Gender bias against ladies in entrepreneurial finance is fired up its head in the context of reward-based crowdfunding, in accordance with new research published in the Strategic Entrepreneurship Journal. Specifically, female crowdfunding entrepreneurs can in fact benefit from using more innovation language when launching campaigns in male-typed categories, which means that women could have more freedom to resist traditional gender stereotypes regarding reward-based crowdfunding.
The study team of Benedikt David Christian Seigner and Hana Milanov of Technical University of Munich, Germany, alongside Aaron F. McKenny of Indiana University, plays a part in a blast of research that investigates reward-based crowdfundingwhere backers receive rewards such as for example future services or products because of their investmentas a good context for female entrepreneurs. The study really helps to nuance the findings of a 2017 PricewaterhouseCoopers report that showed female entrepreneurs on nine leading crowdfunding platforms succeeded at a 32% higher level in acquiring funding than men. This success rate reaches a stark contrast to other conventional fundraising contexts, such as for example capital raising, where women are in a severe disadvantage with their male counterparts.
The researchers used Expectancy Violations Theory (EVT) as a framework for the analysis, which helps explain when going against stereotypic expectations will undoubtedly be rewarded or punished. “Inside our case, we study two expectancy violations for women: first, when women portray their crowdfunding campaigns as innovative (because innovation behavior is stereotypically portrayed as a masculine attribute), and second, when women launch their campaigns in a male-stereotyped category like technology” Seigner explains.
To check the consequences of female entrepreneurs using innovation language for crowdfunding performance, the team used a field study on Kickstarter. To help expand understand the backers’ interpretation of campaign claims, in addition they conducted an experimental study using Amazon MTurk showing that backers trusted more in a woman’s ability when she launched her crowdfunding campaign in a male-typed category, in comparison to a female-typed category.
If the counterstereotypical behavior studied was rewarded or punished relied on two key factors: the interpretation of the behavior as positive or negative, in addition to the attitude toward the average person participating in said behavior. Innovation claims were interpreted as ambiguous in cases like this: crowdfunding backers like novelty, yet delivering more innovative rewards could possibly be perceived as more technical and difficult. That meant the interpretation of the counterstereotypical behavior was dependant on the attitudes towards individuals participating in this behaviornot by the interpretation of the behavior itself.
“In crowdfunding, the entire tendency to invest in women preferentially when compared with men shows that even ambiguous counterstereotypical behavior will undoubtedly be evaluated positively for women,” Seigner says. The result is further amplified once the campaigns occur in a male-typed category.
The implication is that female crowdfunding entrepreneursespecially when working with rewards-based platformscan benefit from using more innovation language when launching their campaigns in male-typed categories. The analysis increases existing research that underscores how categories, people, behavior, and products might evoke gender stereotypes, and the team hopes to review other entrepreneurial contexts utilizing a gendered perspective to raised know how gender biases impact entrepreneurs and their ventures.
More info: Benedikt David Christian Seigner et al, Who is able to claim innovation and reap the benefits of it? Gender and expectancy violations in rewardbased crowdfunding, Strategic Entrepreneurship Journal (2022). DOI: 10.1002/sej.1426
Provided byStrategic Management Society
Citation: Innovation language benefits female entrepreneurs in reward-based crowdfunding (2022, August 8) retrieved 9 August 2022 from https://phys.org/news/2022-08-language-benefits-female-entrepreneurs-reward-based.html
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