Due to the inherent complexity of the entrepreneurial environment, cognitive shortcuts provided by stereotypical information are needed to make decisions. The issue of gender stereotypes has become a hot topic in the women entrepreneurship research, producing rich empirical and review results. Traditionally, the research has suggested that gender stereotypes exert a purely negative effect on women entrepreneurship. However, recent studies are gradually breaking through the monistic perspective, emphasizing its multiple and complex impacts, but these research conclusions have not been systematically summarized. Thus, this paper reviews and synthesizes 189 articles published from 2000 to 2023, elucidating the “origin–activation–impact–intervention” framework of gender stereotypes in women entrepreneurship. First, it identifies four channels through which gender stereotypes generate and propagate in the entrepreneurial domain. Subsequently, it delineates two distinct pathways for stereotype activation. Furthermore, it clarifies the process through which gender stereotypes affect women entrepreneurship across a diverse range of entrepreneurial participants. Finally, it summarizes five strategies for mitigating the gender stereotype effect. This paper provides crucial theoretical insights for promoting gender equality and entrepreneurial diversity.