Female entrepreneurs have made many advancements in the small business economy—but the progress did not come easy. Pioneers had to fight for the right to be seen or heard in any industry she wanted, and prove that women could thrive beyond the household.
One of the greatest trailblazers is Sarah Breedlove (1867-1919), the country’s first female self-made millionaire, according to her New York Times obituary. Born as an orphan to freed slaves; she later invented and sold natural haircare products to black women through the Madame C.J. Walker Manufacturing Company. Breedlove built a factory, a laboratory and a beauty school to train sales agents. Today, Breedlove serves as a beacon of historic inspiration to the female entrepreneurship ecosystem, especially to women of color.
Fast forward to the present: more than 11 million U.S. businesses are owned by women, employing about 9 million workers and generating roughly $2 trillion in sales, according to the National Association of Women Business Owners. But it’s worth noting that women-owned businesses are still in the minority. According to the SBA’s Annual Business Survey data, women-owned and led businesses only made up about 20 percent of all firms, and were underrepresented in all demographic groups compared to their male counterparts.
But these grim statistics should not discourage one from pursuing their dreams of business ownership. Instead, leverage advice and resources to prepare for the entrepreneurial journey ahead. Here are common challenges women entrepreneurs face and some tips for overcoming them.
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Acknowledge inequality. As business owners, the challenges women continue to face run the gamut, and are markedly different from those experienced by male counterparts. It’s also no secret that the Covid-19 pandemic affected the small business economy, and exacerbated disparities within our communities. Yet so many dismiss the fact, or feel the need to disassociate themselves, from these harsh realities. It’s important to recognize that women face disadvantages; then think about the role you and your business will play in the fight for economic equality.
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Be authentic. When pitching your business or networking, it may, understandably, seem like a good idea to adopt a male attitude, such as competitive or aggressive traits. But remaining true to yourself and finding your own voice are the keys to rising above preconceived expectations. Adopting behaviors that are not authentic to your true personality can lead to burnout or depression. Defy societal expectations by being professional yet true to yourself.
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Overcome imposter syndrome. This refers to a mental and emotional state of believing you are not worthy of the job or as competent as others perceive you to be. This internal experience can also lead to burnout, as it drives one to constantly strive for perfectionism. Routinely remind yourself of your experience and skills, and the unique assets you bring to the table. If necessary, run a working document of all your achievements, big and small, to boost your morale.
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Funding and scaling for success. Raising capital is even more difficult for women-owned businesses. The alarming truth is that less than 3% of companies with venture capital funding had female CEOs. To navigate the challenging funding landscape, women must seek resources to ensure the fundamentals of their business are in solid shape before presenting to a bank or investors. This means getting your business team and business plan in order. Go the extra mile by building an impressive digital footprint. Build a professional website and social media following so you can shine when funders conduct due diligence.
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The power of peer networks. Another way to overcome the funding issue is to get more female investors to support one another. It doesn’t matter how busy you are with your business. You must proactively connect with groups (local or national) that are on a mission to not only inspire female investors, but to support other female business owners through capital and strategic mentorship.
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Garner customer and community support. Banks and investors must acknowledge their biases. But consumers ultimately play an equally critical role. It’s important for shoppers to support women and minority-owned businesses whenever possible. Some consumers may not be conscious about where they shop, so when possible, get in front of your customers. Let them know who you are by simply posting that you are a women-owned business on your storefront window. Use social media to introduce yourself. Launch a website with a robust About Me page, and blog regularly so the customers can grow with you and your business. Never underestimate the power of humanizing your brand, especially as a female business owner.