Women's roles in society
9/5/17 at 02:07 PM 0 Comments

How Men and Women Evaluate Losses Differently in Business

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When talking about male and female differences, it is worth reminding us that it all is rooted back to nature, by justifying this fact with an initial creation of two different forms of human beings- man and a woman. As it is in other spheres of life the same goes for business as well: Men and women evaluate their strength, achievements, and losses differently in business.

Why? Because men and women have different psychology, a different way of thinking and as we are used to say “We come from two different planets”. The battle or comparison of genders has started many years ago and continues till now.

When it comes to managing businesses, men are generally more spontaneous when making decisions, while women tend to be more attentive and careful before opting for something in a business world.

In this article, we will try to shed a light on the ways and differences on how men and women act in stressful situations when it comes to losses in business and how they evaluate their losses differently in business.

Below are some of the key differences between male and female business thinking:

Women evaluate their losses beforehand; hence they take fewer risks as compared to men.

If we consider the fact that women are generally more careful when making decisions, then they are less inclined to take risks. Consequently, they will have fewer losses in business. Meanwhile, men are usually game lovers and tend to take more risks, which in its turn may bring losses in their business.

This aspect of men points out to the idea that male entrepreneurs do not measure their business losses as thoroughly as women do.

Men love changes, while women are more inclined to remain in a familiar setting.

In order to illustrate this aspect of gender difference, let’s consider two examples of male and female entrepreneurs:

A lady who owns a beauty salon is offered a new location for her salon. While the offer is really attractive, she rejects the deal because she already got used to the familiar location and because she thinks her clients would have difficulties switching from one location to another.

Another example from a male perspective: a man owns a car business. He already got a reputation for his office situated in one part of the city. A partner offers him a new location for his office that is on the other side of the city. He agrees, as he loves changes and considers it to be a good opportunity for the development of his company.

As a result, the man makes an unsuccessful deal because he loses his permanent clients. At the same time, the female owner of the beauty salon does not have losses, since she didn’t change the usual setting and the area of her salon. Eventually, it turned out that a woman’s love for the familiar saved her from losses in business, while the man’s business suffered because of his thirst for change.

However, it is essential to note: this is not a general rule that a man will have losses in business because of his love for change. If he is fortunate enough, it can also happen the other way around.

Men are less afraid of losses than women do.

This is based on men’s willingness to win a great prize, without taking into account the possibility of loss. On top of that, several studies have pointed out to the fact that men are greater risk takers as compared to women.

According to the research conducted by Nichole R. Lighthall and Mara Mather, in stressful situations women are less inclined to take risks, while men on the contrary, take more risks under stress. Consequently, women’s fear of loss is magnified under the influence of stress.

By taking into account the fact that women are more afraid to take risks, we can see that women are usually more into applying for a business insurance to secure their business from a crash. There is also another side of this aspect: the number of women working in the insurance industry has recently grown and is almost equal to the number of men working in the same industry.

Psychologically, men have more difficulties coping with business misfortunes as compared to women.

This can be reasoned by the fact that intrinsically men consider their jobs as their priorities. Consequently, any type of bad luck in work may seem as a strike to their self-identity, which can be evaluated by men as a loss of their motivation. Women on the other hand look at such misfortunes as a chance to find their true inner nature and a possibility to invest more time into family and what they really love doing.

Does it follow that women are wiser than men? Of course not, it simply shows the differences between male and female brain work and priorities.

Another psychological trait or difference in male and female brain work prompts us that “Women pay more attention to details, while men focus on the Big picture”.

From the above-mentioned statement, it follows that men are braver than women. Is it a real truth? Well! We’d love to believe in that!

Eventually, this article had no intention to stress the competition between genders, but rather to point out at some of the key differences with regards to male and female thinking in relation to business losses.

After all “This is a men’s world! But it would be nothing without a woman or a girl”. So, let’s not forget our true predestination of being two opposite sexes that should rather complete each other instead of competing with each other. This is a genuine way to live a harmonious fulfilling life.

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