By Gloria Fernández Estébanez, MA, CRA
Women-owned businesses have made significant strides in recent years, breaking barriers, and achieving notable success in various industries. Despite these advancements, the landscape remains challenging, particularly when women entrepreneurs find themselves in the competitive arena of dealing with much larger businesses.
As we celebrate Women’s History Month, it is important to highlight the perils in this voyage, to map the way for other women who may decide in the future to venture into the great beyond.
Here I highlight the obstacles we all face when interacting with larger corporate entities:
Access to Capital -One of the primary challenges faced by women-owned businesses is limited access to capital. Studies consistently show that women entrepreneurs often encounter more obstacles in securing funding compared to their male counterparts. When dealing with larger businesses, the financial disparity becomes even more pronounced, making it challenging for women-owned businesses to compete on an equal footing.
Large corporations often have established financial networks and easier access to capital markets, allowing them to leverage resources for expansion, research and development, and marketing. In contrast, women entrepreneurs may struggle to secure loans, venture capital, or angel investments, hindering their ability to grow and compete effectively.
Networking and Relationship Building - The business world thrives on relationships and networks, and women-owned businesses may face difficulties in establishing meaningful connections, especially when dealing with larger corporations. The existing corporate structure and traditional networks can make it challenging for women entrepreneurs to access crucial information, partnerships, and opportunities.
Large businesses often have established relationships with suppliers, clients, and other stakeholders, which can create barriers for women-owned businesses trying to enter or expand within a particular industry. The lack of diversity in these networks can perpetuate the cycle of exclusion and limit the growth potential for women entrepreneurs.
Gender Bias and Stereotypes -Despite societal advancements, gender bias and stereotypes persist in the business environment. Women entrepreneurs may encounter prejudices when dealing with larger corporations, facing skepticism about their leadership capabilities or the viability of their businesses. This bias can manifest in subtle ways, such as during negotiations or in the allocation of resources.
Overcoming gender bias is an ongoing challenge for women-owned businesses, as they strive to be recognized for their skills, expertise, and innovative ideas rather than being defined by traditional gender roles. Large businesses, with their entrenched cultures, may inadvertently contribute to these biases, making it essential to promote inclusivity and diversity within corporate environments.
Contracting Opportunities - Securing contracts and business opportunities is a critical aspect of business growth. However, women-owned businesses often encounter obstacles in competing for contracts with larger corporations. Issues such as pre-existing relationships, complex procurement processes, and perceived risk may limit the chances for women entrepreneurs to secure lucrative deals. Furthermore, the specter of misrepresentation, circumvention, or breach of contract terms by the large corporation looms large into an already unequal and disparate business relationship.
Large corporations, by virtue of their scale, might have stringent requirements that inadvertently disadvantage smaller businesses, including those owned by women. Addressing these challenges involves creating more transparent and accessible procurement processes, fostering diversity and inclusion, and actively seeking opportunities to collaborate with women-owned businesses.
Work-Life Balance and Support Systems -The demands of entrepreneurship, particularly when competing with larger corporations, can put a strain on work-life balance. Women entrepreneurs, often juggling multiple roles in both their professional and personal lives, may face unique challenges in maintaining equilibrium. Adequate support systems, including mentorship, family support, and flexible work arrangements, become crucial in navigating these demands.
Large corporations may have more resources and structures in place to support their employees, and women-owned businesses can face challenges in providing similar support to their teams. Addressing work-life balance concerns is not only essential for the well-being of women entrepreneurs but also contributes to the overall success and sustainability of their businesses.
While the business landscape is evolving, challenges persist for women-owned businesses, especially when navigating the complex terrain of competing with much larger corporations. Recognizing and addressing these challenges requires a collective effort from businesses, policymakers, and society at large. By fostering a more inclusive and supportive environment, we can empower women entrepreneurs to overcome these hurdles and contribute to a more diverse and thriving business ecosystem.
<tcl>