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Study: Fear of failure keeps women from running own businesses
More men than women intend to start their own businesses. The differences between the sexes are significant. These are the findings of a new study from the University of Oulu.
More women than men consider the fear of business failure as a barrier to starting a business. For each year studied, between 37% and 57% of women reported fear of failure as a business owner, while for men the equivalent share was between 24% and 38%.
The fear of failure was most significant in the newest data from 2021.
“Even though attempts have been made to get more women to start their own businesses, the differences between the sexes seem to be narrowing very slowly. Women’s lack of representation in businesses indicates a potential that could increase economic growth and welfare. If women were more active, that would benefit the business world,” says Programme Director Martti Saarela of the Kerttu Saalasti Institute at the University of Oulu.
Men generally report a stronger trust in their own knowledge, skills and experiences of starting a business. For each year studied, only around 30% of women believed they have the necessary skills to run a business. For men, the equivalent figure varied during the years studied between 43% and 59%. Almost half of women who intended to set up a business did not believe they had the necessary skills to do so.
“It would be good if more highly educated women, in particular, saw their own business as a career option. Entrepreneurship training and sharing female business owners’ stories are good methods for changing the culture,” Saarela says in a press release.
How the survey was conducted
The study used the data collected in Finland by the Global Entrepreneurship Monitor (GEM) and analysed intentions of starting a business, fears of failure, and perceived entrepreneurial skills in different age groups. The research data covered 2003, 2009, 2015 and 2021.
The study was conducted by Martti Saarela, Pauliina Björk, Ossi Kotavaara and Matti Muhos of the Kerttu Saalasti Institute at the University of Oulu, as well as Mervi Heikkinen of the Faculty of Education and Psychology at the University of Oulu.
