Unintended Effects of University Ecosystems EDI Policies on Female Graduate Entrepreneurship

In this study, we assess gender disparities in graduate entrepreneurship, specifically examining the impact of equality charters in bridging the gap between graduates' gender and their propensity of starting a business. Equality charters have been adopted by universities across the globe since the early 2000s to advocate inclusive practices for staff and students. Originally, equality charters were implemented to encourage commitment to advancing the careers of women in science, technology, engineering, maths and medicine (STEMM) employment. However, in the last years the charter missions have expanded to address gender equality more broadly, and promote equitable pathways to successful employment for women, including female students belonging to the university ecosystem. By conceptualising the adoption of equality charters as a signal, we argue that in facilitating an equitable environment and mitigate negative social categorisation processes, charters can create a Halo effect thereby encouraging female students – who have historically been underrepresented in entrepreneurial activities – to engage in business start-ups.

 

Our analysis merges information from two iterations (2018-19 and 2019-20) of the UK Graduate Outcomes Survey which surveys the population of UK universities graduates nine months after their graduation, with data from the Athena Swan Charter – a framework aimed at advancing gender equality in higher education. Our results reveal that students from universities that have a greater experience with the Charter show a lower propensity to start a business upon their graduation. Although this trend is observed in both males and females, male graduates are found to have almost twice the propensity to start a business than female graduates. However, the gender disparity in the propensity to engage in business start-ups narrows as the experience of universities with the Charter increases. Further analysis indicates that a greater experience with the Charter is associated with a higher likelihood of students pursuing professional employment on fixed-term contracts, particularly for female graduates.

 

Overall, our study suggests a paradoxical "negative halo effect" of equality charters on entrepreneurship, highlighting a need for policymakers and university administrators to re-evaluate Charter implementation strategies to better promote entrepreneurship as a feasible career option for graduates.