How Sexual Harassment Undermines Startups—and How to Fight Back
Sexual harassment in startups is not simply an issue of isolated bad behavior; it stems from systemic patterns in entrepreneurial ecosystems where power is concentrated in the hands of a few. In our article, “Sexual Harassment by Multiple Stakeholders in Entrepreneurship: The Case of Japan,” published in the Journal of Business Venturing Insights, we show that such misconduct severely limits the potential of many promising ventures, especially when it targets founders who are more vulnerable. Our study is not only valuable for researchers and entrepreneurs, but also for investors, mentors, accelerator program managers, corporate venture arms, and policymakers tasked with fostering innovation. If you are seeking practical strategies to prevent exploitation in entrepreneurial environments, or wish to understand how cultural norms intersect with business practice, our paper offers in-depth analysis and actionable steps toward safer, more equitable ecosystems.
Where the Problem Begins
We surveyed 197 participants, including over one hundred female entrepreneurs, and conducted detailed interviews to uncover how deeply harassment is embedded in entrepreneurial environments. More than half of the female entrepreneurs reported experiencing sexual harassment in the past year. The problem often flares up not only in formal settings such as pitch events and business meetings, but also in more informal contexts like dinners or casual gatherings, where investors, mentors, or accelerator staff hold substantial control over funding and professional networks. Consequently, harassment can occur in both formal and informal environments. With few formal protective channels and insufficient legal coverage for entrepreneurs, many of them find themselves forced to tolerate offensive comments or pressured to exchange sexual favors for business advantages. Silence often seems like the safest choice, especially when speaking up risks lost deals or damaged reputations.
Why This Matters for Startup Success
When talented founders either endure harassment or leave the field to preserve their dignity, society loses out on innovation and economic growth. Our findings underscore that fear of retaliation discourages many victims from seeking help, while inadequate laws leave independent entrepreneurs outside typical employment protections. As a result, some entrepreneurs may hesitate to join incubators or pitch competitions, and others abandon promising ideas altogether. Such long-term implications deepen existing gender gaps, undermining diversity and resilience in business ecosystems.
How to Create Meaningful Change
Based on our research, we argue that transforming startup culture requires both cultural and institutional reforms. Independent third-party reporting systems should be established so that victims can come forward without fear of immediate backlash. Policymakers and industry leaders can strengthen legal recourse by widening harassment laws to include entrepreneurs, and by mandating clear, enforceable policies within investment firms and accelerators. Change also hinges on visible consequences for perpetrators, combined with positive media coverage of women and other underrepresented founders. By normalizing safe, respectful environments, the entrepreneurial world can retain and empower those who bring creativity and growth to the economy.
Our study shows that sexual harassment in startups is a systemic crisis requiring bold action. Anyone who wants to unlock the full potential of entrepreneurship—founders, investors, mentors, support organizations, policymakers, or curious readers—will find in our paper a detailed exploration of how toxic norms form and how they can be dismantled. Let’s build fair entrepreneurial ecosystems where every person, every voice and every ambition is valued, shaping our future.
Read the full paper here to find out more: https://www.sciencedirect.com/science/article/pii/S2352673425000046
Author bio
Takanori Kashino is the founder of Eirene Management School. His research examines how the interplay of formal and informal institutions—such as social norms and laws—shapes entrepreneurs’ decision-making and venture performance. In particular, he investigates the factors that either facilitate or hinder entrepreneurial outcomes under these institutional combinations.