In recent years, Australia has seen a significant rise in women taking the leap into entrepreneurship. However, despite this progress, female entrepreneurs continue to face unique challenges that can impede their success. Statistics and trends highlight the obstacles that female entrepreneurs face, as well as the crucial role of support networks and initiatives.
The Current State of Women in Entrepreneurship in Australia
Before diving into the challenges, let's look at where Australia stands:
As of 2019, women owned and led 35% of all businesses in Australia (Australian Bureau of Statistics, 2020).
The number of women business operators in Australia increased by 46% in the 20 years to 2019, compared to 33% for men (Australian Government's Workplace Gender Equality Agency, 2020).
However, only 18% of startups in Australia have at least one female founder (Startup Muster, 2018).
Key Challenges Faced by Women Entrepreneurs in Australia:
Access to Funding
The funding gap remains one of the most significant barriers for women entrepreneurs in Australia:
Female-founded startups in Australia receive only 5% of venture capital funding (Techboard Australian Startup Funding Report, 2020).
Women entrepreneurs are more likely to use personal savings and credit cards to fund their businesses compared to their male counterparts (Australian Women Chamber of Commerce & Industry, 2019).
Work-Life Balance
Balancing business responsibilities with personal and family obligations can be particularly challenging for women in Australia:
Australian women spend an average of 5 hours and 11 minutes per day on unpaid care work, compared to 2 hours and 43 minutes for men (OECD, 2019).
68% of Australian women business owners report that family responsibilities impact their ability to grow their business (MYOB Women in Business Report, 2018).
Limited Access to Networks and Mentors
Networking and mentorship are crucial for business success, but women in Australia often face barriers in these areas:
Only 30% of Australian women entrepreneur's report having access to a mentor, compared to 45% of men (Dell Women Entrepreneur Cities Index, 2019).
41% of women business owners in Australia cite a lack of professional support network as a key challenge (Commonwealth Bank Women in Focus report, 2019).
Overcoming Stereotypes and Bias
Gender bias and stereotypes continue to affect women in the Australian business world:
37% of Australian women entrepreneur's report experiencing gender discrimination in their business journey (Xero State of Australian Small Business report, 2020).
Only 12% of board chairs and 18% of CEOs in Australia are women, limiting visible role models for aspiring entrepreneurs (Chief Executive Women ASX200 Senior Executive Census, 2020).
Challenges with Self-Promotion
Recent research highlighted by Harvard DCE reveals that women face unique challenges when it comes to self-promotion, which can significantly impact their success in entrepreneurship:
Gender Bias in Self-Promotion: Studies show that women are less likely to self-promote compared to men, even when their accomplishments are equivalent. This reluctance can lead to underrepresentation in leadership roles and lower compensation, which is particularly crucial for women entrepreneurs seeking investors or partners.
Societal Expectations: Societal norms often discourage women from self-promotion, as it can be perceived as arrogant or aggressive. This creates a double bind for women entrepreneurs who need to market themselves and their businesses effectively.
Imposter Syndrome: Many women experience imposter syndrome, which can hinder their ability to confidently claim credit for their achievements. This can be particularly detrimental in entrepreneurial settings where confidence is key to securing funding and partnerships.
Importance of Self-Promotion: Self-promotion is essential for career advancement and business success. It increases visibility, builds credibility, and helps secure opportunities – all critical factors for entrepreneurs.
The importance of support networks and initiatives
Despite these challenges, numerous Australian initiatives and networks are working to level the playing field:
Women-focused Investment Groups: Organisations like Scale Investors focus exclusively on women-led startups, helping to close the funding gap in Australia.
Mentorship Programs: Initiatives like the Rare Birds Mentoring Program provide tailored mentorship to women entrepreneurs across Australia.
Networking Groups: Communities such as Business Chicks and Women's Network Australia offer platforms for women to connect, share experiences, and find potential partners or investors.
Government Initiatives: The Australian Government's Women's Leadership and Development Program provides grants to projects that improve outcomes for women in areas including economic security and leadership.
Corporate Programs: Australian companies like Westpac with its Businesses of Tomorrow program offer training and resources to women entrepreneurs.
Self-Promotion Workshops: Programs that teach women entrepreneurs effective self-promotion strategies while navigating gender expectations. These workshops often include practical tips such as setting goals, documenting accomplishments, and networking effectively.
The Future for Women in Business
While challenges persist, the future looks promising for women in entrepreneurship. By actively working to overcome obstacles, including those related to self-promotion, and through targeted support and initiatives, we can create a more inclusive and diverse entrepreneurial ecosystem in the country.
Encouraging and normalising self-promotion for women entrepreneurs could help level the playing field and increase their visibility in the business world. As women become more comfortable with showcasing their achievements and capabilities, they may find it easier to secure funding, build networks, and grow their businesses.
Diversity drives innovation. By supporting women entrepreneurs, precincts and local government are agents of change, promoting economic and industry development.
Empowering Women Entrepreneurs (EWE) Program Survey
Eastern Innovation is currently developing a network for female entrepreneurs. If you identify as a woman and are an entrepreneur, please fill out our survey:
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