Female entrepreneurs in the technology sector face significant challenges due to the continued male dominance in the field. A recent study published in the Strategic Entrepreneurship Journal highlights these difficulties, revealing that gender biases during recruitment adversely affect female founders. Job candidates frequently perceive them as less competent, agentic, and warm, negatively influencing women-led startups’ perceived growth potential and employee empowerment capabilities. Interestingly, the research also points out that a gender-balanced leadership team can alleviate these biases, making the venture more attractive to prospective employees.
The research team, comprised of Vartuhi Tonoyan from California State University, Fresno; Robert Strohmeyer from the University of Mannheim; and Jennifer Jennings from the University of Alberta, identified a gap in the research concerning the representation of women, or “female tokens,” in male-dominated sectors such as technology. Their goal was to determine whether these female entrepreneurs are likely to face discrimination by job seekers during the recruitment process and to explore the underlying reasons if such biases exist.
In their study, the researchers utilized data from a broader research initiative on startup talent acquisition initiated in the autumn/winter of 2020/2021. They conducted a randomized experiment on an online labour platform that connects workers with paid job opportunities. Seven hundred seventy-seven participants were presented with a job description for a fictional technology startup designed to mirror actual adverts from platforms like ZipRecruiter. The job description detailed the startup’s focus on cybersecurity, a male-dominated field that is described as developing innovative software to combat rising ransomware threats.
Participants were randomly assigned job descriptions featuring either a male or female entrepreneur (Michael Woods or Jessica Woods, respectively). All other qualifications were identical, including their industry background, knowledge, and inventions. The only variable altered was their gender. Additionally, the gender composition of other top management team roles was also manipulated to assess its impact on job seeker perceptions.
The study’s findings showed that startups led by the fictional female entrepreneur Jessica Woods faced greater difficulties in attracting potential employees compared to those led by her male counterpart, Michael Woods, despite both startups having the same business model and qualifications. Professor Tonoyan expressed concern over this discrimination, especially given the critical and timely nature of the cybersecurity solutions provided by the hypothetical company.
The research delved into gender stereotypes about competence, agency, and warmth. In this male-dominated context, female founders were perceived as less competent, aggressive, and lacking leadership qualities. Unexpectedly, they were also viewed as colder, which contradicts general social psychological research that typically finds women to be perceived as warmer than men. This adverse perception further undermined the economic viability and empowerment potential of high-tech firms led by women.
To counteract these negative perceptions, the research team suggested implementing a diverse leadership team. This could be a female-led team with a balanced gender ratio, a female-led team with at least one male cofounder or even a female-led team comprising male cofounders. Teams led entirely by women received the least favourable assessments, reinforcing the argument for the importance of diversity within leadership teams to improve external perceptions and attractiveness.
According to Professor Tonoyan, promoting diversity within the leadership helps mitigate biases and potentially conveys other positive qualities to stakeholders. This approach could create a more inviting image for the company, appeal to potential job seekers, and enhance the overall attractiveness of the venture in the competitive tech industry.
More information: Vartuhi Tonoyan et al, Working for Jessica or Michael? Implications of gender stereotypes for job application intentions at technology startups, Strategic Entrepreneurship Journal. DOI: 10.1002/sej.1522
Journal information: Strategic Entrepreneurship Journal Provided by The Strategic Management Society