Despite the growing number of female entrepreneurs, women still remain a minority in the business-realm for both startup and established companies. So what does this mean for the economy? Does it even matter? Why do we actually need more women startups?
As a businesswoman – and an avid researcher on gender inequalities in the startup space – I feel obliged to drive forward the female agenda, and highlight how change in this area will affect the future of Australia’s women startups.
Healthier, happier economy
[tweet_quote hashtags=”#startup” ]Men have long dominated the entrepreneur demographic[/tweet_quote], and it’s time they made some room for women – if only to benefit the economy that, research suggests, can benefit significantly from female contributors.According to Deakins and Freel (1998), the general consensus is that a healthy and vibrant economy is heavily dependent on the competitive advantage that a dynamic business sector brings. And what better way to achieve diversity than a gender-varied landscape.
More job opportunities
Fostering female entrepreneurship and women startups helps, not only on an individual level, but also for society as a whole – as their businesses contribute to the creation of employment opportunities across all industries. Due to this, entrepreneurship should be encouraged across all sectors.
Increasingly, policy makers, academics and support agencies are now acknowledging the importance of women entrepreneurs, with many claiming that females help to boost indigenous business activity in Australia. This in turn supports growth across national, regional and local level.
It’s personal
[tweet_quote hashtags=”#startups” ]Men and women often have completely different work styles[/tweet_quote] and strengths that should be used to level the playing field. For example, females have a stronger inclination towards more personal communication styles, helping to establish deeper relationships and – as a result – more loyal networks.So what’s the problem?
With so many apparent benefits of lady-leaders, why are women representing such a small market slice? According to research from global workplace provider, Regus, only 11 per cent of the recently reported 77 per cent rise in entrepreneurial activity in Australia was apportioned to women.
And what’s worse is that these gloomy statistics exist in a society where women have equal education opportunities, form a large portion of the labour market, and have a high percentage sitting within the main entrepreneurial-activity age bracket.
The barriers for women startups
So why are so few women heading into entrepreneurial terrain? Research shows that there are many deterrents in place that affect a women’s decision to start a business – and this needs to change.
Women often find that they face financial discrimination, work-life balance difficulties, limited access to mentoring support and exclusion from business and financial networks. And with all these barriers in place, no wonder so few commit to the journey.
Women startups – The solution
So the question is, [tweet_quote hashtags=”#startups” ]what can we do to overcome these barriers and nurture the female entrepreneurial spirit?[/tweet_quote]
The first step is to present women with the access to networks, finance, skills, information and the confidence they require to attain their personal career aspirations. The government, who now need to recognize the untapped potential of our future female business leaders, could largely support this.
The government needs to understand, not only the challenges they face, but also – who these women are. What is the profile of an aspiring female entrepreneur, and how can we help them integrate into the entrepreneurial realm? I believe it would help hugely if a nationwide scheme was developed to back small businesses, along with a national policy targeted specifically at women in order to help female entrepreneurs truly succeed.
It’s also essential that women face the wind and acknowledge the disadvantages they face over their male counterparts, and embrace the unique attributes that they do have. This barrier-reversal mindset is essential in conquering the prejudices that are outside their control.
If more women decided to take advantage of this momentum, the number of female-owned businesses would significantly increase, as more women around the world begin to desire, create and maintain prosperous business ventures.
