Women Entrepreneurs: How to Succeed Despite the Obstacles

They say it's a dog-eat-dog world out there but for us women entrepreneurs just getting our businesses off the ground can be the hard part.  And that is thanks, in large part, to all the obstacles women face in today's society that men do not.  One of them being not having the financial support to get their business going.  

And we all know that without money, your business won't get very far.

There's a reason that only 6.2% of women owned businesses have been around for more than 3 years.  That's why, in this post, we'll talk about what obstacles you may face as a female entrepreneur and what you can do to overcome them.

Every situation is different but it is best to be prepared for the worst.

Starting a Business as a Woman Entrepreneur

Do you know what the number one reason women have for starting a business?   ... Well, turns out, it is also the number one reason for men as well.  And that is for more flexibility and autonomy.

It seems that we are all tired of working for the man and we are looking for a way to live life with more freedom.  Owning your own business can get you there.  But not if you let these obstacles get in the way. 

The number of women running their own businesses have increased dramatically in the recent years.  But we still have a ways to go if we want to catch up to the boys.  Here are some quick stats about female entrepreneurs.

Some Quick Stats

• There are 252 million female entrepreneurs
• 4 out of 10 businesses are owned by women
• 22.4% of small business owners are women
• The lower a country's average income is, the more women plan to become entrepreneurs (37.8% compared to 12.6% of men)
• 27% of women start a business out of necessity
• Women are 3x less likely to have created a business plan than men
• 82.5% of women start a business alone

The Obstacles Women Entrepreneurs Face

There are many challenges that women entrepreneurs face that their male counterparts do not.  Below we'll take a look at 5 of these obstacles.  Then we'll learn what we can do as a women entrepreneurs to overcome them.

1. Lack of Funding

Money is the lifeblood of any organization and not having enough of it could spell disaster.  After all, the number one reason new businesses fail is due to lack of funding.  

And for women entreprenuers especially, getting funding can prove to be rather difficult.  Of course, there is the bias that exists in a society that perceives the men as the leader and women as needing to be lead.  

Then when you add that to the continuous dismissal of female entrepreneurial skills and know-how, you can see why this disparity occurs.

In fact, only 2.3% of venture capital even goes to female led startups.  And sadly, even when women do get funding from an outside source, it is typically less than what a man would get.

2. Exclusion from Business Networks

For a pretty long time now, entrepreneurship has been an all boys club.  And unfortunately, we are still suffering from the after affects as some men, I am sure, would love it to remain that way.

As a result, there are many social or entrepreneurial clubs that are still heavily male dominated (if not all male), and they are pretty hard to get into as a woman.  These groups though are great for networking and getting support from fellow entrepreneurs.  

Overall, these business groups help entrepreneurs learn and grow with their businesses over time.  Furthermore, they can be great meeting the right people who could help you get more funding for your business.  That's why as a female entrepreneur it is important to be apart of one.

Right now, getting into the all boys club may seem like an up hill battle but there has been some progress made.  And, hopefully, there will be more in the years to come.

3. Lack of Support

Over 80% of women start their businesses by themselves with no partner to speak of.  

I see you fellow solopreneur!

What's more, 48% of women have no advisors or mentors to help them on their journey of being an entrepreneur.  

While going solo does have its perks, it also has its downsides.  And that is not having the support you need to help you through the hard times.  And we all know... there will be hard times.

4. Gender Bias

Currently, women make 84% of what their male counterparts do.  And many have experienced or have heard a story of a woman doing the same job as a man but making thousands of dollars less.  Unfortunately, that is not the only type of discrimination that women face in the workplace.

In addition to this, women are more likely to be treated as if they are incompetent, less likely to receive support from their supervisors, and more likely to be passed over for a promotion.

Not to mention, the general bias that exists where it is okay for a man to do certain things like, I dunno,  be assertive but not okay for a woman.  Assertive women are often perceived as mean, aggressive, and/or difficult.

And God-forbid you decide to have a baby and take off from work.  Then they will treat you as if you are lazy and don't want to work.*

Sadly, all of this bias and discrimination is worse if you are a woman of color.

*Pew Research Center

5. Roles & Expectations

Speaking of women taking time off to have and take care of a baby.  We may be living in the 21st century but a lot of the preconceptions of a woman's role in society and in the home go back to the stone ages.  

In many cultures and places around the world, women are expected to take care of the home and the children even if they work outside the home (and many do). 

All this added pressure and stress from trying to start/run a business and live up to society's expectations can leave women feeling overwhelmed.  And, as a result, much more likely to burn out.

Confidence

In many societies, women are raised to be kind, considerate, personable but rarely confident.  While a young boy may be applauded for puffing up their chests and walking tall, people are quick to caution women not to be too stuck up.

Instead, they are more likely to tell women to be humble.  So it is not surprising that women are less confident than men and less likely to speak highly of themselves to others.

And, unfortunately, this means they will be less likely to take risks and may struggle with self-promotion*.  All of which are necessary if you want to be a successful entrepreneur.

*According to the latest research, lack of self-promotion is not dependent on a woman's confidence levels.  

Interesting? ... Then what is?   For me, self-promotion is connected to my confidence level.  But it is also connected to the fact that I know that I can always learn, grow, and become better.  And with that being the case, how can I justify calling myself the best?

Rationality

Let's face it.  Sometimes us ladies think (and plan) too much.  We are too smart for our own good.  Too aware of the risks.  And much more likely to harp on them and want to plan for them.  ALL of them.

Unlike our male counterparts who tends to throw caution to the wind and dive into the unknown head first.

When starting a business, women are more likely to take training courses or try to improve their skills.  Men, however, are more likely to just jump right in and start looking for clients.

As women entrepreneurs, there are going to be times when we will have to through caution to the wind and just go for it.  Less thinking, less planning, and more doing.

Risks are a part of life and taking calculated risks a part of running a business, especially a successful one.

How to Overcome These Obstacles

Despite the fact that women entrepreneurs receive less funding than men, female led companies grow faster and create more jobs for the community.

So we know how to make things work despite the lack.  But that doesn't mean we have to settle for it.  Let's look at some ways we can overcome the aforementioned obstacles below.

Get Creative When It Comes to Funding 

If venture capitalists and banks aren't trying to support you and your business, you're going to have to start getting creative when it comes to your funding.

Research grants for women in your industry.  There are a lot of grants for female entrepreneurs offered locally, on a federal level, and by private companies.  This post on Nav.com shares some of the best grants out there for women-owned small businesses.

You may also want to consider looking into crowdfunding.  There's a reason these sites have been around for a while.  And a little financial support from people who believe in you and your business could be the confidence boost you need to really get out there and promote yourself.

Check out Indiegogo, GoFundMe, and SeedInvest for these alternative sources of funding.

You may also want to check out Artesian, an investment firm with gender equality being one of their main criteria (mainly for businesses in the Asia Pacific area), and Even Capital, whose tag line is "Venture Capital for women, by women."

Create Your Own Groups

Not welcome in the boys club?  It's time to create our own.

We need more entrepreneurial groups where women entrepreneurs can come together, connect, network, and share ideas and strategies.  

These groups can become the support that many women entrepreneurs are lacking and can serve to guide them through the ups and downs of business.

Here are a few women entrepreneur groups you may want to consider joining: 

• Count Me In
• Ladies Who Launch 
• Women's Startup Lab
• Ellevate Network
• don't forget to check for groups in your local community

The main point in all this is that sharing your struggles and concerns with others can go a long way in ensuring that your business not just survives but thrives..

Prove Them Wrong

The only way to change societal norms is to be the change.  So ladies, keep pushing those "limits" and breaking down those boundaries.  Also, keep track of the women who came before you.  They are proof that you don't have to play by society's rules.

In addition to this, we need to demand more from society.  Demand the time off you need to take care of your children.  Demand that your salary matches your male colleagues.  And if someone makes a snide remark about your parenting style, feel free to put them in their place.

Of course, all of this is easier said than done.   But if more of us demanded these things from society, society would be begin to take the steps necessary to get it done. 

Face Your Fears

One way to gain more confidence is to do the things that scare you.  When you take on a challenge you didn't think you could do and do it, the world seems to open up.  The more you do this, the more your confidence will grow.

It would also help if you set attainable goals regularly.  These can be weekly, monthly, and/or yearly goals.  Setting goals is a great confidence builder because with each success your confidence grows.

Want more tips on how to be more confident?  Check out Very Well's article entitled, "9 Tips That Work."

Learn to Take Risks

Starting a business itself is a risk especially given the statistics that almost 20% of businesses will fail in their first year.  And almost 50% of the remaining will fail in the next 5 years.

The funny thing is in order to be successful we have to take risks.  Assess the risks and make plans to mitigate them.  And if fear is stopping you, try to focus on the positive things that could happen as a result of you taking that risk.  Is it all worth it?

All in All

As women entrepreneurs, we are bound to face many obstacles that our male counterparts do not.  But one of the keys to success for anyone is defining what success means to you.

Once you are clear on this, you can map out your road to success.  Then, there is nothing to it but to do it.  

Oh, and those obstacles that may pop up along the way?  Well, hopefully, you now have some idea of how you are going to tackle them.

Good Luck!  And I'd love to hear about your journey!