Women’s start -up activity has potential growth with access to financing and support for policies, according to … (+)
Ariana Martín is determined to help cities to exploit their own wind energy through Roseo Eólica UrbanaA startup that she co -founded in northern Spain.
Komali Dadlani works to transform smartphones into scientific instruments to help teachers and students reach their full potential as a co-founder of Lab4uDeveloper of web technologies and mobiles based in Santiago, Chile.
In Bangalore, India, Dimple Parmar co -founded Zenonco.ioA startup presented as the first health technology platform in integrative oncology in the world.
Meanwhile, Aya Laraki is a sustainable pioneer fashion with Cuimer, a Casablanca startup based in Morocco which transforms high quality sailor leather fish, making the fashion industry an environmentally friendly alternative with reptile leathers. “We have the power to move the story and inspire others to adopt solutions that prioritize the planet,” she recently told researchers from the Global Entrepreneurship Monitor (GEM).
These entrepreneurs are part of a global wave of women who begin and create evolutionary companies, which calls into question the common perception that women do not pursue high -growth businesses. Women now represent a third of entrepreneurs oriented towards strong growth, according to research in Entrepreneurship Report of Women of GEM 2023/2024who highlighted their stories and underlined their growing impact on entrepreneurial ecosystems around the world. The report was sponsored by the Cartier Women’s Initiative, the School of Management Friborg and the Frank and Eileen Center for Women’s Entrepreneurial Leadership.
Women are now the majority of entrepreneurs who put innovations on the market in Chile, Colombia, Iran, Lithuania, the Netherlands and Venezuela.
“We are in the privileged position to be 25 years old,” said Aileen Ionescu-Somers, executive director of GEM. “This year marks the 25th anniversary of GEM, allowing us to analyze how women’s start -up activity has evolved over time.”
The overvoltages of women’s start -up activities
There could be even more women who run high growth companies in the future. A key conclusion: Women’s start-up rates increased from an average of 6.1% to 10.4% in 30 participating countries between 2001-2005 and 2021-2023. In France, the Netherlands and Hungary, women have more than doubled their start-up rates. One in ten women began new businesses in 2023, against one in eight man.
High income countries have generally shown the lowest rates in women’s start -up activity and the widest gender difference. “This is probably due to the fact that women in these countries have more stable employment options, although this can change as employment safety decreases,” said Ionescu-Somers. In low -income countries where employment possibilities are rarer, more women must create their own livelihoods.
However, trends vary according to the country. Countries including Georgia, Morocco and Poland have had a decrease in women’s start -up activity.
Here are some key results:
Access to capital is crucial. The report has revealed that obstacles persist in accessing seeds and growth for their businesses, with existing structural biases for lack of access to informal financing networks. This has an impact on their ability to start and evolve high -growing businesses.
A factor that contributes to it is that women tend to start businesses in different sectors, often those that attract less investments, have noted the Ionnescu-amateurs. Almost half of all women entrepreneurs manage companies in the wholesale / retail sector, a significantly higher concentration than men, notes the report. Women were also much more concentrated in government and social services, with almost a fifth of the startups led by women in this area. The back of the medal: they were also half likely to start businesses in the information and communication technology sector than men and three times less likely to execute a startup in agriculture and mine.
“Globally and certainly in developed countries, the most popular choices for direct investment are clearly the areas where there are STEM activities,” said Ionescu-Somers. “Women tend to choose more socially oriented business areas. However, education and training also play a role. »»
Politicians encouraging more women to enter the fields of STEMs and information and communication technologies (ICT) could diversify the entrepreneurial opportunities for women, according to Ionescu-Somers. “Education and training are crucial to opening new paths for women entrepreneurs,” she said.
To inspire more women, decision-makers must highlight women’s successful entrepreneurs, especially in high-growth sectors such as STEM and ICT, where women are under-represented, she says. “This will inspire other women entrepreneurs to choose the education that will bring them in these sectors,” she said.
Politics leads to a real change. The decisions of the decision-makers had a tangible impact over time, as noted by Ionescu-Somers. Saudi Arabia is an example. The country’s policies emphasize entrepreneurship while the government seeks to focus on oil.
“Saudi Arabia has undergone significant political changes that have led to a spectacular increase in startups led by women in the past three years,” said Ionescu-Somers. “It was really interesting – just to see how when politics changes, women will go to the brand. When we look at intentionality to start a business, women are almost tied with men – they are really enthusiastic about creating businesses – but obstacles are sometimes very difficult. “”
For example, during COVID, many women had to close their businesses to assume care responsibilities. “While the world is recovering, women gradually return to entrepreneurship, but reconstruction takes time,” said Ionescu-Somers.
Access to mentors is essential. Women who have mentors and networks are more likely to establish and support prosperous companies, according to the report. “Women who have access to mentors and entrepreneurial networks are more likely to establish robust businesses, achieve strong growth and guarantee funding,” said Ionescu-Somers. “Countries like Switzerland and water have implemented policies that facilitate networking opportunities for women, which contributes to filling the gap for resources.”
Cultural standards can play a role in accessing women to resourcesThe report found. For example, in the Middle East, women without direct financial resources often seek funding from the extended family, researchers revealed. “Women tend to do it more than men because they have less access to independent capital,” she said.
By keeping in mind the unique characteristics of each financing ecosystem, the report recommends strengthen the laws that prevent discrimination in loans; Support for dedicated financing programs, subsidies and loans supported by the government aimed at companies led by women; Promote events and networks that facilitate access to high -level connections and investors and the training of small entrepreneurship groups led by women managed by women accomplished entrepreneurs.
The report underlines the anecdotal conclusions according to which the figures will change positively for women entrepreneurs as “providential investors of women, venture capital companies deliberately seek companies led by women and the impact investment shows that social enterprises Can produce good returns on investments in social benefits and profits. “”
As the report has discovered, what is heard about supporting women in a country can often help founding women in another, as long as there is the desire to do so.