Women Entrepreneurs Face Significant Capital Access Barriers
Research indicates that women-founded startups generate more revenue per dollar invested compared to those founded by men. Despite this, women entrepreneurs continue to face substantial structural obstacles in accessing capital.
Women entrepreneurs in the United States and globally continue to encounter significant challenges in securing startup and growth capital. Despite progress in gender equity, a 2017 World Bank estimate placed the global finance gap for women entrepreneurs at $1.7 trillion annually, a disparity that persists.
These barriers do not reflect women's entrepreneurial potential but rather structural issues, such as limited access to suitable financial products and networks. However, recent research suggests that women-founded startups generate 78 cents in revenue for every dollar raised, compared to 31 cents for those founded by men. Furthermore, women-owned businesses contribute to local economies by creating jobs and reinvesting earnings back into families and communities.
Philanthropy plays a crucial role in supporting women entrepreneurs, but lasting change requires private sector involvement. Michelle Armstrong, president of Ares Charitable Foundation, emphasizes that while philanthropy can be a catalyst, the private sector must reimagine the support women need to thrive.
It is important to recognize that women entrepreneurs face unique challenges, particularly single mothers balancing business with family and household responsibilities. The Ares Charitable Foundation supports The Acceleration Project (TAP) in developing solutions tailored to the specific needs of these entrepreneurs.