In 2020, women of color launched nearly half of all female-led companies. Women’s entrepreneurship is experiencing a renaissance, thanks to historically marginalized groups, such as women and people of color, who are transforming the toughest challenges into possibilities for themselves.
Due to the pandemic, there was an increase in female entrepreneurship as a result of a combination of need and opportunity. The proportion of women in the labor force fell to its lowest level since 1988 as female-dominated businesses saw the most layoffs and mothers quit their professions to care for their children because of school and daycare closures.
For many women, starting a business was the best way to take back control of their jobs, provide the necessary income, and still have the freedom to care for loved ones during the lockdown.
According to NewsWeek, many women have benefited from increased support for minority- and women-owned enterprises from businesses, the government, and organizations. Big financial services firms like Capital One and Wells Fargo, as well as the power technology firm Cummins Inc., all started initiatives to mentor and support funding for women founders and entrepreneurs of minorities.
But even with all the advancement, there are still several obstacles for female business owners. For example, they frequently have less access to financing than male entrepreneurs and may struggle to acquire investment for their firms. They also receive less media attention and experience discrimination and bias from investors and potential customers.
As more women take the leap into entrepreneurship, they are creating new businesses and driving innovation across industries. However, there is still much work to be done to support and promote women entrepreneurs and overcome the challenges they face.
By continuing to work towards greater equality and inclusivity in the world of business, we can create a more diverse and thriving entrepreneurial ecosystem.
Featured Image Source: LinkedIn (April Koh, CEO of Spring Health)