How Can Women Entrepreneurs Attract Funding?

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This section is part of our Special section of Women and Leadership, which focuses on approaches taken by women, minorities or other disadvantaged groups challenging traditional ways of thinking.

The number entrepreneurial women are growing worldwide.

Women's owned businesses in the US, for example, are declining, according to the 2019 Women's Owned Business Report from American Express. Between 2014 and this year, these enterprises climbed 21 per cent to almost 13 million.

In contrast, the total number of businesses in the US increased by just 9 per cent. Women-owned companies grew more color cartridge, about 43 percent.

Ireland and the rest of Europe also saw a rise in female entrepreneurship, which said Joanne Hession, The founder of The Entrepreneurs Academy, based in Dublin.

It is generally acknowledged, however, that women receive a a fraction of venture capital around the world, and that the people who are black, Hispanic or Asian get much less.

“Money is the biggest obstacle for women-led start-ups,” he said Suzanne Norris, a a partner of Victress Capital, a Boston based company that invests in companies with established women and diverse teams.

“People invest in people like them,” he said Nathalie Molina Niño, author “Leapfrog: The New Revolution for Women Entrepreneurs” and the chief executive of the Irish language O³.

Experts still, leadership and funding say that there are ways in which women can attract money to their start-ups.

Show your value. Seeing things through the lens of potential funders is half the challenges. Insert their shoes when asked, “What is your background? What have you done showing your credibility to be successful in this business? ”Said Sanyin Siang, executive director of the Leadership Center and Fuqua Ethics / Coach K at Duke University and author of “The Book Launch: Exciting Stories to Send Your Opinion, Business or Other Call.”

“Don't get protection,” she said. “Guide them to your point of view.”

Create an inner peer circle. Start a “Mastermind” group between six and eight women with diversity in ethnicity and industry terms, Ms. Molina Niño. Commit to six to nine months of meetings. Make up to two or three concrete things to do each month, so you have accountability, which is essential at the start of the enterprise stages as this is a period of knowledge, suspicion and, in many cases, loneliness. To recruit your group, use all available tools: Facebook, LinkedIn, your school, place of worship, neighborhood advertising boards, commercial room.

Find accelerators, incubators and field competitions. Even if you have not won, you create an ecosystem, connecting you to potential consultants and you will build your network. Stronger and wider networks are linked to better access to a variety of funding sources, according to the Boston Consulting Group. “Colleague networks encourage women to set higher aspirations for their businesses, to plan growth and to embrace innovation,” according to researchers.

Be careful. “Women are generally more conservative, and authentic about what they are looking for in terms of funding,” said Mr Norris. “Men think more and more bold about their idea and conviction of where they are going. Women are too low and tend to relieve them. When you are betting on the face, you want to believe that it is big and that it is heavy. Be proud. ”

Consider route sourcing. Co-financing is an effective way through sites such as Kickstarter and Indiegogo to get business ahead. For example, there are a number of flagship funding programs specifically for female entrepreneurs Women's and Women's Fund to Fund. Find businesses and other similar projects that have seed-funded campaigns and look at the levels that they set for their goals. Each crowded funding platform has a different fee structure.

Spread the story. If you have a burning idea or a young business, tell someone. Tell everyone, Ms. Molina Niño. “Women have a good reason to be alert to things before they are fully bake, because the level of scrutiny is lower than for men. “Perfection is what is expected of us,” she said. “Don't forget your own community that it helps your idea to get better.”

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