Women now own 42% of all US businesses yet receive only 1.9% of all venture capital funding, data shows. However, the number of women-owned businesses has dramatically increased by 58% in the period between 2007 and 2018. The funding disparity is proven to be a significant hurdle for women entrepreneurs attempting to scale their businesses. This happens even as women-led companies bag 78 cents per every dollar of funding, contrasted with the 31 cents for companies led by men.
Thankfully, strategies to level the field are emerging. These include increasing the number of women investors, educator investors on unconscious bias, and investing in programs that directly fund and support women entrepreneurs. This intentional drawing of more attention to this issue opens up hopes for a future where female-led startups get their deserved venture capital.
Organizations are being established to eradicate this funding imbalance by providing financial grants to female entrepreneurs. Such grants can significantly assist in the launch or expansion of women-owned businesses, covering various aspects such as inventory purchase, operational costs, marketing, and rent.
Addressing gender inequality in entrepreneurial funding
They also offer support in terms of mentorship and valuable resources, empowering women entrepreneurs to break boundaries and fuel growth in their industries.
The IFund Women Grant provides an excellent funding opportunity for women in business. The grant program is designed to specifically support entrepreneurial women, focusing on empowering their businesses and advancing their financial stability. Applications are accepted continually and only take about 10 minutes to complete.
The She’s Connected by AT&T program is an initiative that awards a successful applicant with $50,000 every year, plus a year-long AT&T service, a new device, and a chance to feature in the #ShesConnected content series. The application deadline for the year 2024 is July 10.
The HerRise Micro-Grant, supporting women of color, is jointly provided by the Yva Jourdan Foundation, Inc. and HerSuiteSpot. The providers have been awarding a $1000 monthly micro-grant to successful businesses since 2017. Additionally, the Girlboss Foundation presents a grant customized for women entrepreneurs who show considerable financial need, prioritizing applicants from underrepresented groups.
Despite the existing gender disparity, these grants aim to make the playing field fairer, allowing women to concentrate more on improving their businesses. Consequently, we are likely to experience positive strides towards economic equality as more women become empowered to start and grow their businesses.
