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A rise in stress, a lack of jobs security, and families under pressure are all consequences of the last two challenging years of the pandemic. This is having a profound effect on women entrepreneurs. But chaos can lead to opportunity. While the pandemic has brought about unprecedented challenges and huge setbacks, they have also inspired a new generation of female entrepreneurs to start or plan businesses. Here, we will discuss the challenges and obstacles facing female entrepreneurs.

 

Women Are Driving Innovation During the Pandemic

The pandemic spurs a fresh wave of female entrepreneurs to use their wealth and spending power for entrepreneurship and leadership roles: more education, increased household equality, and longer lifespans fuels women’s efforts. Although many structures and existing systems hinder the advancement of women in business, not everything is bad news. Annabel Bosman, Relationship Manager at RBC Wealth Management, says women have been starting home-based companies for some time, but the trend has accelerated recently. She also believes that If we had as many female entrepreneurs as male entrepreneurs, the impact on global GDP would be immense.

 

At Inc.’s International Women’s Day panel, some women felt the trials of the epidemic gave them moments of clarity downtime to rethink leadership, entrepreneurship, and motherhood. Other women believed that when things are turned upside down, it offers entrepreneurs the chance to step back.

 

Funding Challenges for Women Entrepreneurs

The biggest obstacle for female entrepreneurs is funding. The pandemic disproportionately affected women, from layoffs to venture capital funding for female entrepreneurs. According to a Crunchbase report, co-ed startups and women-led businesses received less financing during the past year, despite increased venture capital investments. The report also showed women-led startups attracted an all-time high of 3.4% of venture capital dollars in 2019, but the percentage dropped to 2.4% in 2020 and has remained constant so far in 2021. Adding to the inequality, a system makes it even more challenging to get additional funding, as some programs require previous financing.

 

Research shows a bias in the way investors pose questions for women entrepreneurs versus men. According to the Harvard Business Review, venture capitalists asked women “blocking” questions focusing on the potential for losses, while men were asked “promoting” questions highlighting the potential for gains. According to the report, these questions may have a significant impact on funding for startups.

 

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