However, few women entrepreneurs start companies with employees or ones that will be growth oriented, according to Sources of Economic Hope: Women’s Entrepreneurship, a report by the Kauffman Foundation.
Yet, women entrepreneurs who are growth oriented are among the happiest people in the world, according to the 2013 Global Entrepreneurship Monitor (GEM) U.S. Report issued by Babson College and Baruch College.
Entrepreneurship holds the promise of not only fulfilling women, but also of boosting the economy. “If women were as economically engaged as gentlemen in the economy, our GDP would be 7 to 9 point larger,” said Sallie Krawcheck, a former investment analyst and chair of Ellevate, a global professional women’s network, onBloomberg TV. All arrows are pointing to women entrepreneurs making great strides in 2015 and beyond. Read my 11 Reasons 2015’s Outlook for Women Entrepreneurs Is Coming Up Roses.
A troubling disparity
Women entrepreneurs are more likely than their male counterparts to deliver a high return on investment, according to research by Dow Jones VentureSource, Illuminate, Kauffman Foundation, and the Small Business Administration. Yet, male-led businesses reach $1 million in revenue three times more often than those run by women, according to the 2014 State of Women-owned Businesses Report.
Why are women less like to reach the million revenue mark and beyond?
To grow companies, sometimes entrepreneurs need outside funding. Women are 50% less likely to seek outside funding, according to Sources of Economic Hope.
Under capitalized companies have lower sales, lower profits, and generate fewer jobs.
Opportunity knocks, but women are slow to answer
Title II of the JOBS Act created a new funding source with the potential to level the playing field for women entrepreneurs: equity financing for companies that are publicly raising money. One year after Title II was approved, though, it’s falling short on its promise. Only 17% of companies which raise money publicly through crowdfunding have women on the founding team, according to Crowdnetic, which maintains an equity crowdfunding database.
An actionable crowdfunding report for entrepreneurs and investors alike
To encourage women entrepreneurs ask for and receive funding, Ventureneer is creating a blueprint for women seeking funding so they know if raising equity financing is right for their company and—if so—exactly how to do it. We’ll also provide direction for investors who have the money and/or the desire to support women entrepreneurs, proven more likely than their male counterparts to deliver a high return on investment.
To help women entrepreneurs, the report will provide:
* ways to get past their self doubt and respond to failure
* what works in equity crowdfunding
* best marketing practices for a crowdfunding campaign
* tips from women who have already succeeded
To aid potential investors, the report will help them determine
* if this new investment vehicle is right for them
To assist the crowdfunding industry, the report will layout
* how to attract women as entrepreneurs and investors
To provide these tools, insight and training, we need your help. Ventureneer has launched a crowdfunding campaign –THE VENTURE CROWD: Everything Ventured, Everything Gained — to raise at least $7,500 with additional funding provided by Dell and Ellenoff Grossman & Schole, a leading law firm specializing in alternative financing.
This is one of the most exciting projects my company, Ventureneer, has undertaken yet, because new opportunities to publicly raise equity funding can be a game-changer – but only if we join together to take advantage of it. To inspire others, please contribute early. THE VENTURE CROWD campaign on Plum Alley ends February 6, 2015. Since the launch of the campaign of January 7, 2015, we’ve raised 40% of my goal. The more money we raise above our goal, the more outreach and training we can provide women entrepreneurs and investors.