More women in the U.S. are starting new businesses than ever, with the first three quarters of 2021 alone seeing $ 40 billion raised by female-owned startups. While this is still a mere fraction of the $ 239 billion in venture capital invested over the same period of time, it is double the amount raised by female-owned startups throughout 2020 and 2019, signifying the rapidly growing presence of women in the traditionally male-dominated. the business world.
Banking and payments industry players need to pay close attention to these developments in the growth of female entrepreneurship and understand the businesses these women are starting and the technology they are leveraging to make their ventures successful. If not, it could mean missing out on not only opportunities to empower women in business, but also significant revenue streams as these female entrepreneurs seek out the latest technology to power their businesses.
The handbook of female entrepreneurs and technologya PIMNTI e Payoneer collaboration, explores how female entrepreneurs are disrupting the business world with cutting-edge technologies across a wide range of fields. This report features interviews with female entrepreneurs whose success provides a firsthand look at the challenges they and their peers face and the methods they have used to overcome them.
This is what we have learned.
Successful women-owned or led businesses have become a powerful driving force in the modern economy and are expected to continue their prodigious growth well into the future.
A recent World Bank study found that in the United States alone, female-owned businesses have grown to more than double that of all other businesses, contributing $ 3 trillion to the economy and employing approximately 23 million people. . Developing countries are experiencing similar growth rates commensurate with their economies, with between 8 million and 10 million small and medium-sized enterprises (SMEs) with at least one female owner.
Female-owned SMEs are twice as likely to have their loan applications rejected than male-owned SMEs.
Breaking down this barrier will require an active effort on the part of investors to seek out female-owned businesses and prioritize their success. Female entrepreneurs could also benefit enormously from FinTechs that promote the financial inclusion of women, especially in developing countries. This includes direct investment in female-owned businesses and these funds will be way above their weight when it comes to promoting equality for women in the workplace.
The ability to leverage the right technologies or platforms is often the main driver of success in the modern digital economy.
Digital payments are one such technology and can put women-run businesses on an equal footing in key ways. Customer, supplier and supplier transactions are all simpler, faster and cheaper when done digitally than in cash or checks. Female entrepreneurs could also benefit from simpler cross-border transactions
Women face institutional disadvantages around the world in many aspects of their lives, and the business world is no exception. Tech companies, payment service providers, investors and a host of other businesses not only have a moral obligation to invest in female-owned businesses, but also financially – closing the gender gap in business could raise billions of dividends for investors, entrepreneurs and the world around them.
To learn more about how technologies can improve success rates for female entrepreneurs, Download the playbook.