Female entrepreneurs are quickly becoming the backbone of the American economy. But with more women-owned businesses than ever, why are so many finding it difficult to succeed?
We’re breaking down the numbers and giving you five easy ways to find success as a female entrepreneur.
Female Entrepreneurs in America: By the Numbers
Women-owned businesses increased by 114% in the past two decades – and 60% since 2007. Women own 40% of all American companies. These businesses generate $1.8 trillion (yes – trillion) every year.
Yet, even with these seemingly successful statistics, female entrepreneurs struggle compared to their male counterparts. Despite owning 40% of all businesses, less than 6% of female-owned enterprises generate revenues of more than $250,000 annually.
And when it comes to finding funding for a business, female entrepreneurs receive only about 2% of venture capital funding. Women also find it harder to secure traditional business loans than male business owners. Some statistics show women receive, on average, $5,000 less in business loans when compared to male-owned businesses of similar size and scope.
Step to Success for Female Entrepreneurs
With more female-owned businesses than ever, women must empower themselves and go after the success we’re owed. But how can female entrepreneurs set themselves up for success?
1. Find Your People
Some 90% of all female-owned businesses are sole proprietorships. That means there are lots of women working alone. Isolation can be damaging – not only to our businesses, but to our confidence, mental health, and motivation as well.
Increase your chances for success by connecting with other successful women, both in business and out. Join female entrepreneur groups and network with other female business owners online and in person. Find your people and let them help you thrive.
2. Secure Funding
Female entrepreneurs might own 40% of all U.S. businesses, but we get a far smaller piece of the investment pie. Fight for the funding your business deserves. You may have to work twice as hard to convince the banks to give you the loan, but your business – and you – are worth the effort.
Step outside of your comfort zone and take a chance. Invest in your future and the future of your business.
3. Know Your Worth
It’s no secret that women earn less than men for the same work. Studies find that entrepreneurs are underestimating their worth, too.
The Wall Street Journal found that where male entrepreneurs paid themselves an average of $232,659 per year, women only paid themselves $179,444.
Stop selling yourself short. If you do the same work as a male-owned business, you should get paid the same amount as that male business owner. Period. Know what you’re worth, and charge what you’re worth. The balance of power starts to shift when strong women demand equal pay for equal work.
4. Nurture Your Confidence
As women, we have been conditioned to believe we are “less than,” especially when it comes to business ownership and management.
Don’t fall for the lie.
We are every bit as capable, smart, fierce, and driven as male entrepreneurs. Embrace your abilities by building up your self-confidence. Practice positive self-talk, focus on your mental and physical health and start believing that all things are possible.
Because they are.
5. Take a Breath
The world of female entrepreneurship can be overwhelming at times. To avoid burnout, it’s important to recognize when you’re feeling overly stressed or when your business has overtaken other aspects of your life.
When you need a break, take a breath. Step back, reassess, and reprioritize. Taking care of yourself is the best way to grow your business and ensure continued success.
Are you a female entrepreneur? How do YOU stay motivated? Share your tips with us in the comments below.