The greatest untapped forces that can make significant contributions to the economy of a country are women entrepreneurs. The covid-19 pandemic has shaken multiple economies of the world. The situation is still grave and it would only make sense to assume that if men and women entrepreneurs participate equally, then the GDP could rise by 6% globally, increasing the world economy. Women entrepreneurs' growth can only be determined if equal opportunities are provided to them. Bridging the gender gap is imperative now especially because the world is undergoing devastating loss in the wake of the pandemic.
Reasons for Encouraging Women Entrepreneurs for Economic Growth
Suppose the world wants to reap larger economic gains. In that case, it has to encourage the participation of women in the economy rather than focusing on an equivalent increase in the participation of men entrepreneurs.
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1. Untapping the great potential that women have
Tackling gender inequality is one of the most important challenges that need to be overcome in order to foster economic growth in the world. Data reports suggest that women have the potential to outperform men in entrepreneurship because of their ability to bring in different skills, ideas and opinions to the workspace. Even their problem-solving capacity is higher than that of a man entrepreneur.
The only way to support women entrepreneurs is by providing them equal opportunities for entrepreneurship which will, in turn, help to further bridge the gender gap.
2. Creating businesses that are more women-tailored
Women’s role in growth is highly underestimated. According to a survey conducted back in 2017, men entrepreneurs were able to attract 80% of investment in their organizations, leaving women with only 2%. This overwhelming data is enough to convince anybody that women entrepreneurs do not get the attention they deserve.
Even though studies have found that women entrepreneurs are more driven and passionate than their male counterparts- gender disparity exists as a prevailing problem that needs to be addressed to fully capitalize on women entrepreneurs' potential.
Creating businesses that target the needs of women could seem like a viable option to increase the recognition of women entrepreneurs. Besides, women entrepreneurs also have first-hand insight into the problems that other women are prey to. If women are able to create such businesses that solve the issues that other women face, half the problems of the economy would get solved.
Also read: Stats on Women Entrepreneurs
3. Entrepreneurship helps to solve women’s needs better
The traditional beliefs have led people to assume that women are best suited for household chores only. Stepping into entrepreneurship will not only break the patriarchal mindset but will also allow women to address their needs better. This, in turn, will promote the economic growth of the country, thus breaking the shackles of poverty and economic loss.
If the right factors are in play, then women entrepreneurs will not only act as a pivotal force in the diversification of an economy but will also bring in the innovation that would respond to the post-pandemic issues.
4. Men should also take the initiative to help women entrepreneurs
The entrepreneur’s economic growth is not just restricted to women helping women. Men entrepreneurs should also take steps to join hands with women entrepreneurs to foster the overall growth of the economy. In order for men to become better allies to women, they should create opportunities that are more focused on women. Outsourcing work or collaborating with women founders can seem an effective measure to promote growth and a sense of equality amongst the people.
Prioritizing women’s representation in their companies can also help empower women. Ensuring their representation at the top level of the corporate ladder will also inspire other women to perform better, which will, in turn, lead to a positive impact on the profitability of the company.
There is no doubt that companies with a greater percentage of women performed three times better than those male-dominated businesses. As more companies are stepping forward to invest in women-led startups, a lot still needs to be done.
Also read: Female Entrepreneurs' Success Secrets
In order to transform the entrepreneurship ecosystem, women entrepreneurs should be included at all levels of the economy. It is somewhat true that people are putting in laudable efforts to invest in women entrepreneurs all across the globe. However, much more of it is required, and it is required faster. Having more women at the decision-making table would allow people to think from different perspectives and give birth to better solutions that would reduce the economic problems faster.
Women are certainly the key to the economic growth of the world. Instead of governments wasting their time designing policies to foster economic growth, they should pay more attention to taking steps to advance the rights of women entrepreneurs and ensure their equal participation in all respects of the economy.
Covid has forced people to think beyond the traditional beliefs and consider the possibility of women having the capability of lifting the world economy into the next phase. Power-packed discussions should take place to ensure that women are being provided with more opportunities in their workspace.
Why women play a critically important role in boosting the economy of a country is clear. However, how to promote more women entrepreneurs’ growth is still being contemplated. The “old boys club” needs to be dismantled immediately and women entrepreneurs should be given access to those male spaces that were previously out of their reach. Offering them peer-to-peer networks will also encourage them to set high aspirations for their businesses and embrace innovation. By putting the stories of successful women entrepreneurs on the global map, more women can come forward to seize the opportunities and turn their dreams into a living reality.
Hence, if the world intends to unlock more doors of economic growth, which is the need of the hour, more investments need to be made in women entrepreneurs, and steps need to be taken to put more women in charge of how those investments are done. Are you ready to unleash the power that women entrepreneurs have?