The stereotype that women are risk-averse has persisted for decades. Popular culture, outdated workplace studies, and even some investment literature have painted women as less inclined to take bold steps—especially in business. However, today’s entrepreneurial landscape tells a different, far more empowering story. As women across the globe build businesses, raise capital, and challenge industries, it’s clear: women are not just risk-takers—they’re redefining the game.
This article explores the myth of female risk aversion and reveals how modern entrepreneurship proves otherwise. From startup data to success stories, we’ll look at the facts and the future.
The Risk-Averse Stereotype—Where Did It Come From?
Historically, risk tolerance has been associated with masculine leadership traits—aggression, decisiveness, and competition. Meanwhile, women were often expected to be more cautious, empathetic, and security-focused. These biases shaped workplace roles and societal expectations, leading many to assume that women shy away from uncertainty.
But several studies now challenge this narrative. For example, Harvard Business Review (HBR) notes that the idea of women being less willing to take risks stems not from reality, but from how questions about risk are framed. When risk is contextualized (e.g., career change, investment, or entrepreneurship), women often show equal or greater willingness to take action when they perceive purpose or impact.
Key Insight:
Risk behavior isn’t gendered—it’s situational.
Women in Entrepreneurship—Taking the Lead
The rise of female entrepreneurship is one of the strongest counters to the “risk-averse” label. According to the Global Entrepreneurship Monitor (GEM) 2023/24 report, over 250 million women worldwide are engaged in entrepreneurial activity. In regions like Sub-Saharan Africa and Latin America, female entrepreneurship rates are close to or even exceed male rates.
In the U.S., women own 42% of all businesses, contributing $1.9 trillion annually to the economy (American Express 2023). Starting a business inherently involves financial, reputational, and personal risk. The data speaks clearly: women are taking risks—and winning.
Real-World Example:
Whitney Wolfe Herd, founder of Bumble, left Tinder under controversial circumstances and went on to build a billion-dollar dating app, taking legal, social, and financial risks that paid off dramatically.
Different Risk Styles, Not Less Risk
While women do take risks, their approach can differ from men’s. Research published in the Journal of Economic Behavior & Organization shows that women often engage in more calculated, long-term thinking when taking risks, while men may lean toward quick wins or high-stakes bets.
This difference doesn’t imply weakness—it reveals strength. Women tend to:
Do more research before acting
Seek advice and mentorship
Plan for long-term sustainability
Such strategies are critical in entrepreneurship, where survival depends on more than just bold moves—it requires resilience, adaptability, and strategy.
The Role of Venture Capital and Barriers to Risk
It’s important to note that while women are taking entrepreneurial risks, systemic barriers still affect how those risks are perceived and supported. According to PitchBook (2024), only 2.1% of VC funding in the U.S. went to all-women-founded startups, down from 2.4% in 2022. This isn’t due to lack of effort or innovation—often, it’s a result of bias within the funding ecosystem.
Despite these challenges, women are building alternative funding paths. Platforms like IFundWomen, SheEO, and All Raise are helping close the gap by providing mentorship, capital, and visibility to female founders.
Changing the Narrative
To dismantle the myth that women don’t like risk, we must change the lens through which risk is viewed. Rather than focusing on stereotypical risk-taking (e.g., aggressive financial bets), we must recognize the many forms of entrepreneurial courage:
Leaving a stable job to launch a startup
Creating a business in male-dominated industries
Navigating gender bias in pitching or networking
Balancing caregiving roles while growing a company
These aren’t signs of fear—they’re evidence of strength.
As society evolves, so should its definitions. Women aren’t just participating in risky ventures—they’re leading them.
Frequently Asked Questions (FAQ)
Q1: Are women really less likely to take risks than men?
A: No. Research shows that while women may approach risk differently—often with more analysis and strategy—they are equally willing to take calculated risks, especially in areas where they see long-term value or purpose.
Q2: Why do people still think women are risk-averse?
A: This belief comes from outdated stereotypes and how risk is traditionally defined. Many assessments fail to consider how context and cultural factors influence decision-making.
Q3: What are some examples of successful women entrepreneurs?
A: Examples include Sara Blakely (Spanx), Oprah Winfrey (OWN Network), Anne Wojcicki (23andMe), and Whitney Wolfe Herd (Bumble). Each has taken significant personal and professional risks to build their businesses.
Q4: How can more women be encouraged to take business risks?
A: By increasing access to capital, mentorship, business education, and networks, and by shifting societal perceptions of risk and leadership.