Women are increasingly starting their own businesses. Here are the reasons why, and some ways women entrepreneurs can compete in an arena where they are often discouraged from succeeding.
About 40% of business owners are women. In the past few years, the number of women becoming entrepreneurs has grown. The trend shows that it will continue to grow, especially when businesses are moving to a digital workplace. What is happening that is encouraging the rising numbers? Here are some reasons why women have turned to entrepreneurship.
1. Unemployment
As many companies have downsized or closed, women who were once employees are now unemployed. When you are faced with a lack of income, you begin to find ways to support yourself. Many of those employees have decided to stop looking for traditional work and become an entrepreneur. Beginning a business when you are unemployed allows women to ensure they can provide for their income and do something they enjoy without the hassles of being at a company that doesn’t appreciate them. During the pandemic, many companies were closed and people were unemployed. Smart women and men came up with a business they could run from home while being unemployed.
2. Motherhood
Many women stop working in traditional jobs when they become a mother. They choose to be home with their children and need to find a way to support their families while helping their children grow. When children are in school, mothers often want to be available for the schools or teachers who might be calling. They also are available to volunteer at the school and attend school events, which are scheduled around the teachers’ timetables and not for working parents. Mothers who are entrepreneurs can meet their children at the school bus and be home for them after school. Being the business owner allows women to work and be there for their children when necessary.
3. Flexibility
Many women don’t like to be tied to set working hours. They like the flexibility to work when the creativity hits or if there is a need. For example, if they have clients in other time zones, they could be available at those hours instead of being tied to an 8:30 a.m. to 4:30 p.m. schedule. Entrepreneurship allows women the flexibility to set their hours based on workload, creativity, school schedules, clients’ schedules, and family events. They are able to drop their work for a few hours and pick up the work at a later time if they need to do it. Entrepreneurs need to be flexible with their time and work. Things don’t always happen when they want them to occur.
4. Extra income
Sometimes, women start their businesses when they are working full time for the additional income they need to support themselves and their families. They enjoy working for the company but are determined to build their business too. They use the extra income for vacations, pay off debts, household expenses, or their children’s college funds. Having extra income is a strong motivator for women to go into the world of entrepreneurship.
5. Innovation
Women often see a need for a product that isn’t filled in the current marketplace. For example, mothers with babies might want a product to make their lives easier and can’t buy it, so they make it themselves. Other products are born when entrepreneurs notice something missing. Products also are created by accident when women try something new and it turns out differently than they expected. Innovators are entrepreneurs. They see a way to disrupt an industry with new ideas. These new ideas become the basis for a new company and business.
6. Online world
Everything is going online because of the coronavirus disease. This makes it easier to start a business. All you need is a phone, Internet access, and a computer. You can create a website simply enough and can begin selling over the computer. However, entrepreneurs need to understand how the digital world works versus the brick-and-mortar world.
How can women entrepreneurs stay in business?
While 40% start businesses, that same number doesn’t stay in business. Women are pulled in many different directions. Often, they are not focused enough to keep their businesses going. However, here are some ways they can continue being an entrepreneur.
Funding
Often, women leave their businesses because they can’t get the funding they need to expand. Less than 3% of women business owners get funding for their companies and projects. Many of them don’t even know how to get funding. The Female Founders Pitch Summit, scheduled for May 21, 2021, in San Diego, will help women business owners get funding. It will provide life-changing money for women business owners. It is expected to create a movement for change. But, this summit is one way to get funding and make sure women stay in business.
Mentorship
Women who are new to business often need help from others. They are confused and lack focus. Mentors, coaches, and other business owners can help them with their business and how to go from just starting to being successful. It is important that women get their questions answered when they need them answered or they could become disillusioned or depressed. Even male business owners realize they need advice from others to help their businesses to grow.
Partnerships
Sometimes, the way to stay in business is to form partnerships. For example, if you can trade services with other small business owners, you can help each other save expenses or help each other grow. These partnerships provide both financial help and advice. Entrepreneurs are working to help their partners who are helping them. It is a win-win situation and can provide a long-term relationship. You can form partnerships with companies in your field but with people in other fields too. It depends on what you need and what your partners need. The goal is to help each other.
Introductions
Women entrepreneurs need introductions to potential clients, access to influencers in their industry, and other people who could help them rise to the top. Meeting the right people often is the hardest part of being in business. Women, like men, need to get in contact with those who would buy their product or service. Having the right introduction can change a company with zero revenues into a company with half a million in revenues and provide the contracts that will help.
In the past few years, women business owners have begun to take the world by storm. They have started companies like Spanks. These have been extremely successful. However, many more women entrepreneurs are struggling. They continue to start businesses, though for the many reasons already discussed.
They are creating all types of businesses. Some offer new products and other innovative services. Women also take what they learn in business and become leadership consultants to others in the business. The climate in the world today is allowing change to occur.
Entrepreneurs are leaving traditional jobs and going online with businesses. They are becoming the leaders for tomorrow. They are breaking the mold of what the traditional workplace looks like. The future looks bright for all entrepreneurs, but women are soon to be the trailblazers for a new era of commerce and capitalism.
They should be encouraged to keep doing what they want to do. When they are encouraged, they change their communities and create jobs. However, women entrepreneurs have more barriers facing them than their male counterparts.
