Differences in how the sexes think may give women an edge in starting businesses, suggests a study by a Kennesaw State University researcher.
A research team led by Birton Cowden, assistant professor of management at the Michael J. Coles College of Business and academic director of Kennesaw State’s Robin and Doug Shore Entrepreneurship and Innovation Center, surveyed 990 entrepreneurs in three countries about how they make business decisions. The researchers found that the women in the survey were more flexible and resourceful in their decision making, leading to greater success.
“We found that women more often use effective logic, which is taking the resources you have and using them creatively to achieve success,” Cowden said. “It’s different and more flexible than causal logic, where you start with a goal and then create a plan to achieve it.”
The researchers’ findings are included in the paper “Are Women Entrepreneurs More Effective at Applying Actual Logic?” which recently won Cowden and his coauthors the US Association of Small Business and Entrepreneurship’s Best Empirical Paper Award. The document was published this month in Corporate Research Journal under the heading “The Gender Effects of Performance”.
“Women tend to get far fewer investment dollars than men,” Cowden said. “While there are a number of reasons why this could be happening, our study does imply that investors should focus less on gender aspects of the founder and more on how they make decisions.”
The paper found that the link between business success and effective thinking is less pronounced in countries with high gender inequality. In these countries, female perspectives tend to be devalued. For countries with greater gender equality, women were better able to capitalize on and demonstrate the benefits of implementation.
Cowden conducted the study with researchers from Saint Louis University, the University of Birmingham in the UK, Jinan University in China and the University of Otago in New Zealand. They interviewed entrepreneurs from Ghana, Vietnam and Bangladesh. This is the second time Cowden has won the Best Empirical Paper award and the first time he has done so as lead author of a study.
“It’s great that your work is being recognized like this,” she said. “We had a wonderful international research team and that really reflects all of their hard work.”
Birton Cowden et al, The gender effects of performance, Corporate Research Journal (2022). DOI: 10.1016/j.jbusres.2022.113403
Provided by Kennesaw State University
Citation: Study: Women May Have an Edge in Entrepreneurial Success (2022, Nov. 17) Retrieved Nov. 17, 2022, from https://phys.org/news/2022-11-women-edge-entrepreneurial-success.html
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