New research from Bayes Business School finds that women entrepreneurs who take a scientific approach to decision-making are better at finding new uses and markets for their products or services. This makes their ventures more likely to succeed.
Many entrepreneurs—especially beginners—design their business ideas for audiences they know well, often people like themselves. These “user entrepreneurs” use their personal experience to solve problems they understand, like a parent creating a product to help with child-rearing.
Over confidence
This deep understanding of the target market can be a strength, but it also creates risks. Entrepreneurs can become stuck in their assumptions, missing better ways to adapt their ideas or overlooking broader audiences who might value their product.
The study looked at the effects of training in scientific decision-making on women entrepreneurs, particularly those with business ideas aimed at women. The training taught them to clearly explain the reasoning behind their business ideas and test their assumptions with evidence.
The researchers studied 593 entrepreneurs in Italy and the UK and focused on 172 women whose ventures included services like coaching for women and women-focused travel platforms. Some participants received general business training, while others were also taught to apply evidence-based reasoning to refine their ideas.
What They Found
The results revealed three key patterns:
- Better adaptation: Women with women-focused ventures were more likely to make major changes—called “pivots”—to their business ideas or target customers after the training.
- Improved performance: Women who pivoted after the training were more successful in launching and sustaining their businesses than those who stuck with their original plans.
- Greater benefit for beginners: Entrepreneurs with less managerial experience gained the most from the training, compared to those with more experience.
The findings also applied beyond women. For instance, ethnic entrepreneurs designing products for their own communities showed similar benefits from the approach.
Why It Matters
This research shows how scientific decision-making can help entrepreneurs succeed. By learning to question their assumptions and test their ideas, entrepreneurs can avoid blind spots, discover new markets, and strengthen their business plans.
“User entrepreneurs know their audience well,” the researchers explained, “but testing and refining their ideas can reveal new opportunities they might otherwise miss.”
The study also highlights how targeted training can help underrepresented groups, like women entrepreneurs, overcome common hurdles. While earlier research has focused on improving how entrepreneurs pitch their ideas, this study shows that evidence-based decision-making can directly boost the value of their business ideas.
Programs like this could help policymakers and investors support entrepreneurs from diverse backgrounds, giving them better tools to succeed and grow.
