Challenges Women Face as Entrepreneurs

In the past, women couldn’t pursue careers in entrepreneurship. But things have changed.

Women today are making their mark in the entrepreneurial world, and the US has seen a rise in women-owned businesses. There are over 12 million such businesses in the country. Despite this, men still dominate the entrepreneurship world.

Women face many challenges on their journey to starting their own businesses, challenges that men do not have to overcome. These hurdles are only exacerbated by other social categories related to one’s gender, such as race and nationality.

To overcome these challenges, women must know the specific barriers they’re up against and exactly how to overcome them:

The Lack of Funding

One of the most common obstacles women face when establishing and running a business

is the need for more funding. According to MarketWatch, only 2.2 percent of the total venture capital invested in 2019 went to companies that women founded. But why is this?

According to Trade.gov, women are typically more conservative when pitching to investors, as opposed to men. As a result, investors usually assume that women are presenting inflated numbers, which leads to woman-owned businesses receiving minimal funding.

A study revealed that the gap between men- and women-led startup funding is $1.68 trillion. Sexism is another factor affecting these statistics and venture capitalists’ company funding decisions. Not only are most venture capital firms not fond of investing in “girl stuff,” such as fashion, makeup, or child care, but they also tend to undervalue women in tech-related ventures. Because of this, women are far less likely to get the funding they need to launch their businesses.

Facing Stigmas and Stereotypes

Despite the various achievements of women in the entrepreneurship world, there are still persistent gender stereotypes that prevent them from making a mark. In the entrepreneurial world, the mindset held by men is often considered an underestimate of women. It is also assumed that women lack administrative and regulatory requirements.

When it comes to displaying leadership qualities, women are often perceived negatively. This is because society often focuses on how women behave in a particular manner, such as being respectful and graceful. This can lead to women losing their confidence and being regarded as inferior. The patriarchal society does not accept for women to hold leadership positions. To some, working under them is considered both outrageous and disgraceful.

The Pressures of Work-life Balance

Despite the various laws enacted to prevent discrimination against women, many companies still lack flexible work policies. This is because some companies are still reluctant to hire women due to the effects of pregnancy and childcare. Women are often pressured and scrutinized to have an excellent work-life balance, which can be challenging.

Women often have to choose between their family and business. In some cases, the woman’s business takes a back seat due to her family obligations. Society often values women as good wives and mothers, which can lead to women staying at home instead of working.

Entrepreneurship requires commitment and time, but a woman’s role as a mother or wife can prevent her from doing the same. Because of the pressure to have an excellent work-life balance, women’s earnings from their businesses are significantly less than men’s.

The Fear of Failure

Society’s perception, pressure, and prejudice prevent women from taking risks more than men. As a result, many women play it safe and prefer to work in jobs instead of starting their businesses.

A Forbe’s article highlighted the prevalent condition women entrepreneurs often face: the “too-afraid-to-fail” syndrome. This syndrome usually has the symptoms of excessive worry over failing to get the correct result, second-guessing every decision, avoiding commitments that could cause mistakes, and being over-involved in every detail.

Challenges I Have Faced as a Woman Entrepreneur

Like many women trying to make their mark in their industry, I’ve experienced the gender pay gap in the past and was paid less than my male counterparts despite doing the same job, which was immensely frustrating. My male counterparts were also taken more seriously in decision-making, and their ideas would be implemented well before mine.

On top of being underpaid compared to the men and my ideas being undermined, I was also faced with balancing work and family responsibilities. Managing a full-time job, working on my entrepreneurial plans, and caring for my family were challenging, leading to burnout and exhaustion. Through my pursuit of the perfect work-life balance equilibrium, there was often a lack of support from family, friends, and my spouse.

My ex-husband made it difficult for me to attend networking events by tampering with my vehicle, he would rather me work my 9-to-5 and be home. My family and children didn’t always understand the demands of my schedule. This made it harder for me to pursue my entrepreneurial goals. When you want to please your family, you must choose between being the perfect mom and giving up or slowing down on your dreams and endeavors.

Juggling my family’s and business’s needs has constantly challenged me. It requires a lot of time management and sacrifice and can sometimes be emotionally and physically exhausting. Family knows you don’t have set hours; they think you have all the time for them when you still have tasks to do to run your business.

In pursuing my entrepreneurial dreams, I’ve also faced gender and age discrimination in my past business partnerships. A recent business partner, whom I looked up to as family took advantage of me in many ways. He committed embezzlement behind my back as he handled the finances, so I was privy to only some details. I should have been privy to all details; the health of a company depends on this. I trusted him and didn’t look over the data I did have access to, and he didn’t pay me my fair share, which affected my financial stability and trust in others—doing 95% of the work and receiving very little profit, approx. 10% profits. I left this partnership and started my own business. Best thing I ever did.

Overcoming the Challenges

How I moved past these obstacles: I believed in myself, took the risk, built a powerful team, and ensured systems were in place to support our growth. I also set boundaries and worked on time management.

As more women break free from their chains, they become more visible in entrepreneurship. It is very encouraging to see that women finally realize their full potential. Still, it is also crucial that society encourages them and provides them with critical leadership roles.

It’s time to remove biases and allow women to show their full potential. Doing so will help inspire more women and break down barriers preventing them from fully realizing their goals.