Traditionally, entrepreneurship has been a male-dominated industry. When most people are asked to list famous entrepreneurs, most of the names given are male. In a recent list of the top 25 entrepreneurs, only two women are included. Historically, women have been underrepresented when it comes to entrepreneurship. They also still face many roadblocks to securing funding and launching a successful company today. Before 2014, only 15 percent of those pursuing angel investment were female.
Increase in Female Entrepreneurship
Thankfully we’re seeing changes on the horizon! Today, women make up 40 percent of new US entrepreneurs. According to a recent report, women are now slightly more likely to begin a new business than men. In fact, last year saw the beginning of an average of 1,821 new women-owned businesses each day. Today, more women have the opportunity to educate themselves about starting a new business. It’s also easier for them to meet mentors, and they have more options for finding funding.
The Economic Impact of Female Entrepreneurs
Women have the potential to fuel our country’s future economic growth. In the US, female-owned businesses have an economic impact of $3 trillion! These women are also responsible for creating or maintaining 23 million jobs.
Studies also show that female-led businesses also perform better than those led by men. Companies founded by women generate more than 60 percent more revenue for investors than those launched by men.
As a result, future investors will be more likely to turn to female-founded companies when it comes to investing their money. After all, businesses created and led by women have a powerful economic impact, are consistently creating new jobs, and provide a great return on investment!
How Female Entrepreneurs are Overcoming Roadblocks
Unfortunately, female entrepreneurs still have to overcome a variety of roadblocks. Their main challenges include a lack of education and difficulty financing their ventures. Entrepreneurship has traditionally been a boys’ club. In addition, the vast majority of the decision makers at venture capital firms are male. Because female entrepreneurship is only just now beginning to take off, women lack female mentors and role models.
Women, however, are working hard to support each other in the new industry. They’ve created groups, conferences, and panels for fellow female entrepreneurs. Women are also becoming increasingly better at leveraging the limited resources they have in place. Their businesses have a significant economic impact. I’m excited to see how they’ll continue to transform the entrepreneurial landscape. After all, the future is female!
This blog was posted on CourtneyMontgomeryConnecticut.org