Jan 2, 2022 | Updated Jan 4, 2022 By @JoshuaNgala
Female-run entrepreneurships are steadily growing all over the world. Such businesses significantly contribute to household incomes and the growth of national economies.
According to a report published by legal jobs, 36% of businesses worldwide are owned by women. This figure translates to 114% increase in the past 20 years.
California in the US, for example, has the highest number of women-owned companies at 1.3 million. Texas has more than 860,000 women-owned firms.
Why should we care about women entrepreneurship? Globally, women’s businesses generate around 1.9 trillion dollars in revenue. The rate of growth by women’s businesses is 5% annually.
However, these figures do not tell the whole story, only part of it.
Businesses owned by women remain in the minority and the challenges that women who have adopted the entrepreneurial journey face are extensive and frequently very distinct from those faced by their male counterparts.
Worldwide, women still face social norms, time, human, and gender inequality constraints that limit their ability to grow to own their own businesses or even have careers.
Some of these challenges women entrepreneurs face include the following;
1. Countering the socially acceptable norms
The corporate world is mainly dominated by men. Most corporate and business heads are men.
In most cases, when attending a corporate event or an executive conference, you can count the number of female heads by hand.
For that reason, gender balance in company leadership, decision-making, and governance processes is an important step towards driving gender equality and empowering women.
Such an initiative will boost corporate performance. The socially acceptable and normalized setup favors and caters to men.
Therefore, when women get these positions, they might feel the need to match up to the ‘male expectation’.
To do things as the men do because that is what is already in place without any other oppositions.
Women often feel compelled to embrace a stereotypically “male” business outlook: competitiveness, aggressiveness, and also sometimes harsh.
Successful women CEOs, on the other hand, genuinely think that staying true to yourself while discovering your own voice are the prerequisites to rising above preconceived ideas.
Being yourself and having confidence in oneself is key as a woman in the corporate world. Putting in the work and perseverance is also important.
It is unfortunate that a woman has to work twice as hard to prove herself. Having a voice, however, and creating a unique space for oneself helps.
To help with this issue, women need to give more opportunities for successful female business owners to shine.
They have to challenge the acceptable social norms by supporting and celebrating the invaluable contribution of women business leaders and entrepreneurs towards economic growth and development.
Supporting and uplifting each other as women is important.
This narration also serves as motivation and creates opportunities for other women to interact and mentor one another.
2. Securing the funding
Most startups have to look for investors to secure funding for their businesses or companies.
For women, the pitching process is quite difficult on its own with much pressure to match up to men due to social constructs that men are better business people than women.
Women who venture into entrepreneurship are not poised to get a fair deal.
It is arguable that bias within the venture capitalists’ industry is preventing funds from being allocated to the best investment opportunities
Investors tend to invest in startups that are run by people they consider of their own tribe.
For example, if an investor is from the same place as a person pitching a business idea, they are more likely to invest in that business.
This means that venture capitalists headed by women are amongst the top VCs that invest in startups led by women.
Studies have shown in most cases for a woman-led start-up to secure funding from an investor, they need to first build confidence.
This is through a great team and an outstanding business plan as compared to men who mostly just require a great business plan or idea and a good pitch.
Women have to prove themselves further. Capital raising for women-owned businesses becomes even more difficult.
It, therefore, becomes common for women to be denied funding mainly due to social and cultural biases.
According to a recent study, women are more cautious and do not overestimate their forecasts. “When they pitch to investors, they frequently use realistic figures.
However, because men frequently overstate and exaggerate, investors frequently dismiss the numbers right away. Women sometimes miss out on funding because investors also assume that women exaggerate just as men do.
As a result, they will provide the funding at a much-reduced level than was requested. Women must recognize this interplay and approach their pitches appropriately.
Although policies and laws have been enacted to create a more business-friendly environment for all, actual changes are still yet to be implemented.
Gender lens investing, which refers to strategies that address gender dis-proportionality issues and/or evaluate gender inequalities to inform investment choices, is gaining popularity.
Women are equally encouraged to utilize personal and professional connections to find support from both other women-led venture capitalists and men too.
All these both in the form of sound consultants and other female leaders. Whether those women have started their own businesses or are leaders in other companies.
3. Gender inequality
Most of the time, women can find themselves in male-dominated industries or spaces where they are not as respected as men are.
These spaces more often than not frown upon leadership in women to due many reasons including sexist ones.
“Earning respect is hard enough as a female entrepreneur,” a female leader said. Women have to reinvent themselves, with no room for mistakes if they want to prove themselves.
Importantly, gender inequality does not only manifest at places of work, but even in education, and economic growth areas.
On average, across the 2,000 companies, just 21% of directors and 15% of executives are female. Men primarily dominate the top positions giving women positions like HR and other ‘behind the scenes’ departments.
Women face a variety of challenges, including fewer established market networks and social and traditional barriers that limit women’s participation in business.
Religion makes it difficult for women to start businesses in some cases.
In some countries, women may be required to have a male partner who will do trade agreements, begin negotiations, and represent the company.
Regardless of these obstacles, the business world is gradually recognizing and appreciating women’s strengths and efforts. The world hopes to see more of it in the future.
To achieve SDG 5, gender equality, and empowerment of all women and girls, the world needs the most influential companies to lead, not follow.
4. Finding a Work and Home balance
Due to the notion that women are supposed to take care of the household and tend to home affairs, they face pressure from both their work areas and their home.
Women feel they need to succeed in both their jobs and also managing their household activities.
Men aren’t often required to tend to the affairs of a home as women are and this puts some sort of burden on them.
Despite the difficulties that many women encounter in the entrepreneurial world, they are nevertheless responsible for the majority of household managerial activities.
Providing true work life balance is difficult, especially for women who believe they must be perfect at both work and at home.
The family expects her to be a good and present working mother.
She is equally expected to be a wife, while the job also requires her to be present and show leadership and commitment.
No woman should feel obligated to do it all when it comes to work-life balance.
Create reasonable expectations and accept that no one person can “do it all.” Men should also step up and help women even in-home tasks to maintain a fair workload.
If men and women are to compete in the workplace, they at least need equal opportunities and treatment.
5. Lack of Female Role Models/Mentors
The disproportionate number of men in businesses and corporations as compared to women means more men occupy top organization/company seats as compared to women.
It makes women lack proper role models who have headed enterprises, and who might act as mentors.
A strong support system is also critical for successful entrepreneurship.
Female managers can miss out on global appointments because they lack mentors, role models, sponsorship, or access to appropriate networks – all of which are commonly available to their male counterparts.
It is no surprise as according to numerous studies, about 48 percent of female pioneers report that somehow a shortage of suitable mentors and role models confines their professional growth.
What would women accomplish if they had an ideal support system? The absence of a suitable support system may be the cause of a company’s struggle or failure.
Nobody is an island in business. Women face the most difficulties in obtaining assistance, whether it is due to a lack of meaningful connections or a need for emotional or financial support.
They also require role models and sponsors to help them navigate new paths.
The support network is frequently cost-prohibitive, forcing women to postpone starting their own businesses.
The majority of this industry is dominated by men. It, therefore, becomes a daunting task to forge own path and enable introductions and contacts into some of the more elite corporate networks.
“Because most of the business these days still adheres to the adage about ‘who knows who,’ instead of what you know in the business world.
Enabling a woman with experience and understanding is only the first step on a long road to success in business and these support groups can offer some of these.
Life is a continuous learning process in which new information is presented every day.
Unfortunately, women’s access to this knowledge and information that is emerging is limited due to a lack of appropriate channels to start educating and mentoring newcomers.
Even though it could also be due to the competitive marketplace, women go above and beyond to find relevant and practical information.
Women who have succeeded in the corporate world advised on not being afraid to seek help anywhere when they might feel stuck.
Seeking help allows one to learn from what others do and try implementing what they have learned.
Seeking help also lets one know they are not alone in the journey of learning and discovery.
6. Fear of failure due to already preconceived notions
Running an enterprise is no easy task. It is full of risks, unplanned and unforeseen circumstances, and a lot of uncertainty sometimes.
Failure and making errors are inevitable. It’s part of the job.
However, women in business cannot afford to make these mistakes because it was hard for them to get these opportunities in the first place and failure will seem like they are not living up to the expectation.
None goes into business expecting to be successful. Fear of the known and unknown is a significant issue for women.
They are afraid of failing, especially when the people around them are highly skeptical of their business abilities.
Because women may now end up functioning from a place of fear rather than self-belief and confidence, this fear is toxic and dangerous and may even cause them to blunder and make mistakes in a bid to save face.
As a result, sometimes when they are destined to prosper, they will fail in business.
Women who try very hard and find success are often hesitant to tell the world about their achievements.
They are afraid of being labeled as arrogant, boastful or views as if they are bragging. Humility is not the same as shyness or timidity.
Women must be proud of their accomplishments and allow others to do the same
Taking ownership of your success as a woman inspires you to work harder in order to achieve more in your business. It motivates those around you.
Many top female executives, such as Sheryl Sandberg, have motivated and even influenced women to enter board rooms.
Oprah Winfrey and Michelle Obama are two women who have inspired other women to pursue their entrepreneurial dreams on numerous occasions.
Confidence is a necessary component of prosperity and growth. Women must believe in themselves and take responsibility for their own success.
Without a doubt, women have been making tremendous efforts to be visible in the entrepreneurial world.
Their influence is impressive, and it is likely to grow further.
Women have demonstrated that they’ve had a higher rate of company success, and they tend to take fewer risks as compared to men.
Studies show that companies owned and led by women have proven to be a secure option for investors.
However, they continue to struggle to obtain the funds they require, according to statistical data from women entrepreneurs.
The above shortfalls are likely to change in the coming years as women’s presence in business becomes the norm. The world needs to do better for women.
So much potential is being overlooked due to outdated social constructs that men are better than women and that they can do more than women can.
Women can do well just as men can and these stereotypes have no place in the modern corporate and entrepreneurial world.
