Entrepreneurship is open to everyone, regardless of gender. However, historical, political, and social reasons have created barriers for women in leadership roles. Although in today’s business world, more and more women are taking the lead and becoming successful entrepreneurs, being a businesswoman comes with many challenges, as personal and family responsibilities are added to work responsibilities.
Therefore, understanding the current landscape for women, the challenges they face, and how their leadership impacts businesses is significant. It is not only an economic issue, but also a personal challenge and a development opportunity that leads to a sense of fulfillment.
What is Female Entrepreneurship?
Female entrepreneurship means that women start businesses and take on leadership roles in companies, in management, coordination, and even presidency. It means being immersed in all stages of that beginning, from the idea’s conception, choosing the business structure, obtaining licenses and permits, and to open bank account online, among others.
What Are the Challenges of Female Entrepreneurship?
Although the number of women entrepreneurs has increased in recent years, much remains to be done to achieve equity between businesses run by men and women.
Two types of factors directly influence female entrepreneurship: structural and cultural factors. Structural factors involve how the market operates. Globally, women are more likely to lead smaller companies compared to men.
Cultural factors, on the other hand, involve how society perceives and interprets gender roles, that is, how men and women should pursue their professional paths and the positions they should occupy in society.
But what are these challenges specifically?
Gender Gap
Investing in female-led startups and businesses is necessary. By doing so, the gender bias that women face is broken, and which persists. Globally, only 20% of technology startups are founded by women, and only 25% of technology and IT-related jobs are held by women.
Managing Work-Life Balance
One reason entrepreneurship arises is economic need. However, one of the main reasons it may not prosper is the lack of balance between work and personal life.
Even today, women still face significant challenges due to long working hours and an increase in household tasks. The time spent on household activities gives them fewer opportunities to adequately manage their businesses and receive the necessary training to achieve the growth needed to tackle such positions.
Lack of Investor Confidence
A major challenge women face when starting a business is obtaining capital. Naturally, investors tend to give less consideration to businesswomen. It is easier for them to lend to men than women because they have more confidence in their management capabilities and the skill sets required to run a business.
Although this may cause frustration, the only way to overcome this challenge is persistence. Pursuing what is wanted and needed, regardless of the number of rejections, while convincing others why they should trust you.
How Important Is It to Encourage Women to Engage in Business Activities?
To address gender inequality and promote equal opportunities between men and women, it is essential to recognize that leadership skills and competencies are not determined by gender. Furthermore, promoting female leadership in companies is significantly important for several reasons:
- Diversifying the business environment by introducing new leaders, niches, and areas of activity;
- Opening up the market through the emergence of enterprises and innovative ideas that contribute to the economy as a whole;
- Recognition and appreciation of women’s talents and soft skills;
- Promotion of women’s financial independence, as female entrepreneurs naturally hire other women.
By reducing gender gaps, a more equal and diverse society is fostered in terms of ideas, businesses, and opportunities.
Tips for Finding Your Place in the Business World
Entering the world of entrepreneurship is not necessarily an easy task. However, through strategies and actions, it is possible to take the first steps toward a successful business.
Discover Your Area of Expertise
The start of a business career involves a crucial assessment, which primarily revolves around defining the area of activity.
Seeking out underexplored areas or those that offer significant growth opportunities can be a strategic solution to overcoming the challenges of launching a new business.
Improve
The growing demand for professionalization adds to the requirements of a company seeking growth and financial stability within a reasonable timeframe.
Therefore, constantly improving skills in the market, finance, management, and entrepreneurship is one of the ways to ensure your company stays ahead of the competition.
Seek Investors
Seeking public and private investors and credit is a solution to overcome financial adversities, especially at the start of a business.
Use Technology as a Boosting Companies
Connected to the digital world are more likely to succeed than those who do not invest in technology. Digital transformation is a reality, and through it, it is possible to improve the results of any company.
Women are natural entrepreneurs: they trust their instincts, identify opportunities everywhere, and work to get closer to success. But remember: you are not alone. Having professionals willing to help you at all times, from when you decide to become an entrepreneur and start creating a business environment around you, is fundamental.
