Female entrepreneurship: how auditing creates opportunities

Female entrepreneurs contribute significantly to economic growth and social progress, but structural barriers hinder their success. Auditing can help here by creating financial transparency and ensuring an objective assessment of start-ups led by all entrepreneurs, regardless of gender.[i]

Start-ups are key players in addressing global challenges, whether in healthcare, the environment or the digital world. They respond quickly, innovate with agility and apply new technologies efficiently to tackle urgent problems such as a pandemic or the transition to renewable energy. As flexible entities free of rigid corporate structures, start-ups can pivot faster, take more risks and respond quicker. Women play an essential role in the creation of start-ups. According to the Global Entrepreneurship Monitor (GEM), around 274 million women in 72 economies started or led a business in 2023/24 alone.[ii] This is not a new finding: organisations such as the International Labour Organization (2020)[iii] and UN Women (2020)[iv] have long recognised the importance of women in the economic development process.

These figures are even more impressive when we consider the specific challenges women face when starting a business. Many of the barriers entrepreneurs come up against are rooted in the cultural values, norms and practices of their societies.[v] Take, for example, the characteristics often ascribed to successful start-up founders. Across cultures, descriptors such as ‘visionary’, ‘ambitious’ and ‘independent’ are often associated with these entrepreneurs. Studies have shown that such traits tend to be associated with men. Women, on the other hand, are more likely to be described as ‘collaborative’ and ‘compassionate’.[vi]

Cultural systems influence entrepreneurial success

These gender stereotypes, biases and expectations can have a significant impact on entrepreneurial success.[vii] Investors are more likely to fund entrepreneurs whom they believe have the qualities needed to make a start-up profitable. For women-led businesses, this often means receiving less capital than their male counterparts.[viii] The success of a start-up therefore depends not only on its idea, but also on the cultural system in which it operates. Cultural indicators such as a society’s beliefs, norms and values play a crucial role in the success or failure of a start-up.[ix]

In cooperation with the start-up fair VivaTech, Forvis Mazars published the study ‘What is their X-Factor?‘. Forvis Mazars experts analysed the profiles of more than 1,700 female founders who participated in the VivaTech Female Founder Challenge between 2021 and 2024. The aim of the study was to gain a better understanding of female-led start-ups and to dispel common prejudices and stereotypes. It found that factors such as leadership, timing and technology are less critical to start-up success than workforce diversity, particularly in terms of gender, age and social diversity (e.g. socioeconomic background).

Unfortunately, gender stereotypes often stand in the way of these positive effects. One such stereotype is the ‘dynamic founder’, a role that investors tend to trust more when filled by men than women. The same stereotypes affect leadership positions more broadly. Men are unconsciously ascribed masculine traits that are seen as necessary for leadership. Furthermore, they are associated with high-growth companies, while women are associated with low-growth companies.[x]

Perceptions of leadership competence: why does Howard appear more competent than Heidi?

Role congruity theory suggests that in many societies there is a discrepancy between common perceptions of leadership and expectations of the female gender role. These discrepancies can lead to discrimination, as women are often viewed less favourably as potential leaders and may be overlooked for leadership positions.[xi] A well-known example is the Heidi-Howard study, which illustrates how gender stereotypes influence perceptions of leaders. In the study, participants were presented with a case study of a successful entrepreneur. One group read the story with ‘Heidi’ as the female entrepreneur, while the other group read the story with ‘Howard’ as the male counterpart. Although Heidi and Howard exhibited identical behaviours, participants found Heidi less likeable and more self-serving, while Howard was perceived as competent and assertive.[xii]

The Heidi-Howard study highlights the challenges female entrepreneurs face in an already competitive environment. Its findings are particularly sobering when considering the real qualities that women bring to leadership. Research shows that women excel in certain global leadership competencies, such as intercultural empathy and diplomatic skills.[xiii] Women often have the very qualities needed to build strong teams and run a business successfully.[xiv] So why do these unjust perceptions persist?

Traditional gender roles still have an impact today

The answer lies in the historical development of traditional gender roles. Within families, these roles were often structured in a way that women were responsible for domestic and family tasks, while men supported the family economically by working in the labour market. These gender-role expectations have historically limited women’s access to income opportunities and continue to have an impact today. Many women entrepreneurs still rely on family support and look for female role models and other women entrepreneurs to support their ventures, for example by providing access to networks and resources.[xv] As well as facing financial disadvantages, women tend to have smaller professional networks than men.[xvi] Another key factor is the family’s educational background. A 2024 study by the Bertelsmann Foundation found that in Germany, for example, 85% of female entrepreneurs have a university degree, which is often the case for their parents as well: 53% of fathers and 38% of mothers have an academic background.

Cultural systems therefore have a significant impact on the conditions that influence the success of women entrepreneurs. Overcoming cultural barriers often requires considerable effort and can be a source of significant tension. Nevertheless, change is needed to empower women to break traditional gender norms and start their own businesses. Government programmes that specifically target female entrepreneurship can make a difference here. Research also shows that the more visible women are in leadership roles or as entrepreneurs, the more these images and processes become institutionalised and familiar.[xvii]

Audit objectivity creates equal opportunities

Auditors also play a role in this change. Their reports are fundamentally based on objectivity. Gender stereotypes and assumptions about the supposed dynamic qualities of male CEOs lose relevance when auditors focus on the numbers. Auditors assess the legal compliance of financial statements, and investors base their decisions on these auditor-approved reports. More objectivity in investment decisions means fewer decisions based on cultural assumptions.

Research shows that audit firms can help reduce gender bias in investment and corporate-finance decisions. Auditors assess a company’s actual performance, independent of stereotypes. For start-ups, this means the work done by auditors helps to present the financial and organisational success of women-led start-ups in a clear and transparent way. This builds confidence among investors and stakeholders and helps to ensure that female-led start-ups receive sufficient capital. The success of these start-ups should, in turn, help to increase the representation of women in senior positions, leading to more female founders driving innovation through their businesses.

An additional positive impetus for women in leadership may emerge from the growing importance of sustainability reporting. With regard to social and environmental issues, cultural associations and attribution patterns tend to favour women. Objective audits, increased focus on issues related to female leadership, and government programmes to promote female leadership are all critical components in breaking down barriers for women in business and society. Over time, these changes could help to embed the image of women in leadership roles in the fabric of social and economic culture.

EU start-up strategy: diversity drives success

Start-ups will continue to be a driving force for innovation and economic progress in the years to come. This view is shared at European level. The European Union plans to appoint a female commissioner for start-ups in the coming legislative period. This comes in response to a call by Mario Draghi, former Italian Prime Minister and former President of the European Central Bank. In his report on the future competitiveness of the European Union, Draghi highlighted innovation and the creation of start-ups as key factors for the EU’s future economic development.

A key criterion for the success of this start-up and innovation strategy will be diversity. Diversity fosters new perspectives and approaches, which are essential for the sustainable development of start-ups. A corporate culture that values and integrates diversity in all its forms not only breaks down barriers for women, but also unlocks innovation potential. More equal opportunities benefit not only women, but society as a whole.


[i] Kanze, D., Huang, L., Conley, M. A., & Higgins, E. T. (2018). We ask men to win and women not to lose: Closing the gender gap in startup funding. Academy of Management Journal, 61(2), 586–614.

[ii] GEM Global Entrepreneurship Monitor (gemconsortium.org)

[iii] Gender equality | International Labour Organization (ilo.org)

[iv] UN Women: The United Nations Entity for Gender Equality and the Empowerment of Women – Office of the Secretary-General’s Envoy on Youth

[v] Bullough, A., Guelich, U., Manolova, T., & Schjoedt, L. (2021). Women’s entrepreneurship and culture: Gender role expectations and identities, societal culture, and the entrepreneurial environment. Small Business Economics, 58(5), 985–996.

[vi] Ferriman, K., Lubinski, D., & Benbow, C. P. (2009). Work preferences, life values, and personal views of top math/science graduate students and the profoundly gifted: Developmental changes and gender differences during emerging adulthood and parenthood. Journal of Personality and Social Psychology, 97(3), 517.

[vii] Fu, P. P., Kennedy, J., Tata, J., Yukl, G., Bond, M. H., Peng, T.-K., et al. (2004). The impact of societal cultural values and individual social beliefs on the perceived effectiveness of managerial influence strategies: A meso approach. Journal of International Business Studies, 35(4), 284–305.

[viii] Gupta, V. K., Wieland, A. M., & Turban, D. B. (2019). Gender characterizations in entrepreneurship: A multi-level investigation of sex-role stereotypes about high-growth, commercial, and social entrepreneurs. Journal of Small Business Management, 57(1), 131–153.

[ix] Anambane, G., & Adom, K. (2018). Assessing the role of culture in female entrepreneurship in contemporary Sub-Saharan society: Insights from Nabadam district of Ghana. Journal of Developmental Entrepreneurship, 23(3).

[x] Eagly, A. H., & Mitchell, A. (2004). Social role theory of sex differences and similarities: Implications for the sociopolitical attitudes of women and men. In M. A. Paludi (Ed.), Praeger guide to the psychology of gender. Praeger.

[xi] Eagly, A. H., & Karau, S. J. (2002). Role congruity theory of prejudice toward female leaders. Psychological Review, 109(3), 573–598.

[xii] Heidi Roizen – Case – Faculty & Research. Harvard Business School. https://www.hbs.edu

[xiii] Javidan, M., Bullough, A., & Dibble, R. (2016). Mind the gap: Gender differences in global leadership self-efficacies. Academy of Management Perspectives, 30(1), 59–73.

[xiv] Vecchio, R. P. (2002). Leadership and gender advantage. The Leadership Quarterly, 13(6), 643–671.

[xv] Bullough A., Guelich U., Manolova T., Schjoedt L. (2021). Women’s entrepreneurship and culture: gender role expectations and identities, societal culture, and the entrepreneurial environment. Small Business Economics 58(5), 985-996.

[xvi] Kalafatoglu, T., & Mendoza, X. (2017). The impact of gender and culture on networking and venture creation. Cross Cultural & Strategic Management, 24(2), 332–349.

[xvii] Lucas, J. W. (2003). Status processes and the institutionalization of women as leaders. American Sociological Review, 68(3), 464–480.