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Candidate experienceEquality, diversity and inclusionGenderLatest NewsDiscrimination

Entrepreneurs: men seen as less employable than women by recruiters

by Adam McCulloch 3 Mar 2022
by Adam McCulloch 3 Mar 2022 Photo: Shutterstock
Photo: Shutterstock

Male entrepreneurs are less likely than candidates without any entrepreneurial background to be invited for an interview.

Research by London Business School has revealed that HR managers and recruiters at larger companies view male business founders as too independent-minded and non-compliant when set against female candidates to be worth interviewing. They were also considered to be inflexible and unlikely to remain at the company for a lengthy period.

However, female founders did not suffer the same rejection rate. They were significantly more likely to be called for an interview than their male counterparts, although there was only a marginal difference in the success of female founders and those who had not founded their own business.

Olenka Kacperczyk, professor of strategy and entrepreneurship at LBS, said that female founders were perceived as being more adaptable, committed employees and less independently-minded.

She said: “Entrepreneurship is a masculine activity and women are not associated with it. We are showing that there is a bias.”

Statistics show that only 40% of new businesses survive for more than five years, so many would-be entrepreneurs decide to re-enter employment.

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“There is a penalty for founders,” said Kacperczyk. “They are not seen as being committed or a good cultural fit. There is a real career cost of entrepreneurship for those that go back to employment.”

Kacperczyk’s study was conducted with the University of Oregon in the US and involved sending out 1,223 CVs to employers hiring for marketing or HR managers and directors in a range of industries across 12 cities. None of the roles required a cover letter.

Each employer received applications from two candidates who had worked for an equal number of years, at similar positions, for a large employer. One had then left to found their own business, which employed between ten and 12 people, while the other chose employment with similar responsibilities at another company.

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The researchers followed up the survey by asking 425 hiring managers to review the CVs, identifying who they would hire and asking for reasons why candidates were turned down.

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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