3 Challenges of Being a Female Founder in a Male-Dominated Industry
So, starting a business is no walk in the park, and it can be even tougher for women looking to make their mark in male-dominated industries. Despite some strides in gender equality, women still have to deal with daily hurdles when trying to break into industries that have been the boys' club for too long.
Let's take a closer look at just some of the roadblocks that female founders encounter when launching a business in a male-dominated field.
The Gender Gap in Funding
One of the biggest challenges that female founders face in male-dominated industries is the gender gap in funding. Despite evidence that companies led by women are just as successful as those led by men, female founders still receive significantly less funding than their male counterparts. According to data by Crunchbase, in 2020, all-women teams received just 2.3% of global venture capital funding.This can make it difficult for female founders to get their businesses off the ground and compete with male-led companies.
The gender gap in funding is a global issue. In the UK, a report by the British Business Bank found that female-led businesses receive just 1p for every £1 of venture capital investment. This is despite the fact that women-led businesses generate £23 billion in revenue each year.
The lack of funding can be particularly challenging for female founders who are trying to scale and develop their businesses. Without the necessary capital, they struggle to compete for the right talent, develop new product and ranges, or expand into new markets. This can limit their growth potential and again, make it super difficult for them to compete with male-led companies.
Lack of Representation
Another challenge that female founders face in male-dominated industries is the lack of representation. When women are not represented in an industry, it can be difficult to find mentors and role models who can provide guidance and support (which is incredibly typical of start-up culture). This can leave female founders feeling isolated and unsupported, which can make it harder for them to succeed.
The lack of representation is not just a problem at the very top levels of an organisation either. It’s not surprise it can causes issues at entry-level also. For example, women may be discouraged from pursuing careers in male-dominated industries because they do not see anyone who looks like them and let’s face it, that can be daunting. This can seriously limit the pool of talent that female founders have to draw from when building their teams.
To address the lack of representation, female founders are looking to seek out networks and communities where they can connect with other women in their industry. These communities can provide a sense of belonging and support, as well as valuable advice and guidance from women who have faced similar challenges. The more we come together, the more we can learn and grow.
Gender Bias and Discrimination
Finally, female founders in male-dominated industries often face gender bias and discrimination. This can take many forms, from micro-aggressions to outright discrimination. For example, women may be overlooked for promotions or opportunities, or they may be subjected to inappropriate comments or behaviour. This can make it difficult for female founders to feel valued and respected in their industry, which can harm their confidence and self-esteem.
Combatting gender bias and discrimination requires a huge effort from everyone in the industry. Investors and industry leaders should work towards addressing the gender gap in funding and promoting diversity and inclusion within their organisations. Male counterparts can also play an important role by being allies to their female peers and standing up against gender bias and discrimination when they see it.
On the positive side of things
Despite the challenges that female founders face, there are positive signs that the number of female-led businesses is on the rise (hurray 🎉). In the United States, a report by American Express found that the number of women-owned businesses increased by 58% between 2007 and 2018. These businesses generated $1.8 trillion in revenue and employed 9.2 million people, making them a significant contributor to the economy. Similarly, here in the United Kingdom, there was a 24% increase in the number of women-led businesses between 2012 and 2017, according to a report by the Federation of Small Businesses.
These statistics show that more and more women are breaking into male-dominated industries and succeeding as entrepreneurs. This is a positive sign for gender equality in the business world. It also shows that the traditional gender roles and stereotypes that have been prevalent in the past are slowly fading away. Women are becoming increasingly recognised for their talents and abilities as business leaders, and they are being given more opportunities to prove themselves in male-dominated industries.
This growth in female-led businesses is also a testament to the hard work, determination, and resilience of female founders. Despite the challenges they face, they have been able to overcome obstacles and build successful businesses. Their success has inspired other women to follow in their footsteps and pursue entrepreneurship as a career.
The rise of female-led businesses is a positive trend that should be celebrated. It is a sign that progress is being made towards gender equality in the business world. Female founders should continue to seek out networks and mentors who can provide support and guidance, and investors/industry leaders should work towards addressing the gender gap in funding and combating gender bias and discrimination. By working together, we can create society where everyone has an equal opportunity to succeed. 🚀
So, starting up a business can be really, really hard, especially for female founders in industries dominated by men. But, if we recognise and take care of these challenges, we can all chip in to make the business world a more fair and inclusive place.
Female founded brand looking to make an impact with your brand? Look no further…
