Women are an important force in business. Women make up more than 11,6 million businesses and half of the U.S. work force. More women are in the workforce, earning more degrees and becoming entrepreneurs. Women are still subjected to stereotypes and old misconceptions.
It’s all part of the job for women to dispel myths about themselves and their skills. Four common myths about women in business are debunked.
Myth 1 – Entrepreneurship is almost exclusively for men
Statistics show that while the majority of business owners are men, the number of women entrepreneurs is growing faster than their male counterparts. The market no longer has a male-dominated dominance. According to “Women-Owned Businesses Report,” the U.S. has approximately 11,6 million women-owned companies. This is a 114 per cent increase in the last 20 years. This number continues to increase. In 2017, women opened 849 new businesses on average per day.
The number of women entrepreneurs is increasing. Most female entrepreneurs are successful. According to the 2016 BNP Global Entrepreneur Report on women-owned companies, they had revenues that were 13% higher than those of men. The employment situation is not improving evenly. In the last 20 years, employment at women-owned businesses has increased only by 27 percent. This indicates that opportunities for getting off the ground have improved, but the job growth has been limited.
Myth 2: Businesses led by men generate more revenue
One of the most common myths about women in business is that men-led companies generate more revenue. The number of women and men in leadership positions is still very unequal. Organizations that have a strong culture of diversity find success.
A UC Davis survey found that the median equity and asset return for the 25 companies with the highest percentages of women leaders was 74 percent greater than the average across all the companies in the study.
Despite the fact that women are occupying more executive positions, there is still room for improvement. Women hold only 24% of senior leadership roles globally.
Myth 3: Gender Equality has ceased to be an issue
One of the biggest myths about women in business is that they no longer care about gender equality. Men in the workplace believe that women are now on an equal footing. This is simply not true. UC Davis’ research revealed that in California, the majority of companies do not have any women in their top-paid executive positions. In California, women hold just 12.3 per cent of executive and board positions.
A Women in the Workplace survey found that more than a third of women believed their gender had held them back in a promotion. Only 8% of men said the same. Women face significant pay gaps, which makes it difficult for them to advance in their careers. In the United States a woman earns just 77.5 cents per dollar that a male makes.
The U.S. Senate Committee on Small Business & Entrepreneurship conducted an analysis that found barriers to promoting equality for women. The lack of female mentors and role models, and the pay gap which limits women’s financial flexibility are two of the biggest issues.
Myth 4: The challenges of obtaining finance are the same for men-owned and women-owned businesses
The Senate Committee’s report, which was mentioned above, brought to light a third barrier that female entrepreneurs face: funding. The report cited larger industry studies and found that women were less likely than men to request loans, and they typically requested smaller loan amounts.
One of the biggest myths about women in business is that they have the same level of access to capital. Women business owners are receiving almost 50% less funding than their male counterparts. This disparity is due to a number of factors, including women’s fear of rejection when applying for funding. Women can often get the funding they need through federal grants or similar programs. However, it is difficult to secure the funds necessary to sustain their growth.
We believe that everyone should have equal access to capital. We are working to fix the problems with small business loans and believe all small businesses should receive honest, professional and effective financing. Contact us today to get started.
Here are some more common myths about women in business. Check out our infographic:
