More Women Are Opening Businesses But That Doesn’t Necessarily Mean Growth
Women are opening businesses at a faster rate than men, but that doesn’t mean they’re necessarily finding capital.
In honor of International Women’s Day, we wanted to check in on the state of women in small business.
The good news: 40% of all new entrepreneurs in the United States are women. And just in the last year, the growth rate of female entrepreneurship doubled that of men.
The not-as-good news: Female-led startups still face major uphill battles when it comes to expanding beyond early growth stage. Companies founded by women account for less than a third of $1M+ revenue companies. Some researchers describe the discrepancy as a “scale-up gap.” That is to say, female-led companies need more capital to scale up.
This year, let’s vow to break the bottleneck, and give all people the chance to grow radically new companies.