The belief in gender equality in entrepreneurship seems appealing, but the reality often falls short. Women starting or growing their businesses are disadvantaged in the male-dominated game of entrepreneurship. How is such a belief sustained? Our recent paper published in the Journal of Management Studies answers this question by highlighting the trade-offs between resources or capitals and gender inequality that certain women entrepreneurs make to either uphold or challenge this belief. By exploring the ways in which capital-rich women leverage their economic, social, cultural, and symbolic capitals, we uncover the trade-off mechanisms that perpetuate gender inequality often unnoticed by naïve observers and less privileged players in the entrepreneurial game.

The illusion of gender equality in Entrepreneurship

Entrepreneurship is often associated with empowerment and choice, leading to the belief that women can succeed if they work hard and make the right choices. This appeals to women from diverse backgrounds, encouraging them to be entrepreneurial and “have it all.” Role models portrayed in media often depict successful women entrepreneurs who appear to have overcome gender constraints at work.

However, this belief overlooks the challenges faced by women entrepreneurs, such as limited access to funding, networks, and gender role biases. Despite these obstacles, it becomes difficult for women to resist or challenge this belief due to its perceived legitimacy. Understanding the power dynamics that sustain the illusion of gender equality belief in entrepreneurship is a challenge that we explore in our paper, using biographical interviews with women entrepreneurs in London, United Kingdom.

Trade-off: How the illusion of gender equality in entrepreneurship persists

Our research reveals two common forms of the illusion of gender equality in entrepreneurship: the belief in work-life balance and the belief in meritocracy. Women who embrace these beliefs use trade-off mechanisms based on their personal resources and networks, to downplay the challenges and compensate for gender inequality and succeed in entrepreneurship.

Work-Life balance trade-offs

Our research shows that the idea of work-life balance in entrepreneurship is maintained through two main ways: “buying power” and “buying flexibility”. Powerful women entrepreneurs leverage their economic resources to overcome gendered expectations, such as childcare responsibilities and male-dominated work cultures. They trade off their economic capital to achieve a work-life balance and succeed in their careers. For example, according to research, running a business often requires a lot of time and dedication, which can be challenging for women who maintain responsibility for the household. Yet, some women with economic resources may hire assistance for childcare allowing them to focus on work while maintaining involvement in their children’s lives, creating a sense of balance between their personal and professional life.

Meritocracy trade-offs

We also found that successful women entrepreneurs trade certain aspects of their social and cultural backgrounds and connections to compensate for gender inequality. They align with the entrepreneurial system’s idea of meritocracy, emphasizing talent, hard work, and luck to justify their success. For instance, accounts of entrepreneurial success based on being “a people’s person’ or “hard worker” are used without associating specialized knowledge, management skills, or networks, to compensate for gender inequality and remain in the game.

Unable to trade-off: Breaking the illusion

Our research has further revealed that there are situations where the belief in gender equality in entrepreneurship becomes difficult for some women. When their skills and resources are undervalued or limited in the entrepreneurial world, these women break away and reject the idea of gender equality in entrepreneurship. Our research shows that these women face struggles between the established norms and their own perspectives, as their skills and resources are questioned by the dominant system. This leads them to develop a more realistic understanding of the gender inequalities in entrepreneurship.

Collective Responsibility and Systemic Changes

Perpetuating the belief of gender equality in entrepreneurship has a dual impact on women entrepreneurs. While gender inequality hampers the progress of all women in the entrepreneurial game, certain women with more resources can recover their losses by aligning with the illusion of gender equality and maintaining their positions in the established system. Being part of this system often benefits them individually, but it can also lead to their withdrawal from collective efforts for gender equality, unintentionally supporting the existing masculine norms.

However, addressing the underlying conditions that lead to trade-off mechanisms is not just about individual actions, it requires collective efforts and systemic changes. Such systems and institutions that could transform their approach to support gender equality in entrepreneurship include entrepreneurial finance, pathways into entrepreneurship and enterprise development, business setup services, entrepreneurship education, and academic innovation in universities.

Additionally, labour market policies and organizational practices where women are both represented and feel included are needed to dismantle beliefs of work-life balance in entrepreneurship. Finally, structural reforms are needed to redefine meritocracy in entrepreneurship, accounting for privileged backgrounds that may exclude valuable talent. Inclusive practices, such as the development of supply chains, can allow for the inclusion of women’s businesses in sectors from which they were previously excluded.