Being a women business owner entails tackling the same everyday hurdles as any entrepreneur: managing employees, nurturing customer relationships, and devising effective marketing strategies. Yet, women entrepreneurs face a unique challenge. in addition to these.
Original article appeared on SCORE, by Rieva Lesonsky on June 13, 2023.
Whether it’s taking out a loan or securing investor funding, the disheartening reality is, women business owners are less likely to secure funding due to biases against female business leaders.
Here are the reasons you should bet on women in business:
- Research from ICA and CNote reveals women entrepreneurs are actually lower credit risks than their male counterparts. In their study, they evaluated risk by considering factors such as loan repayment, default probability, and delinquency likelihood. Significant discoveries from the study:
- Women of color so not exhibit a higher risk compared to others
- In general, women have a lower likelihood of default compared to men
- Although women typically receive smaller loan amounts on average, they are subject to slightly higher interest rates
- The 2021/22 Global Entrepreneurship Monitor’s Women’s Entrepreneurship Report points out encouraging financing trends, such as women-focused investment groups, gender-smart impact investing, and specialized incubators and accelerators.
- The GEM report also underscores women entrepreneurs’ resilience and progress. Some key findings from the report include:
- Women entrepreneurs see new business opportunities arising from challenges
- They adapt quickly to market disruptions, especially in early startup stages
- They have a strong global focus
- Women tend to stick with their businesses longer than men
The GEM report highlights that women entrepreneurs face daunting challenges, from battling stereotypes to juggling family responsibilities and limited network connections hindering growth. Despite these hurdles, women entrepreneurs worldwide exhibit the same determination as men in facing the fear of failure. Champion these women to make a substantial impact on their journeys.
Read the original article on SCORE for more details and data points.
