Behaviors of Entrepreneurs: A Gender Comparison

Abstract

ABSTRACT This study analyzes differences between male and female entrepreneurs on eight previously identified entrepreneurial behaviors (Envick & Luthans, 1996). Results indicate that female entrepreneurs engage in controlling, internal communication, human resource management, and work-related tasks, significantly more often than males. Male entrepreneurs engage in on-job personal time significantly more often than females. INTRODUCTION As more women initiate entrepreneurial ventures, it becomes more important to study the differences between male and female entrepreneurs. Currentiy, women own approximately one-third of all businesses in the U.S. (Zellner, King, Byrd, DeGeorge, & Birnbaum, 1994). By the year 2000, it is estimated this number will grow to 40 to 50 percent (Capowski, 1992). The purpose of this study is to compare female and male entrepreneurs on eight previously identified entrepreneurial behaviors (Envick & Ludians, 1996). This study defines entrepreneur as someone who (1) created or seized his/her own business, and (2) seven years or more later is still operating that business. LITERATURE REVIEW One way to learn more about female entrepreneurs is to directly compare them to their male counterparts. Unfortunately, only 10 percent of all studies conducted on the entire population of business owners focuses on females (Liou & Aldrich, 1995). On the surface, many differences do exist. For example, one study shows start-up funds for women average $15,000, but the average for men is $36,000 (Zellner, et al., 1994). Gross revenues of women-owned businesses are about $100,000 compared to $500,000 for men (Hisrich & Brush, 1987). The American Woman's Economic Development Corporation contends that 80 percent of female entrepreneurs start businesses in the home and choose to remain small (Capowski, 1994). However, women-owned companies employ more than 15.5 million workers, and the sales amount to approximately $1.4 trillion (Nelton, 1996). Because these facts illustrate important differences, more academic research is needed to fully understand both groups of entrepreneurs. Some theoretical work suggests that women are confronted with situational and dispositional obstacles that prevent them from starting and/or growing their businesses (Liou & Aldrich, 1995; Fisher, Reuber, & Dyke, 1993). Brush (1997) found females encounter the following four obstacles: being taken seriously, child and dependent care, growth and expansion capital, and entrepreneurial education and training. Her study also found three opportunities: technology, management style, and employee policies. Other studies illustrate the similarities among and differences between male and female entrepreneurs. Similarities Among Male and Female Entrepreneurs Several studies contend that female and male entrepreneurs are more similar than different. For example, early studies exploring why females become entrepreneurs found they gave similar responses to their male counterparts, such as need to achieve and independence (Cook, 1982; Schwartz, 1976). Contemporary research also reports similarities. For instance, Smith, Smits, and Hoy (1992) report females in traditionally male dominated industries gave similar reasons for operating their own businesses, such as the desire for independence. A current, on-going study suggests that no differences exist regarding personal goals, such as independence, achievement, and economic necessity (Hisrich, Brush, Good, & De Souza, 1996). Fagenson (1993) found that both males and females value self-respect, freedom, a sense of accomplishment, and an exciting life. Cooper and Artz (1995) discovered both males and females held initially optimistic expectations regarding their ventures. On the other hand, several studies contend that there are differences between male and female entrepreneurs. Differences Between Male and Female Entrepreneurs The National Foundation for Women Business Owners found women define success differently than men. …

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