Empowering Women Entrepreneurs:
Maximizing Potential in the Face of Adversity

By Pauline Kirk

In the pulsating world of entrepreneurship, women navigate a unique landscape marred by challenges that can derail their journey toward financial stability. As the world grapples with complexities spanning climate uncertainties, conflicts, and socio-economic gaps, the pivotal aspect of gender equality and women’s economic empowerment often fades from the spotlight—a grave oversight in our progress.

However, a beacon of hope emerges by consistently investing in women entrepreneurs. That isn’t just a remedy; it’s a catalyst for transforming challenges into opportunities, paving the way for more inclusive, robust, and prosperous economies. Empowering aspiring women entrepreneurs is the linchpin in our collective pursuit of expanding gender parity and fostering economic growth.

The dividends from nurturing women’s entrepreneurship are monumental, especially in low-income regions. It’s a transformative force, enabling women to accumulate earnings, assets, and economic influence, bridging the gender gap in prosperity. The ripple effect transcends individuals and transforms families and communities. Women’s reinvestments in children’s well-being bolster a nation’s human capital. Moreover, when women lead businesses, they often empower more women, carving pathways to economic sustenance for a broader spectrum.

Yet, this voyage is fraught with barriers – policy constraints, societal norms, institutional biases, and limited access to resources – that hinder their ascent. Women often tread into sectors with slower growth rates, compounding their challenges.

The challenges faced by women entrepreneurs were exacerbated over the last three years. They encountered increased unpaid care responsibilities, economic vulnerability, and business disruptions. During the pandemic’s initial phase, women-led firms faced a higher rejection rate for loan applications compared to male-led firms.

In the funding arena, women-led endeavors face disproportionate hurdles. From January to December 2022, U.S.-based startups with all-women teams secured a mere $4.5 billion of venture capital from around the $238.3 billion allocated.

The percentage of funds raised increases when an “all-women team” turns into having “at least one women founder,” signifying the importance of always keeping a man in the room. The augmentation is quite noticeable, too: All-women teams raised 1.9% of the VC funds referenced above, a percentage that skyrocketed to 17.2% when the team was mixed gender. This trend has remained consistent for at least a decade, according to the latest PitchBook data, reflecting a stark disparity in financial backing.

Yet, despite this lack of backing, a Forbes study with venture capital firm, First Round Capital, concluded that female-founded businesses in their portfolio outperformed male-founded companies by over 60%.

The recognition of empowering women isn’t only a choice; it’s a responsibility to dismantle systemic barriers and forge pathways for financial support. It’s a monumental stride towards crafting an inclusive, resilient, and prosperous future for all.

Unlocking access to capital for women entrepreneurs is pivotal. Here are avenues to explore:

Grants: Seek specialized grants tailored for women-owned businesses, unlocking capital without the burden of debt.

Crowdfunding Platforms: Harness the power of platforms like Kickstarter, sidestepping traditional lending routes to fuel your vision.
Angel Investors: Engage with investors passionately supporting female-led ventures, offering both financial backing and invaluable guidance.
Government Programs: Delve into tailored programs providing mentorship, training, and crucial funding support, amplifying your entrepreneurial journey.

Alternative Investment Funds: Seek these funds that have successfully filled the void left by traditional banks. Secure loans to supercharge your business expansion.

Collaborations and Joint Ventures: Use the power of your network to create magic and share your collective strengths and hiring endeavors.
For this vision of gender equity in entrepreneurship to be achieved, women should have equitable access to finance, markets, and technology and the ability to build skills and networks. They also should face a level playing field on the legal and regulatory front, and institutional gender biases and social norms should not constrain them from succeeding as entrepreneurs.

Women Entrepreneurs should be able to start businesses and compete across economic sectors, including non-traditional sectors. With more significant gender equity, the employment, revenue, and productivity gaps between male and female-led businesses would be reduced, unlocking trillions in global value addition.

Despite the hurdles, discernible trends hint at the substantial potential for growth and success among women entrepreneurs. Understanding these trends and seizing the moment could propel women entrepreneurs toward phenomenal growth and financial prowess in the coming years.

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This article originally appeared in the Winter 2024 issue of CHOICES Magazine