Strategies to increase the number of women entrepreneurs to benefit society at large

Strategies to increase the number of women entrepreneurs to benefit society at large

Increasing the number of women entrepreneurs is good for business and benefits society. Women lead businesses performed 3 times better than the S&P 500. Globally women control about 28 trillion annual consumer spending in 2014 according to Harvard Business Review . Furthermore, women have the purchasing power as they drive 70-80% of all consumer purchases which includes the multiplier effect as they are often the primary caregiver for the young and elderly.

Female entrepreneurs are on the rise (infographic ). Women now make up 40 percent of new entrepreneurs in the United States, the highest percentage since 1996, according to the 2016 Kauffman Index of Startup Activity . This increase in female-owned startups can be partially attributed to expanded financing options and better access to mentors and role models. However, most female-owned businesses show a scalability gap compared to their male counterpart. Women reported self-funding 61% of their business capital and 72% of women entrepreneurs said that lack of access to capital is a challenge. Initiation and growth of female-owned businesses can be achieved in three ways including 1) education to build confidence and reduce fear of starting a business, 2) Increase visibility and involvement of female role models and access to networks and 3) Better access to capital.

  1. Education to help women build confidence and reduce the fear of starting a business: Women in the United States are 18% less likely than men to perceive they have the capability to start a business (Global Entrepreneurship Monitor ). This intrinsic “saboteur” is a great obstacle that women face. This gap is even wider when it comes to leadership or entrepreneurial positions as women do not take risks until they are confident they can do the job 100% while men think they are ready if they can do 60% of the required job. This is perhaps fueled by more risk tolerance towards men as compared to more pressure to succeed for women. Growing up I was encouraged to excel in school, dream big, work hard, be comfortable at being uncomfortable and that failure is part of learning. This mindset helps me take on more risks. In short, building confidence for girls and women can help women start and lead a business.
  2. ?Female role models and access to networks: Establish female entrepreneurs to support female entrepreneurs since having access to advice and guidance from business mentors to women who are starting up is invaluable (Forbes ). In recent years there has been an increase in the visibility of women leaders and networking opportunities both locally (EWOF , WIB ) and globally (MWM , Leanin.org ). Women balance work and family life and having networking opportunities that fit work-life balance is also important.
  3. ?Better access to capital: In the US female entrepreneurs own 40% of businesses and receive about 2% of all venture funding (HBR ). While 90% of funds across the globe are managed by men, increasing female venture capitalists is not likely to narrow the gender gap in funding since both men and women VCs who evaluate startups appear to display gender bias. For instance, D Kanze showed that 67% of questions posed to male entrepreneurs were promotion-oriented while 66% of questions posed to females were prevention-oriented. This resulted in 7 times less funding for female vs male startups. Being aware of these unconscious biases, informed entrepreneurs that recognize prevention questions and give promotion responses can raise up to 14 times more capital for their startups.

Combining education, access to role models and networks as well as capital can increase the number of women entrepreneurs. This can result in better goods and services to the consumer with the highest purchasing power that is good for business and society at large.

About me: I am an entrepreneur, innovator & mother of four. I am passionate about solving complex healthcare problems. I enjoy cooking, the outdoors, and landscape photography . I write about empowering women, entrepreneurs, and work-life balance. Check out my page @Dr.NadiaBoutaoui or get in touch on LinkedIn .


Nor El Houda SAHOULI

Creative SEO Content Writer, 3 Lang; Ar, Eng, Fr. SEO Manager-On-page- Solid research skills .

2 年

An amazing topic, which I hope gets more importance in our country too and MENA region. Women are trying so hard here to make a living through their projects, I had the chance to talk to several, through my page ????? ?????? ?????, where I saw great potential, women can do amazing things if they get the right training and well-guided. https://www.facebook.com/400982963776645/posts/1071725653369036/

Mohammed El-Amine ABDELLI

Entrepreneurship and Innovation

3 年

Thank you Dr. Nadia for this interesting article, I work on this topic for the MENA region.

Philip Brooks

Guiding small businesses toward their grant-writing goals

3 年

Hi Nadia - Great piece. I found the Kanze study and this related comment, - "Being aware of these unconscious biases, informed entrepreneurs that recognize prevention questions and give promotion responses can raise up to 14 times more capital for their startups." -of particular interest. - Phil

Diane Bouis, PhD MBA

Cross-cultural Communicator | Early-stage Investor | Science Geek

3 年

Spot-on Nadia!

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