A women entrepreneur is an innovative, confident, financially independent woman who is able to achieve her own economic independence or in partnership, create jobs for others by promoting, starting and operating a business, combining factors of production, taking risks, and keeping up with personal and social life.
The importance of women entrepreneurship
While entrepreneurship, in general, is important, women-owned businesses bring crucial benefits to the economy and society.
Women are the key to economic growth
Between the years 2014 and 2019, the number of women-owned businesses grew by 21%. With this growth came an increase in revenue and employment. It has also been found that women in more leadership positions could add $12 trillion to the global economy by 2025. While new businesses help the economy, women-owned businesses and women business leaders are impacting the economy substantially.
Women entrepreneurship promotes gender equality
Women-owned businesses also promote gender equality in the workplace and provide men and women equal opportunities for wages and positions. As more women are in positions of power, the wage gap lessens. In 2022, women started earning 2% more on average, while men are earning 1.8% less than in 2021.
Women in entrepreneurship also lessen the opportunity for gender discrimination and provide equal opportunity for higher positions. In fact, Global Gender Gap Report 2022 reported that the number of women in positions of tech and power has increased by 6.7 percentage points.
Women entrepreneurship is essential for social and economic development
Women’s entrepreneurship paves the way for gender equality and business economic growth while making steps towards larger societal changes. Business-owning women are creating more gender equality and more diversity in businesses, slowly changing the narrative to how businesses can be run and how they should be run in the future.
The power of women entrepreneurs
Women Entrepreneurs have a lot of influence and power, not only in their own businesses but in their communities. There are a few ways women can use this power for a positive impact.
Why women entrepreneurship is important
Women entrepreneurs create economic growth, promote gender equality, and overall pave the way for social and economic development. They are also creating job opportunities for themselves and their surrounding communities.
Women are natural multitaskers
Many have said that women are better at multitasking than men, and many studies have been done with varying results. While a definitive answer is unclear, women have shown to be very productive while multitasking, and this may be because women are more organized under pressure. Women are quick and rational decision-makers, making them wonderful and impactful business owners.
Women have a natural network
Women are great at communicating and building relationships. Women can find resources for their business from their friends and colleagues and create crucial relationships as they get to know others in their field.
The challenges of women entrepreneurship
While women entrepreneurs are great leaders and bring many benefits to society, they face hardships on the way to creating a successful business.
Women have less access to capital
Women often lack access to the financing they need to start a business. Over one billion women around the world do not have access to a bank account, and if they do, women are less likely to apply for venture capital loans or receive the ones they do apply for.
It can be difficult for women to receive the resources they need because of gender bias. Gender bias can affect any stage of starting a business. In fact, 62% of women entrepreneurs have said they experienced some form of gender bias while trying to fund their businesses. If they do get funding, it may be with high interest rates and negatively impact them.
Women are more likely to be sole proprietors
One in three women entrepreneurs is a sole proprietor, while two in three men entrepreneurs are sole proprietors. Women are more likely to own their businesses by themselves, which means the financial risk is entirely on the women’s shoulders, and each aspect of the business is the women’s responsibility.
The future of women entrepreneurship
Many entrepreneurship programs for women help women entrepreneurs get on their feet when starting a business. As women are becoming the future of entrepreneurship, women entrepreneurship programs will give women the knowledge and experience they need to run a successful business, and pave the way for future women entrepreneurs.