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Writer's pictureIzzy Nalley

The Need for Women to Start Businesses: Insights, Statistics, and Challenges

Women entrepreneurship is on the rise, with more women starting businesses than ever before. This trend is driven by various factors, including the desire for financial independence, flexibility, and the pursuit of passion projects. This article explores the reasons why women start businesses, the current landscape of women-owned businesses in the US, their success rates, and the common challenges they face.


The Need for Women to Start Businesses

Women start businesses for numerous reasons, including:

  1. Financial Independence: Many women seek to achieve financial independence and security through entrepreneurship.

  2. Flexibility: The need for flexible work schedules to balance family and work responsibilities.

  3. Passion and Purpose: The drive to pursue a passion project or to make a difference in their communities.

  4. Career Advancement: Overcoming barriers in traditional career paths and breaking the glass ceiling.

  5. Innovation: Bringing new and innovative ideas to the market.


Statistical Reasons Why Women Start Businesses

According to various studies and surveys:

  • Financial Independence: A significant percentage of women entrepreneurs cite financial independence as a primary motivator.

  • Work-Life Balance: Many women start businesses to achieve better work-life balance.

  • Passion Projects: Women are often driven by a desire to turn their hobbies and passions into profitable ventures.

  • Community Impact: Women frequently aim to create businesses that have a positive social or community impact.


Current Landscape of Women-Owned Businesses in the US

  • Growth: Women-owned businesses have grown significantly over the past decade. According to the National Women’s Business Council, there are approximately 13 million women-owned businesses in the US.

  • Economic Impact: Women-owned businesses contribute significantly to the economy, generating trillions in revenue and employing millions of people.

  • Industries: Women entrepreneurs are present in diverse industries, including healthcare, education, professional services, retail, and more.

Success Rates of Women-Owned Businesses While women-owned businesses are growing, they face unique challenges that impact their success rates:

  • Survival Rates: Women-owned businesses have comparable survival rates to those owned by men, but they often start with less capital and fewer resources.

  • Growth Potential: Women-owned businesses tend to grow more slowly than those owned by men, partly due to limited access to funding and investment.


Common Reasons for Failure Understanding the reasons why women-owned businesses fail can help in developing strategies to overcome these challenges:

  1. Lack of Funding: Difficulty in accessing capital is one of the primary reasons for business failure. Women often receive less funding than their male counterparts.

  2. Market Challenges: Insufficient market research and understanding can lead to business failure.

  3. Work-Life Balance: The struggle to balance business demands with personal and family responsibilities.

  4. Networking: Limited access to networks and mentorship opportunities.

  5. Scaling Issues: Challenges in scaling operations and managing growth effectively.

Strategies for Success To improve the success rates of women-owned businesses, several strategies can be employed:

  • Access to Funding: Increasing access to funding through grants, loans, and investment opportunities tailored for women entrepreneurs.

  • Mentorship and Networking: Creating and participating in networks and mentorship programs to gain valuable insights and support.

  • Training and Education: Offering training programs focused on business skills, financial management, and leadership.

  • Support Systems: Building strong support systems at home and within the community to help balance responsibilities.

  • Market Research: Investing time and resources in thorough market research to better understand customer needs and market dynamics.


Women-owned businesses are crucial to the economy and society, offering unique perspectives and solutions. By understanding the reasons why women start businesses, the challenges they face, and the strategies for success, we can support and empower more women to pursue entrepreneurship and achieve their business goals.


Transitioning from Side Hustle to Business: Embracing Collaboration

As women entrepreneurs grow their side hustles into full-fledged businesses, transitioning from doing it all themselves to collaborating with others is crucial. Here’s some advice to make this transition smoother:

1. Recognize When to Delegate:

  • Identify Core Activities: Focus on high-impact activities that drive growth.

  • Delegate Non-Core Tasks: Outsource or delegate tasks that can be handled by others, such as administrative work, bookkeeping, or social media management.

2. Build a Support Network:

  • Hire Help: Bring on part-time or full-time employees, freelancers, or virtual assistants to support your business operations.

  • Seek Mentorship: Find mentors who can provide guidance and share their experiences.

  • Join Networks: Participate in women entrepreneur groups, industry associations, and online communities to gain support and resources.

3. Leverage Technology and Tools:

  • Use Collaboration Tools: Implement project management and communication tools to streamline collaboration (e.g., ClickUp, Slack).

  • Automate Processes: Utilize software to automate repetitive tasks, such as invoicing, email marketing, and customer relationship management.

4. Develop a Growth Mindset:

  • Embrace Learning: Continuously seek opportunities to learn and improve your skills.

  • Adapt to Change: Be flexible and open to new ideas, technologies, and strategies.

  • Invest in Professional Development: Attend workshops, webinars, and conferences to stay updated on industry trends and best practices.

5. Foster a Collaborative Culture:

  • Encourage Team Collaboration: Create an environment where team members feel valued and encouraged to contribute ideas.

  • Communicate Clearly: Maintain open and transparent communication with your team.

  • Celebrate Successes: Recognize and celebrate the achievements of your team and business.

Women-owned businesses are crucial to the economy and society, offering unique perspectives and solutions. By understanding the reasons why women start businesses, the challenges they face, and the strategies for success, we can support and empower more women to pursue entrepreneurship and achieve their business goals. Transitioning from a side hustle to a full-fledged business through delegation and collaboration is a key step in this journey, ensuring sustainable growth and long-term success.


Author: Izzy Nalley, MBA, ACMP, Co-Founder of The WO Network




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