If you were to Google "successful CEOs," the faces of nine men will appear – not one woman in sight. While CEOs such as Spanx's Sarah Blakely and General Motor's Mary Barra have paved the way for women to attain success, the glass ceiling of the business world is still very much intact, and the metaphorical hammer to collapse this threshold is money.
Women owned 11.2 million or 41.1% of United States businesses without paid employees iin 2020, according to statistics released by the U.S. Census Bureau.
Women contribute to 37% of the global GDP, despite being one-half of the world's population.
Despite the incredible growth of women-owned businesses over the past two decades, only 2% surpass the $1 million revenue threshold. On average, these businesses only employ one or more people in addition to the owner, which simultaneously inhibits and enables their growth.
From staffing to managing overhead costs to being able to scale one's business, all roads lead back to funding, which women-owned startups often receive very little of. In 2017, only 2% of the $85 billion raised in venture capitalist banking went to female owned startups. Since 91% of venture capitalists are men, it's hard for a woman to successfully pitch their idea as most men can't relate to the product they are being asked to financially back. As a result, many female business owners are often forced to work copious amounts of hours without benefits, take pay cuts, and in some instances, they may have to sacrifice the quality of their products in order to keep their head above water. 48% of female entrepreneurs have to cut into their own pay in order to fund their business and retain employees. Ultimately, these side effects will cause entrepreneurs to lose their businesses or their sense of self.
Although the world of venture capital has operated as a boy's club for decades, it's time for women to finally have a seat at the table. One way to do this is to provide female entrepreneurs with greater opportunities and resources to successfully build and sustain their businesses. Organizations such as the U.S. Small Business Administration, SCORE, and the SBA help mentor entrepreneurs and provide them with training, technical support, and access to loan programs. Another possible course of action is to have governments and private sector organizations establish funds specifically for women-led startups. These funds could provide much-needed capital to help entrepreneurs get their businesses off the ground.
Ultimately, the lack of venture capital funding for female entrepreneurs is not just an issue that solely affects women in business. It impacts everyone. When we begin to dismantle the misogynistic undertones of our nation's biggest institutions and invest in women, women will finally be able to exist freely in all areas of society.
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