Including Women Entrepreneurs: International Women’s Day
Inspire Inclusion: The Catalyst for Unleashing Women's Potential in Business
As we observe International Women's Day 2024 and this year’s theme to "Inspire Inclusion," it's a poignant moment to reflect on the transformative power of investing in women and woman-owned companies. Despite strides toward equality, the landscape of entrepreneurship remains uneven, with women founders facing significant hurdles in securing investment. The theme of inspiring inclusion isn't just about celebrating women's achievements; it's a call to action to dismantle the barriers that hinder women's full participation in the economy.
The Funding Gap: A Barrier to Scaling Dreams
Research consistently shows a stark disparity in funding between male and female-owned companies. According to the "2020 Women Entrepreneurs Report" by Crunchbase, women-founded companies globally received only 2.3% of venture capital funding in 2020. This disparity isn't just a gap; it's a chasm that reflects systemic biases and challenges women entrepreneurs face in raising capital. Women, like myself, often resort to bootstrapping their ventures (I’ve bootstrapped three!) —a testament to our resilience and determination but also a reflection of the systemic barriers that limit our growth and potential.
The Impact of Inclusion
Investing in women isn't just the right thing to do; it's smart economics. Studies have shown that women-owned businesses are not only viable; they often outperform their male counterparts in several metrics. For instance, a report by the Boston Consulting Group found that businesses founded by women ultimately deliver higher revenue—more than twice as much per dollar invested—than those founded by men. Yet, despite these promising returns, women founders often hear they won't scale quickly enough to ensure a rapid recoupment of investment. This bias undermines not only the potential of women-led companies but also the broader opportunities for societal progress that these ventures represent.
A Personal Reflection on Lost Opportunities
In my own entrepreneurial journey, I've faced the dual challenges of scaling and securing investment. My software company, a venture with significant potential and a proven product, could not secure the funding it needed to grow. Meanwhile, a similar SaaS company, male-founded, raised a total of $64.5M over several rounds and was eventually acquired. This isn't just a personal loss; it's indicative of a broader systemic issue that stifles innovation and economic diversity. Imagine the jobs created, the solutions innovated, and the communities empowered if woman-owned businesses received the same level of investment and support as their male counterparts.
The Tenacity of Women Entrepreneurs
Women entrepreneurs embody tenacity, insight, and innovation. We bring new ways of leading, balance of power, and opportunities to the business world. However, our potential is often curtailed by a lack of support and inclusion in funding and entrepreneurial programs. Mentorship and network-building have been crucial to my journey, demonstrating the value of community and advice. Yet, for women's businesses to truly flourish and scale, we need more. We need systemic change that embraces and invests in the inclusion of women in all aspects of business and entrepreneurship.
A Call to Inspire Inclusion
As we move forward, let "Inspire Inclusion" be more than a theme; let it be a guiding principle for investors, policymakers, and communities. By actively working to close the funding gap and support woman-owned businesses, we can unlock a future of unparalleled innovation and economic growth. It's time to invest in women, not just as a matter of equality, but as a strategy for creating a more diverse, inclusive, and prosperous world for all.
On this International Women's Day, let's commit to a future where women's businesses are valued and supported equally. Because when we inspire inclusion, we don't just lift women; we elevate our entire society.
