Military veterans to pitch their startups to investors at annual event

On March 13-14, Rice Business is hosting its 11th annual Veterans Business Battle — a forum for veterans to connect with investors, advisers and resources. Each year, the event gives military veterans an opportunity to pitch business ideas for a chance to raise capital.

This year, the Veterans Business Battle is working with the Houston Regional Veterans Chamber of Commerce to increase the event’s impact by inviting Houston-based, veteran-owned businesses to participate in two days’ worth of education, networking and showcasing their business as part of a small business expo.

The Veterans Business Battle began in 2015 with a goal of inspiring and encouraging our nation’s military heroes to become successful entrepreneurs. During the competition, finalists pitch investors, receive feedback from industry professionals, network with potential investors and learn from other entrepreneurial success stories. With more than $5 million in investments, it’s the largest veteran business competition in the country.

What: Veterans Business Battle
When: March 13-14. Agenda can be found here.
Where: Rice University’s McNair Hall

For millions of gig workers, a customer rating isn’t just feedback — it can determine access to more work, better pay and financial stability. 

A new study published in Nature uncovers a hidden problem — racial bias in customer evaluations — which led to a 9% income gap between white and non-white gig workers in a home services platform. The study also proposes an unexpected but simple solution: changing how customers rate workers from a five-star to a thumbs-up/thumbs-down system. 

Analyzing 100,759 completed jobs and 69,971 customer ratings from an online home services platform in the United States and Canada, the researchers found that racial minorities received lower ratings than white workers. (The study does not disclose the real name of the platform for confidentiality reasons.)

This small but consistent bias had big financial consequences: Minority workers earned just 91 cents for every dollar their white counterparts made.

But when the platform made one simple change — switching from a traditional five-star rating system to a binary thumbs-up/thumbs-down scale — the racial gap disappeared.

“The numbers don’t lie,” says Sora Jun, study co-author and assistant professor of organizational behavior at Rice Business. “We saw evidence that subtle racial bias was creeping into five-star ratings, quietly chipping away at non-white workers’ earnings. When the rating system was changed, the earning gap was gone.”

The power of dichotomization

Customer ratings influence earnings on many gig platforms. A tenth of a point or even less can push workers into lower income brackets, reducing their pay for identical work done by those rated just above them. 

This study reveals that five-star rating systems create space for subtle discrimination, where customers score minority workers slightly lower with a 0.07-star difference (4.72 vs. 4.79). 

While this gap may seem small, it had significant financial consequences. For example, if a gig worker earns $40,000 a year, a 9% pay gap means they are taking home $3,600 less annually — purely due to biased ratings. 

Multiply this across an entire workforce, and the financial impact is staggering. According to the World Bank, an estimated 154 million to 435 million people worldwide are working gig jobs online, up to 12% of the global workforce. 

The research team tested their hypothesis in multiple ways. They began by analyzing real-world data from a platform that changed its rating system abruptly without informing users of the switch. Before the change, white workers were 3.9% more likely to receive a perfect five-star rating compared to non-white workers. But after the introduction of the thumbs-up/thumbs-down system, this gap vanished.

The researchers also ran controlled experiments, where participants were asked to rate identical work by either white or non-white workers using different rating scales. 

The results were clear: Racial bias was more pronounced in the five-star system and significantly reduced in the binary system. White and non-white workers received positive ratings at nearly identical rates (95.9% versus 95.4%) in the binary system. 

“Five-star ratings can feel objective, but they’re anything but,” Jun said. “They may give customers too much room to let their biases slip in. When we force people to make a yes-or-no decision, they focus on performance, not personal perceptions.”

The bigger picture

Bias in ratings is not just a problem for one company — ratings are used across the gig economy, which spans transportation (Uber, Lyft), delivery services (DoorDash, Instacart) and freelance work (Upwork, Fiverr). 

Many platforms rely on customer ratings to allocate opportunities, promotions and even account suspensions. If ratings are biased, so are the economic outcomes.

The findings suggest that platforms can meaningfully reduce racial inequities with a relatively simple intervention. While diversity training and antibias policies are common in corporate hiring, they’re impractical for gig economy customers, who aren’t employees and can’t be required to follow training or bias guidelines. 

Changing the way ratings are structured, however, is a simple and scalable fix.

One potential concern is whether switching to a thumbs-up/thumbs-down system removes valuable detail from customer ratings. The researchers acknowledge that binary ratings provide less nuance than a five-star system, but they argue this loss of detail is largely irrelevant. 

In practice, most customers inflate ratings with 85% already giving five stars, meaning the extra precision of a five-star scale is more illusion than reality. The researchers say platforms should ask themselves: Do we care more about fairness or fake precision? For now, the status quo is costing real people real money.

“If we’re serious about tackling bias, we can’t just rely on people to be more self-aware,” Jun says. “We need structural fixes. And sometimes, the smallest tweaks — like changing how we rate workers — can make a big impact.”

This article first appeared in Rice Business Wisdom. See Botelho, Jun, Humes and DeCelles, “Scale dichotomization reduces customer racial discrimination and income inequality” in Nature (2025): https://doi.org/10.1038/s41586-025-08599-7.

On Feb. 28, Rice Business hosted the 25th annual Women in Leadership Conference, a beacon of inspiration in the Houston community empowering women to accomplish their career and personal goals. In panel discussions and interactive workshops, attendees heard from leaders across different industries, explored various approaches to leadership and discussed future opportunities for success.

Organized by a committee of Rice MBA students, the conference provides current and future women business leaders with a unique forum to exchange ideas and thought leadership. From topics such as understanding the legal landscape, handling strategic risk-taking, harnessing mentorship and negotiating, the panels include women leaders sharing their experiences and best practices.

“I think I loved negotiation the most,” one of the attendees said. “For all women: Don’t undersell yourself. Believe in yourself. Have confidence. Do the research. Educate yourself in the roles that you’re applying for. Prepare yourself and go for it.”
 

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“My actual workplace is probably just around 10% women or so, and it can be really challenging,” another attendee said. “Many speakers have addressed that today — how to face different environments, how to be taken seriously when you’re in the minority, all of that. I think it’s very interesting, and all the topics have been very applicable to what I experience day to day.”

The executive committee for the annual conference includes MBA students from numerous programs at Rice Business, including the full-time MBA, executive MBA, professional MBA and online MBA. Each MBA program is tailored to meet the diverse needs of the students seeking business education.

Rice Business also has the newly launched Executive Leadership for Women program, whose advisory board includes the student president of the Women in Leadership Conference. The program is designed for women leaders, allies and mentees who aspire to accelerate their careers and help others.

Learn more about this year’s event and past Women in Leadership Conferences here.

This International Women’s Day, Rice Business is proud to celebrate the women who are shaping industries, opening new doors and redefining what’s possible in business and beyond. 

Expanding Opportunities, Innovating Businesses

Our school is committed to accelerating action and elevating women leaders through its organizations, faculty research, conferences and other year-round events. 

As Prof. Daan van Knippenberg, co-author of a recent commentary on gender-inclusive leadership in business schools, notes: “True gender-inclusive leadership requires rethinking not just who holds power, but how power itself is exercised. When we elevate diverse perspectives and create systems that value collective decision-making, we build stronger, more innovative organizations. This shift isn't just about equity — it’s about better business.”

From Campus to Career: A Supportive Network 

On Rice campus, the student-led Rice Business Women’s Organization is passionate about opening doors and empowering students across our MBA programs by connecting them with successful business leaders, mentors, professional development programs and career opportunities. 

Our efforts extend to the student-run Women in Leadership Conference (WILC), an annual event that welcomes attendees from all walks of life. The consistently sold-out conference serves as a platform for women to share their experiences, setbacks and successes with others in the Greater Houston area.

25 Years of WILC: Elevating Voices 

This year’s 25th Women in Leadership Conference, held on Feb. 28, welcomed nearly 600 attendees and featured uplifting keynotes from Marie Myers and Kathryne Reeves. The day included discussions on important topics applicable to all participants regardless of background or gender — from analyzing the Texas legal landscape and elevating your personal brand to strategizing assertiveness and charting new paths as a women-led venture. Throughout the conference, we asked attendees to share their thoughts on leadership, career growth and the impact of events like WILC. Here’s what they had to say:

What motivated you to attend WILC, and what do you hope to gain from it? 

Sofia Romero, industrial planning analyst at Tenaris: 

"I recently began my career in leadership, and I wanted to enrich myself with the stories of all the strong women that are here today — especially those who have navigated so many challenges and established themselves as leaders.

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Emily Brown, ’25, WILC president: 

"When I began my career in engineering, I was often one of just two women in the room — or maybe even the only woman in the room. I quickly realized how important it would be to surround myself with a group of women that offered support and encouragement, and I’ve since found that at WILC."

What’s one of your key takeaways from WILC?

Sara Cardenas, accounting analyst at Vopak:

“So far, my favorite workshop has been the one on negotiation. The speakers reminded us: don’t undersell yourself. Believe in yourself. Do the research. Educate yourself in the roles that you're applying for, and go for it.”

Ivory Ibuaka, ’27: 

“One of today’s keynotes, Marie Myers, addressed something that my current manager, Ashley, has always reminded me: ‘Always remain focused, and try not to shy away from asking the questions that come to mind.’ As a young woman at large corporations, I’ve always been scared to ask questions out of fear that I’ll seem unprepared or unqualified. But it really is important to ask those questions to create visibility for yourself, educate yourself and show your curiosity. Being engaged is always a good thing.”

Who is a female mentor that has impacted your career? 

Dildora A. ’23, senior product manager at HP: 

“My mentor, Suzy, is very inspiring. She leads with her heart, and she’s true to her values — that's what I respect about her the most. We are both constantly learning from each other, and it’s a beautiful relationship.”

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Sarah Aldin, ’25, WILC Operations Chair: 

“My manager during my first internship, Mai Abu Kaff, believed in me. She gave me real responsibility at a young age, trusted me to figure things out and taught me so many foundational business skills. The way she supported me and pushed me to do more has had a lasting impact on how I work and lead today.”

Are there any other women you’d like to give a shoutout to? 

Emily Brown:

“My sister has always been my role model. She’s autistic, and growing up with her has taught me so much — from learning to enjoy the little things in life to leading with empathy. I’ve learned so much from her, and I’m grateful for the perspective she has given me.”

Sara Cardenas: 

“All the women. The women in the workforce, the women at home. We’re one big support system, and I’m so grateful for every woman in my life.”

Shaping the Future, Together 

As a testament to our mission, this year’s sold-out Women in Leadership Conference showcased the resilience and ambition of our Rice Business community — and sparked important conversations that will continue to empower women in the years to come.

Explore Women At Rice Business

Based on research by Bruce Carlin (Rice Business), Arna Olaffson (Copenhagen Business School) and Michaela Pagel (Washington University)

Key findings: 

• Within 24 months of an Icelandic banking app’s release, user NSF fees dropped by 38.4%.
• Certain groups benefited more from the app. Women, high-income individuals and baby boomers saw the biggest gains.
• The app improved financial choices by lowering information costs, not by increasing financial education.

If you’ve ever been hit with a surprise overdraft fee, you’re not alone. According to a December 2023 report by the Consumer Financial Protection Bureau (CFPB), roughly a quarter of U.S. consumers reside in households that were charged an overdraft or non-sufficient funds (NSF) fee that year. 

The same report also finds that people who are more likely to be economically disadvantaged — those with lower incomes, less education or who are non-white — were more likely to live in households that incurred a fee.

Often, these fees aren’t the result of reckless spending but rather of timing and consumer awareness. A forgotten subscription charge. An automatic bill payment. And suddenly you’ve tipped into the red.

For years, mobile banking apps have flooded the market, aiming to help consumers keep their account information all in one place. But have they helped with financial planning and decision making? Do they help people avoid the dreaded overdraft or NSF fees?

According to a new study from a team that includes Rice Business professor of finance Bruce Carlin — they can. Published in The Review of Finance, the 2023 paper finds that when consumers use a financial mobile app that consolidates their accounts — checking, savings and credit cards — NSF fees go down. 

How One App Changed Consumer Behavior

Tracking how many people download a financial app is simple; understanding how that app affects their financial choices is much more complex. To investigate this, Carlin partnered with Arna Olafsson from Copenhagen Business School and Michaela Pagel from Washington University in St. Louis to analyze transaction data from Meniga, a financial aggregator used by consumers in Iceland.

“The real takeaway is that access to information matters,” says Carlin. “When people have a clearer picture of their finances, they can make better decisions. And when fintech companies build tools that prioritize accessibility and ease of use, they’re not just creating products — they’re helping improve financial outcomes.”

Meniga allows users to link their checking, savings and credit card accounts in one place. In 2014, the company released a mobile app to complement its web-based platform, making it easier for users to check their financial status on the go. The app didn’t include alerts or push notifications to encourage behavior changes — just a more convenient way to access financial data. 

After the app’s release, Carlin and his colleagues observed a notable shift in user behavior: people logged into Meniga more frequently, and their financial decisions improved as a result. “It’s about reducing friction,” Carlin explains. “When checking your balance becomes as easy as checking social media, you’re more likely to do it.”

After adopting the Meniga app, users saw a drop in NSF fees. NSFs are a specific type of overdraft fee, but they work differently. With overdraft fees, the bank covers a purchase even when the customer doesn’t have enough funds. In contrast, when the bank charges an NSF fee, they decline the charge.

A Sharp Decline in NSF Fees

The Meniga dataset is a compelling one, according to the researchers, because in Iceland, most consumers make purchases electronically and they use internet banking. Carlin and colleagues studied a subset of 13,411 active Meniga users from November 2011 to January 2017 with complete records that include key demographic data and a credible consumption stream. 27.4% of customers had an NSF charge during the period.

Within 12 months of the Meniga app release, NSF fees (about $8 or $9) fell by 14.1% per individual. Within 18 months, fees fell by 26.8%, and within two years 38.4%. “NSF charges are interesting because they represent an unambiguous mistake,” Carlin says. “The consumer suffers a cost with no benefit. By contrast, overdraft interest or late fees (which we also analyze) allow the consumer to make their purchase — or, in essence, to borrow money — and therefore receive a benefit.”

Notably, the study found that certain groups benefited more than others. Women, high-income individuals and people born in the baby boomer generation benefitted the most. Individuals who incurred higher fees before the app’s introduction experienced more fee relief from the new tech, as well. “It seems that people who were struggling the most with overdrafts had the most to gain,” Carlin notes.

Interestingly, while NSF fees dropped with the app’s release, overdraft interest charges and late fees on credit card payments increased slightly. One possible explanation is that as Iceland’s economy expanded, consumers were more willing to take on short-term debt, viewing the costs as manageable trade-offs for other financial benefits.

The Big Picture

Still, the overall impact of the app was positive. Carlin and his colleagues believe their findings have important implications for both consumers and fintech companies. 

“The real takeaway is that access to information matters,” says Carlin. “When people have a clearer picture of their finances, they can make better decisions. And when fintech companies build tools that prioritize accessibility and ease of use, they’re not just creating products — they’re helping improve financial outcomes.”

For consumers, the study underscores the value of financial aggregation tools. While flashy features like budgeting algorithms or spending alerts can be helpful, sometimes the simplest solution — better visibility — can make the biggest impact.

Written by Deborah Lynn Blumberg

Carlin, Olafsson, and Pagel (2023). “Mobile Apps and Financial Decision Making.” Review of Finance.