Data shows that women own 42% of US businesses, but receive only 1.9% in venture capital funding. The number of women-owned companies has increased dramatically by 58% between 2007 and 2018. Women entrepreneurs are unable to scale up their businesses due to the funding disparity. This is despite the fact that women-led businesses receive 78 cents of every dollar in funding, compared to 31 cents for men-led firms.
Thankfully, there are strategies that can level the playing field. These include increasing women investors, educating investors on unconscious bias and investing in programs which directly fund and support female entrepreneurs. This deliberate drawing of attention to this issue opens the door for a future in which female-led startups receive their deserved venture funding.
To eliminate this funding imbalance, organizations are being formed to provide financial grants to female business owners. These grants can be used to launch or expand women-owned businesses. They cover various aspects, such as inventory, operational costs, rent, and marketing.
Addressing gender inequality in entrepreneurial funding
They also offer mentorship and valuable resource support, empowering women to break barriers and fuel growth in the industries they are in.
The IFund Women Grant is a great funding opportunity for women who are in business. The grant program was designed to support women entrepreneurs, with a focus on empowering them and their businesses. Applications are accepted continuously and take only 10 minutes to complete.
The She’s Connected program by AT&T is an initiative which awards a successful candidate $50,000 every year. They also receive a year of AT&T service and a new device. The application deadline is July 10, 2024.
The HerRise micro-grant, which supports women of color, was jointly provided by Yva Jourdan Foundation, Inc., and HerSuiteSpot. Since 2017, the providers have awarded a micro-grant of $1000 per month to successful businesses. The Girlboss Foundation also offers a grant for women entrepreneurs with a high financial need. They give priority to applicants from underrepresented groups.
These grants are designed to level the playing field, despite the gender disparity. This will allow women to focus more on their businesses. As a result, we will likely see positive progress towards economic equality with more women empowered to start and expand their businesses.