Persisting disparity in financial backing for companies led by women

Title: Female Entrepreneurs Overcome Financial Hurdles: A Look at the Complicated Landscape

Women entrepreneurs still grapple with significant barriers when it comes to financing their ventures, Professor Eleanor Mills' latest report reveals. This hurdle is depriving the economy of up to £250 billion, according to the study.

Discrimination against mid-life women is snuffing out their ambitions, and the report highlights that women starved of bank finance or venture capital funds are often left with no choice but to rely on savings or remortgage. Consequently, only 19% of start-ups are led by women. Trinny Woodall, the boss of cosmetics brand Trinny London, is just one of many who have spoken out about the issue.

"Raising capital wasn't a walk in the park," Woodall admits. Sometimes, she was the only woman in the room during investment meetings, and some male investors struggled to see the potential in her make-up brand because it wasn't geared towards men.

However, it's not all doom and gloom. Woodall's brand, established in her kitchen in 2017, is now aiming for annual sales of £75 million. The report, compiled for HSBC by a network for mid-life women called Noon, found that 69% of mid-life female entrepreneurs got started with savings or home loans, whereas only 2% secured funding from venture capital.

A Way Forward

To combat this gender discrimination, some strategies can be employed:

Combatting implicit bias: Blind application processes, diverse investment committees, and awareness training for financial institutions can help reduce patronizing behavior and address the problem head-on.
Policy and advocacy: Government-backed loan guarantees and tax incentives can stimulate funding for women-led businesses. Additionally, collecting and publishing gender-disaggregated data can expose disparities and lead to policy reform.
Alternative funding channels: Equity crowdfunding and gender-focused venture capital funds can help women bypass traditional gatekeepers, offering them mentorship alongside capital.

Support for Female Entrepreneurs

There are various resources available for women seeking support in their entrepreneurial journey:

Grants and Programs: Economic Justice Grants and Goldman Sachs 10,000 Women are just two examples of initiatives providing business education, mentoring, and resources for women entrepreneurs worldwide.
Network-driven support: Organizations like Ellevate Network and the Women's Business Enterprise National Council offer peer connections and advocacy for policy changes.
Crowdfunding and angel networks: Platforms such as Kickstarter and Pipeline Angels connect female entrepreneurs with investors who can help them secure funding and build their businesses.

Finally, structural reforms like increasing collateral-free loans and boosting the visibility of successful women-led ventures can help reduce reliance on personal savings and secure the necessary funding for mid-life female entrepreneurs to thrive. By adopting such strategies, the finance sector can ensure equal opportunities for all entrepreneurs and promote economic growth.

Despite challenges in financing their ventures, as Professor Eleanor Mills' report reveals, female entrepreneurs like Trinny Woodall, founder of Trinny London, have managed to overcome financial hurdles and achieve success.
Woodall, who established her brand in 2017, aims for annual sales of £75 million, demonstrating the potential for female entrepreneurs in the finance and business world.
To combat gender discrimination in finance and entrepreneurship, various strategies can be employed, such as combating implicit bias, promoting policy and advocacy, and exploring alternative funding channels.
Blind application processes, diverse investment committees, and awareness training for financial institutions can help reduce bias and address the problem head-on.
Government-backed loan guarantees and tax incentives can stimulate funding for women-led businesses, while collecting and publishing gender-disaggregated data can expose disparities and lead to policy reform.
Equity crowdfunding and gender-focused venture capital funds can help women entrepreneurs bypass traditional gatekeepers, offering them mentorship alongside capital.
Resources available for women seeking support in their entrepreneurial journey include grants and programs like Economic Justice Grants and Goldman Sachs 10,000 Women, network-driven support from organizations like Ellevate Network and the Women's Business Enterprise National Council, and crowdfunding and angel networks such as Kickstarter and Pipeline Angels.