Study Reveals Unconscious Biases in Investors' Perception of Women Entrepreneurs
A study involving 106 experienced entrepreneurship investors has shed light on unconscious biases in the investment community, particularly regarding women entrepreneurs. The research, published in the Journal of Business Venturing, explored how men investors' responses to women's physical appearance might influence their investment decisions.
The study, conducted by researchers from the University of California, Los Angeles, and the University of Colorado Boulder, randomly assigned investors to watch one of two identical pitches delivered by different actresses with varying levels of attractiveness. Surprisingly, the woman entrepreneur's attractiveness positively influenced men investors' assessments of her competence. This, in turn, led to more positive evaluations of the entrepreneur's proposal.
The study found that men investors experienced an increase in cortisol levels when presented with an attractive woman entrepreneur. This hormonal response was linked to more favourable evaluations of the entrepreneur's pitch. However, it's important to note that the investors' evaluations of the entrepreneur's proposal were primarily influenced by their assessments of her competence, not just her physical appearance.
The study highlights the need for introspection within the investment community to address these unconscious biases. It underscores the importance of focusing on an entrepreneur's competence and business proposal, rather than their physical appearance. By fostering equitable and fair investment practices, the investment community can help bridge the gender gap in entrepreneurship.
