(Press-News.org) When startups scale quickly, founders often make hurried hiring decisions that unintentionally disadvantage women, according to new study from the Stockholm School of Economics in Sweden. The study shows how the pressures of rapid growth increase the likelihood that founders rely on mental shortcuts and make biased decisions.
Drawing on large‑scale Swedish data, the study shows that scaling—when companies hire far more people than their usual growth trend would predict—puts pressure on founders to decide swiftly, which increases the use of mental shortcuts. These shortcuts can activate gender stereotypes, shaping who gets hired and who moves into managerial roles.
“During those moments of rapid growth, even well‑intentioned leaders can fall back on familiar stereotypes when assessing who they believe is best suited for the role,” says Mohamed Genedy, co-author and Postdoctoral Fellow at the House of Innovation, Stockholm School of Economics.
Reduced odds of hiring female managers
His research analyzes more than 31,000 new ventures founded in Sweden between 2004 and 2018. It finds that in male‑led startups, scaling reduces the odds of hiring a woman by about 18 percent, and the odds of appointing a woman to a managerial position by 22 percent.
These patterns emerge even in a highly gender‑equal national context, making the findings especially noteworthy.
Crucially, the study reveals that founders with HR‑related education counteract these challenges. In ventures led by founders with HR training, the odds of hiring a woman increase by more than 30 percent, and the odds of appointing a woman to a managerial role increase by 14 percent for the same level of scaling.
“When founders have experience with structured hiring practices, the gender gaps shrink, and in some cases even reverse,” Genedy says.
“This shows that getting the basics of HR right early on really pays off. When things start moving fast, founders with HR knowledge are less likely to rely on biased instincts and more likely to hire from a broader talent pool.”
Prior experience in companies with established HR practices also helps, though less so. It raises the likelihood of hiring women as the new ventures scale, but does not significantly affect managerial appointments.
Differences persist in female-led ventures
The study additionally shows that these patterns are not driven by founder gender alone. Even solo female‑led ventures display similar tendencies when scaling, though to a somewhat lesser degree.
And in female‑dominated industries, scaling increases the hiring of women for regular roles but still reduces the likelihood that women are appointed into managerial positions.
“When scaling accelerates, cognitive bias kicks in for everyone,” says Mohamed Genedy. “Female founders are not immune to these patterns.”
Together, these results point to underlying cognitive mechanisms that shape decisions under time pressure.
The study was funded with support from Jan Wallanders and Tom Hedelius Stiftelse, Tore Browaldhs Stiftelse and the Kamprad Family Foundation for Entrepreneurship, Research and Charity.
Publication
Genedy, M. (2026). Scaling with Bias? The role of founders’ HR knowledge and experience in hiring and managerial appointments. Human Resource Management
About the Stockholm School of Economics
The Stockholm School of Economics is rated as a top business school in the Nordic and Baltic countries and enjoys a strong international reputation. World-class research forms the foundation of our educational offering, which includes bachelor, master, PhD, MBA, and Executive Education programs. Our programs are developed in close cooperation with the business and research communities, providing graduates substantial potential to attain leading positions in companies and other organizations.
The School is accredited by EQUIS, certifying that all of its principal activities – teaching as well as research – maintain the highest international standards. The Stockholm School of Economics is also the only Swedish member institution of CEMS and PIM, which are collaborations between top business schools worldwide, contributing to the level of quality for which our school is known.
END
Large study shows scaling startups risk increasing gender gaps
2026-02-05
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