Summary: One of the chapters in the book The Illusions of Entrepreneurship by Scott A. Shane takes a cold hard look at the facts regarding women entrepreneurship (they lump together both small business entrepreneurship with high-risk, high-reward entrepreneurship), and offers many conclusions you probably won't be surprised about.
Body:
Let's talk about their interest in entrepreneurship in general.
The data indicate that women are less interested in being entrepreneurs... Even among women who are in the labor force, women are half as likely as men to start businesses, suggesting that labor force participation is only part of the story...
The data show that women are less likely than men to initiate the process of starting a business because, on average, women are less interested than their male counterparts in working for themselves.
pg 129 reference 16
Specifically, the data show that women in richer countries are half as likely as women in poorer countries to start businesses because the former can afford to choose not to work whereas the latter have to work to support their families
pg 129, reference 19
The takeaway of this section is that women are less interested in starting a small business. He tried to account for many factors in his analysis, including the idea that maybe it's because women aren't as well represented in the labor force. In addition, he considered the country in which the women lived as another factor.
Next onto performance:
unfortunately, equality between the sexes in the performance of new businesses led by women is a wish, not a reality. Across all economic sectors, new businesses led by women perform worse on almost every performance measure - survival, sales, growth, employment, and income - than new businesses led by men.
pg 130 reference 20
Average of $88k in sales in 2002 vs $1.9MM
Average business owned by a women generates only 78% of the profit of the average business owned by a man.
pg 130 reference 24
Talk about that 77% gender gap!
The four-year survival rate of new businesses with at least 1 employee that are founded by women is 8.6% lower than that of comparable new businesses founded by men
pg 130, reference 26
Essentially, it appears that of the women who do decide to start small businesses, simply looking at the financial facts regarding the businesses, they don't fare as well. There could be a preponderance of reasons for this. The author then tries to parse out potential reasons next:
Careful studies that have tried to explain why start-ups led by women perform worse than those led by men show that the difference in financial capital [e.g. access to investors] doesn't account for the performance difference
pg 131 reference 28
Despite access to capital, they do get turned down more for loans. One example of why they are actually less likely to meet lenders' standards:
They pursue opportunities that are less profitable... such as retail trade and personal services
pg 131 reference 30
A reasonable explanation:
Another common explanation ... is that women are, on average, less experienced entrepreneurs.
Does it hold up to the data?
The data to not bear out this explanation. My examination of the data from the Panel Study of Entrepreneurial Dynamics reveals that there are no statistical differences between male and female entrepreneurs in terms of the number of start-up companies founded; the number of startup classes or workshops taken; ... controlling for a variety of demographic factors... differences in the performance ... cannot be the result of differences in entrepreneurial experience.
Oh, too bad.
So what's a better explanation? ... Their goals and aspirations. Female entrepreneurs have lesser financial goals for their businesses than male entrepreneurs.
pg 132 reference 34
Now he gets to the crux of it. Essentially, the women are less driven by the financial goals of their businesses as their male entrepreneur counterparts.
less likely than male entrepreneurs to start their businesses to make money, and they have lesser financial aspirations for those businesses, even after controlling for a variety of other explanatory factors.
What about hard work and drive?
These data also show that female entrepreneurs work fewer hours per day on their new businesses than male entrepreneurs.
Are they actually learning from their mistakes or are they more delusional?
research by Dr. Brian Head of the Office of Advocacy at the U.S. Small Business Administration shows that they are also more likely to view a failed new start-up as "successful".
pg 133 reference 35
What about their motivations?
Many women become entrepreneurs to create flexible work schedules that will allow them to care for their families, particularly children.
pg 133 reference 37
Studies show that becoming a mother increases the likelihood that a woman will start her own business because home-based work allows a woman to work and care for her children simultaneously
pg 133 reference 39
I want to pause here and consider the statistical possibility that over all businesses, women may be over-represented by small home-based businesses. This book did not analyze the value of women versus men in high-risk, high-reward ventures such as tech and life sciences, and as such the data may be skewed towards the home-based businesses women tend to start. Again, though, that simply ties back into their desires and motivations, rather than ability.
Thus, it appears that many women become entrepreneurs when they have children because entrepreneurship provides the opportunity to work while simultaneously caring for children. This is a laudable goal and for many women it's the right one.
Now in my opinion, a lot of this research may not account for the new modern Empowered American Woman, but until new research is out there that says otherwise, I'm going to follow the data instead of trying to fit the data to my hypothesis.
Gender is one of the best predictors we have of who is an entrepreneur and who is not.
Let's be clear. This is not to say that they can't. Simply that they don't.
In fact, the author addresses this issue with the usual blue-pill disclaimer:
I am definitely, unequivocally, and absolutely not saying that women can't or shouldn't be entrepreneurs. And I am definitely, unequivocally, and absolutely not saying that they can't or shouldn't be just as good at entrepreneurship as men.
Gotta protect his reputation as non-misogynistic! However, just because they can be just as good as men, the data bears out what it bears out over general trends.
I realize that much of this is depressing ... But someone has to reveal what the data say.
A bitter red pill indeed!
Lessons Learned:
Well, the author provides his takeaways for us on page 134:
Gender is one of the best predictors we have of who is an entrepreneur and who is not.
Lack of access to money and business opportunities, lesser human capital, and a lack of desire for autonomy don't explain why women are less likely than men to start businesses; however, a lesser interest in running their own businesses does.
Compared to start-ups led by men, new businesses led by women have lower sales, fewer employees, less productivity, lower profits, and worse survival rates.
The lesser performance of female-led new ventures depends a lot on the lesser financial goals that female entrepreneurs have.
Stacey_H 10y ago
http://www.archipreneur.com/how-two-architects-created-a-platform-to-share-unused-space-for-more-sustainability-splacer/
Female architects create Splacer, the AirBNB for event spaces
puddingpopp 10y ago
women founded startups out perform all males ones
sir_wankalot_here 10y ago
Women are far more interested in opening independent businesses as opposed to men.
Did OP count women who are selling their twat ? A brief stroll over to girls gone wild or what ever it is called on Reddit shows there are countless female independent contractors. I even saw a NSFW bitcoin girls gone wild subreddit, this indicates that females are very keen to adopt new technologies for their business ventures.
RealGucciSosa 10y ago
They're exchanging value for labor (money for nudes/panties/cam), where they are their own "means of production". Its only when other people are working for you, and you own their means of production, that it becomes a real business (and you become a real "capitalist").
In other words, unless she's pimping out some hoes (besides herself) than she's not really an entrepreneur. You gotta have other people working for you... This is where it gets tricky for most women, since that requires leadership, and cooperation (without jealousy & backstabbing getting in the way).
sir_wankalot_here 10y ago
Complex organzations like girlybars ?
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jace81 10y ago
Female owned businesses are almost always things like beauty therapy related or women's fashion ... Women selling crap to other women basically.
[deleted] 10y ago
Most businesses period sell shit to women... because women are the ones who buy all the shit. It's easier to sell things to women too because you can get them to buy using flowery language and emotion instead of actually providing value.
jace81 10y ago
True. But they're talking about female entrepreneurs not how gullible female consumers are.
DRMMR76 10y ago
How many "female owned small businesses" are just some fat married chick trying to sell Avon or Herbalife shit out of her husbands house while he's at work?
[deleted] 10y ago
Interesting. Science channel sorta raised my blood pressure because they have a quick commercial quoting a study that businesses do better with mixed male-female board members compared to male-only boards, and made a jab about inequality. I laughed but also had a slight headache that a supposed channel about science would push this damned illogical agenda.
Entropy-7 10y ago
They might be getting causation backwards as it is only the successful companies that can hire the women, take the hit, and still survive.
no_face 10y ago
Actually, adding one or two women may actually help the board, since women are more likely to be familiar with how products are viewed and evaluated by women, who are in charge of spending 80% of the family income.
Having a 50-50 split or a majority women is an unknown due to lack of any existing studies.
[deleted] 10y ago
That's all good in theory but it's wrong. I know it's wrong because men can do anything women can do but better except squeezing out babies. Yes, the best hollywood hair stylists are gay men. Yes, some of the best looking women in Thailand are actually genetically XY not XX. Same with marketing, men do it better. Women might know say a hair product more because they use it, doesn't mean they can study market trends better.
I get where you are coming from but I know what it really is. The most successful companies HAVE to include women on their boards or lawsuits would happen claiming sexism against women. These companies are already successful hence they are more of an easy target for the feminist mobs to hound of they don't promote 'equality'. The companies that are not doing well women don't care if it's a 100% male board of directors, but the top 100 companies you know damn well they are pushing for that 'equality' and want a piece of it.
aiguo888 10y ago
Businesses led by women are often for the feelz.
Think clothing shop, etsy store and other low ROI feel good stuff by stay at home moms and wifes with loaded husbands.
In Shanghai there is a whole street where wifes and mistresses of rich guys have small clothing shops where they have their porsches and lambos parked outside that could never turn a profit in a million years, let alone allow the owner to be able to afford such cars, but image is everything I suppose.
This one is another example: http://finance.yahoo.com/news/25-old-turning-profit-selling-120003662.html
No mention that there is a 99% likeliness that daddy funded it all as she is just 25 years old and the biz is obviously for the feelz.
NuclearTruthBomb 10y ago
Women weren't evolved to handle risk-intensive labor. No ifs, no buts. The severe lack of testosterone in their bodies proves this. Trying to pressure women into these "enpowering" positions will make them more depressed and unhappy for lower quality work. If only we listened to our grandparents.
sir_wankalot_here 10y ago
You are a female running a girlybar in a country where it is theoretically illegal and the cops can shake you down whenever they feel like it. Often you have violent drunk customers, and you have to deal with it. Get the customer out of your establishment without have him destroy it.
Yes, running a girlybars does not involve any logistics or risk.
Our grandparents are the ones who got us into this mess. If they had stuck with equal opportunity as opposed to equality, there would be no problem.
You are part of the problem. When push comes to shove, Team Pussy is perfectly capable of doing male jobs. But why do a male job when a woman can just flash her tits and get a stupid chump like you to do it.
EdmondDaunts 10y ago
As the saying goes in Spanish:
"Dos tetas tiran mas que dos carretas"
Literally - two tits pull more than two carts. I've heard it as una carreta as well which is a better way of saying it. More generally it's a pair of tits are more powerful than a cart.
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[deleted] 10y ago
And if they are of a feminist persuasion, they may be tempted to hire only women (although how they get away with that I don't know). We all know how that works out: http://www.dailymail.co.uk/femail/article-1168182/Catfights-handbags-tears-toilets-When-producer-launched-women-TV-company-thought-shed-kissed-goodbye-conflict-.html
The Norwegian 'experiment' (forcing public companies to take a high percentage of women directors) showed that the companies did less well.
Entropy-7 10y ago
Bwahaha: want to work retail? Ever try to get a job at Victoria's Secret? Well, me neither. Ever see a guy working there (who was not flaming gay)? Complete workplace discrimination under any human rights code in Canada but you will never see it brought up.
Docbear64 10y ago
That article was fascinating so many red pill truths in it , they really are teenagers.
sezamus 10y ago
Women at supervisor level in big companies are monsters and tunnel-seeing creatures... always causing problems and stress for everyone
MentORPHEUS Senior Endorsed 10y ago
To be fair, there are many successful women in the business world. Often this is in measure of how many masculine business traits they develop.
One major class of female business owner is the hobby boutique, that basically exists to get a bored wife out of the house, and wouldn't survive without the husband's ongoing subsidies. These never grow profitable because they don't really have to.
I've also worked alongside and employed many women over the decades. They are far more likely to take time off/perform poorly/exhibit antisocial behavior because they don't feel good on a given day, and they consider that a complete justification. They are more likely to get caught up in off-Mission details and behaviors, such as obsessing over minor details that hold the entire team/project up needlessly, or forming counterproductive friend/enemy relationships, cliques, or blocs. Hypoagency is a huge problem. Women are much more likely to take performance feedback as a personal attack, thus starting a conflict on the wrong subject and not learning and improving from the feedback.
I've seen many a woman-owned/led venture crumble into a black hole of debt, blame, and tears.
Clint_Redwood Endorsed Contributor 10y ago
Hahaha, story time.
Family business, fiance during my BP days needed a job, hired her for some light manual work.
She did well but she was the type to get a rhythm down and she would not change from it. Eventually she fucked sometime up but since it was the boss's son's fiance most of the managers had to skirt around it as best they could. And one of our managers is old school, rip your shit apart, get the fucking work done or there is the door type of guy.
Eventually it came to a head. I called her in my office and told her straight out. "You've been here 6 months. These guys have been doing this 15 years and they aren't attacking you, they want you to get this right and make the customer happy. You either listen to them or you are going to be fired". I may have been textbook beta at home but nobody fucks with my families business or way of life.
Boy did the waterworks start. She finally got it though and I'm personally impressed by it, most chicks can't swallow their ego. I had to constantly remind her they weren't personal attacks on a weekly basis though.
10/10 would never do again. Just hired a dude.
sir_wankalot_here 10y ago
Most of these traits can be explained by the pussypass
Woman does not feel like working that day, she just needs to tell her male boss she is on the rag.
Women are more likely to reframe it as a personal attack. If everytime a boss chewed me out and then the moment I turned on the waterworks, I got a free pass, I would never have showed up for work.
Women are extremely good at reframing. I don't know if they are naturally like that or of it is a learned behaviour.
IAMAwhitecismaleAMA 10y ago
I used to work at a warehouse and our boss was straight to the point everytime. I saw him straight up go over to one of the guys and say "Listen don't touch that fucking wall you're going to contaminate the food and get somebody sick. Understand?!" The guy just nodded said he understood and never did it again.
There is no way to talk to a woman straight like that without her getting pissy. You have to tease (ie manipulate) her into not doing it again. Which takes time and energy to think up of a good way of doing so.
sir_wankalot_here 10y ago
This is the same behaviour of beta cultures, they are extremely passive aggressive, and if they think they have an edge on you, they will always reframe the arguement as a personal attack.
This is inevitability why a democracy can not function in these countries, only one thing will keep them inline, showing you are the boss and taking no shit.
TRP always hamsters on about the dangers of Islam, because it is the most visible. This Muslim you can argue with because he won't take it personally.
The biggest danger is the one you can't see, it is new immigrants with a beta culture that are encouraged by the government not to assimilate. Members of these groups who immigrated 40+ years ago and assimilated do not have problems picking up chicks for example. New members do.
40+ years ago, half of USA had Jim Crow laws. Despite this I know many of the guys from these beta races who married white women from these states despite Jim Crow laws. When you piont out these facts to the modern members, the hamster wheel goes super sonic.
Seducibledotcom 10y ago
Has anyone here ever heard of all the govt. grants and advantages that are given to women-owned businesses just because they are owned by women? It's fucking appalling. Loans, grants, contracts, guarantees, media coverage, etc, etc, etc.
cheeky_throwaway101 10y ago
Yep, the 8k course I am trying to enrol on now offers £500 off if you are a woman. Crazyness.
Seducibledotcom 10y ago
First time I ever heard of it was from a customer that was starting a business with his fuckin wife. He was bragging about how they were getting priority govt. contracts since their business was women owned and considered a disadvantaged business(dbo? For-disadvantaged business owner), or some shit like that; or it might've been funding of some sort, I don't recall the exact details it was a few months ago. I threw up in my mouth. I can only imagine the shit I don't even know about yet. We're over here struggling day in and day out while inept people get shit handed to them. Someone here can hopefully shed some light on this. Maybe google DBE or DBO?
IAMAwhitecismaleAMA 10y ago
I guess it's a smart move if you put your wife in "charge" so to speak but you still run things. Get free shit, higher profit margins. Work the system against them.
czatara 10y ago
Until the system fucks you up with divorce rape.
deepthrill Senior Endorsed 10y ago
Agreed. /r/TheRedPill/comments/4f42jz/womenowned_businesses_the_facts/d25t846
[deleted] 10y ago
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deepthrill Senior Endorsed 10y ago
Look the takeaway from all this isn't that a given woman can't be a brutal entrepreneur shark. Simply that on average, preferences and desires may decrease the odds of being profitable over a large enough sample size.
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Battle-Scars 10y ago
I would be interested to know the male/female dynamic of her marriage.
Snaekeyez 10y ago
I have had small glimpses. He himself is a super successful executive as well. He seems to tow the line with everyone he meets and is comfortable and aloof in just about any situation. Perhaps it is his frame/modeling that allows her to perform so well? (Beyond her own abilities) They seem to be two Type A peas in a pod.
JimmyJiangh 10y ago
It's possible they don't have a traditional romantic relationship, but more of a business/life partnership.
TRPApprentice 10y ago
But muh feminism! Its all duh patriarchies fault! Wahhhhhh
Entropy-7 10y ago
I recall reading somewhere else that female startups were less likely to tank than male startups but they tend to be less profitable overall, which tends to indicate that women are risk averse whereas men are more likely to "go for it".
If you eliminated the small, home-based business (many of which are operated on a part-time basis by women who stay at home to care for the kids) a bunch of the numbers would play out differently.
Still, the final conclusion is red pill and explains a whole lot of the gender-wage gap for non-entrepreneurs as well: women generally choose quality of life over compensation.
razormachine 10y ago
In fact, the author addresses this issue with the usual blue-pill disclaimer:
As a matter of fact it is not blue pill at all.
I am definitely, unequivocally, and absolutely not saying that women can't or shouldn't be entrepreneurs. And I am definitely, unequivocally, and absolutely not saying that they can't or shouldn't be just as good at entrepreneurship as men.
Woman can be as good at entrepreneurship as men. They can also be better or worst at entrepreneurship then men. But they are least likely to be as good at entrepreneurship as men.
The author is not blue pilling. He is just being extra careful about the possible backlash.
The usual blue-pill disclaimer would be something like "It's all the white CIS man fault".
EDIT: grammar
[deleted] 10y ago
he is being careful about feminist backlash, but it is factually false to say 'women can be as good at entrepreneurship as men', which is why he had to be careful about backlash. If they were as good, he could fearlessly state that as fact and be done with it. If women were better, he could be even more confident about simply stating it as fact, knowing he would be applauded. Instead, the facts said,
Along with the other quotes there, which directly contradict your statement. You are entitled to your own opinion, but not to your own facts.
razormachine 10y ago
Again you are mixing apples and oranges.
Fact 1 - Across all economic sectors, new businesses led by women perform worse on almost every performance measure - survival, sales, growth, employment, and income - than new businesses led by men.
Fact 2 - Woman as individual can be as good at leading a businesses as man can.
Those two fact do not contradict with each other.
As a proof of the Fact 2 there is a small number of woman who lead successful businesses. For fact 2 to be wrong every woman led businesses out there should be worse than worst businesses led by man.
The writer of the article is 100% correct, he is just trying to soft down the bitterns of the pill that woman need to swallow.
[deleted] 10y ago
OK, doesn't sound like we actually disagree. 'woman can be as good at entrepreneurship as men' - that is a general statement, to the effect that, on average, women are as good. That is untrue. If you want to say that you mean, 'there exist some (small number of) women that are as good at it as men' then sure, we can agree about that.
razormachine 10y ago
Statistics is a field of science.
"X can be as good as Y" is oftenly missused by feminist to say that woman are in fact as good as man. But it really just means that there exist some (small number of woman... well one is enough) that is as good as man.
What I'm trying to say... what author has said, and what is true (the statistics he used are relavant) is:
In the field of entrepreneurship a small number of woman are as good as man, while on averaage man are better by noticable margain on each and every field.
So we actually agree.
Offcourse feminists will never admit this. They are going to blame the man and the society... everything just to avoid admiting what is painfully obvious.
dr_warlock Senior Endorsed 10y ago
Women dont wanna win, they want a winner.
[deleted] 10y ago
I think this is an amazing article about gender in the workplace, and how males are removing themselves from the conversation. TL;DR - Women need to learn to take feedback. Men need to accept the fact that strong businesswomen adopt traits they find masculine and stop holding it against them (while praising males).
PS - I'm an entreprenueur and a company I work with is called "A Woman Owned __ Co." Never talked to the woman, only the husband. It dawned on me that it was her name on the company just for tax purposes. WHAAAAT THE FUUUUCK.
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