Business

Female entrepreneurs: Growing demographic with challenges ahead

Bringing awareness to the challenges female entrepreneurs face provides an opportunity to tackle these issues and create a more level playing field.

by
Chris Smith
December 11, 2022

Image: Unsplash

According to statistics, there are now around 252 million female entrepreneurs around the globe, accounting for 43% of all global entrepreneurs.

Yet even with the increase in female entrepreneurs, they face numerous challenges.

These challenges are frequently swept under the rug and glossed over, meaning things do not change at the pace we would like to see.

Lack of capital

One of the key trends Her Forward sees for female entrepreneurs is a lack of funding. According to research, only about 2.3% of venture capital goes to female entrepreneurs.

So, many women are forced to start their businesses with their personal savings and income. Due to this factor, 88% of female-owned startups generate less than $100,000 annually.

Those who pitch to VCs can face gender bias, although there are numerous reasons why this may be.

Studies have shown that judges generally prefer pitches made by male entrepreneurs over female entrepreneurs, even when the content is exactly the same.

Questioning has also been shown to be different, with men receiving more promotion questions while women got asked more preventative questions.

Furthermore, the confidence gap can also play a role.

Lack of support or a network

Lack of network also often comes up in Her Forward’s features.

Since entrepreneurs benefit substantially from having a strong network, whether access to funding or valuable knowledge, it is crucial that more awareness is brought to this problem.

In fact, the strength of an entrepreneur’s network is one of the key predictors of success for a business venture.

However, women often do not have access to the same networking or referral opportunities or miss out due to gender biases.

office meetings with a few people sitting at a table — Image: Pexels

Social expectations come up frequently in our stories shared by female entrepreneurs who often struggle to raise a family and focus on their businesses.

Modern-day social expectations still considerably impact expectations of women’s roles in the home and in public.

Many female entrepreneurs still take on the role of primary caregiver in addition to juggling their business ventures.

This places additional pressure on an already full schedule, and there is still a stigma around women who choose childcare to shoulder some of the burdens.

Female entrepreneurs can often find themselves trying to run both their home and career at full capacity and risk burnout.

Why is it important we highlight these challenges?

her forward publication home screen on purple background — Image: KnowTechie

Her Forward is an online magazine founded by Michael Peres, a serial investor and journalist.

The magazine aims to focus on female entrepreneurs and women business leaders, providing a central repository where they can share their stories.

Although the publication is headquartered in the U.S., it serves a global audience.

The publication aims to feature success stories, best practices, and tips and advice that can help other women entrepreneurs.

By sharing their experiences, challenges, and learning points, they aim to raise awareness of the key issues women entrepreneurs face today.

Furthermore, the magazine wants to share strategies for success that can be utilized by others to navigate similar challenges.

By providing an outlet to discuss female entrepreneurs’ challenges openly, Her Forward hopes to amplify their voices and bring about the fundamental changes needed to close the gender gap in entrepreneurship.