Breaking Stereotypes of Female Entrepreneurship
Understanding the role of female entrepreneurs in driving innovation
Entrepreneurship has long been viewed as a male-dominated field, with a strong influence of traditional gender roles. However, many women are entering the entrepreneurial world to challenge these roles, and recent research has highlighted significant benefits tied to female entrepreneurship and innovation. For example, female-led small and medium enterprises (SMEs) have been shown to outperform their male counterparts in terms of innovation scope, while companies led by female CEOs tend to generate higher levels of innovative output.
Despite these findings, the mechanisms through which female entrepreneurs contribute to innovation in new ventures remain unclear. While much of the existing research focuses on demographic factors, biases and stereotypes, there is still limited understanding of how these dynamics directly influence innovation.
In the article “Power to the She: Early-Stage Female Entrepreneurs and Innovation” (International Journal of Gender and Entrepreneurship, 2024), co-authored with Katrina Brownell (Pamplin College of Business, Virginia Polytechnic Institute) and Diana Hechavarria (Texas Tech University), we shed light on the specific ways in which women drive innovation and reshape the business landscape, revealing a positive relationship between female entrepreneurship and innovation.
Gender and Innovation in Early-Stage Female Entrepreneurship
Starting a business depends on both personal motivations and external factors. At an early stage, there is a strong connection between motivation and action, and entrepreneurs often have more freedom to shape the direction and strategy of their new ventures.
In this article, we ask whether the specific reasons women have for starting a business can help explain why they innovate differently, as gender roles can influence how women make decisions that affect their innovation potential. We used data from early-stage entrepreneurs to explore how personal motivations—such as recognition, respect, autonomy, and financial security—can explain innovation among female entrepreneurs in the early stages of their businesses.
Our study makes two key contributions to understanding gender and entrepreneurship. First, we found that women entrepreneurs are more likely to innovate in the early stages of starting a business; second, we found that differences in the motivations between men and women help explain how and why female entrepreneurs tend to innovate differently in the early stages.
We used data from a representative sample of early-stage (or "nascent") entrepreneurs in the U.S. Our data sources tracked entrepreneurs over time, providing insights into the early stages of starting a business. The key variables in our study were:
- Innovation: Is research and development a priority for your new business?
- Gender: Are you male or female?
- Motivations: We examined four types of motivation:
- Recognition: desire for status and achievement
- Respect: seeking acknowledgment from others
- Autonomy: desire for independence
- Financial security: striving for stable income and wealth
Our study found that female entrepreneurs are more likely to innovate in the early stages of starting a business. This challenges the idea that women face more barriers to innovation compared to men, as suggested by earlier research. Some studies argue that women typically align with societal expectations, such as being nurturing and supportive, which might limit their innovative potential. However, our findings suggest that female entrepreneurs in the early stages of their ventures are more likely to challenge these expectations, adopting traits typically associated with men—like assertiveness and self-direction—especially when pursuing innovation. Innovation is crucial for the success of new businesses, and our research shows that female entrepreneurs can have advantages in this area, particularly in the early stages.
This is important because much of the previous research on gender and entrepreneurship has focused on more established firms or ventures further along in the business creation process. Our study offers a new perspective by highlighting how female entrepreneurs may overcome traditional gender stereotypes and succeed in driving innovation in nascent ventures.
Challenging Stereotypes
Our research also suggests that challenging gender stereotypes can lead to better outcomes for female entrepreneurs. In new venture creation, where risk and uncertainty are high, it is often thought that aligning with gender expectations helps entrepreneurs attract investors and customers. However, we found that breaking away from these norms—especially by bringing new ideas and perspectives rooted in gender-based socialization—can enhance innovation for women, even if it causes discomfort or goes against traditional expectations. Female entrepreneurs may succeed by bringing fresh, diverse viewpoints that differ from their male counterparts, and this approach can have positive effects on their ventures.
Gender-Based Motivations
Our study also reveals that gender-based differences in motivation affect how female entrepreneurs innovate. Women may have unique motivations—such as seeking recognition, respect, or autonomy—which influence their ability to innovate. This adds a new layer of understanding to the relationship between gender and innovation and supports recent discussions about the unique benefits female entrepreneurs experience. Some researchers suggest that following gender expectations can help entrepreneurs succeed, but our findings suggest that breaking these expectations, particularly regarding intrinsic motivations, can also foster innovation.
Interestingly, we did not find a strong link between financial security as a motivation and innovation. Previous research suggested that female entrepreneurs might prioritize financial stability, especially because of family concerns. However, other studies argue that women may downplay the importance of profit if it conflicts with maintaining work-life balance. Our findings support the idea that financial security may become more important later in the business process, but it does not play a significant role in innovation for female entrepreneurs at the start of their ventures.
Practical Implications
This research offers several key takeaways for female entrepreneurs and those supporting them:
- Recognition as a Motivator: The desire for recognition can drive female entrepreneurs to create innovative and unique businesses. This does not just affect their ventures but also their communities and markets. By aiming for recognition, they may develop products or services that disrupt established industries and bring fresh perspectives.
- Respect as a Goal: Female entrepreneurs often work hard to earn respect, showcasing their skills and abilities through innovation. This effort helps them establish legitimacy and challenge gender stereotypes. By introducing innovative solutions, they not only gain respect but also help shift traditional views on gender roles in entrepreneurship.
- Autonomy and Innovation: The motivation for independence gives female entrepreneurs the freedom to implement new ideas. In other environments, these ideas might be overlooked or stifled. Their focus on innovation does not just shape their own businesses but also influences the larger entrepreneurial ecosystem by setting new standards and promoting diversity in the marketplace.
Ultimately, female entrepreneurs' drive for recognition, respect, and autonomy encourages them to innovate, contributing to economic growth and setting examples for others.
The author is Distinguished Professor of Social Entrepreneurship at EGADE Business School.
