Die approbierte Originalversion dieser Diplom-/ Masterarbeit ist in der Hauptbibliothek der Tech- nischen Universität Wien aufgestellt und zugänglich. http://www.ub.tuwien.ac.at The approved original version of this diploma or master thesis is available at the main library of the Vienna University of Technology. http://www.ub.tuwien.ac.at/eng Professional MBA Entrepreneurship & Innovation The Brotopian Cycle: Gender Inequality in Tech Startups A Master’s Thesis submitted for the degree of “Master in Business Administration” supervised by Univ. Prof. Dr. Sabine Köszegi submitted by WonJung (Kaitlyn) Chang Immatriculation Number: h1165354 Vienna, August 2018 I Affidavit I, WonJung (Kaitlyn) Chang, hereby declare 1. that I am the sole author of the present Master’s Thesis, "The Brotopian Cycle: Gender Inequality in Tech Startups", 119 pages, bound, and that I have not used any source or tool other than those referenced or any other illicit aid or tool, and 2. that I have not prior to this date submitted this Master’s Thesis as an examination paper in any form in Austria or abroad. Vienna, 31.08.2018 Signature II For my parents InAe WoonJu Kim and Sooman Chang, who raised me to be a strong, confident woman. III Abstract In the wake of the #MeToo era, gender equality has successfully gained a bigger space within public discourse around the world. However, tech startups, supposedly one of the most innovative industries to lead our future, are still heavily male-dominated, with a study in 2017 revealing a meager 17% female ratio in Silicon Valley startups that have less than 100 employees (Bradshaw & Kwong 2017). This research aims to understand the underlying reasons for the gross underrepresentation of women in the tech startup industry and find practical solutions to improve the status quo. In the first part of the study, based on literature review, the ‘Brotopian Cycle’ is proposed as a framework to understand the vicious cycle. From the macro societal level (Media and Education) to the individual startup level (Recruitment and Retention), the vicious cycle continuously reinforces and recreates gender stereotypes that involuntarily but systematically filter qualified women out of the industry. The second part of the study focuses on practical methods to improve gender inequality in tech startups during Recruitment and Retention phases. Findings from a combination of theoretical and practical research through literature review and qualitative interviews suggest that factors such as the lack of management and leadership experience common in young tech startups create, reinforce, and/or neglect gender issues in the startup workplace. The research provides actionable recommendations for startups to follow in order to actively break the vicious cycle and point to possible areas for further research. Keywords: Startups, Technology, Entrepreneurship, Gender, Women, Diversity IV Table of Contents Affidavit ........................................................................................................................ I Abstract ......................................................................................................................III Table of Contents ...................................................................................................... IV List of Figures ......................................................................................................... VIII List of Tables ............................................................................................................. IX List of Abbreviations .................................................................................................. X 1 Introduction ........................................................................................................12 1.1 Problem Formulation ..............................................................................12 1.2 Objective and Investigation Methods ......................................................15 2 Status Quo – Gender Inequality in Tech Startups ............................................15 2.1 Growth of the Industry & Increasing Hope for Gender Equality...............15 2.1.1 Growth of the Industry ............................................................................15 2.1.2 Decreasing Gaps in Tech Usage & Skills ...............................................17 2.1.3 Increased Awareness on the Advantages of Gender Diversity ...............17 2.2 Persisting Gender Inequality in Technology and Entrepreneurship ........19 2.2.1 Gender Inequality in Technology ............................................................19 2.2.2 Gender Inequality in Business & Entrepreneurship ................................20 2.3 Lack of Research Regarding Gender Inequality in Tech Startups ..........21 3 Theoretical Groundwork ....................................................................................22 3.1 Women and Technology ........................................................................22 3.2 Women and Entrepreneurship................................................................26 4 How did it happen? The Brotopian Cycle .........................................................28 4.1 Introduction ............................................................................................28 V 4.2 The Role of Media – How Stereotypes Get Shaped in the Society .........30 4.2.1 Infrequent Coverage of Women .............................................................30 4.2.2 Stereotypical Coverage of Women .........................................................33 4.3 The Role of Education – How Stereotypes are Internalized ....................34 4.3.1 Preschool & Primary Education ..............................................................34 4.3.2 Secondary School ..................................................................................36 4.3.3 Tertiary School .......................................................................................38 4.4 The Role of Recruitment – When Stereotypes Solidify into Barriers .......39 4.4.1 “Diversity at the Back Seat” ....................................................................39 4.4.2 Choice Homophily ..................................................................................41 4.4.3 Job Advertisements ................................................................................42 4.4.4 Interview & Hiring Processes..................................................................45 4.5 Retention – Persisting Influence of Stereotypes after Entry ....................47 4.5.1 Working Style – The 24/7 Hacker ...........................................................48 4.5.2 Working & Networking Culture – The Bro Club .......................................49 4.5.3 Feedback & Recognition – Small and Big Gender Discrimination ...........51 4.6 Summary ...............................................................................................53 5 What Can Startups Do to Break the Cycle? ......................................................55 5.1 Why Startups Should Care More ............................................................55 5.2 Recruitment ............................................................................................57 5.2.1 Diversity Awareness & Strategic Goal-Setting ........................................57 VI 5.2.2 Understanding Female Candidates ........................................................58 5.2.3 Optimizing Job Advertisements – Content and Channels .......................60 5.2.4 Interview and Hiring Processes ..............................................................64 5.2.5 PR & Communication .............................................................................66 5.3 Retention ...............................................................................................67 5.3.1 Culture Overhaul ....................................................................................67 5.3.2 Feedback & Recognition ........................................................................68 5.3.3 Working Culture .....................................................................................71 5.3.4 Mentoring & Training ..............................................................................72 5.3.5 Companywide Engagement ...................................................................73 6 Case Studies .......................................................................................................74 6.1 Method of Research ...............................................................................74 6.2 Interview Results ....................................................................................75 6.2.1 Motivations for Working in Startups ........................................................75 6.2.2 Common Challenges Faced Working in Startups ...................................77 6.2.3 Opinions Regarding Recruiting in Startups .............................................82 6.2.4 Opinions Regarding Retention in Startups..............................................85 6.2.5 Best Practice Cases ...............................................................................87 6.2.6 Summary of Interviews ...........................................................................90 7 Summary & Conclusions ...................................................................................91 7.1 Summary ...............................................................................................91