Although the gender gap in the business industry may be slowly starting to close, women still face more obstacles when trying to start their own businesses than their male counterparts. According to a policy report from the Kauffman Foundation, women tend to start their own businesses at around 50% of the rate that men do, particularly during the main business formation years between the ages of 35-44.
When it comes to starting their own business, women face unique obstacles such as a lack of mentors and support from other females in the industry and bias towards them from the start. Along with that, studies show that when it comes to funding, women tend to start businesses with only half of the capital that most male entrepreneurs have. But, more female entrepreneurs in the industry will actually be beneficial to the economy. Here’s how.
With more female entrepreneurs making their business dreams into a reality, the economy will be strengthened by the addition of more businesses. If more women are able to cross the obstacles that they face when it comes to starting their own company, the economy will improve due to the increase in trade and more. Encouraging more women to start their own businesses will increase competition, bring about more new products, services and business ideas, and provide customers with more choice. If you’re a woman who is looking to start your own successful business, taking a human resources course can be an excellent idea.
Creating More Jobs
With more women pursuing careers as entrepreneurs and bringing more companies into the industry, unemployment rates are likely to drop as more businesses mean more jobs are created. Although many startups can be successful with little to no employees, many business owners find that in order for their company to grow, it’s important to take on a number of employees in order to help them. More jobs will strengthen the economy as having more people in employment means that average earnings will go up and more people will be purchasing products and goods, strengthening businesses.
Strengthening Local Economies
Encouraging more women to pursue a career in entrepreneurship is essential for strengthening local economies and bringing communities together. Since many new entrepreneurs will usually begin by setting up a small, local business close by to where they live, encouraging more women to seize opportunities to start their own companies will increase the number of small local businesses and help to strengthen local economies by providing more jobs and encouraging more customers to shop locally.
Increased Global Income
With more women becoming entrepreneurs, it’s likely that in the future, global income per person will increase. As economists around the world look at the various ways in which we can help to reduce global poverty and improve individual earnings globally, it’s easy to see that encouraging entrepreneurship is definitely one of the easiest and most effective ways to do that. Encouraging more women to pursue their dreams of becoming an entrepreneur can help to strengthen global income by creating more jobs and therefore more opportunities for progression and a higher earning potential for all.
Although there are less women becoming entrepreneurs than men, studies show that startups which have a female owner at the helm tend to be more successful than those run by a man. This is because women who run businesses tend to be more creative when it comes to finding innovative solutions, tend to have a more nuanced view of risk, and statistically, businesses that are run by a woman tend to have a greater chance of long-term financial success.
With nine out of every ten startup businesses failing within their first year, encouraging more women to follow their dreams of entrepreneurship is one of the best ways to improve the rate of business success globally and reduce the number of businesses that fail.
Although there are more women starting their own businesses than ever before, the gender gap in the industry is still far from closed. But, encouraging women to pursue their dreams of starting their own business can be hugely beneficial for the economy, creating more jobs, improving global income and even reducing the amount of businesses which fail around the world.
If you are a woman who is considering starting your own business, you’ll need to be fully prepared for all of the potential obstacles which you might run into along the way. Being prepared for the specific obstacles that women in business face is key to running a successful company.