Over the past 50 years, the number of women-owned businesses has increased dramatically. However, women still struggle to win the same funding for their businesses as their male counterparts. Despite numerous statistics backing up the success of women-owned businesses, they continue to be overlooked by many investors. This article will strive to illuminate just a few reasons why you should consider investing in female-owned companies.
Women Bring New Ideas to the Table
Many female entrepreneurs build businesses targeted specifically towards women to offer solutions to common problems or struggles. While male investors may have a hard time seeing the profitability of these business ideas, many of these businesses have had great success marketing their products to their designated audiences. Bringing a female perspective into the entrepreneurial sphere helps generate novel ideas that can turn into great success–don’t be afraid to invest as long as the business owner can present research supporting the target market.
Female Leaders are Successful
In recent years, women have received only a minuscule percentage of available venture capital funding. However, in spite of this, statistics show that women-owned businesses actually outperform those owned by men. Even without much access to funding, women still manage to build successful companies and prove their worth. By investing in female entrepreneurs and helping these businesses get up and running, you can be a part of that success and help women gain recognition in the business world.
Supporting Women Leads to Long-Term Returns
As previously referenced, the statistics are in favor of women in business leadership. Closing the gender gap is good for both the success of women and the success of the economy as a whole. Investing in successful female-owned businesses supports financial markets and plays a part in continuing to even the playing field.
In conclusion, if you are looking to invest in a startup, consider supporting female entrepreneurs. Women have repeatedly demonstrated their capabilities but continue to be overlooked by the male-dominated venture capitalist groups. While women work on establishing their presence in venture capitalist groups, you can be a part of helping get brand new businesses off the ground by investing in women-owned companies.