Without a doubt, entrepreneurship is no longer a male-dominated endeavor. Despite existing restrictions, a rising number of women throughout the globe have founded enterprises in a variety of industries. According to an American Express survey, the United States has approximately 13 million women-owned enterprises. This statistic reflects 42% of all businesses in the United States. This implies that women own four out of every ten enterprises, which create almost $1.8 trillion yearly.
Additionally, statistics show that women (registration needed) will establish more businesses in 2020 than males. These figures demonstrate that women are effectively paving the way to establish a foothold in a male-dominated industry.
Despite the fact that more women are venturing into entrepreneurship, they nevertheless encounter several obstacles. For decades, barriers such as a lack of money, gender prejudice, and inadequate government assistance have kept women out of entrepreneurship. If you’re having difficulties with your entrepreneurial endeavors, you’re not alone. There is still an 8% disparity between male and female entrepreneurs. The following are some of the obstacles women entrepreneurs encounter, as well as some strategies for overcoming them:
Financing is Limited
While both male and female entrepreneurs encounter finance constraints, women experience more barriers to fundraising than males. According to Crunchbase statistics, women entrepreneurs get around 2.3 percent of venture money. Due to this financial imbalance, just 2% of women-owned businesses reach $1 million in revenue; males are 3.5 times more likely to reach this milestone.
So how can women overcome this? To begin, did you know that there are other sources of financing, such as asking for grants from the federal and state governments, as well as private businesses? The National Association for the Self-Employed, Small Business Innovation Research, Idea Café, Amber Grant Foundation, and the 100 Women Charity Foundation is only one of several private firms in the United States that make charitable contributions. You might do an internet search to discover more organizations that provide financing possibilities that are not well publicized or well-known.
Crowdfunding is another method of financing a company. This is not only a simple method to get funds, but it also serves as an advertisement for your firm prior to its launch. Several platforms are available, including GoFundMe, Indiegogo, and Kickstarter. For more options, you can check out online lenders that provide different types of loans like Payday Now — Bad Credit Loans.
Biases Against Women
Gender prejudices contribute to an adverse business climate for female entrepreneurs. Because society still views business as a patriarchal activity, when a woman demonstrates attributes associated with business acumen, they might be seen as pushy and unsettling. It is critical to challenge gender preconceptions. While almost every part of life, including business, is patriarchal in nature, do not compromise your worldview to fit in.
Even while the family dynamic seems to be changing, there are communities, mostly in nonwestern cultures, that continue to require women to remain at home and care for children, devoting their whole focus to the household. This preconception puts many female entrepreneurs in an impossible situation when it comes to work-life balance.
According to Pew research, stay-at-home parents make up around 18% of parents in the United States, with the great majority of them being women. While some women, particularly those with social support, are able to balance their obligations, others get overwhelmed by bearing the weight alone. It is on to businesses to promote gender equality and account for such circumstances. A few organizations specifically recruit women on the basis of their talents, even if they have been out of the field for years taking a sabbatical, and do not punish them for their absence. This, I feel, should occur more generally across geographies.
According to statistics, 48% of women entrepreneurs lack skilled consultants to help them through the entrepreneurial process. Additionally, launching a company presents several hurdles, which means that even the most seasoned entrepreneurs need mentoring in order to generate fresh ideas and execute sound business plans. Women-focused networking events such as eWomenNetwork, WIN Conference, Ellevate Network, and Bizwomen may help you connect with mentors and advisers. Additionally, you may do an internet search to identify groups that provide mentoring to women in business.
Pandemic of Covid-19
Since early 2020, the Covid-19 epidemic has disproportionately impacted female businesses. A sizable proportion of female entrepreneurs hold hotel, wholesale, and retail enterprises, all of which have suffered significantly as a result of closures. Reduced demand for services resulted in lengthier company closures during lockdowns, and having to manage family responsibilities and operating a home-based business has had a significant effect on women entrepreneurship. The Covid-19 epidemic has threatened to reverse decades of progress in closing the gender divide in entrepreneurship. One positive development is that the government intervened with a variety of initiatives to assist women entrepreneurs in the United States during Covid-19.
With female company ownership increasing in the United States, we’re getting closer to closing the gap between male and female entrepreneurs, but we’re still a long way from closing the gender divide in other places. If you are one of the fortunate few, regardless of gender, reach out to other women who may be seeking assistance, join the appropriate forums to make an effect, speak out against prejudices, and make it a personal mission to become active.