Women have long been overlooked in the world of entrepreneurship and innovation. In the past few decades, however, this gap has begun to narrow as more and more female leaders have broken the “glass ceiling” in business. Despite this progress, there still remain some obstacles preventing an equal amount of female entrepreneurs as male ones.
In this article, we will discuss why the gender gap in entrepreneurship has persisted and why there are more male entrepreneurs than female ones. We will discuss the cultural, financial, and educational factors that contribute to this discrepancy, as well as measure the progress women have made in this arena. Finally, we will provide some suggestions on what we can do to improve the situation and create a more equitable environment.
Cultural Factors in the Gender Gap
Culture has a powerful role to play in the formation of any social institution. In many cultures, male-dominated roles are encouraged, while female-oriented ones are less socially accepted. This gender bias can stifle the entrepreneurial ambitions of women by denying them of opportunities and resources to start a business.
Additionally, even when female entrepreneurs exist, they tend to face more scrutiny and resistance to their endeavors. Male entrepreneurs are rarely subject to the same level of suspicions and skepticism, whereas women are often put under pressure to prove their capabilities and motives.
These subtle and not-so-subtle biases can have a lasting effect on the female ambition, creating an invisible barrier to pursuing entrepreneurship.
Financial Factors & Gender Gaps in Entrepreneurship
Aside from the cultural obstacles female entrepreneurs have to face, there is also the issue of access to capital. Raising funds for business purposes is one of the most challenging elements of being an entrepreneur, yet it is a crucial step that allows the venture to materialize.
Unfortunately, many female entrepreneurs lack the financial resources needed to start and sustain their business endeavors. According to the National Women’s Business Council, women own more than 36% of businesses in the United States but only received 13.2% of venture funding in 2018.
This finanical disparity makes it more difficult for female founders to launch their business and further contributes to the gender gap in the world of entrepreneurship.
Educational Barriers for Female Entrepreneurs
Education is an important factor in becoming an entrepreneur and is a key determinant of business success. But educational barriers like gender inequality and lack of representation can impede the progress of many female founders.
Studies have found that female entrepreneurs are still relatively underrepresented in higher education, especially in traditionally male-dominated disciplines such as engineering and computer science. This educational gap can limit the options and resources available to women who want to pursue entrepreneurship, further widening the gender gap between male and female founders.
Progress in Equalizing Entrepreneurship
Despite the existing gender gaps in entrepreneurship, there are encouraging signs of progress when it comes to increasing the participation of women in business.
According to the National Women’s Business Council, more women are starting businesses than ever before and the rate of female entrepreneurship is growing faster than male entrepreneurship.
Additionally, the rate of funding for women entrepreneurs has also increased considerably over the past few years. In 2018, the venture funding for female-led businesses doubled from the previous year. While this progress is heartening, there is still more work to be done in order to create a level playing field for male and female entrepreneurs.
What Can We Do to Encourage Female Entrepreneurship?
To create a more equitable environment for female entrepreneurs, there are several steps we can take to eliminate the gender gap in entrepreneurship and foster an environment where women’s businesses can flourish.
One of the most important steps we should take is to provide equal access to capital and resources. This means providing better access to grants, funding, and other forms of financial assistance and removing any gender-based bias from the process.
It’s also important to create more opportunities for women in the educational system. This includes offering them more resources and support for STEM (Science, Technology, Engineering, and Mathematics) related fields and increasing the number of female mentors and role models who can serve as guides and advisors for the next generation of female entrepreneurs.
Finally, we should strive to create a more supportive, tolerant, and open environment where women feel safe to take risks and pursue their ambitions. This requires dismantling the systematic and cultural obstacles that have been erected to suppress female entrepreneurship, while also recognizing and celebrating the great achievements of female founders.
Gender disparities still persist in the world of entrepreneurship, preventing equal rates of female and male founders. These discrepancies are largely due to cultural, financial, and educational obstacles that impede women’s access to resources and opportunities, as well as create an environment of mistrust that stifles ambition.
However, the situation is improving and there is plenty of reason for optimism. By removing gender-based biases, creating more access to resources and support, and fostering a more open and encouraging environment, we can work to bridge the gender gap in entrepreneurship and create a fairer and more equitable future for all.
