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1. Women in Management Review
Entrepreneurship: not an easy path to top management for women
Joan Winn
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Joan Winn, (2004),"Entrepreneurship: not an easy path to top management for women", Women in Management Review, Vol.
19 Iss 3 pp. 143 - 153
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2. Entrepreneurship: not an
easy path to top
management for women
Joan Winn
The author
Joan Winn is Associate Professor of Management at the Daniels
College of Business, University of Denver, Colorado, USA.
Keywords
Entrepreneurialism, Corporate ownership, Women, Gender, USA
Abstract
Despite the increased gender parity in the workforce today, few
women attain top management positions in America’s largest
corporations. Instead, an increasing number of women are
achieving CEO status as entrepreneurs. In-depth interviews with
women who have lived in both worlds – that of the stable
company and one launched and run on their own – give some
insight as to the nature of the problems and perceptions faced by
women as managers and entrepreneurs. Issues such as gender-
role bias and work/life balance are concerns for women with and
without children. Gathering information from women who
decided to form their own organizations after they had worked in
a large organization, this paper examines some of the decision-
making factors and socio-personal constraints that affect such
entrepreneurship.
Electronic access
The Emerald Research Register for this journal is
available at
www.emeraldinsight.com/researchregister
The current issue and full text archive of this journal is
available at
www.emeraldinsight.com/0964-9425.htm
Corporate America’s “grey flannel suit” has
undergone profound alterations within the last few
decades. A brief tour inside the corporate walls
reveals major changes, not just in technology and
marketing, but also in management and
operations. Traditional bureaucratic hierarchies
are giving way to cross-disciplinary teams.
Factories manipulate heavy equipment with the
touch of a computer keyboard. The manager’s job
has largely changed from director to facilitator,
from provider to counselor. Flexibility, not force, is
the code-word for success. We no longer regard
competition as a battlefield but, instead, view it as
a challenge of innovation, persuasion, and
negotiation. Women have historically been viewed
as having the requisite skills when it comes to
cooperating, nurturing, adapting, and persuading.
Yet only three women were listed among the CEOs
of the world’s 500 largest corporations in 2000
(Northouse, 2001).
Fewer than 6 percent of all corporate CEOs are
women, a figure that has varied by a mere one
percentage point over the last 20 years (Catalyst,
2001). Susan Ness, former FCC commissioner
and director for the Annenberg Public Policy
Center of the University of Pennsylvania,
observed, “With few exceptions, we have not
moved beyond tokenism in the number of women
in top leadership positions” (Mediaweek, 2002).
Furthermore, women held only 10.9 percent of all
board seats in the top Fortune 1000 companies in
2001, an increase of less than 1 percent from 1999.
Nearly 40 percent of the Fortune 501-1000
companies had no women on their Boards of
Directors, an increase from all-male Boards in
1999 (Catalyst, 2001).
Among those who run their own business,
women are increasingly well represented.
According to the Small Business Administration
(2001), women own one-third of all American
businesses. These US women-owned businesses
employ more people than the entire Fortune 500
list of America’s largest companies combined.
Between 1997 and 2002 the growth of women-
owned firms outpaced the overall growth of
businesses by nearly two-to-one and the revenues
generated by women-owned enterprises grew by
40 percent (Center for Women’s Business
Research, 2001).
If so many women are capable of running
companies of their own, why do so few women
populate the top rungs of corporate America?
Certainly the support systems in large companies
are better, for example, there is an established
network of policies and personnel available to keep
operations moving smoothly and provide slack to
Women in Management Review
Volume 19 · Number 3 · 2004 · pp. 143-153
q Emerald Group Publishing Limited · ISSN 0964-9425
DOI 10.1108/09649420410529852
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3. mitigate production spikes and unanticipated
emergencies. Additionally, large companies
typically have better benefits – including
institutionalized vacation policies and mandated
parental leave – critical components to those with
family responsibilities. Does the Aristotelian view
that women are less capable than men in the
executive suite still prevail?
A snail’s pace to the top
The popular press is quick to headline the women
who make it to the boardroom of corporate
America. However, even Fortune magazine
acknowledges that few women reach the ranks of
upper management and, those who do, “don’t
wear their power quite as comfortably as men do”
(Sellers, 2002, p. 102). For the last two decades,
women have cited lack of mentoring, lack of
managerial experience, exclusion from informal
networks, and male stereotyping as the prime
barriers to advancement. Effective management
may require nurturing and facilitating, but getting
into management positions still takes directness
and visibility – and time at the office. In the
corporate world, for men and women alike, the
path to upper management has an established
protocol. Usually long hours, demonstrating
ambition and loyalty to the organization are
prerequisites to promotion. With no familial
responsibilities to interfere, both men and women
can compete on an even plane. This becomes
difficult when marital and family situations
change.
Linda Stroh, Professor of Industrial Relations at
Loyola University in Chicago, sees the problem as
the “lingering and often unconscious perception
(by others) that women are going to leave to have
babies” (Fisher, 1992, p. 45). Sylvia Hewlett
(2002) believes that women who choose to pursue
corporate careers often realize too late that their
childbearing opportunities have passed. Author
and poet Ellen Gilchrist (2002, p. 256), sees family
and work as a “war, with guilt as their nuclear
weapon and mutually assured destruction as their
aim”. Lately, personal and family responsibilities
have risen to the top of the list of reasons women
give for not rising to top management (Morris,
2002).
For the most independent and ambitious of
women, the role of wife may not alter her ability or
willingness to climb the career ladder. However,
for women with children, the corporate climb
becomes more difficult. As guilt and stress outstrip
the benefits of income and prestige, women with
young children are increasingly leaving the
workforce to become full-time mothers. Even
among executives, an increasing number of women
are “stopping out” to raise families as the demands
of corporate life impinge on the quality and
quantity of family time. Hewlett’s recent (2002)
study indicated that women in companies that
offered flexible hours or work-at-home options
were more likely to stay after the birth of a child.
Even with the opportunity for flexible work
arrangements, women in her study were more
likely to be childless (42 percent) or have stay-at-
home husbands (30 percent).
Despite the near parity in overall workforce
representation, the number of women CEOs is
unlikely to swell anytime soon (Daily et al., 1999).
Women may be gaining visibility as a select few
attain upper management positions, but the
corporate ladder is still populated by middle-aged
men hanging onto the rungs. As this generation of
corporate bosses approaches retirement, they are
being replaced by up-and-comers who have been
educated in modern business practices. Fewer
women than men seek MBA degrees. Fewer
women in the pipeline translates to fewer women
ascending to the top.
Formal training and mentoring programs can
target women and minorities who might otherwise
be overlooked, but there remains a dearth of role
models and mentors for women. Mentor
availability notwithstanding, as middle
management positions fall by the wayside, the fast-
track slows to a crawl. Because of this, Baxter and
Wright (2000), while acknowledging that women
face greater obstacles than men as they move up
the corporate hierarchy, question “systematic glass
ceiling effects” for women in the US. After all, with
each promotion, the opportunities for the next
promotion for men and women alike are fewer as
the playing field grows narrower. Nonetheless,
women are scarce at all but the lowest ranks in
most companies.
Some researchers blame women themselves, not
for their lack of abilities or drive, but for their lack
of assertiveness in making their wishes known. Too
often women wait to be recognized rather than ask
for promotions, pay raises, or even
acknowledgment of their contributions.
Nevertheless, comparisons of men and women in
management suggest that women’s career
progression is a function of gender roles and bias
(Kirchmeyer, 1998; Ragins et al., 1998), rather
than assertiveness or competence. The Conference
Board of Canada’s survey of female executives
reported that “harassment and discrimination
remain significant problems for women in
management” (Maclean’s, 2000, p. 28).
Entrepreneurship: not an easy path to top management for women
Joan Winn
Women in Management Review
Volume 19 · Number 3 · 2004 · 143-153
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4. The lure of entrepreneurship
The contrast between the number of US women
executives running large public corporations with
the number of women running their own
businesses is striking. The Center for Women’s
Business Research (2001) estimated that there
were 6.2 million majority-owned, privately-held
women-owned firms in the US, employing 9.2
million people and generating $1.15 trillion in
sales in 2002. Between 1997 and 2002, the Center
estimated that the number of women-owned firms
increased by 14 percent nationwide – twice the
rate of all firms. Employment in these firms
increased by 30 percent, which is 11
2 times the
average employment rate. Sales grew by 40
percent – the same rate overall for US firms.
Sylvia Hewlett (2002) reported that an
increasing number of women choose
entrepreneurship out of frustration with
demanding and inflexible work environments.
Self-report questionnaires and interviews of
women who start their own businesses revealed
that they believed that corporate America would
not accommodate their personal situations nor
satisfy their professional goals (Moore and
Buttner, 1997). In stark contrast to their male
peers, successful, upwardly-mobile women in
Fortune 500 companies tended to be single (55
percent), without children at home (80 percent)
(Stroh et al., 1992). Running one’s own business
has long been perceived as more compatible with
women’s role in child-rearing because of greater
flexibility (Scott, 1986). Adults whose mothers
were entrepreneurs tend to view their mother’s
business – and the role-modeling of
“independence and control over their own
destinies” – in a positive light (Schindehutte et al.,
2003).
An increasing number of corporations recognize
that women with young children may need non-
traditional work schedules. Although corporate
structures are usually less accommodating for
women who desire middle or upper management
positions, large companies can accommodate
family needs easier than small companies. In 2001,
87 percent of Fortune 1000 companies provided
childcare assistance and 77 percent offered flex-
time schedules. However, as Hewlett (2002,
p. 331) points out, “even a generous package of
benefits cannot help employees strike a
meaningful, sustainable balance between
professional and personal life unless there is a
fundamental change in the mind-set of managers”.
Reality versus perception
Is independent business ownership the answer?
While independent business ownership appears to
be more compatible with women’s family
responsibilities, the reverse may be true. In order
to identify some of the constraints that precipitate
or affect entrepreneurship, this author embarked
on a study of career paths of women who decided
to form their own organizations after they had
worked in a large organization. Unstructured
interviews with 24 women (names have been
changed to protect confidentiality) were
conducted at various stages of business ownership,
from conception to dissolution of the business in
some cases. Some commonalities began to emerge,
namely, the expectations and enthusiasm for a new
venture during its infancy, the struggles to sustain
the business through its early years, and the pivotal
role of family structure and support in the decision
to initiate and continue a business. An overview of
these women’s paths into (and out of)
entrepreneurship is given in Table I.
The narratives of the women in this study did
not differ markedly from the reports of
entrepreneurs in previous studies (e.g. Goffee and
Scase, 1985; Scott, 1986; Orhan and Scott, 2001).
A woman’s choice of business was closely linked to
her family situation and the constraints that these
responsibilities imposed. She desired an income-
producing situation that allowed flexibility and
autonomy. These women were no strangers to
business, having worked for established
organizations before striking out on their own.
Their stories reveal both surprise and satisfaction
from their ventures – surprise that running their
own business was so difficult and satisfaction at
having taken the plunge. Nevertheless, many of
these women realized too late that independent
ownership was not a panacea. Table II illustrates
the issues that these women felt impacted the
satisfaction they derived from their businesses.
Insider perspectives
Isolation
While studies of women managers and
entrepreneurs yield few differences between those
who pursue corporate life and those who venture
out on their own, Brodsky’s (1993) study found
that women entrepreneurs were more independent
and less trusting of others than those in corporate
management positions. Perhaps this is the effect,
rather than the cause, of independent business
ownership. Corporate managers can seek support
within their own organizations; entrepreneurs
Entrepreneurship: not an easy path to top management for women
Joan Winn
Women in Management Review
Volume 19 · Number 3 · 2004 · 143-153
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5. Table I Transitions and lifestyles of women entrepreneurs
Name Lifestyle Prior employment
Type of
business Initial form
Major
business
issues Primary income Business status Next stage
Kathy Married
with
children
Landscape architect
for large firm
Landscape
architect
Solo Childcare,
home/office
conflict
Spouse End Joined small firm
Tina Married no
children
Marketing and sales Management
consulting
Solo Isolation, lack
of clients
Spouse End Joined consulting
company
Nancy Divorced no
children
Marketing and sales Marketing
consultant
Solo Harassment,
cash flow
Business and
savings
End Back to school
Jan Single Graphic designer Graphic
design
Partnership Ideological
conflicts
Business End Partner with
existing firm
Shirley Married
with
children
Food service
manager for hotel
chain
Engineering
consulting
Copreneur Economic
downturn, cash
flow
Business (two-
income
household)
End Independent
consulting and
catering
Lisa Married
with
children
Public school teacher Specialty
retail
Solo Cash flow, long
hours
Spouse Liquidated at loss Public school
teacher
Margaret Married no
children
Public school teacher Restaurant Copreneur Cash flow,
partner conflicts
Business (two-
income
household)
Sold at loss Teacher at local
college
Heidi Single Marketing manager Marketing
and
fulfillment
Corporate
backing
Economic
downturn, cash
flow
Business Sold at loss New venture with
new partner
Karin Single Sales manager Employment
agency
Corporate/
partner
backing
Cash flow,
partner conflicts
Business Relinquished share
of business to
partner
Independent
consulting
Annette Married
with
children
Social worker Private
counseling
practice
Partnership Cash flow,
isolation
Spouse Going concern Split business,
now solo
Mary Married
with
children
Sales and marketing Financial
services
Partnership Partner conflicts Spouse Sold business for
profit
Independent
consulting
Ellen Married no
children
Public school teacher Collectibles
boutique
Solo None Spouse Sold business for
profit
Writing a book
Claire Divorced,
grown
children
Bank VP Specialty
retail
Solo Cash flow,
isolation
Business Sold business for
profit
New venture
Partnership
Joni Single Restaurant manager Restaurant Partnership Cash flow,
partner conflicts
Business Going concern Bought out
partners
Chris Divorced no
children
VP sales for digital
imaging company
Internet
graphics
Partnership Financing, cash
flow
Business and
savings
Going concern Bought out
partners
Jane Single, one
childa
Corporate
accountant
Specialty
retail
Partnership Cash flow,
partner conflicts
Business Going concern Bought out
partners
Anne Married no
children
Corporate trainer for
large company
Management
consulting
Copreneur Cash flow,
partner conflicts
Business (two-
income
household)
Going concern Divorced, split
business, now
solo
Linda Married no
children
Research scientist Scientific
consulting
Solo Cash flow, long
hours
Business (some
money from
spouse)
Going concern
Vicky Divorceda
no children
IT/finance manager Software
development
Copreneur Long hours Business Going concern
Lori Divorced,
one childa
Travel agency
manager
Restaurant Solo Cash flow,
location and
economy
Business Going concern
Maureen Married
with
children
Senior division
manager for large
company
IT consulting Partnership Economic
fluctuations
Business (two-
income
household)
Going concern
(continued)
Entrepreneurship: not an easy path to top management for women
Joan Winn
Women in Management Review
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6. must seek support through external networks. This
often results in feelings of isolation and loneliness
as articulated by the women in this current study.
Annette, who quit her social worker job when her
children were born, started a private counseling
practice when her children entered school. She
enjoyed being able to set her own hours, but missed
the camaraderie of colleagues. She found herself
clinging to friendships “and seeking more
opportunities for social events than I used to” now
that those needs were not satisfied at work.
Heidi and Karin attended the monthly meetings of
a women’s group. “I need other women to talk to”,
explained Karin. “The people [who work for me]
expect me to have all the answers”.
Lifestyle issues as a by-product of the isolation that
entrepreneurship imposed was mentioned
frequently among owners of independent
businesses. Single women often remained single,
reporting that they had no discretionary time or
emotional reserves beyond those required to meet
the demands of their business.
Chris, who worked for two years to get her internet
company launched, lamented, “I haven’t had a
date in three years. My only contacts are venture
capitalists and clients.” On the other side of the
“date problem”, Nancy claimed to have changed
her dress and behaviors to ensure that male clients
took her seriously. “They wanted romance, I
wanted contracts . . . In order to have a real social
life I had to get out of the business.”
Marital dynamics
While career opportunities for women have
changed, family role models typically have not.
While the number of stay-at-home dads has
soared, their numbers are still few. Most young
men and women still see their mother doing the
majority of home chores. The father’s job is still
seen as more important in terms of both money
and prestige. Women are not prepared for the
corporate pressures that impinge on their role in
the family (the role that they were taught to play).
White et al. (1997, p. 31) found that even among
those who were career-oriented from an early age,
many successful women undergo “role conflicts
which may lead to an extended period of identity
‘diffusion’” and missed opportunities.
Married women, especially those with children,
live in two worlds: one at work and one at home.
Even with a stable marital relationship to mitigate
risk and provide a financial safety net and moral
support, child-rearing responsibilities can interfere
with the best of intentions. Children do not plan
their illnesses or school schedules with their
parents’ needs in mind. While it is often
Table I
Name Lifestyle Prior employment
Type of
business Initial form
Major
business
issues Primary income Business status Next stage
Kelly Divorced
with
childrena
Account executive IT consulting Partnership Economic
fluctuations
Business (two-
income
household)
Going concern
Sarah Married
with
children
Secretary Specialty
retail
Partnership Schedule
constraints
Spouse Going concern
Joyce Married
with
children
Journalist and
teacher
Specialty
products
distributor
Franchise Long hours Spouse Going concern
Note: a
reflects status change after business startup
Table II Summary table of concerns of women entrepreneursa
Reported problems/stressors
Total sample
(n524)
With children
(n 5 12)
Without children
(n 5 12)
(%) (%) (%)
Family pressures/gender-role expectations 38 58 17
Isolation 33 17 50
Partner conflicts 29 25 33
Long hours 25 25 25
Childcare 13 25 na
Note: a
Respondents could identify more than one area. Data reflect comments about issues that impact business-ownership
satisfaction, from unstructured interviews, reported as percent of respondents.
Entrepreneurship: not an easy path to top management for women
Joan Winn
Women in Management Review
Volume 19 · Number 3 · 2004 · 143-153
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7. permissible to miss a day at the office to tend to
family problems, small businesses have less slack
than large companies and small business owners
have less independence than their employees.
Owners of new businesses find that they have more
constraints and less flexibility than they anticipated
in the planning stages of their business. For
women, this is particularly troublesome.
Kelly and Maureen started their consulting
business together, with the idea of balancing family
and work in mind. Kelly’s father and father-in-law
both had built their own companies, and her
husband was a successful commercial real estate
broker. “My father and father-in-law both had their
own businesses, so they thought that this was a
great idea until I became pregnant. Then they fully
expected me to build and sell [the business] and
become a stay-at-home mom.”
Work/home conflict is evident even for women who
do not have children. Like the women in the study
by Stoner et al. (1990), the women in this study
found that the demands of their business affected
their ability to relax at home, causing marital
unhappiness and work/home conflict. Even those
women who were encouraged by their husbands
reported that the time and stress of the businesses
strained their marriages. Goffee and Scase (1985,
p. 5) pointed out that while “the wives of small
businessmen are often subordinated to the needs
of their husbands”, the reverse is seldom true. For
men, work and family are complementary; for
women, work and family present a dilemma.
Lori confided that her husband always attributed
the success of her restaurant to luck. He thinks I
don’t work hard . . . that I got a lucky break by
locating here when the economy took off.” Joyce
and Sarah had husbands who paid little attention to
their businesses as long as it didn’t drain the family
finances. “You get used to him telling people how
prestigious his job is . . . he thinks I’m just having
fun,” lamented Sarah.
Tina abandoned her dream of continuing business
ownership, citing difficulties in getting enough
clients. She also explained that the isolation of
working independently put pressures on her
husband and her marriage. He wanted to relax after
work; she wanted someone to talk to.
Interviews by researchers Goffee and Scase (1985,
p. 48) suggested that husbands rarely contributed
to the running of either homes or businesses. This
contrasts strongly with the experience of male
proprietors . . . many male-owned enterprises
could not survive without the unpaid contribution
of wives who, in addition, are also single-handedly
responsible for the family and the home. Even
entrepreneurial couples, husband-wife teams who
work closely together, “are often trapped by a
gender-based division of responsibilities and
authority” typically resulting in “the wife
acquiescing to (the husband’s) benevolent
authority” (Marschak, 1998, p. 169).
“We started the business together,” explained
Margaret about the restaurant she and her husband
started when they relocated to the west coast. “But
then his [design] business took off and I was left
managing the restaurant. I couldn’t handle it all,
especially when he continued to . . . give orders, but
didn’t spend much time at the restaurant
anymore.”
When the business that Shirley and her husband
founded started to lose money, she was the first to
leave, despite her CEO title. Eventually all but
three of the employees were laid off. Her husband
continues to do consulting under the business
name. Shirley still contributes some administrative
assistance but draws no salary.
Women’s career commitment is still viewed with
suspicion (Cordano et al., 2002; Lancaster, 1999).
Despite some evidence that time spent devoted to
family obligations may hinder men’s advancement
more than women’s (Konrad and Cannings,
1997), the stranglehold of gender-role bias should
not be minimized in exploring professional
women’s exodus from corporate America.
“I don’t think [my husband] would learn to cook if
his life depended on it,” Annette mused. “I
schedule myself part-time so that I can be there
when my kids come home from school. I’m lucky –
I haven’t had to break appointments very often.”
One woman admitted in confidence that “My
husband’s secretary does things for him that I
would never ask anyone I worked for to do for me.”
She claimed that her husband eagerly went to their
children’s athletic events, but refused to take them
to doctors’ appointments. “He claims to be [more]
involved in his children’s lives [than he actually is],”
she sighed.
Child-rearing
While many women become successful business-
owners, the difficulties of balancing their families
with their business obligations cannot be
overemphasized. Longstreth et al. (1987) found
that self-employed women worked fewer hours per
week at their jobs than the average full-time
worker. However, the women in their study, as well
as the women interviewed for this research, too
often underestimated the extent to which their own
business would interfere with their family life.
These conflicts did not always lessen as their
children got older. Day-care is easier to find for
young children, despite the sleepless nights and
guilt that accompanies late-evening business
obligations. Older children pose more logistical
problems, and, when left to their own devices, are
Entrepreneurship: not an easy path to top management for women
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Women in Management Review
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8. not always trustworthy. Schindehutte et al. (2003)
report that even women who believe their business
has an overall positive impact on their children,
acknowledge that owning a business disrupts
family life.
Lisa explained that her business was easy when her
children were young. “They hung around the mall
and everyone thought they were cute.” Later, after-
school care became difficult to coordinate. “You
can’t just leave your business at 3 p.m. to pick up
your kids.”
“It was different before my daughter was born”,
Jane recounted. “Now I have to be careful that she
doesn’t suffer because I’m away so much”.
Kathy found that catering to clients conflicted with
taking care of her school-age children. “Working at
home was great when the kids were at school, and I
liked the comfort of being home to greet them
when they came home from school . . . but [my
husband and I] would argue over who should stay
home when the kids were sick.”
The married women in this study who
subordinated their business interests to their
husbands’ careers were seldom successful on their
own. Even when the business was originally set up
to be jointly run by husband and wife, more men
than women kept their secure corporate job. When
the husband’s profession left little time for business
involvement, their wives were left to run the
business.
Margaret and her husband started their restaurant
together when they relocated. Neither had jobs or
local contacts before the move, so they saw the
restaurant as being a launching pad for their new
life. Margaret’s husband became less involved in
their business when he was able to solicit clients for
his design business. Sarah and Tina admitted that
they would not have been able to sustain the cash
fluctuations of their business had their husbands
not had steady paychecks. Annette and Kathy had
marital problems that affected their ability to
devote attention to their businesses.
While some of these women had the financial
resources to continue their businesses, others
(especially those with children) could not endure
the low or negative returns inherent in a new
business without another source of income
(usually from their spouse). In two cases, the
husband viewed the wife’s business as a “hobby”
even when the business income exceeded his
salary.
Transitions
Too often, only when the children leave home
either to go off to school or to set up their own
household as adults, does the business afford
flexible time. For some women, this is a time of re-
evaluating their role in the business as well as their
role at home (McKay, 2001).
Ellen explained that when her husband retired, he
wanted to travel, but she was tied down to her
business. “There’s no accumulated sick-leave”
when you own your own company, Ellen explained.
Claire’s children located in a distant state after they
graduated from college. Her family gone, the
business became isolating and unfulfilling. Both
women sold their businesses.
As in Brodsky’s (1993, p. 341) study of women
corporate managers and entrepreneurs, the
divorce rate among women entrepreneurs is high.
Brodsky’s study on measures of trust and level of
control may pertain to acquiescence in a
traditional marriage as well as in a traditional
company. “Entrepreneurs see themselves as in
need of control and intolerant of limits imposed by
others, and seek to define their own work
environments and parameters.” Orhan and Scott
(2001) still see “male domination” and “women’s
identity” as playing pivotal roles in the decision for
some women to start their own companies. On the
other hand, Aldrich (1989, p. 128) believes that
even women entrepreneurs “must break into the
‘old boys’ network by deliberately invading male
turf whenever possible” in order to be successful.
The women in this study who were successful in
business tended to be not married (single or
divorced) or had husbands who were actively
involved in the business. Married women with
children were the least likely to succeed if their
husbands were not involved in the businesses.
Even when husbands were willing to share in the
household and child-rearing duties, these women
reported tremendous guilt and anxiety when their
business required long hours away from home.
Unless these women had non-financial help from
their husbands or “significant others”, their
businesses were likely to fail.
“My husband never took my business seriously,”
admitted Kathy. “When he started his own
business I got pushed out of the den. It became a
fight for space [and] a wrestling match over who
would cook dinner.”
“It’s tough,” explained Joni. “My family thinks I’m
crazy for doing this. Sometimes I wonder if the
stress is worth it.”
Familial and societal variables differently impact
women and men in starting and sustaining
independent organizations. In order for a new
business to be successful, the owner/manager must
fit family obligations to the business needs, thereby
subordinating the family to the business, a difficult
position for most women, especially those with
children. If her husband does not provide
encouragement and understanding when the
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9. business demands long hours in exchange for
minimal returns (and, often, high stress), the
woman is unlikely to continue her business.
Business Consultant Anne Fisher, writing for
Fortune, believes that many women aspire to top
management positions, even though “they know
too much about the rigors of the journey” (Fisher,
1992). However, the women in this study, all of
whom had worked full-time before launching their
own business, expressed surprise at the time
commitment and financial variability of their
businesses. Many women entrepreneurs have
unrealistic expectations, starting businesses in
volatile service or retailing industries and with
insufficient financial and managerial training.
When the flexibility and profitability that women
desire from independent business ownership are
not forthcoming, the conflict between work and
family obligations is exacerbated. For those in
marriages and/or partnerships, this became a
source of conflict which some couples could not
resolve.
Conclusions: a convergence of change
Most men and women entrepreneurs have work
experience before they start their own businesses.
Many entrepreneurs have family members who
served as role models or mentors (Brush, 1992;
Orhan and Scott, 2001). Both men and women
entrepreneurs desire autonomy and control. They
believe that their own business will provide income
and personal satisfaction. Women, more than men,
start their own business to “make a social
contribution in addition to pursuing economic
motives (Still and Timms, 2000, p. 3) or to fulfill
their own or their spouse’s dreams.
Like their corporate executive sisters, most of
the women interviewed for this study found
business ownership was not compatible with
raising a family. Some of the women in this study
expected the business to facilitate their childcare
responsibilities. Several women were childless by
choice; others intended to postpone children until
the business became successful. In some cases, the
business demands circumvented earlier plans for a
family. Increasingly, small and large organizations
alike expect “24/7” availability, resulting in higher
stress than productivity, and an increasing demand
for stress management therapy (Daniels, 2002). In
large companies, this may be imposed from above
or by the (perceived) competition within the
company itself. For small companies, it becomes a
means for survival.
The relatedness of experience and business-
ownership choice should also not be overlooked.
Few women have the educational or experiential
foundation for starting their own business, despite
expertise or training in specialized fields.
Historically, most entrepreneurial women started
their careers in traditional female occupations, e.g.
secretary or teacher – non-business oriented
training grounds (Brush, 1992; Moore, 1990).
While for some women, managing adults may be
easier than caring for children all day long (Conlin,
2002), juggling the financial, operational, and
marketing tasks for a new venture proved to exceed
the expectations, let alone capabilities, of most
novice entrepreneurs. A typical comment from
women in this study was, “What was I thinking?”
Those women who began their businesses as a
partnership – whether as part of a spousal
arrangement or purely business initiative – found
that working as a team had its own pitfalls. For
many, the autonomy that they sought was
compromised by power struggles and ideological
disagreements. Rather than serving as a source of
support, most women in this study found
partnerships added stress. Division of
responsibilities and conflicting expectations were
most often cited as reasons for dissolving
partnerships. In some cases, the business conflicts
precipitated – or at least exacerbated – the
condition that led to an eventual divorce.
Where do we go from here?
For corporate and entrepreneurial women alike,
the competitive environment of business interferes
with family life. If gender roles influence career
choice, then we must be sensitive to the different
needs of men and women. The role of marriage
and family, while gaining popular-press attention
for its effect on women aspiring to higher corporate
positions, is inadequately addressed in the
entrepreneurship literature. For men, marital
status does not appear to affect their decision to
rise in the corporate ranks or begin their own
enterprise – fewer men than women in these
groups are single or divorced. For women, family
structure has a different impact on their ability to
focus on running a business, or on the perception
of their commitment to their business. The role of
the spouse in initiating and sustaining independent
businesses has been given little attention
(Marschak, 1998) and is virtually absent in large-
scale studies that examine career paths and
catalysts. Women in corporate ranks rely on intra-
organizational mentors for their advancement;
Entrepreneurship: not an easy path to top management for women
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10. spousal support is more important for women who
start their own businesses.
Policy-makers and educators who are interested
in increasing women in the executive ranks need to
understand the interaction between family and
career aspirations in order to properly guide those
who choose business leadership positions. Unless
we can put the business/family interface into
perspective, we cannot remove the barriers that
women encounter as they pursue their careers.
Unless we understand the nature of parental or
spousal support in new venture creation, we
cannot provide adequate support to independent
women. Finally, we need to understand and
address the factors that are critical for women to
succeed in independent businesses and to present
a more realistic picture of what starting a new
business entails.
Women often start their own business because
of the flexibility and control that is perceived to be
compatible with their role in child-rearing. If
women-owned businesses are initiated with
unrealistic expectations, in volatile service or
retailing industries, with insufficient financial and
managerial training, it is a wonder that any
succeed. But we can only provide a better system
of education and support if we understand the
critical variables that affect the business-creation
decision and the roles that family structure and
spousal support play as the business matures.
Prospective entrepreneurs may then come to
understand how different life-style decisions can
impede or facilitate new venture success.
The women interviewed for this study do not
constitute a representative sample of
entrepreneurs. Their stories need to be told in a
larger context. However, it is doubtful that these
stories are unique. Examining organizations in
different industries, different stages of growth and
profitability, and different organizational forms
would contribute to our understanding and
awareness of the need – and potential – for
change.
Women need to understand better the demands
of business ownership so that they can embark on
entrepreneurship with realistic expectation and
requisite skills, and acknowledge the support
systems that they will need if they are to succeed.
In addition to managerial and financial training,
women and men alike need to understand the
emotional and economic impact that starting a
business will have on the entrepreneur herself, her
spouse, family, children, and the overall family unit
as well as the organizational enterprise.
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