Women and Financing

Some sessions at WVS by Stella Foundation made me think about how and why gender inequality still exists in business. Instead of pointing fingers, I'm taking a closer look at the patterns within our own female community. A recurring theme from the keynotes and workshops was this: women are always trying to save the world and are used to sacrificing themselves for others. This is reflected in our business behavior, the way we pitch to investors, how we treat employees, and how we pay ourselves.

I was struck by the speech from Nicola Corzine of the Nasdaq Entrepreneurial Center. Here are some stats:

According to a collaboration between the Nasdaq Entrepreneurial Center, Wells Fargo Foundation, Penn State, and the Fair Pay Workplace, a staggering 55% of women entrepreneurs aren't paying themselves during the foundational stages of their businesses. [link]

Interestingly, while many women believe they're being more cautious by avoiding debt, this might be endangering their personal financial health.

Women entrepreneurs experience more food insecurity compared to all U.S. households:

Here's another shocker: Most of these women only started paying themselves five years into the business.

Another alarming fact: Women founders received only about 2% of all venture capital funds last year. And yet, women-led companies outperform male-led ones.

Of the S&P 500 companies, 459 CEOs are male, and only 41 are female. Over the past decade, returns from female-led companies were 384 percent, compared to 261 percent from male-led companies. [link]

Nicola Corzine of the Nasdaq Entrepreneurial Center states, “To bridge the wealth gap, we must support and invest in our women entrepreneurs.” [link]

It's not just about equality. Businesses do well when they have good support, especially as they grow. No matter who you are or what your business is, nobody should starve and sacrifice their own health; everyone should get paid for their work!