits related to autonomy and change. These scores indicate that female entrepreneurs are less willing than male entrepreneurs to become involved in situations with uncertain outcomes (risk taking) and have less of the endurance or energy level needed to maintain a growth-oriented business. The significantly higher scores by the female entrepreneurs on the traits associated with autonomy and change directly refute the perceptions of females found to exist in earlier studies. In addition, the lack of a significant difference on the traits related to social adroitness and to succorance between the two groups belies the “emotionality” label often attributed to females. This study shows that the psychological propensities of female and male entrepreneurs are more similar than they are different. While some differences did exist, they would not be expected to affect the person's ability to manage a growing company. Hence, as stated earlier, gender-related psychological traits related to managerial differences do exist. However, they do not provide a basis for sexual stereotyping.