Compared to men, Women entrepreneurs have a tough time establishing their businesses.
In a nutshell, women entrepreneurs face more challenges in the business world, and have mastered the art of doing more for less.
The number of women in the entrepreneurial field are growing. Women are starting over 1,100 businesses a day, and women-owned businesses have increased 27.5% in the five years between 2007 and 2012. As of right now, there are currently more than 10 million women business owners, according to the U.S. Census Bureau.
However, these achievements are overlooked simply because of the challenges women must face when creating a business.
First off, women start their business with less capital than men. On average, one woman would only have access to $75,000 instead of the $135,000 men have. They only receive seven percent of all venture capital funding from the government, which equates to some having to use hard money loans to gain startup funds. These hard money loans have higher interest rates that start at 15%, and lower loan to value ratios that can go on to cause more debt in the long run.
Secondly, women are older when they establish their first business. In general, men develop their first business between the ages of 22 to 34. Women, on the other hand, are typically between 35 and 44-years-old.
Kim Garst, the founder of personal branding firm Boom! Social, believes this trend is due to many women staying home to raise a family in their late 20s and early 30s. But once their children are older, women must face a lot of societal pressure to be a wonder woman of sorts.
“As much as we may not want to admit it, often society still tends to expect women to ‘do it all’: to be the primary caregiver, to manage the household, to be successful in their business or career, and to do it all with grace,” Garst explains to Business to Community.