Failure or voluntary exit? Reassessing the female underperformance hypothesis

•We challenge the prevailing view that female-owned ventures fail at higher rates.•We do not equate exit with failure but examine different types of exit.•Females are more likely to exit voluntarily, mostly because of personal reasons.•Within-gender differences in exit patterns are shaped by family factors.•We test our hypotheses on a sample of 219 former Spanish entrepreneurs.

We reevaluate the female underperformance hypothesis by challenging the assumption that female-owned ventures are more likely to fail. Instead of equating exit with failure, we draw on exit literature and feminist theories to argue that female entrepreneurs are actually more likely than males to exit voluntarily. We argue for further gender differences by using an even more fine-grained conceptualization of entrepreneurial exit (failure, exit for personal reasons, and exit for other professional/financial opportunities). Post-hoc analyses also point to within-gender heterogeneity depending on family status. A sample probe of 219 Spanish entrepreneurs who had exited their business supports our overall reasoning.