Breaking the Exit Ceiling

Women ׳s Entrepreneurship, Managerial Leadership, and Public Policy in the Israeli Ecosystem

Abstract

This study examines how the gender composition of entrepreneurs and managers influence the likelihood of exit among Israeli high-tech start-ups. Against the backdrop of persistent gender gaps in entrepreneurship, access to finance, and women ׳s participation in decision-making roles, the study investigates whether the presence of women entrepreneurs and women managers alters the propensity of startups to undergo exits. The analysis draws on the IVC database and includes 3,743 technology start-ups operating in Israel over a period of 15 years. The findings indicate that the presence of women entrepreneurs is negatively associated with the likelihood of a firm undergoing an exit. However, the inclusion of women in managerial positions alters this pattern and increases the probability of exit. The study contributes to theory in that it underscores the role of entrepreneurial gender identity and organizational structure in shaping exit outcomes. For practitioners, the results highlight the need to increase women ׳s representation in managerial roles in technology startups and in tailoring regulatory incentives that promote women ׳s participation in strategic decision-making roles. Such steps could help reduce the gender gap and increase the potential for successful exits of Israeli start-ups.