Female technology entrepreneurs are perceived as less competent, agentic, and warm by job-seekers, hindering their ability to attract human capital

Female entrepreneurs in the technology industry face unique challenges, as the field continues to be male-dominated. A recent study published in Strategic Entrepreneurship Journal found that female founders do, in fact, face gender biases during recruitment, with job candidates perceiving them as less competent, agentic, and warm. As a result, woman-led startup ventures are perceived as being less likely to have what it takes to grow and to empower employees. However, the researchers did find that a gender-balanced leadership team can help to counter such biases and make the venture more appealing to job candidates.

The research team — Vartuhi Tonoyan of California State University, Fresno; Robert Strohmeyer of University of Mannheim; and Jennifer Jennings of University of Alberta — saw that there was limited research on so-called female tokens in male-dominated industry sectors such as technology. They wanted to understand whether these women entrepreneurs are likely to be discriminated against by job-seekers during the recruitment process and — if so — why this might be the case.

To explore these questions, the team used data collected as part of a larger line of programmatic research on talent acquisition by startups, which they launched in the fall/winter of 2020/2021. The randomized experiment took place via an online labor platform that provided paid jobs to online workers. The 777 survey respondents were given a fictional online job description from a fictional technology startup designed to mimic posts found on ZipRecruiter and other job search platforms. The scenario described the venture's technology, top management team members, work conditions, and available positions. The fictional startup was in the male-dominated cybersecurity industry, developing software to counter rising ransomware attacks.

Some individuals in the survey received job descriptions that featured a male entrepreneur (Michael Woods), while others featured a female entrepreneur (Jessica Woods). Both entrepreneurs were given identical industry backgrounds, knowledge, and patented the same invention. The only difference was their gender. The researchers also manipulated the gender composition of three other top management team members (chief technical, financial, and marketing officers).

They found that ventures led by the fictional female entrepreneur were less likely to attract potential employees, even though the Michael- and Jessica-led companies had exactly the same business model and their pedigrees were exactly the same.

“We have a hypothetical startup company that has created a software to counter cyberattacks for businesses, individual customers, and governments, and so you would say, ‘Wow, that's such timely software.’ Everybody needs that, right?” Tonoyan says. “So why would anyone be willing to discriminate against such a company?”

To shed light on this question the researchers looked at gender stereotypes pertaining to competence, agency, and warmth. In this male-dominated environment, the female founders were perceived as less competent, less aggressive, and having fewer leadership qualities. The team expected those stereotypes, but were surprised to also find the female tech entrepreneurs were also seen as cold. Prior social psychological research indicates that women are generally perceived as much warmer than men — but not so in this male-dominated setting. The research team further found that this stereotype detracts from the perceived economic viability and employee empowerment potential of high-tech firms headed by women entrepreneurs.

The researchers identified a potential solution to these negative perceptions: a diverse leadership team. This could include a female-led top management team with equal numbers of men and women, a female-led team with at least one man, or a female-led team consisting entirely of male cofounders. All-female teams (i.e., those led by a female entrepreneur and featuring three female cofounders) scored the least favorably, further supporting the case for choosing diverse leadership teams.

“This approach ameliorates some of the biases and may signal some other positive things to the stakeholders,” Tonoyan says.

To read the full context of the study and its methods, access the full paper available in the Strategic Entrepreneurship Journal.

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