Women entrepreneurship is on the rise globally. Last year 2021, 47% of women started a business, compared to 44% of men. The reason for this is because most women step into the world of entrepreneurship to pursue their passion, with 48% saying it was their main motivator. Financial independence is the second reason which was cited by 43% of the women, and flexibility was in third place winning 41% of the votes. (SmallBizTrends, 2021)
In this new blog post we will discuss the rise of female entrepreneurs and why this is so important.
The struggles of female entrepreneurs
Knowing history with inequality and propagating female and male stereotypes, female entrepreneurs still struggle harder than male entrepreneurs because of deep rooted stereotypes. One of the biggest roadblocks is for female entrepreneurs are social expectations.
Women may feel as though they need to adopt a stereotypical “male” attitude toward business: competitive, aggressive, direct and even maybe a bit harsh. Furthermore, there are still people who don’t female entrepreneurs or professional women serious. Especially in a male dominated industry, such as business and technology. This is of course absurd, as there are more women landing higher positions in companies. In a survey of startups based in the US, UK, Canada, and China active in the tech and healthcare industries, it was found that some progress was made in recent years, but a lack of gender equality persists. China is the leader of the pack, with 70% of companies having a woman in an executive position and half having one on the board of directors. (SVB, 2019)
Why are female entrepreneurs so important?
So why are female entrepreneurs so important? Not only is it good for the economy, it encourages other women to follow their passion too, regardless of social standards and biases. The rise of female entrepreneurs encourages social, cultural, political and economical development to create a more equal environment for everyone in the business world, no matter what gender you are.
A McKinsey Global Institute study found that advancing women’s equality could add $12 trillion to the global economy by 2025. In a best-case scenario, that number could jump to $28 trillion dollars. “This impact is roughly equivalent to the size of the combined Chinese and US economies today,” according to the report. And it could be realized by ensuring greater equality and opportunities for women.
Women entrepreneurs play a significant role in producing jobs, wealth, poverty reduction, human development, education, health and nation’s development especially in developing countries. (Forbes, 2021)
What about women of colour?
We, EGGXPERT, are a start-up founded by 2 Asian women. So of course, while writing this blog, the question pops up: “What about women of colour?”
It is very inspiring to hear that 64% of new women-owned businesses were started by women of color last year. More women, and more women of colour are taking matters into their own hands and taking the leap to pursue their passion. According to BusinessWire, women of colour are responsible for a large portion of that growth from 2014-2019. When looking at specific minority groups over the last five years, growth in side entrepreneurship is up:
- 99% among African American women
- 70% among Native Hawaiian/Pacific Islander women
- 63% for Asian American women
- 46% for Latina/Hispanic women
- 36% among Native American/Alaska Native businesswomen