Women owned businesses are on a steady incline, accounting for over 12 million businesses in the United States. However, despite this success, women still face unique challenges that make navigating and thriving in the business world difficult. From gender biases and funding issues to difficulty finding mentors and developing strong business networks, every aspect is always a challenge.
In this article, we explore the experiences of small women in business, the obstacles they face, and how to overcome them.
Women in Business Today
Over the last few decades, the opportunities, roles, and representations for women in business have seen positive changes. Today’s women in business hold more prominent roles within companies and are more empowered and enlightened. Many companies, especially early-stage investing organizations, have at least one female executive.
According to statistics, of the 53% of females in the US workforce:
23% are in executive positions
29% are in senior management positions
37% are in manager positions
42% are in professional positions
47% are in support staff positions
These women in business statistics show how today’s business landscape values the insight and contribution of females in the workplace, paving the way for more females to join.
Why More Women in Business is Better
Women have unique life and work experiences that are highly beneficial to the workplace. Research shows that women excel at the soft skills needed for effective business leadership. They’re more empathetic, understanding, and patient than their male counterparts and possess high emotional intelligence. They’re also good at solving problems, managing tasks, and teamwork, all desirable qualities for senior positions such as CEO.
Although technical skills and knowledge are vital in career success, soft skills and emotional intelligence give women a key advantage in the workplace. Similarly, women in business tend to be more risk-averse and strategic than men. They assess situations and opportunities carefully and in-depth before making informed decisions. This may mean fewer acquisitions for the organization but greater valuations and profits.
Who are Women in Small Business 2022?
Women in small businesses in 2022 are highly multifaceted and diverse. Most women-owned businesses are in the Retail industry, specifically e-commerce and storefronts. The second largest number of female small business owners work in Beauty, Health, and Fitness Services.
Other industries leading in women-owned small businesses are Business, Food and Restaurant, and Education and Training. Most of these female entrepreneurs comprise Gen X, with Baby Boomers coming second.
Although the majority of female business owners are White/Caucasian, there has been an increase in women of color in the business landscape. There are more Black, Hispanic, Asian, and Indigenous American women-owned business in America.
Today’s women in business strive to be their own bosses and become independent and pursue their passions by starting their ventures.
Advantages of Women in Business
1. Diverse Workforce
Women have different life and work experiences from men that shape their approach to business. From strategies and decision-making to problem-solving and leadership, they think differently, breed creativity, and push new ideas forward to drive business growth and sustainability. This diversity is crucial for businesses as it opens up opportunities for innovation and forward-thinking, increasing profitability.
2. Posses Valuable Leadership Skills
Women possess a variety of valuable skills necessary for leadership and managerial positions. This includes high levels of self-awareness, conflict resolution, task management, empathy, patience, and emotional intelligence.
3. Offer Important Consumer Insight
According to research, women represent 85% of consumer purchases and account for over $20 trillion in consumer spending. This gives them first-hand experience in consumer buying behavior and patterns, which companies can use to inform marketing approaches and strategies.
Challenges for Women in Business
Some of the main challenges women entrepreneurs face include the following:
1. Accessing Funding Woes
There’s a huge gender disparity when it comes to funding and investing across the US. Fewer venture capitalists are investing in women-owned businesses and female-led organizations. This is due to gender bias and the lack of women in prominent positions in funding and venture companies.
2. Underrepresentation in Key Industries
Although there has been an increase in female workforces across various industries, some key sectors, such as engineering, tech, and finance, are male-dominated. According to STEM statistics, women only comprise 24% of the STEM US workforce.
Some of the sectors that show the largest gender imbalances are engineering and computer science. This under-representation is a result of the stereotype that hard sciences are more masculine than feminine.
3. Gender Bias
Gender bias is a significant problem for women in business, limiting the opportunities and resources females get in the workplace. Organizations tend to favor men in all aspects and can even hire men with no qualifications instead of females with the right qualifications.
Women also face more scrutiny in the workplace and must act and talk a certain way to succeed in their roles. On the other hand, men tend to do less but achieve more with their careers and are ambitious and assertive without being labeled “bossy.”
4. Salary Negotiation Woes
When women negotiate starting salaries for new jobs, they’re less likely to get it than their male counterparts. There’s a notion that women should immediately accept salary offers while men can negotiate new terms without repercussions. Similarly, many people believe men are better negotiators than women, who tend to underestimate their worth and feel inadequate and inferior.
Opportunities for Women in Business
1. Gender Equality and Inclusivity Policies
Many organizations and businesses are making gender equality and inclusivity part of their company policies. This ensures there’s no bias when it comes to hiring, promotions, and opportunities. For women, this guarantees they receive equal and fair treatment and salaries as male candidates. It also opens more job opportunities and positions for females in various industries.
2. Entrepreneurship
The increase in women-led businesses has paved the way for more females to start their own companies, pursue their passions, and become the modern entrepreneur businesswoman. Today’s entrepreneurship landscape encourages women to pursue their dreams and goals, be their own bosses, and take the initiative. This presents a chance to close the gender gap while allowing females to rise to leadership positions on their own terms.
3. Education and Training
Education helps women stand out in today’s male-dominated workforce and equips them with the skills and knowledge needed to succeed. Whether it’s a master’s degree, a bachelor’s degree, or a certification, education and training strengthen women’s credentials and build their confidence.
Best Business Advice for Women
Here’s some of the best advice for women in business from female entrepreneurs:
1. Believe in Yourself
One of the key strategies to succeeding as a woman in today’s male-dominated world is to believe in yourself. Believe that you have what it takes to thrive in a role or lead a small business, and you’ll make better, more informed decisions. You’ll also display more confidence, which directly reflects in your work.
2. Don’t Shrink Yourself
As a woman, it can be tempting to shrink yourself and take on more feminine roles to fit in. On the other hand, you may want to go overboard to prove to yourself and others that you’re capable. Unfortunately, both approaches are detrimental and can lead to dissatisfaction and unhappiness. Whatever industry or role you’re looking to get into, be yourself and step up as you are.
3. Figure Out What Your Brand Values and Messaging Are
In today’s highly competitive business landscape, it’s vital not to lose sight of your brand and core values. They guide your path to success and ensure you don’t make costly mistakes in business ownership.
Funding Resources for Women Small Business Owners
Some of the funding resources available to female business owners include:
1. Camino Financial Loans
Camino Financial provides funding for minority-owned small businesses, such as women small business owners, that financing companies overlook. This gives female entrepreneurs access to a wide variety of small business loans they can use to expand and grow.
2. NAWBO (National Association of Women Business Owners)
This organization helps women in business gain access to greater social, economic, and political power worldwide. They sponsor educational and training programs and host networking events throughout the country.
3. International Association of Women (IAW)
IAW offers females numerous career growth opportunities, including professional development, networking, in-person training, and promotional services. The association comprises women from all walks of life, coming together to create a dynamic workforce.
Tips to Start a Small Business for Women Entrepreneurs
If you’re thinking about starting a small business, here are some tips that can help you succeed:
Network with professionals from similar and different industries to gain a unique insight into the challenges and opportunities for starting a small business.
Find a mentor to help you navigate all the phases of business ownership and to guide you to success.
Join relevant organizations to stay up to date with industry trends and updates.
Create a strong support system comprising people you can turn to for advice and favors.
Save as much money as possible to have enough to fund your business in case you don’t receive funding.
Ensure your brand tells your story as a woman in business by creating an “about me” section on your website.
Contact Camino Financial today to get loans for women in business.
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