Women are innovators and change-makers. Despite scripting success in the corporate world, there are various stereotypes attached to women in business. It has even been found that female leaders support diversity, equity, and inclusion initiatives. Here, we will talk about five myths about women who choose the path of entrepreneurship.
Myth 1: Entrepreneurship is Exclusively for Men
The majority of entrepreneurs have been men for a long time. However, the reality is changing, and women are shattering this myth that only men can be entrepreneurs. The number of female entrepreneurs is increasing at an exponential rate. There are more than 11.6 million female-owned businesses in the US alone. It equates to a 114 percent increase in comparison to the numbers from the past two decades. Male entrepreneurs remain pioneers, but female entrepreneurs are taking the lead. More than 80% of females are solopreneurs, indicating how effectively they are handling their business single-handedly. Moreover, there is a misconception that most female-led enterprises are related to lifestyle categories, which is not the case. From IT and accounts to finance and healthcare, they are in different sectors and niches.
Myth 2: Male-owned Businesses Generate More Revenue
There is also a misconception that male-owned businesses generate more revenue than female-owned businesses. Three hundred twenty-seven females have carved a space for themselves on the Forbes Richest List in 2022. The pervasive statement that women are bad at math and numbers, continues to demean females. However, the Peterson Institute for International Economics claims that women are better. While it is a fact that there is inequality between the number of female and male leaders, we cannot deny that women are taking up different roles and entering professions that men have dominated for a while.
Myth 3: Both Male and Female-owned Businesses Face the Same Set of Financial Issues
Funding and managing finances are some of the most critical challenges faced by entrepreneurs. According to the Senate Committee Report, obtaining funding is one of the most significant barriers that impacts the growth of female-owned businesses across the world. Moreover, fewer females are likely to apply for loans. Most of the time, women are hesitant and scared that their loan appeals and funding requests will be rejected. The lending gap is widening, which also stagnates the growth of female businesses and forces them to shut down their operations. Therefore, it is important to provide equal opportunities to women as well.
Myth 4: Women are Less Ambitious and Confident
We cannot deny that the number of male leaders surpasses those of women. However, we cannot attribute this to women being less ambitious and confident than men. Most of the time, a woman is not even provided with equal opportunity. There are organizations that do not promote women and pay them less for the same amount of work. Time and again, women have roared their voices and exhibited their confidence. It is even believed that females are bad at negotiating and lack the courage to ask for the same pay. However, the research reveals that only 15% of females who raise their voices get the appraisal. The remaining females either switch or look for an alternative because the organizations do not support their goals. Therefore, there is a need to change the approach from the ground level in order to let women express their true selves.
Myth 5: Women Do Not Support Women
One of the most dangerous misconceptions is that women do not support other females in the organization, business, or any given profession. The numbers, however, negate this myth. Several studies reveal that 65% of women support new talent after gaining development and higher position in their careers. Moreover, the female executives support other women and listen to their concerns. On the contrary, only 30% of men in higher executive positions support new talent. Females have a different perspective and try to understand the employees’ circumstances. This is one of the reasons female entrepreneurs always bring diversity and inclusivity to the workplace.
There have been various misconceptions that impact the progress of women. The progress is slow, but many women are defying all the stereotypes. Changing the approach and guiding women on the right path is necessary. Mentoring females is one of the most effective ways to bring change and help them progress in the business.
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