Establishing a business from scratch is undoubtedly a dream for many entrepreneurs. Turning that dream into reality, however, requires more than merely putting one’s nose to the grindstone—it demands innovation and entrepreneurial skills. Despite the numerous advantages, entrepreneurs face numerous challenges, such as navigating strong teams, competitive markets, and producing novel concepts. Above all, however, capital is vital. Only with capital can an organization be established, and the same holds for businesses created by women seeking funding.
Even with the market’s massive volume of capital projects, the onus of the battle remains on the entrepreneur’s shoulders. The question arises: What is more challenging? Although the reality is that obstacles for female entrepreneurs are greater than those faced by males, despite numerous measures aimed at empowering women and promoting equality. One of the most significant hurdles is access to funding and resources. To highlight the fact, according to the report published in Springer, women entrepreneurs receive significantly less investment compared to their male counterparts, limiting their growth opportunities.
Given below are some of the challenges and opportunities, women-led ventures witness while acquiring investment:
Challenges
Being taken seriously: There is no denying the fact that women in leadership roles still face discrimination in a culture where men predominate, for a variety of reasons, including ingrained attitudes or fragile egos. As a result, due to biases or preconceived notions, potential investors find it difficult to see women-led firms favorably. It also gets challenging for women to obtain access to networks and resources that their male colleagues generally have, making it more difficult for them to identify investment opportunities.
Limited access to funding: According to the Morgan Stanley report, in the finance sector, 89% of investors are men, and because of our skewed structure, men tend to favor those in their tribe. Strong presenters who are women lag behind the competition. Even after making a compelling proposal, it is demotivating if other businesses receive funding. As a result, a dearth of financial opportunities for women can severely limit their potential to expand and scale their firms.
Opportunities
Reduce gender disparities: Gender inequality has long been a major issue that must be addressed in a variety of fields, including finance. As a result, granting women equal access to money and investment can contribute to the development of a more balanced and inclusive corporate atmosphere. Thus, giving equal financial opportunities for men and women not only fosters fairness, but also variety and innovation in the economic sector.
Drive for societal impact: In addition to financial gains, investing in women-led businesses can undoubtedly have a positive social impact. Investors who want to link their portfolios with socially conscious activities can make a difference by investing in women entrepreneurs. These entrepreneurs are dedicated to having a positive impact in their communities and beyond.
Investing in women is investing in the future!
There is no denying the fact that for entrepreneurs, launching a firm can be both exciting and terrifying. Women entrepreneurs, however, confront particular hurdles when compared to their male counterparts, the most significant of which is access to money. Regardless of the above challenges, investment in female-led enterprises has also proven to be extremely advantageous to economic growth and creativity. Investing in female entrepreneurs can thus help not only break down barriers but also allow women to have a long-term impact on society.
Nidhi Singh, Co Founder Samosa Singh