A ‘deviant men’ theory of business expectations in nascent entrepreneurs

Alona Martiarena, Jonathan Levie, Susan Marlow, Mark Hart, Karen Bonner

Research output: Contribution to journalArticlepeer-review

Abstract

In this article, we develop a gendered analysis of the expectations of venture growth by nascent entrepreneurs. Male entrepreneurs are notably overrepresented in the small cohort of firms that attain growth; to explore this phenomenon, we draw upon expectation theory during the nascency period to analyse the antecedents of growth outcomes. To refine this analysis, we factor in risk propensity, measuring the impact of the 2008 financial crisis on fundraising plans. Using UK data gathered between 2002 and 2020 from 5490 nascent entrepreneurs to test our hypotheses, we found that those with the greatest levels of start-up capital and high levels of risk tolerance had the highest expectations of growth and were likely to be male. This small cohort of growth-oriented entrepreneurs was termed ‘deviant men’ given their outlier status. Women became more cautious after the crisis, so even those with similar access to start-up capital as the deviant men had lower expectations of growth. We conclude by noting that at the nascency stage, expectations of growth are a critical influence upon future outcomes; a small cohort of deviant men has the highest expectations of growth, with women disadvantaged by gendered risk adversity.
Original languageEnglish
JournalSmall Business Economics
Early online date1 Dec 2022
DOIs
Publication statusE-pub ahead of print - 1 Dec 2022

Bibliographical note

Copyright © 2022, The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature. This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use [https://www.springernature.com/gp/open-research/policies/accepted-manuscript-terms], but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s11187-022-00716-4

Keywords

  • Gender
  • Nascency
  • Growth expectations
  • Risk

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