Did you know that women own nearly one-third of all companies in the United States? That’s a lot of businesses, and it’s only growing! But as any woman who has ventured into entrepreneurship knows, there are -interesting- challenges we face along the way.
The challenges faced by women-owned businesses are unique and often complex. While there are many standard challenges that all companies face, such as attracting customers and managing finances, women-owned businesses often face additional obstacles.
For example, they may face discrimination when accessing funding or securing contracts. They may also struggle to find mentors and role models who can provide guidance and support.
However, despite these challenges, women-owned businesses are flourishing. In fact, according to the latest statistics, there are more than 11 million women-owned businesses in the United States alone. These businesses generate over $1.7 trillion in revenue and employ nearly 9 million people.
Additionally, women-owned businesses are growing at a rate of 5% per year, which is twice the overall business growth rate. These companies are a powerful force for good and prove that women can succeed in the business world.
To get you started, we have gathered the 20 most significant challenges for a women-owned business so you can prepare yourself for this new adventure:
1. Establishing credibility and trust
Women-owned businesses often work twice as hard to earn the same level of trust and respect as their male counterparts. This can be especially challenging in male-dominated industries or competing for contracts against larger businesses.
2. Balancing work and family responsibilities
Running a business while also managing childcare and household duties can be overwhelming, mainly if there is no support network.
3. Limited access to funding and resources
Women entrepreneurs face significant obstacles when securing funding and other necessary resources, such as mentorship, training, and networking opportunities.
4. Negotiating power dynamics
Often, women are not taken seriously in business negotiations due to gender stereotypes and preconceived notions about their capabilities.
5. Handling criticism
As a woman entrepreneur, you will likely face more criticism than your male counterparts – from clients, suppliers, partners, etc. Learning how to deal with negative feedback constructively is essential for success.
6. Building a solid network
One of the best ways to overcome the challenges mentioned above is by creating a robust support network of fellow women entrepreneurs. This includes seeking mentors, attending industry events, and joining online forums/communities.
7. Promoting yourself and your business
It can be challenging to get the word out about your business when competing against larger, more established companies. Self-promotion is essential for any woman entrepreneur who wants to succeed.
8. Overcoming self-doubt
Many women entrepreneurs struggle with impostor syndrome and self-doubt, feeling like they are not qualified or capable of running a successful business. It’s important to remember that everyone starts somewhere and that success is attainable with hard work and determination.
9. Managing work/life balance
Maintaining a healthy work/life balance is a challenge for anyone running their own business, but it’s challenging for women who are often the primary caretakers for their families. It’s essential to make time for yourself and your loved ones, even if it means delegating some responsibilities or putting work on the back burner.
10. Standing up for yourself
Women entrepreneurs often have to deal with sexist comments, assumptions, and dismissals from both men and women. Learning to stand up for yourself – without being aggressive or confrontational – is crucial in these situations.
11. Being taken seriously
In many cases, women have to work harder than their male counterparts to be taken seriously in the business world. This can be especially true if you’re young, inexperienced, or entering a male-dominated industry.
12. Fighting stereotype threat
Stereotype threat is the anxiety or stress from worrying about confirming a negative stereotype about your group. For example, women entrepreneurs may worry about being seen as incompetent or less capable than their male counterparts.
13. Finding mentors and role models
It can be difficult for women to find mentors and role models in the business world, as men often outnumber them. When seeking a mentor, look for someone supportive, experienced, and knowledgeable in your industry or field.
14. Breaking into established networks
It can be challenging for women to break into established business networks that are predominately male. One way to overcome this is by attending events and networking functions specifically for women entrepreneurs.
15. Getting access to capital
Women entrepreneurs often have difficulty accessing the money they need to start or grow their businesses. This is due to several factors, including gender-based discrimination and the lack of women in venture capital firms.
16. Making your voice heard
To be successful in business, you need to be able to articulate your ideas clearly and confidently. This can be a challenge for women, who are often socialized to be quieter and more submissive than men.
17. Negotiating salary and compensation
Women often make less than their male counterparts – even when they have the same qualifications and experience. As a result, women must be proactive about negotiating salary and compensation when starting a new job or promotion.
18. Workplace discrimination
Unfortunately, workplace discrimination is still a reality for many women entrepreneurs. This can be sexual harassment, pay disparity, or being passed over for promotions.
19. Balancing motherhood and entrepreneurship
Being a working mom is challenging enough, but add in the responsibilities of running a business, which can be downright daunting. It’s crucial to find a way to balance your duties as a mother with your responsibilities as an entrepreneur.
20. Overcoming the glass ceiling
The glass ceiling is the unseen barrier that prevents women from advancing to leadership positions in their field or company. While the glass ceiling is a barrier to success, it can also be an opportunity for women to forge their path to the top.
Women can overcome these challenges with careful planning, execution, and perseverance. And despite these hurdles, women have proven they can defeat any obstacle. So if you’re a woman thinking about starting your own business, don’t let these challenges hold you back – just be prepared to face them head-on!
