Female entrepreneurs face a multitude of challenges as they endeavour to establish and expand their businesses. Despite an increase in their numbers since 2016, women still only represent a mere 32.3% of the UK’s smaller business leaders, equating to less than 7,300 businesses. These entrepreneurs encounter unique hurdles that distinguish them from their male counterparts.
Addressing Societal Bias
Women in entrepreneurship often confront gender stereotypes and societal expectations in the start-up sphere. They are often perceived as less assertive and capable of leadership, and are also impacted by societal bias related to marriage and family. Consequently, they encounter difficulties in obtaining funding and recruiting team members. These biases can act as internal barriers for women considering entrepreneurship. To tackle this, it is crucial to identify and mitigate any relevant social biases, establish clear policies for gender equality, and cultivate an inclusive and diverse culture within the business.
Accessing Funding
Female entrepreneurs struggle to secure investment, as statistics from the British Business Bank revealed that in 2019, less than 1p for every £1 of UK venture capital investment went to all-female founder teams, in contrast to 89p that went to all-male founder teams. This disparity is partly attributed to the perception that women are more risk-averse than men. To mitigate this challenge, female entrepreneurs can explore alternative funding options such as angel funding, crowdsourcing, and Start Up Loans, and effectively communicate with potential investors when seeking funding.
Building a Support Network
The lack of female peers and mentors in the entrepreneurial community makes it difficult for women to establish effective networks, hindering the growth of their businesses. Establishing a support network comprising individuals who have shared experiences and understand the challenges can significantly contribute to female entrepreneurial success. This can be achieved by investing in building industry contacts, joining female entrepreneur and business leadership networks, and advocating for the recognition of women’s accomplishments in business.
Overcoming Imposter Syndrome
Imposter Syndrome, characterized by feelings of self-doubt and inadequacy, particularly affects women in leadership positions and entrepreneurship. Female entrepreneurs may struggle to take credit for their accomplishments, often using inclusive language even for their individual successes. To combat this, it is essential to focus on facts, celebrate the achievements of female staff, and foster an inclusive culture that recognises everyone’s contributions.
Achieving Work-Life Balance
Balancing the demands of a small business with personal responsibilities can be a significant challenge for female entrepreneurs. The Rose Review highlighted that family responsibilities are a common barrier for women in starting their businesses. Creating a plan to align professional and personal goals and establishing boundaries between work and home life can help address this challenge.
In conclusion, female entrepreneurs encounter various challenges in the business world. By addressing societal biases, accessing suitable funding, building strong networks, overcoming Imposter Syndrome, and establishing work-life balance, women can navigate the hurdles and thrive in the entrepreneurial landscape. It is important for businesses and organisations to support these efforts and create an environment that empowers female entrepreneurs to succeed.