Understanding Women's Investment on the Icelandic Economy

Influencing Factors, Barriers, and Motivators

Abstract

The objective of this article is to explore the factors that influence investment behavior of women in the Icelandic business sector, with a particular focus on barriers and motivating factors. The analysis is based on a survey conducted among 316 women from the Association of Women Business Leaders in Iceland (FKA), most of whom hold executive or leadership positions, own their own businesses, or possess substantial professional experience. Surveying this group of women has the potential to give insights into barriers facing even educated women with access to information and resources to invest. To the best of the authors’ knowledge, this is the first study of its kind in Iceland to specifically examine the investment behavior of women with influence in the business sector. The research questions are: What factors influence the investment decisions of businesswomen in Iceland? And, what barriers hinder their participation in financial markets? The findings reveal that the most reported barriers are lack of capital, limited financial knowledge, and risk aversion. Social and psychological factors—such as the absence of role models and a lower sense of confidence regarding investment decisions—also play a role. Younger businesswomen, and those with lower income or educational levels, are particularly likely to experience these obstacles. By contrast, women who received financial education in youth report significantly greater confidence when making investment decisions. The theoretical contribution lies in integrating an interdisciplinary framework, drawing on theories of financial literacy, risk perception, and socialization and applying it to original data from the Icelandic context. The practical contribution consists of policy-oriented recommendations to reduce the gender investment gap and enhance women’s economic independence.