Women entrepreneurs, in their pursuit of innovation and success, often find themselves navigating a challenging landscape marked by uncertainty and rapid change. People might think it looks easy, but women work hard to earn their share of the pie.
In difficult times, resilience becomes a cornerstone for success, and the experiences shared within these pages aim to empower women entrepreneurs to not only overcome obstacles but also to thrive amid adversity. Research on major challenges for women-owned businesses and tips to overcome them.
Table of Contents
Here are some tips to help you overcome the top 5 risks for women-owned businesses
Money is the lifeblood of any business. Women entrepreneurs are less likely to be able to secure funding for their businesses than men, according to study after study.
A financial risk is an unforeseen future event that could cause your business to lose cash. This could impact your cash flow, leaving you unable to meet your obligations. You are at greater risk of financial loss if you borrow large amounts of money to run or start your business.
As per the National Women’s Business Council, men begin their business with almost twice the amount of capital that women have (on average $135,000).
A financial risk management strategy can help you reduce the impact of these risks and avoid negative outcomes.
Pro tip: According to a BCG Report, Startups founded or cofounded by women receive less in investments but generate more revenue.
Hiring an employee means you’re taking on additional responsibilities. This includes compliance with overtime regulations, taxes and workers compensation regulations. If you ignore these rules, your business may be in serious trouble. The report states that when they do hire staff, they are reluctant to give them daily management responsibilities. In terms of the number of employers, women own 20.9%.
Fix: Hire someone to help you once your workload increases. You may find it difficult to transition from being a sole proprietor to an employer. But if you carefully vet your candidates, you can create a team to help grow your business.
For a moment, let’s ignore the gender gap. This risk is applicable to entrepreneurs of every kind. In Australia, 12.8% of small business owners do not have adequate insurance coverage
Other words, the majority of businesses face a serious risk of having to pay a large amount of money out of their own pocket if disaster strikes. This financial drain can make it hard to remain open for business. You can compare and get startup cover from BizCover to safeguard your dream venture against unexpected risks.
When you have enough coverage, an unexpected loss won’t wipe out your already limited funds.
Pro Tip: Getting insurance does not have to be expensive. You can work with an agency or agent who will send you quotes for small business from different carriers. You can then compare the rates and offers and find the best deal.
Women entrepreneurs should not be surprised that there are cultural biases which consistently favor men over women. 8.2% of Fortune 500 CEOs are women. If you keep a positive attitude, you will be able to overcome challenges and achieve success.
Workaround: Confidence is often confused with leadership potential and competency, especially among men. The report states that humble leaders make better leaders. However, confidence is a powerful tool to win over people, even if it means doing it in high heels and backwards.
Top 3 Tips for Women to Thrive In Business
The topic of gender empowerment is often covered in the media, but the effective ways that everyone can participate in this cultural change are rarely discussed, particularly in the workplace. Here are tips for aspiring women who wish to grow their own venture.
Follow your curiosity
It’s not necessary to follow the traditional career path. Every woman has her own path to success. You should not only follow your interests but also your curiosity. Do not strive for perfection. Perfection is the enemy to good. Take action and don’t study everything to death. Be curious.
Reach for More
Never settle for less – always strive to do more. Women in senior roles are at a standstill today. The number of female employees leaving their companies is not higher than that of male employees. Women’s attrition rates do not differ from men’s. Women aren’t leaving the industry to raise families, they just stay at the same level.
Women and men in companies need to work together to remove barriers to advancement.
Speak out often
Do not be afraid to speak up. You can start by saying something early if you’re in a large group and are reluctant to say anything. It will get you into the room. It helps you to feel more at ease and establishes your purpose for being there.
To create meaningful change at work, you need to foster an environment where everyone is comfortable expressing themselves. Women can prepare for a successful future by being confident about their abilities, open with their opinions and actively encouraging a culture that encourages everyone to feel empowered in supporting gender parity at work.
Fight your fears
It takes courage for entrepreneurs to break through boundaries. This encouraged budding entrepreneurs beyond their comfort zones. Fear of failure is crippling but that’s no reason to stop. You have to take calculated risks.
Business challenges are a normal part of life. They should not only be accepted, but also celebrated. A challenge can take you out of your comfort zone, and inspire new ideas.
Prospective entrepreneurs should not put too much pressure on themselves in order to achieve their goal. It is important to reward the effort, and not only the outcome. You’ll feel satisfied if you follow this path.
Passion and perseverance go hand in hand
While it’s a cliche to say that passion and perseverance are equally important for entrepreneurs, Work is rarely an imposition when you enjoy what you do. Grit, or perseverance in achieving long-term objectives is a character trait.
It’s easy to get caught up in your own challenges, particularly when you are just starting out. It’s important to remember what you want to achieve and continue working towards it.
You can achieve anything if you believe in yourself
Both entrepreneurs found that having confidence in themselves was the biggest step to success.
How can you overcome self-doubt, though? You shouldn’t use other people as your only measure of success and skill. We often attach lofty attributes to others, but we should really be looking in the mirror to see what our abilities and skills are. It’s normal to not feel comfortable. But that doesn’t necessarily mean you are unprepared or underequipped.