Gender Differences in Innovation Among U.S.

Entrepreneurs
ACADEMY OF MANAGEMENT ANNUAL CONFERENCE AUGUST 2012 SUSAN COLEMAN & ALICIA ROBB

Purpose of article:
Explore the extent to which women entrepreneurs innovate

and whether their level of innovation is comparable to men.

Explore the types of innovations women pursue. Examine potential barriers to innovation for women

entrepreneurs.
Use 2010 data on a sample of ~200 U.S. entrepreneurs.

Prior Research:
Women are less likely to pursue entrepreneurship than

men (Allen et al., 2008; Minniti, 2010; Reynolds, 1997; Reynolds et al., 2002). Less likely to have degrees in STEM disciplines. Less likely to have experience working in technology-based firms (Treanor et al., 2010). Less likely to have prior entrepreneurial or senior management experience in innovative firms (Cross & Linehan, 2006; Tai & Sims, 2005). Less likely to be part of innovative networks and networks that could provide resources.

Other qualities:
Both self confidence and a willingness to take risks are

typically associated with innovation and entrepreneurship.

Prior research reveals gender differences here as well. May have implications for womens involvement in

innovation and entrepreneurship.

Prior Research (cont.)

Women often describe themselves as being less confident in

their abilities than men (Koellinger et al., 2008; Allen et al., 2008; Catalyst, 2000)
Women lag men in the area of self efficacy (Wilson et al.,

2007; Wilson et al., 2009; Minniti, 2010)

Fear of failure is a major impediment to the launch and

growth of WOBs (Allen et al., 2008; Canizares & Garcia, 2010; Cliff, 1998; Sexton & Bowman-Upton, 1990; Watson & Newby, 2005).

Prior Research (cont.)

Women start smaller, less growth-oriented firms

concentrated in retail and service (Rosa et al., 1996; Du Rietz & Henrekson, 2000; Coleman & Robb, 2009).
Taken together, the findings of prior research suggest that

women are less likely to be involved in entrepreneurship in general, and less likely to be involved in innovative types of industries and activities in particular.
We explore these research questions using a sample of

female and male U.S. entrepreneurs.

Data
Data were drawn from a multi-country study of innovation

in women-owned firms sponsored by the United Nations Commission on Trade and Development (UNCTAD). Survey was administered electronically using Survey Monkey in November 2010. U.S. participants were drawn from a variety of groups targeting entrepreneurs, small firms, and women business owners. A total of 196 usable surveys were returned; 127 from women and 69 from men.

Findings from Descriptive Analysis

Women-owned firms were smaller.

More likely to be concentrated in

service/retail/health/edu Less likely to have grad degrees and sr. manager exp. Less likely to have intellectual property Less likely to have goals relating to growth No differences in terms of self confidence or willingness to take risks Different motivations: develop new product/service, make money, flexibility

Findings: Meaning of Innovation

Men were more likely to associate innovation with the

development of new products/services (84.1% vs. 75.6%). Men were more likely to associate innovation with the commercialization of new knowledge and ideas (81.2% vs. 63%). Men were more likely to associate innovation with high risk (24.6% vs. 14.2%). Women were more likely to associate innovation with introducing changes in management (58.3% vs. 49.3%) or marketing practices (59.1% vs. 44.9%).

Findings: Importance of Innovation

Over 90% of both women and men stated that innovation

and creativity were important to their business.

Women were more likely to agree/strongly agree that they

have innovative ideas but dont know how to implement them (40.5% vs. 25.7%).
Women were more likely to agree/strongly agree that they

could be more innovative if they had more roles models or educational programs (38.7% vs. 30.9%).

Multivariate Results
When we controlled for industry, age of the

entrepreneur, educational level, firm age, and firm size:

1) No significant gender differences in intellectual property 2) No significant gender differences in having and knowing how to implement innovative ideas 3) No significant differences in needing role models or educational programs Our results did, however, reveal significant gender differences in growth orientation, even controlling for owner and firm characteristics.

Summary
Both women and men value and engaged in innovation in

their firms. Controlling for other variables, there were more similarities than differences in terms of willingness and ability to innovate. Perceived gender differences may emerge from how we define innovation, i.e. high tech vs. service/retail and the types of innovations we as a society value. Consistent with prior research, there were differences in gender attitudes toward growth which may have an effect on womens abilities to scale their innovative ideas.

Contacts:
Susan Coleman: scoleman@hartford.edu Alicia Robb: arobb@ucsc.edu