Entrepreneurship is not an easy journey and is not for the faint-hearted. This has been particularly well illustrated by the numerous differences experienced by people who undertake this venture. The number of entrepreneurs has been on the rise all over the world. The numbers, however, have shown the percentage of male entrepreneurs being 57% worldwide. That of women has been lower over the years but has been rising steadily. There are numerous differences between men and women in entrepreneurship, and this has been a unique strength for these people.
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1: Risk tolerance
Risk tolerance is the ability to tolerate financial risk. Studies have shown that unlike their women counterparts, men in entrepreneurship are more likely to take up risks. They seem to understand and appreciate better the notion that greater risks result in greater rewards. This has seen many collapsed businesses belonging to men. This has not only had a negative effect, with men being leaders of many leading enterprises. Women entrepreneurs are more risk-averse and would prefer to take well-calculated risks. This also has its benefits as it secures a company’s capital.
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This is the money used to set up the business. There are numerous financing options to choose from, and this has been a major difference between men and women entrepreneurs. Women tend to start their enterprises with minimal capital. This has seen them setting up small businesses and used the capital generated for the growth of the business. This has been a great disadvantage for them in the growth of their businesses. Men, however, are different. They tend to have huge capital requirements and they always go to all ends to get the capital required. This has been a great benefit for them in entrepreneurship. This is because their businesses have thus grown faster.
3: Debt levels
This is the cost of running an enterprise. There are numerous differences between men and women here. Due to their huge capital requirements, men entrepreneurship has been characterized by high debt levels. This is because they seek numerous financing options from banks and other sources. Women entrepreneurship is however different. This is because they tend to start their businesses with fewer capital requirements. This means it can be covered by their savings and less outsourced capital. This has thus made them achieve huge profit margins from the onset of their enterprises.
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From numerous studies, it has been established that many women have very different entrepreneurship goals from men. They mostly focus on bettering society in the process of achieving their objectives. This is however unlike men who have always had the objective of profit maximization at the top. This difference has been attributed to the levels of empathy that are higher in women.
There have been numerous differences between men and women entrepreneurship. This has however seen them achieve their different goals and inspire growth in the economy.