The Power of Bootstrapping

The recent UK reports indicate a significant milestone in female entrepreneurship. According to the 2023 Rose Review Progress Report, women are now starting businesses at nearly the same rate as men. In 2022, women founded over 150,000 new businesses, marking a substantial increase from previous years. This is a notable achievement, as it demonstrates that female entrepreneurship has reached unprecedented levels, despite economic challenges.

This shift has been supported by initiatives like the Investing in Women Code, which has seen nearly 200 financial institutions commit to improving access to finance for female entrepreneurs. These efforts are crucial in addressing the long-standing barriers women face in scaling their businesses, such as funding and childcare responsibilities.

The progress observed in recent years is encouraging, but there is still a focus on ensuring that these businesses grow beyond the startup phase to become sustainable and scalable enterprises (New Statesman ) (NatWest Group ).

As we strive for greater gender equality in business, one key area that demands attention is the way women-led businesses are funded and supported. The statistics are clear: in 2022, the average loan finance approved for women-led businesses was ￡174,000, significantly lower than the ￡507,000 received by their male counterparts (British Business Bank, GOV.UK ). This glaring disparity highlights the challenges women face in accessing the necessary resources to grow their businesses. But there’s more to the story than just investment.

While it’s essential to support more investment opportunities for women, focusing solely on external funding can overshadow other equally important paths to success. Many women entrepreneurs, myself included, have found success through bootstrapping—building businesses with limited external resources, relying instead on bartering, borrowing, and sheer determination.

The Importance of Seeing Change in Business

For women in business, seeing change is not just inspiring; it’s essential. It validates the struggles and efforts of female entrepreneurs, showing them that success is possible even in the face of systemic challenges. Moreover, visible change creates a ripple effect, encouraging more women to step into the entrepreneurial arena, knowing that there are diverse paths to success.

When women see others achieving their goals, it fosters a sense of community and shared purpose. It breaks down the barriers of isolation and provides role models who demonstrate that the journey, though challenging, is worth pursuing. This visibility is crucial for shifting perceptions and driving more equitable opportunities for women in business.

Bootstrapping Queens

Bootstrapping offers a powerful alternative to traditional investment models, particularly for women who may face additional hurdles in securing funding. By relying on their own resources and creativity, women can retain full control over their businesses, ensuring that their vision remains intact. Here are some inspiring examples of successful bootstrapped businesses:

• Spanx (Sara Blakely): Sara Blakely started Spanx with $5,000 of her own savings, managing all aspects of the business herself. Today, Spanx is a billion-dollar company, and Blakely is celebrated as the youngest self-made female billionaire in the U.S.
• Drybar (Alli Webb): Alli Webb began Drybar as a mobile blowout business, using personal savings and a small loan from her brother. The business has since expanded to numerous locations and developed a successful product line.
• The Honest Company (Jessica Alba): Jessica Alba bootstrapped The Honest Company, focusing on creating safe, eco-friendly products for families. The brand has grown into a highly successful business with a significant online and retail presence.
• Glossier (Emily Weiss): Emily Weiss started Glossier by leveraging the popularity of her beauty blog, Into the Gloss. She used her savings to launch the brand, which has become a cult favorite in the beauty industry.
• Bee’s Wrap (Sarah Kaeck): Sarah Kaeck started Bee’s Wrap with her own funds, creating a sustainable alternative to plastic wrap. The brand has grown into a well-known name in the eco-friendly market.

These stories illustrate that thriving companies can be built without external funding, proving that there’s more than one way to succeed in business. For women, in particular, bootstrapping can be a path to empowerment, offering a sense of ownership and control that is often compromised in investor-led ventures.

Why Bootstrapping Works for Women

Running a business without seeking external investment can offer several unique advantages, especially for women:

1. Full Ownership and Control: Without investors, female founders retain full control over their business decisions, allowing for more agile and responsive management. This autonomy is crucial for maintaining the integrity of their vision.
2. Financial Independence: By avoiding debt and the pressure of repaying loans or meeting investor expectations, women can focus on sustainable, long-term growth. Profits can be reinvested back into the business, fostering organic development.
3. Creative and Strategic Freedom: Bootstrapping allows founders to innovate and pivot strategies without needing approval from investors. This flexibility can lead to more creative solutions and a stronger brand identity.
4. Focus on Long-Term Goals: Without the pressure to deliver quick returns, bootstrapped businesses can prioritize customer satisfaction and sustainable practices, leading to more resilient business models.
5. Risk Management: Operating without external investors reduces the pressure and stress of being accountable to others, allowing for more stable and focused business operations.

Creating a New Narrative

As we continue to push for greater equality in business, it’s essential to recognise and celebrate the diverse paths to success that women are forging. Bootstrapping is more than just a survival tactic; it’s a powerful strategy that allows women to build businesses on their own terms. By sharing these stories and highlighting the benefits of self-funding, we can create a new narrative that empowers more women to take control of their entrepreneurial journeys.

What’s Your Dream for Your Working Life?

Every business journey is unique, and there’s no one-size-fits-all approach to success. Whether you’re considering bootstrapping or exploring other funding options, what matters most is staying true to your vision and values. What’s your dream for your working life? I’d love to hear about it! Together, we can continue to drive the change that’s so essential for women in business.