Obstacles Faced By Women Entrepreneurs in Europe
Each year, more and more women are starting their own business on the European market. Yet, female entrepreneurship still is a major untapped source of growth. Statistics indicate that women represent only a third of Europe’s start-up entrepreneurs. Lack of funding, low entrepreneurial self-esteem, and fear of failure are cited as key issues. Female entrepreneurs are facing more challenges than men starting and running a business, especially when it comes to access to education, finance, training, and networking.
Female Entrepreneurship at a Glace
Although the number of female executives and start-up founders is increasing, women are still under-represented in the business landscape. Studies show that men are 86 more likely to receive funds for starting a business and 59 percent more likely to secure angel investment compared to female entrepreneurs. Research also indicates that women use their families for funding and opt for smaller loans, rather than securing funds from venture capital, angel investors, or banks.
Female entrepreneurship development is a means to fight social exclusion and handle new financial challenges. Unleashing its power can have dramatic effects on a country’s economy. Currently, a number of women’s networks and business associations in the EU offer opportunities for peer-learning and self-growth. Business education is becoming more widespread, expanding in the higher education system, notably with support from programmes like WES and EXIST.
The European Commission assists EU countries in overcoming the barriers faced by business women through the Entrepreneurship 2020 Action Plan and the Small Business Act. In 2016, the Commission awarded the EU Prize for Women Innovators to Dr. Susana Sargento, Dr. Sarah Bourke, and Prof. Sirpa Jalkanen. The winners received prizes of €30,000, €50,000, and €100,000. This is the largest prize of its kind worldwide and aims to raise awareness for female entrepreneurship. What’s good for women is good for the economy.
Female Entrepreneurs: Challenges and Hidden Potential
Despite the growing number of female entrepreneurs in Europe, there is still a considerable need to catch up in this area. Women face particular challenges when starting a business, such as the pressure to act a certain way, societal discrimination, and limited access to industry networks. Compared to men, female entrepreneurs in Europe start businesses with lower capital levels. Additionally, women’s unemployment rate is still higher than men’s.
According to Dr. Horst Heitz, Executive Director of SME Europe, female entrepreneurs tend to take fewer risks in business than their male counterparts. Many times, their fear of failure keeps them from reaching their goals. Investors give less consideration to business women and are less likely to provide them with financial support. As a result, female entrepreneurs find it difficult to obtain a bank loan or raise capital for their projects.
Another major challenge is the lack of support and connections. Even though the number of business women in Europe is on the rise, it can still be hard to find fellow entrepreneurs to connect with. In this regard, peer-to-peer support, female mentorship, and women’s access to business networks are strongly encouraged. Other obstacles faced by women entrepreneurs are the stress due to competition and business routine, balancing business and family, lack of financial skills, and trying to do it all.
Although many of these problems affect both genders, they tend to be more common among women. This is due to a variety of factors, such as lack of contacts, information gaps, wrong choice of business types and sectors, difficulties in balancing work and family obligations, and a poor business environment.
Most business women try to handle every aspect of the business alone. It’s essential that female entrepreneurs outsource time-consuming tasks and assign projects to other team members. A common mistake among female executives is taking things too personally. In general, they try to build relationships with prospects and existing clients, which can set themselves up for disappointment. Women are also less assertive when it comes to collecting money, and tend to under-price their services.
Equal access for women to business opportunities is a challenge in Europe and globally. No country can generate sustainable economic growth when the skills of half of its population are underutilized. We need business women to improve the world we live in, create new jobs, and promote gender equality. It makes sense to support female entrepreneurs for the overall growth of the local and national economy.
