Why Entrepreneurs Find It Hard to Scale Up
A bigger business requires more process and less innovation.
Why Entrepreneurs Find It Hard to Scale UpWomen make up half the US's population and account for more than a third of all privately owned businesses, but 90 percent of all venture capital goes to all-male-led teams of entrepreneurs. One explanation could be that venture capital is a male-dominated industry: about 83 percent of investment professionals are men. Another cause could be that both male and female investors view women entrepreneurs differently from men—asking them different questions, describing them differently to investment partners. Chicago Booth's Waverly Deutsch suggests that to help correct the imbalance, venture-capital firms should institute their own version of the NFL's Rooney Rule, which mandates that teams must interview at least one minority candidate for head-coaching vacancies. By interviewing more female entrepreneurs—and putting women on their investment teams to help coach them—VCs can help close the investment gender gap and improve their returns at the same time.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vestibulum blandit vel justo sed accumsan. Nunc et pharetra nulla, non rutrum orci. Nullam eu risus congue, vestibulum lectus sed, pulvinar metus. Pellentesque at mauris eget neque dignissim sollicitudin a eu metus. Quisque hendrerit diam magna, et ornare mi efficitur et. Aenean non pulvinar neque, id pellentesque urna. Sed vitae sagittis arcu. Nunc malesuada purus eu enim maximus, quis mattis enim ullamcorper.
A bigger business requires more process and less innovation.
Why Entrepreneurs Find It Hard to Scale UpGig opportunities give would-be entrepreneurs access to supplemental income, and an employment option to fall back on.
Does the Gig Economy Promote Entrepreneurship?Four insights from Chicago Booth’s Waverly Deutsch for entrepreneurs hoping to cultivate scalable success.
How to Start-UpYour Privacy
We want to demonstrate our commitment to your privacy. Please review Chicago Booth's privacy notice, which provides information explaining how and why we collect particular information when you visit our website.