Women Entrepreneurs in the U.S. Essay -- Gender and Small Business

Across America, there is a prevalent viewpoint that women are inferior to men in the field of entrepreneurship. However, â€Å"The common perception that women primarily start small hobby-related enterprises that are less likely to grow is contradicted by substantial evidence showing that women own firms in all industrial sectors, and that many do want to grow them in size and scope,† (Brush, Carter, Gatewood, Greene, & Hart, 2001, p. 4). In the United States in 2007, nearly 7.8 million firms were women-owned (National Women’s Business Council, 2012). Some may believe that this viewpoint permeated society because men are more successful at starting businesses than women. Yet, women-led businesses are not more likely to fail than those led by men, (Rosa, Carter, & Hamilton, 1996) (Kalleberg & Leicht, 1991). That being said, women would be even more successful as entrepreneurs if they had equal access to funding as that of their male counterparts. One way businesses receive funding is through angel investors. Angels provide financial backing and bring â€Å"industry experience and a network of potentially valuable contacts (i.e. the gold-plated rolodex) that can service as intangible assets to the firm†¦Ã¢â‚¬  (Amatucci & Sohl, 2004, p. 186). They are focused on the success of the business, rather than gaining profit or a majority share-hold. Women receive less funding from angel investors due to the realization of stereotype threat pertaining to three traits related to success in entrepreneurship: confidence, risk tolerance, and social capital. This causes a cycle that deters female entrepreneurial success; women-led firms lack necessary start-up funds, which hinder their success, and the ability to become angel investors themselves. This cy... ...tes/default/files/NWBC%20Final%20Narrative%20Report.pdf Oster, N. (2013, November). Men vs. women: Risk aversion. In BlackRock, The Blog. Retrieved December 14, 2013, from http://www.blackrockblog.com/2013/11/06/men-women-risk-aversion/ Rosa, P., Carter, S., & Hamilton, D. (1996). Gender as a determinant of small business performance: Insights from a British study. Small Business Economics, 8(6), 463-478. Retrieved December 13, 2013, from http://link.springer.com/article/10.1007/BF00390031# Sohl, J. E., & Hill, L. (2007). Women business angels: Insights from angel groups. Venture Capital, 9(3), 207-222. doi:10.1080/13691060701324536 Stengel, G. (2013). It's not just warren buffet who is bullish on women. In Forbes. Retrieved December 15, 2013, from http://www.forbes.com/sites/geristengel/2013/05/08/its-not-just-warren-buffett-who-is-bullish-on-women/