Have you ever heard of the brands Canva, Drunk Elephant, Glossier, Bumble, Poppi, Orangetheory, or Hero Cosmetics? Did you know that they are women-owned and founded? Women currently represent one of the fastest-growing groups of entrepreneurs. In 2021, women started 49% of new businesses on the market — a remarkable 21% increase from 2019. This upward trajectory of gender equality in the foundation of startups is a testament to the potential for female success and gender equality in entrepreneurship; this potential should inspire confidence in all aspiring women entrepreneurs. But we unfortunately cannot celebrate just yet. There are still many barriers for women within the entrepreneurial ecosystem.
Let’s talk numbers.
Men remain at the forefront of business OWNERSHIP.
Despite the rapid growth of women-owned businesses, men still dominate the entrepreneurial landscape, owning about two out of every three companies, to be exact. This stark contrast in business ownership indicates the persistent gender gap in entrepreneurship. Aside from ownership, the limited presence of women in high-level positions persists. As of 2024, 89.6% of Fortune 500 CEOs are men, while women and women of color make up a mere 10.4% and 1.1%, respectively. You might not be surprised that more businesses are owned by men than women, as men have had centuries more of socially acceptable time in the public sphere. However, this historical context should enlighten you about how long-standing gender disparities in the business world still exist today within starting businesses and pursuing leadership positions. Throughout the history of Fortune 500 companies, there have been 52 women CEOS, with only a handful of these being women of color. I cannot give you a statistic of male CEOS for comparison; no comprehensive data currently exists that details the exact number of white male CEOs throughout the entire history of Fortune 500 companies. This is potentially because demographic data was not seen as a significant measurement when such little diversity existed.
Women face more significant hurdles in securing funding.
Private capital investment disparities:
Private capital investments are difficult to obtain, and they can be even harder to procure depending on your sex and race. In 2023,11% of male entrepreneurs received private capital funding compared to only 3% of women. Data detailing the number of women of color receiving private funding is limited, but in 2021, Black women founders received just 0.34% of total venture capital funding in the U.S.
Loan approval disparities:
According to Forbes, women-owned businesses receive typical startup loan approvals for just under $60,000, while their male counterparts receive startups at $156,000, a whopping $96,000 difference. I struggled to find information on the disparities in funding for women of color, highlighting again a gap in data addressing the ongoing challenges women of color face in securing equitable financing to enter the entrepreneurial atmosphere and a gap in intersectional data collection efforts broadly. While data on female entrepreneurs is essential in highlighting gender disparities, it’s equally critical that industry experts specify and report intersectional data; women of color face dual oppression of gender and race discrimination, making their experience significantly different from their white female colleagues. Without understanding and data support on the unique challenges faced by women of color, we risk overlooking disparities that further limit their access to opportunities in the entrepreneurial ecosystem. If you cannot see a problem, you cannot solve it.
Let’s Talk Next Steps.
- Support intersectional data collection to empower voices and provide data-based evidence for the unique disparities women of color face. As evidenced by my struggle to find data reports on women of color in entrepreneurship, there is a need for data-driven evidence of the discrimination women of color experience in entrepreneurship, especially in accessing equitable funding and securing leadership positions at major enterprises. Quantifying these gaps can help women advocate for change, raise awareness of the disparities that still exist from long histories of racial and gender discrimination, and advocate for change. Without numbers, women of color’s challenges remain invisible. Let’s bring these problems to light and start collecting numbers that can make a real difference.
- Uplift the voices of current women and women of color entrepreneurs. Highlight their experiences, unique struggles, and stories. Support their brands and messages. Be intentional in understanding the people behind your favorite brands, the missions they support, and how they influence the business landscape to be more inclusive. As a consumer, you have the power to make a difference in making the world a more inclusive, accepting space by educating yourself and offering your support to brands that align with your values.
- Seek out community to compile knowledge and resources. Current women entrepreneurs hold a wealth of knowledge on the lessons, advice, and struggles they experienced by existing as a female in a male-dominated industry. Listen. Connect. Build community before reinventing the wheel. We are stronger together.
- Lastly, stay tuned! I will be publishing an article summarizing the advice and journeys of four successful female entrepreneurs who participated in the Texas Christian University SheLeads panel. You won’t want to miss the wisdom these 4 strong women had to offer!