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Seeing the World with Different Eyes

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Author Info

  • Philipp Koellinger

    ()
    (Erasmus University Rotterdam)

  • Maria Minniti

    ()
    (Southern Methodist University)

  • Christian Schade

    ()
    (Humboldt University Berlin)

Abstract

Across countries, women own significantly fewer businesses than do men. We show that this is due, in large part, to the fact that the propensity to start businesses of women is significantly lower than that of men. The lower propensity of women, in turn, appears to be highly correlated to women’s lower average levels of optimism and self-confidence, and higher fear of failure. Ceteris paribus, women and men have different perceptions of the business environment and, as a result, make different decisions. We provide some evidence that this may be universally true and independent from culture, although country specific factors seem to influence perceptual differences between genders. We also show that women who are more self-confident and undeterred by failure have a greater probability to start a business than men with similar characteristics.

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File URL: http://papers.tinbergen.nl/08035.pdf
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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 08-035/3.

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Date of creation: 01 Apr 2008
Date of revision: 11 Mar 2011
Handle: RePEc:dgr:uvatin:20080035

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Web page: http://www.tinbergen.nl

Related research

Keywords: Nascent entrepreneurship; gender; perceptions; judgment and decision making;

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References

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Citations

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Cited by:
  1. Ingrid Verheul & Linda van Mil, 2008. "What Determines the Growth Ambition of Dutch Early-Stage Entrepreneurs?," Scales Research Reports H200811, EIM Business and Policy Research.
  2. Jodyanne Kirkwood, 2009. "Spousal Roles on Motivations for Entrepreneurship: A Qualitative Study in New Zealand," Journal of Family and Economic Issues, Springer, vol. 30(4), pages 372-385, December.

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