Crowdfunding Success for Female Versus Male Entrepreneurs Depends on Whether a Consumer Versus Investor Decision Frame Is Salient

Abstract

Ensuring equal access to entrepreneurship and startup funding for both female and male entrepreneurs is crucial for societal perceptions of justice and long-term prosperity. Previous research presents contrasting findings, with some studies indicating a male advantage and others suggesting a female advantage. This research reconciles these inconsistencies by identifying the decision frame as a moderator. Specifically, in crowdfunding contexts, a consumer decision frame leads to stronger reliance on communal evaluation norms, resulting in favoring female entrepreneurs who are perceived as more disadvantaged. Conversely, an investor decision frame leads to stronger reliance on exchange evaluation norms, resulting in favoring male entrepreneurs who are perceived as more determined/passionate. Based on this, the authors propose that the strategic use of an entrepreneur's profile, activating a specific evaluation norm, and showing crowdfunding dependence attenuate the differential support for female versus male entrepreneurs, resulting in equal support for both. Results from six studies using a multimethod design provide converging support for this framework. This research is the first to differentiate between and directly compare consumer and investor decision frames, advancing the related literature and offering valuable guidelines for entrepreneurs, funding platforms, and public policy makers.