Are men really better entrepreneurs? The psychology of risk and business explored

Evolutionary psychology sheds light on why men are often perceived as greater risk-takers in business compared to women, and what this means for entrepreneurial success.

Dr Sarah Hill, an evolutionary social psychologist and author, shared insights on the topic in a recent episode of Diary of a CEO with Steven Bartlett.

Hill explained that human risk-taking behaviours are rooted in evolutionary history, where men's mating success often depended on their ability to acquire and control resources.

“For men, taking big risks historically meant the possibility of big rewards,” Hill stated.

“These rewards translated into greater access to mates and, potentially, more offspring. This shaped men's psychology to be more tolerant of risk compared to women.”

Women, on the other hand, evolved under different pressures.

Hill noted that "pregnancy, childcare, and the constraints of reproductive biology meant that women prioritised safety and stability."

A woman with access to ten partners would not have greater reproductive success than one with access to a single partner. Her biology places limits on reproductive output," Hill explained.

"This has made women more cautious, as risk-taking often carried severe consequences for survival.”

This disparity plays out in modern business. While men may initiate more businesses due to their risk-prone nature, this does not guarantee success. Research cited during the podcast highlighted that women-led businesses often outperform those led by men.

“Women tend to take calculated risks and have more realistic forecasts,” Hill said. Evidence from Shark Tank investor Kevin O’Leary also supports this, revealing that women-led companies in his portfolio consistently deliver better results.

Hill also pointed out that men’s “hubris” – an exaggerated optimism about their capabilities – can lead to overestimations. This overconfidence might attract resources and partners but does not always result in better business outcomes.

Hill concluded that understanding these evolutionary dynamics helps explain current trends in entrepreneurship and can inform how societies encourage both men and women in business  leadership roles.

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