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  • Writer's pictureAlisa Sydow

Unveiling the Gender Gap in Funding for Women Entrepreneurs

During the eWeek organized by UNCTAD, I was able to share my insights about how to address the gender gap in funding for women.

In the dynamic world of entrepreneurship, a recent analysis has exposed a glaring gender gap in access to capital for women entrepreneurs in the UK. Despite the impressive surge in the number of women venturing into business, the study reveals a stark reality – women start and scale their businesses with 50% less capital compared to their male counterparts. This disparity raises critical questions about the entrepreneurial landscape and signals a compelling need for change.

Challenge 1: Understanding the Gender Gap

The analysis identifies key factors contributing to the funding gender gap, emanating from both the supply and demand sides. On the supply side, a lack of tailored financial support and resources poses challenges for women entrepreneurs. Meanwhile, on the demand side, barriers such as limited awareness, confidence issues, and systemic obstacles hinder women from actively pursuing funding opportunities.

Challenge 2: Embracing the Identity

A noteworthy concern arises from the self-perception of many women business owners who do not identify themselves as founders or leaders. This perception gap significantly influences their behavior and ambitions, potentially limiting their access to opportunities, growth, and supportive networks. Addressing this identity challenge becomes pivotal in empowering women entrepreneurs and bridging the gender gap.

Challenge 3: Unconscious Biases in Funding

Unconscious biases, particularly in personal relationships and networking, further perpetuate the funding gender gap. The analysis reveals that the predominantly male composition of investors and business angels creates barriers for women entrepreneurs to access networks, mentorship, and funding opportunities. Overcoming these biases is crucial for fostering inclusivity in the entrepreneurial ecosystem.

Possible Solution: The Power of Community Building

To address these challenges, community building emerges as a potent initiative to support women in digital entrepreneurship. Creating a sense of community fosters an inclusive entrepreneurial ecosystem, facilitating the exchange of experiences, knowledge sharing, and inspiration. Successful women entrepreneurs play a pivotal role in this endeavour, offering their stories as a source of inspiration for aspiring women in business.

In conclusion, the analysis underscores the urgency of addressing the gender gap in funding for women entrepreneurs in the UK. By tackling unequal distribution, self-perception issues, unconscious biases, and limited networking opportunities, policymakers, organizations, and communities can collaboratively work towards creating a level playing field. Through community building and the impactful sharing of success stories, a transformative journey awaits, encouraging the empowerment and economic growth of women in entrepreneurship. Do you see other possible solutions to address the gender-gap in funding?

Leave some comments! Alisa

Featured Photo taken by UNCTAD on Flickr.

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