By claiming workplaces need to “man up”, Meta CEO Mark Zuckerberg is ignoring one of the biggest untapped opportunities for economic growth – women entrepreneurs.

A 2024 study found promoting female entrepreneurship can greatly enhance women’s workforce participation and drive significant economic growth. And in 2015, the McKinsey Global Institute found advancing women’s workforce equality could add US$12 trillion to global growth.

Yet, women remain significantly underrepresented as startup founders, particularly in high-growth industries.

According to Startup Genome, which analyses global startup ecosystems, just 26% of founders in New Zealand are women (still one of the higher rates globally). But only about 4% of Australia’s venture capital investment goes to startups founded solely by women, and about 7% in New Zealand.

Encouraging women to develop entrepreneurial mindsets could help address both countries’ stagnating productivity. So what stops women from pursuing this path?

Our latest research explores why fewer women undergraduate students at the University of Auckland pursue entrepreneurship and how universities can help close the gap.

Lagging behind

We used data from the 2021 Global University Entrepreneurial Spirit Students’ Survey (GUESSS) of more than 267,000 students in 57 countries to assess the gender gap. Among them, 1,050 were undergraduate students from the University of Auckland.

During the early stages of their undergraduate degrees, male and female students at the university showed similar interest in founding a business at the beginning of their careers – 8% versus 6%. However, both genders significantly lagged behind the 21% and 15% global averages.

Asked about what they hope to be doing five years later, 28% of men and 18% of women at the University of Auckland said they wished to run their own business. While interest in entrepreneurship increases, the gender gap widens. And both genders still lagged the global averages of 37% for men and 30% for women.

While university experience influences career ambitions, external factors after graduation can also discourage women from entrepreneurship.

Societal expectations, industry norms, and lack of access to funding all play a role. Confidence is also a factor. In the survey, women reported lower confidence in their ability to start a business.

The link between STEM and entrepreneurship

The subjects students choose to study also shape their exposure to entrepreneurship.

Women at the University of Auckland are underrepresented in STEM (science, technology, engineering and mathematics) and business disciplines.

This matters because these fields of study are associated with higher interest in business formation. Students in business and STEM programmes are more likely to encounter entrepreneurial concepts, role models and develop relevant industry networks.

Without efforts to introduce entrepreneurship into a broader range of disciplines, many women may miss out on these vital opportunities and networks.

Closing the gender gap

Female participation in the University of Auckland’s Centre for Innovation and Entrepreneurship (CIE) programmes has increased from 23% in 2015 to 44% in 2024. Last year, two of the centre’s alumni were named Cartier Women’s Initiative Fellows.

Yet our research shows women still enrol in entrepreneurship courses and extracurricular activities less often than men. These experiences matter. Women who engage in them are more likely to see themselves as future entrepreneurs.

To close the gap, universities must embed entrepreneurship across disciplines. In addition to STEM and business students, those in health, law and social sciences can also benefit from early exposure to entrepreneurial thinking. Tailored programs that show how entrepreneurship applies in these fields can make a difference.

Role models and mentorship are also essential. Women students need to see successful female entrepreneurs to believe they can follow the same path. Universities should actively recruit women founders as speakers, mentors, and industry partners.

Hands-on experience is a game-changer. Universities must ensure their startup incubators, pitch competitions and funding programs are accessible to female students. Special funding streams for women-led ventures can help level the playing field.

Finally, the way entrepreneurship is framed matters.

Many women are drawn to careers that create social impact. Universities should highlight how startups can drive change in sustainability, healthcare and community development. A broader definition of entrepreneurship will make it more appealing.

By integrating entrepreneurship into all disciplines, increasing the visibility of female founders, and fostering inclusive networks, universities can help break down the barriers that hold women back.

If universities take action now, they can unlock untapped potential and drive future economic and social impact.