BUSINESS BRIEFING
All the latest updates from across AMBA’s global network
Ambition ’s latest selection of news from the business school sector includes research on the use of technology to boost financial inclusion, the full extent of advertising’s ‘pink tax’ and why it might be better to use a chatbot when you have to say ‘no’. Compiled by Tim Banerjee Dhoul and Ellen Buchan
‘ATTRACTIVE’ FEMALE ENTREPRENEURS MORE LIKELY TO LAND INVESTMENT
SCHOOL : St Gallen COUNTRY : Switzerland
The study’s sample were shown a video pitch of a start-up idea presented by one of two female actors. The two women had the highest and lowest average scores among a pilot study of 67 male investors using a scale of attractiveness created for a 2014 paper led by Harvard Business School’s Alison Wood Brooks. Levels of the stress hormone cortisol were also found to be significantly higher among investors who watched the pitch presented by the female actor deemed more attractive. Previous research has shown that the release of cortisol leads to increased risk behaviour, which can manifest as a greater willingness to invest. “Only through a solid understanding of these processes can we ensure fair and equal corporate financing, regardless of external characteristics such as attractiveness. It is now up to the venture capital scene to become aware of this challenge and take appropriate measures to create a fairer and more balanced investment environment,” advised co-author Dietmar Grichnik. TBD
Female entrepreneurs have a better chance of securing finance if they are considered physically attractive, according to a study from the Global Centre for Entrepreneurship and Innovation at the University of St Gallen. In a world where more than 80 per cent of early-stage investors are male, the perceived attractiveness of a woman boosted the chances of their business idea receiving investment by 21 percentage points among a sample of 106 male investors in Switzerland and Germany. This goes against the prevailing narrative that the ‘halo effect’ of finding competence in those we consider attractive acts in reverse in the case of women in business. “In a management context, attractive women are more likely to be perceived as lacking competence,” explained lead author and postdoctoral researcher at St Gallen Robert Schreiber. “We were able to demonstrate that the halo effect is also effective for attractive women in the start-up sector. Contrary to our expectations, physical attractiveness had a positive effect.”
8 | Ambition |
JULY/AUGUST 2024
Made with FlippingBook - Share PDF online