Why are there so few female entrepreneurs? And what can we do about it?
If you’re lucky enough to be an entrepreneur, you know the burden that comes with it.
You may have a good business idea and a great product or service, but money is not always easy to come by. And it's no secret that female entrepreneurs face an uphill battle when it comes to getting funding for their startups.
Speculation suggests that the pandemic made investors warier of risks and more likely to stick to their existing networks, which tend to be more male-dominated and hard to break into for women.
Even when investors look outside their networks, many stick to “pattern-matching habits”, which means searching for the same types of companies that they’ve supported in the past. Often these are tech startups led by men.
For too long, we have underestimated the consequences of sexism in our economy and the way it holds all of us — women and men — back.
In “Mother of Invention: How Good Ideas Get Ignored in an Economy Built for Men”, bestselling author Katrine Marçal reveals the shocking ways our deeply ingrained ideas about gender continue to hold us back. Every day, extraordinary inventions and innovative ideas are side-lined in a world that remains subservient to men.
“A book with a radical agenda ... Marçal wants nothing less than a revolution in the way we think about ourselves.” — The Times
From the beginning of time, women have been pivotal to our society, offering ingenious solutions to some of our most vexing problems. More recently, it is women who have transformed the way we shop online, revolutionised the lives of disabled people and put the climate crisis at the top of the agenda.
Despite these successes, we still fail to find and fund the game-changing ideas that could alter the future of our planet, giving just 2.8% of venture capital to female founders in 2020, according to Harvard Business Review.
Women are leaving companies at the highest rate ever.
You've probably heard about the devastating impact COVID-19 has had on our world. But have you heard about how it has affected women? According to McKinsey & Company analysis, women's jobs are 19% more at risk than men's because women are disproportionately represented in sectors negatively impacted by COVID-19.
Two and a half years into the coronavirus pandemic, new research from the National Women's Law Center shows that women have recouped all of their job losses since February 2020. Yet as more women return to the workforce, their patience is wearing thin for companies requiring more time in the office and ignoring conversations about employee mental health and diversity, equity, and inclusion despite promises to put these issues on the agenda in 2020.
Women leaders don't want to return to 'business as usual'. They are leaving companies at the highest rate ever, and the gap between women and men in senior roles quitting their jobs is the largest it's ever been, according to new data from LeanIn.org and McKinsey & Company, which started tracking these numbers in 2015.
These women have been able to see what can be accomplished when companies put their all into something, whether it's more flexible work arrangements or doubling down on equitable hiring — and they're not going to let up. In fact, some of these women are taking matters into their own hands by creating their own companies.
“Times of crisis and chaos present us with the opportunity to do the best work of our lives.” — Luvvie Ajayi Jones
Research shows many positive things occur when venture capitalists choose to fund women.
I am not saying that the solution is for venturing capitalists to suddenly start supporting startups simply because they’re founded by women. It’s to weed out the institutional patterns and thinking that prevent venture capital firms from recognising the great potential of ideas presented to them.
Companies with female founders and female executives hire six times more women than those with male founders, according to Kauffman Fellows' analysis. And when women-led startups do get funded, they’re also more likely to be successful. They “ultimately deliver higher revenue — more than twice as much per dollar invested,” a Boston Consulting Group analysis found. Even though only 12% of venture capital firm decision-makers are women, research from Harvard Business Review shows that women venture capitalists are twice as likely to invest in female startups.
Investments by women, for women, aim to bridge the funding gap for female entrepreneurs.
In the past couple of months, I’ve been listening to a podcast called Venturing Women, hosted by Darya Kamkalova, who interviews female founders, investors and ecosystem enablers about their stories, knowledge, fears and failures, moments of growth and pieces of advice. The goal is to inspire more women to build their own businesses — and invest in them — so we can shape the world we live in together.
One episode that is particularly relevant to this topic is “Episode #17: Who should or should not raise venture capital? And how? — Gesa Miczaika”, which has many practical tips for women founders!
In this episode, Dr Gesa Miczaika, the founding partner at Auxxo Female Catalyst Fund, a venture capital firm co-investing in startups with at least one female founder in Europe, sheds light on Venture Capital from an insider point of view. She offers straightforward and deep answers to these questions:
Who should and who absolutely should not raise venture capital to finance their business?
How can you make the fundraising process less painful?
And finally, is there a way for an outsider to break into the VC industry?
Dr Gesa Miczaika also mentions that one of the most important things for a founder is to take care of themselves. Why? Because it's not just about them, it's about their team, their customers, and the people who rely on them.
I know that self-care is something that can be tough to prioritise when you're busy running a company, but taking time out of the day to recharge and refocus is an essential part of being an entrepreneur. It helps keep you healthy, both mentally and physically, so that you can continue doing what you love — and do it well!
Women entrepreneurs, don't be afraid to ask for help!
You've started your own business, and you're doing great things in the world. You know what it takes to get things done, and you've got the drive and the ambition to keep going.
But there are some days when you feel like you need a little extra support. I'm here for those days. I work with purpose-driven entrepreneurs in businesses with at least one female founder. I've spent my life advocating for women's empowerment, and I'm excited to meet you.
When you're ready to take your business to the next level while also making an impact on the world, I'd love to help. I tap into the power of Conscious Marketing to build a brand that inspires and gives back so that you can make a difference in your community.
Takeaway: There is clearly a need for entrepreneurs and investors not to view the world through a narrowly gendered lens but to pay attention to the skills and lived experiences of all.
Overall, I have been learning so much from the Venturing Women podcast, and I loved the book “Mother of Invention: How Good Ideas Get Ignored in an Economy Built for Men”. The podcast has been an incredible resource for me as I navigate the world of female entrepreneurship. The book was a great read because, in light of where we are in the world today, I found it to be an eye-opening look at how ideas labelled as 'feminine' aren't given the attention they deserve.
We can't just sit around wishing things were different — we need real action if we're going to change anything!
… And if you're looking for some extra inspiration, check out these other useful resources for female entrepreneurs or anyone interested in making a bigger impact in their lives and work:
Why we have too few women leaders, Sheryl Sandberg, TED Talk
For women in pursuit of motherhood and a career, Irene Mora, TED Talk
My year of saying yes to everything, Shonda Rhimes, TED Talk
Special thanks: Lis, our virtual coffee inspired me to write about this topic. Thank you! And Mansi, the book recommendation you did for Reconsidered's Sustainable Business Reading List is absolutely brilliant. Thank you sincerely for sharing “Mother of Invention: How Good Ideas Get Ignored in an Economy Built for Men”.
Lis Best is the Founder & CEO of Coaching For Impact. She helps badass women in impact become more effective change agents & lead with mindfulness + moxie.
Mansi Gupta is the Founder & CEO of Unconform. She makes design for women mainstream.
Please note that some of the links above are affiliate links, so if you choose to purchase something — and thank you for doing so! — I will receive a small commission at no extra cost to you. You are essentially buying me my cappuccino with oat milk. Win-win. ☕🌱
That's all for today, have a great weekend ahead!
How did you like today's newsletter?
Loved it 🤩 | Meh 😕 | Hated it 😒
Until next time 👋
Was this forwarded to you? Sign up for my newsletter to get a monthly dose of inspiration, knowledge and motivation to help you succeed in your business straight to your inbox here.
