Our study addresses the gender data gap in entrepreneurship research, particularly in risk propensity which is among the most researched motives for entrepreneurial activity (Åstebro, Herz, Nanda, & Weber, 2014; Kerr, Kerr, & Xu, 2018). We analyze a large, multi-wave online experiment from the Netherlands, using survey and choice-based measures to compare risk propensities among male and female entrepreneurs and employees. Our findings reveal that female entrepreneurs are more risk-tolerant than female employees, a trait also observed in owners of early-stage businesses. This suggests risk tolerance influences women’s decision to pursue entrepreneurship. While women employees generally exhibit lower risk-taking than men, this gender gap in risk propensity is not significant among entrepreneurs, especially those with incorporated businesses. Our results support the theory that higher risk tolerance is crucial for entrepreneurship and indicate that gender differences in risk-taking may contribute to the entrepreneurship gender gap. Therefore, policies reducing the perceived riskiness of entrepreneurial activities could significantly encourage women’s entrepreneurship, benefiting business owners of all genders.
