Beyond The Rabbit Hole: A Woman’s Journey In StartupLand

Close your eyes and think fast. Who is the first startup founder that comes to your mind? Is it a man or a woman? If it is a woman, that is a rare thought.

If you were to conduct the same experiment and ask 10 friends to name a startup founder or entrepreneur, it’s highly likely that all of them would mention a man. This isn’t because women aren’t founding businesses; rather, it reflects our tendency to perceive the business world, especially high-growth enterprises, as belonging predominantly to men.

This perception isn’t entirely unfounded, though. Statistics show that two out of three high-growth businesses are founded by men, not women. 

Additionally, women tend to be overrepresented in businesses characterized by low barriers to entry, and narrow profit margins, which don’t qualify as startups. A contributing factor may be that numerous women entrepreneurs opt to launch solo ventures to offset the scarcity of employment opportunities and many women solopreneurs are found in low-developed economies. 

The awards do not go to striving women who endure harsh conditions to pay family bills, but to stellar unicorns. But even though small businesses do not have a global story to tell, they do tell the story of creativity, adaptability, and balance. Rare traits of big businesses today. 

The Global Entrepreneurship Monitor (GEM) offers a more optimistic view and a glimpse of hope. It reveals a rising trend of women participating in entrepreneurial endeavors worldwide. 

And I see it also in my work with early stage businesses, where I notice that young women are much more open to start a business rather than opt for employment. 

But, in case of women who are already engaged in a professional carrier, the switch to entrepreneurship is less likely to happen, compared to their male counterpart. It still is a problem of biases and stereotypes. Female in general continue to be perceived as weak, emotional, not fit for leadership, or not courageous enough. 

The Journey To StartupLand Is Not Easy.

Numerous factors make it hard for women to achieve success as entrepreneurs. At least five reasons I find noteworthy and hold broad validity irrespective of cultural or geographical context:

1. Women secure less money from funding. Access to funding remains easier for men, given that venture capitalists tend to invest in startups within their own circles. With approximately 90% of VC firm investors being men, there is a natural inclination to favor male-funded enterprises over female-funded ones. Startups founded by women receive, on average, half the investment compared to those solely led by men. 
2. Psychologically, men display more self-confidence, and much easily embark on entrepreneurship journeys. Conversely, women generally exhibit more humility, which may detour them from starting businesses. 
3. The majority of women entrepreneurs are simultaneously balancing the responsibilities of raising children and managing household affairs. This results in significantly higher levels of daily pressure compared to their male counterparts. It is also reflected in their availability to travel or engage in frequent social interactions. 
4. In less affluent economies, women are discouraged from pursuing education, particularly at the higher levels, while their male counterparts receive encouragement and support from their families to pursue schooling. This lack of educational opportunities makes it harder for women to start a business.
5. The whole entrepreneurial ecosystem still favors men. Publications and magazines predominantly highlight male-led startups, and when they do feature female entrepreneurs, it’s often portrayed from a perspective of overcoming adversity rather than acknowledging their innovative ideas and capabilities. Moreover, men are frequently favored as speakers at events and mentors for startups, further perpetuating the gender disparity. 

If us, women, were to come together in supportive communities, offering encouragement and guidance to one another, it’s likely that more of us would find the courage and backing needed to pursue entrepreneurship.

Once Stepping In StartupLand, Alice Does Wonders.

Adversities may stop others, but not Alice.

Since women encounter greater challenges in securing venture capital, any business opportunity presented by a female founder is often subjected to stricter scrutiny and a bias towards potential success. In other words, to pass the investors table and secure funding, the proposed business idea must surpass the average male entrepreneur performance. But this leads to inherently stronger businesses and thought through plans and a higher agility and adaptability to hardships.

Moreover, as female founders typically raise less capital than their male counterparts, they pay attention to spendings and put a strong emphasis on operational efficiency, fostering better managerial skills.

Women also can transform humility, often seen as a weakness, into a superpower by harnessing their innate inclination towards openness and collaboration, both of which are vital attributes for thriving in entrepreneurship.

And last, but not least, women usually start businesses from powerful intrinsic motivations that extend beyond mere financial gains, which often prevail in male-dominated environments. It is our natural drive to support families, particularly our children, or to make a lasting impact on society, which serve as strong motivators. 

We Need More Alices In StartupLand

For any woman aspiring to build a company that makes a difference, success is within reach.

We are already witnessing tremendous positive business impact in companies that encourage female leadership. The Startup ecosystem needs the same revival. 

For all the Alices out there, here is my advice:

1. Stay true to your authentic voice. Despite the male-dominated business landscape, adopting traditional masculine approaches isn’t always the most effective strategy.
2. Acknowledge and embrace your accomplishments. It’s not about boasting but about asserting your worth. 
3. Networking and cultivating influential connections are equally essential for you, as female entrepreneurs, just as they are for men. Remember, success often hinges on who you know. 
4. Confront insecurities head-on. They should never stop you from pursuing your dreams. Failure is merely a steppingstone on the path to success.