Women have yet to attain equality with men on such measures as educational attainment, wages, political empowerment and economic participation. Many are turning to entrepreneurship as a more viable route to income parity. This, in the long run, leads to economic growth.

“Women are inspired to see a woman business owner who’s leading a high-impact company with the potential to be on par with the Dells and the Microsofts of the world,” says Elmira Bayrasli, Vice President of Endeavor.   

“Whether it is the question of employment, opportunity, pay, or access to finance, there is a tremendous amount of work to do to level the playing field for women.”  

Robert B. Zoellick, President, The World Bank Group

Tackling the barriers to business

Although 40% to 50% of businesses in developing countries are women-owned, they face major bureaucratic obstacles. The World Bank/IFC’s Doing Business project has identified several legal and regulatory barriers facing women. For example:

• Kuwait prohibits women from working after 8:00 p.m.
• Senegal’s restrictive labor laws have forced almost half of all workers into the unregulated sector of the economy, and even in this sector, women are at a distinct
  disadvantage, earning only half of what men earn.
• In Swaziland, women require the permission of husbands or fathers to open a bank
  account or a business, obtain a passport or enforce a contract.
• Women in Tanzania rarely are allowed to own land to use as collateral for business loans, leaving them with no access to formal finance.

National policies are difficult to change. Still, here’s a case study of one woman entrepreneur who is working to reform a discriminatory business environment in Cameroon.

But developing countries are not the only places where women face challenges. In the US, women start businesses at twice the rate of men, but only 3% of these firms attain US$1 million in annual revenue, compared to 6% of men-owned enterprises.

It’s clear women entrepreneurs do face numerous and unique obstacles when trying to establish new businesses or expand existing ones beyond a certain revenue mark.

Here are some hurdles that hamper women entrepreneurs:

• Connecting with Influential clients and partners
  Women entrepreneurs are perceived as less likely than their male counterparts to have a robust “book of business.” Although women have strong communication skills, they have difficulty forming networks that help bring in business.
• Negotiating and decision-making skills
  Some women business owners may perceive themselves as less confident and decisive than their male counterparts — factors that could affect their companies’ revenue and size.  Lack of negotiating and decision-making skills can cost women entrepreneurs dearly.
• Less available capital
  Women-owned firms typically start with less capital and therefore underperform in terms of assets, revenue, profitability and survival.
• Not-so-great (financial) expectations
  Women appear more reluctant to apply for loans and more likely to expect rejection. There is also evidence that women tend to seek loans too small to meet the needs of their businesses.