Title: Overcoming Age Barriers in Female Entrepreneurship
Women tend to be more inclined towards launching and managing "socially responsible" businesses compared to men, but they often face financial and domestic pressures, especially during their middle years. This is according to a study published by the King's Business School at King's College London. Analyzing over 5,000 startup entrepreneurs across 44 countries, the researchers found that women are likely to consider starting a social enterprise in their twenties and early thirties, but there's a significant drop off in the mid-thirties. Responsibilities associated with child rearing and elder care often impede their entrepreneurial aspirations, only for them to return to the idea in their fifties and late sixties.
Championing Inclusion in Entrepreneurship
In an interview, Ute Stephan, Professor of Entrepreneurship at King's and one of the report's co-authors, highlighted the importance of this research. She explained that socially-focused businesses are particularly appealing to women, with women three times more likely to establish purpose-driven businesses versus purely commercial ventures. However, social enterprises can also serve as training grounds. While commercial entrepreneurship may seem intimidating for many women, a social enterprise can provide an ideal platform to learn and hone business skills.
"Once a woman has started one social enterprise, she's more likely to go on to form another one or to found a commercial business," Stephan said.
The Significance of Social Entrepreneurship
According to a World Economic Forum report, social enterprises generate approximately $2 trillion in revenues globally and support 200 million jobs. Moreover, they are critical in bridging a gender divide, as one in two social enterprises are led by women, while commercially-driven enterprises are led by women only one in five of the time.
However, if women in their late thirties and early forties stop pursuing social entrepreneurship due to domestic and financial pressures, there will be fewer purpose-led companies and fewer job opportunities.
Paving the Way for Women Entrepreneurs
To empower women in their late thirties and early forties to engage in social entrepreneurship, addressing financial and household pressures and systemic barriers like high childcare costs is crucial.
Flexible Funding Opportunities
Grants and microgrants can help reduce initial financial burdens for women entrepreneurs. Organizations like the EmpowHER Grant, Amber Grants for Women, and HerRise MicroGrant provide support specifically for women in the ideation phase or early-stage businesses.
Childcare Support
Investing in quality early childhood programs can improve long-term outcomes for children and lighten the burden on working parents, including women entrepreneurs.
Equity-Centered Policies
Reducing funding restrictions and advocating for flexible funding opportunities tailored to specific community needs can help dismantle systemic barriers within funding institutions.
Community Support Networks
Mentorship programs provide invaluable insights and practical advice, helping women navigate the funding landscape more effectively. Organizations like SheEO and Women's Venture Fund offer platforms for women entrepreneurs to connect, share resources, and access funding opportunities tailored specifically for female-led ventures.
Workforce Development Initiatives
Skills-based training and digital literacy initiatives can improve women entrepreneurs' employability and job opportunities. Strengthening employer engagement in these initiatives is vital to ensuring women's skills and interests match available job opportunities.
Policy Reforms
Promoting fair labor practices and economic equity policies, such as work-life balance and adequate parental leave, can reduce financial pressures on women entrepreneurs.
Social Capital Building
Community-asset building initiatives that foster economic mobility and support affordable housing and healthcare can address systemic barriers and create networks of relationships and support for women entrepreneurs.
Storytelling and Advocacy
Sharing personal stories and focusing on the mission of the enterprise can create an emotional connection with potential investors, helping build a strong case for funding and advocacy.
By implementing these policies and initiatives, it is possible to create a supportive ecosystem that empowers women entrepreneurs in their late thirties and early forties to pursue social entrepreneurship despite financial and household pressures and systemic barriers like high childcare costs.
Women who have successfully launched a social enterprise may be inspired to start another one or even venture into commercial entrepreneurship, as Professor Ute Stephan pointed out. Despite the challenges faced by women entrepreneurs in their mid-thirties, such as domestic and financial pressures, supporting efforts to address these issues through initiatives like flexible funding opportunities, childcare support, and equity-centered policies can help them continue their journey in small business and social entrepreneurship.
