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Women are the majority owners of 30% (6.7 million) of all privately held firms in the US. The vast majority of these firms, however, are smaller than average with only 16% achieving annual revenues of more than $500,000. This suggests that women may have different expectations for the growth of their ventures than men. Using the US Panel Study of Entrepreneurial Dynamics dataset, this paper utilizes an expectancy theory perspective to propose differences in growth expectancies of nascent men and women entrepreneurs. Specifically, we conceptualize new venture creation as a process based on the effort–performance–outcome model of entrepreneurial expectancies and propose that differences in motivations towards growth may mediate those relationships. Our findings indicate that while men want to grow their new ventures to achieve financial success, for women, financial success is just one of many reasons to achieve growth. Implications are discussed. [ABSTRACT FROM AUTHOR]

• Women are the majority owners in 30% of all privately held firms in the United States. These firms have $2.5 trillion in revenues and employ 19.1 million individuals. However, despite the large number of women business owners, little is known about the motivations that women have for starting their own firms. • This study uses an expectancy theory framework to examine the differences in motivations to start a firm between men and women. We propose that nascent entrepreneurs expend effort toward the creation of a new venture because they believe this will lead to a set of desired outcomes. We further argue that the desired outcomes of new venture creation differ by sex. • Hypotheses are tested using data from the phone surveys of the Panel Study of Entrepreneurial Dynamics (n = 441). Our findings indicate that there are significant differences in motivations for starting a new business, with men being motivated by financial gains, self-realization, and autonomy, whereas for women status is an additional significant motivating factor. Our results confirm the explanatory power of expectancy theory in examining entrepreneurial start-up motivations. [ABSTRACT FROM AUTHOR]