Detail-oriented and dedicated, women have what it takes to become successful entrepreneurs. Lack of confidence may hold them back, but finding and establishing a supportive network can overcome this.
Women and entrepreneurship can be a beautiful combination
In general folklore, we often find tales where men are the heroes. There are some tales where women saved the day, but most of the time, they were the ones that needed rescuing. In modern times, that storyline is beginning to change.
Family businesses in Australia are warming to the notion that their daughters can take the helm – 43% of them surveyed in a study said they believed their daughters showed equal interest in being actively involved in the business. And why shouldn’t they? Women have equal access to education and can bring just as many skills to the table (if not more) than their brothers.
Family businesses in Australia seem to have a great sense of foresight. A recent global survey found that women start more businesses than their male counterparts and their main venture registers higher revenue. The study assessed more than 2,500 entrepreneurs and angel investors with net worth ranging from $2 million to $7.6 million. At around the age of 30, men and women usually decide to start their businesses. On average, women begin 4.9 companies, while men start 4.3 enterprises. The primary business of female entrepreneurs achieves yearly sales of $9.1 million, whereas the primary venture of males reaches sales of $8.4 million. Despite these results, respondents said that lack of confidence can set women back in business.
Women need to acknowledge their “natural ability to process and think through information,” says Sangeeta Bharadwaj Badal, Ph.D., a senior consultant at Gallup and a lead researcher in entrepreneurship. This will not only help a woman strengthen her business startup, but it will also aid her personal development. On a larger scale, Badal notes that investors need to support women more to help them advance in their businesses.
In the male-dominated societies in the Middle East, business formation among women has been growing thanks to technology. Female entrepreneurs are enhancing the economy because of their hard-working mindset as breadwinners in the family. Women entrepreneurs here strive to get their family out of poverty, and tend be more active in societal matters, said Alyse Nelson, CEO of Vital Voices, a non-governmental organization founded by Hillary Clinton.
What holds women back from building business?
PayPal recently surveyed over 1,200 female entrepreneurs and those aspiring to own a business in the U.S., France, China and Mexico. The research uncovered that the most pressing concern for women entrepreneurs is finalising a business plan as well as financing and payment systems. Linda Rottenberg, CEO and co-founder of Endeavor, agrees with this, but she suggests that women can hire someone else who knows more about financials to overcome this obstacle. In the long run however, females need to ensure they understand the numbers.
Female entrepreneurs also have other psychological and emotional concerns. “Women think they need to be perfect at everything,” Rottenberg said. However, there are ways to work around this type of mindset. For instance, if you don’t feel confident in starting a business, you can take a course to learn more about the foundation of startups. This will equip you to convince others to invest in your business and provide valuable insights into growing your enterprise and being profitable and viable. Another way to address the lack of confidence is to work with a mentor, the PayPal study above had found. Working with others more experienced in the entrepreneurial space can help women business owners get their ventures off the ground.
Supportive networks power up female entrepreneurs for success
Communities of support and partnering with role models can enable women business owners to achieve higher revenues, according to the 2014 Annual Entrepreneurial Winning Women Impact Study from Ernst & Young. Under the Entrepreneurial Winning Women program, some female entrepreneurs are given the opportunity to participate in an executive leadership initiative to build networks and relate with role models. 70% of the participants said they are encouraged to pursue higher goals, while 88% observed stronger self-confidence. Female entrepreneurs were also able to get in touch with peers that relate to their experiences, problems and achievements. The national Behind Closed Doors program for female business owners boasts the same results.
Aside from building networks, collaboration with others also offers women entrepreneurs a smarter way to achieve business growth. Work with somebody whose strengths and weaknesses compliment your own, and this can help you grow your company faster. Establish a common goal, and trust each other. In turn, this will enhance the experience and value that you can offer to your clients, which will yield returns for your business.
Tapping into supportive networks and collaboration can help female entrepreneurs address internal issues of confidence while improving their business externally. Building and maintaining relationships can therefore be a win-win for female entrepreneurs.