The Latest Developments in Female Entrepreneurship: A Call for Greater Access to Financing
In recent years, female entrepreneurship has seen a significant surge globally. Women are breaking barriers, innovating industries, and founding successful enterprises at an unprecedented rate. However, despite the progress, women entrepreneurs face unique challenges that hinder their growth potential. One of the most pressing issues continues to be the lack of access to financing. This issue was a focal point at the recent UN Dubai Forum, where women entrepreneurs highlighted the need for more equitable access to resources.
This article will delve into the latest developments in female entrepreneurship, focusing on the call for better financing opportunities, and highlight some exemplary digital product companies founded by Black entrepreneurs.
UN Dubai Forum: A Platform for Advocacy
WEIF 2022: A Turning Point for Female Entrepreneurs
The World Entrepreneurs Investment Forum (WEIF 2022) held in Dubai proved to be a critical platform for women entrepreneurs from various regions, particularly the Arab world.
The forum’s second day saw impassioned discussions centered around the barriers women face in securing funding and resources necessary for business expansion.
The Call for Equitable Access to Financing
Women entrepreneurs at the forum presented compelling arguments for why greater access to financing is crucial for fostering a more inclusive and sustainable business environment. They stressed that traditional financing mechanisms are often biased, either consciously or unconsciously, against women. This bias manifests in various forms, from higher collateral requirements to higher interest rates.
Nadine Ghaith, a renowned entrepreneur from Jordan, shared her struggles with securing a business loan despite her company’s proven track record. She pointed out that many financial institutions still harbor outdated perceptions about women’s financial reliability. According to Ghaith, “The financial sector needs a paradigm shift to recognize the potential of women-led businesses and offer them the support they deserve.”
Amina Al-Mahdi, a startup founder from Saudi Arabia, echoed these sentiments, adding that lack of access to financing not only stifles individual businesses but also hampers economic growth at a macro level.
“Empowering women entrepreneurs with the right financial tools can lead to a cascade of positive economic outcomes, from job creation to innovation,” Al-Mahdi emphasized.
Real-World Impacts and Solutions
The impact of financial discrimination can be profound.
Women-led businesses frequently experience slower growth rates and higher failure rates compared to their male counterparts. However, various initiatives and solutions are being proposed and implemented to address these challenges.
Microfinance and Crowdfunding
Microfinance institutions (MFIs) and crowdfunding platforms have emerged as vital resources for women entrepreneurs.
These alternatives provide more accessible financing options without the stringent requirements typically imposed by traditional banks.
For instance, Kiva, a global nonprofit, offers microloans to women entrepreneurs worldwide, helping them to kickstart and sustain their businesses.
Policy Reforms and Government Initiatives
Several governments are recognizing the importance of supporting female entrepreneurs and are introducing policy reforms accordingly.
In the UAE, the government has launched various programs aimed at empowering women in business, including grants, subsidies, and specialized training programs. Additionally, the Cherie Blair Foundation for Women offers mentorship and training to help women navigate the entrepreneurial landscape more effectively.
Spotlight on Black-Owned Digital Product Companies
While discussing female entrepreneurship, it is essential to highlight the intersectionality within this space.
Black women entrepreneurs, in particular, face compounded challenges due to both gender and racial biases.
Despite these hurdles, numerous Black-owned digital product companies have risen to prominence, showcasing innovation and resilience.
1. Blavity Inc.
Founded by Morgan DeBaun, Blavity Inc.
is a digital media company that creates content and products for Black millennials. Blavity has become a significant player in the digital media space, offering a range of products from news and entertainment to conferences and events that celebrate Black culture.
2.
Calendly
Tope Awotona, a Nigerian-born entrepreneur, founded Calendly, a scheduling software that simplifies meeting planning. The intuitive platform has become a favorite among businesses and professionals, demonstrating how user-centric design can lead to widespread adoption and success.
3. Partake Foods
Denise Woodard launched Partake Foods, a company offering allergy-friendly snacks. The digital presence of the company has been pivotal in its growth, allowing it to reach a broader audience and cater to the dietary needs of individuals with food allergies.
4. Health in Her HUE
Ashlee Wisdom created Health in Her HUE, a digital platform connecting Black women to culturally competent healthcare providers and resources. The platform addresses the unique health challenges Black women face, using technology to bridge gaps in healthcare access and information.
5. TruOptik
Founded by Andre Swanston, TruOptik is a data management platform that helps companies understand and target their audiences more effectively.
The company’s innovative approach to data has made it a leader in the digital advertising space.
6. Uncharted Power
Jessica O. Matthews is the brain behind Uncharted Power, a company that develops renewable energy solutions. The company’s flagship product, the SOCCKET ball, converts kinetic energy into electrical power, showcasing a blend of innovation and social impact.
7. Sienna Naturals
Founded by Hannah Diop, Sienna Naturals offers plant-based hair care products designed for textured hair. The company’s strong digital marketing strategy has helped it build a loyal customer base and expand its reach.
8. Mixtroz
Kerry Schrader and Ashlee Ammons, a mother-daughter duo, founded Mixtroz, a mobile app that facilitates virtual and in-person networking. The app’s unique algorithm matches attendees based on their interests, enhancing networking experiences.
9. Hue Noir
Paula Hayes created Hue Noir, a cosmetics brand that formulates makeup for women of color. The company’s digital presence and e-commerce platform have been crucial in reaching underserved markets and promoting inclusivity in the beauty industry.
10.
Pillar
Michael Bloch founded Pillar, a personal finance app designed to help users manage and pay off student loans more effectively. The app uses data-driven insights to provide personalized recommendations, making it an essential tool for financial wellness.
Case Study: Empowerment in Taraba State, Nigeria
The push for female entrepreneurship extends beyond the business world and into political spheres.
In Taraba State, Nigeria, ahead of the 2019 general elections, Governor Darius Ishaku’s administration implemented programs to empower women and youths. This initiative involved providing resources and training to 663 women and youths, enabling them to start their own businesses and gain financial independence.
A Shift in Political Dynamics
The empowerment program not only aimed to boost economic development but also sought to shift political dynamics. By supporting women and youths, the administration hoped to garner political support and foster a more inclusive political environment. This move was seen as a direct response to the loss of supporters by former Minister of Women Affairs, Aisha Alhassan.
Long-Term Impacts
The long-term impacts of such empowerment programs are significant. They help build a more robust and diversified economy, reduce poverty levels, and promote gender equality. Additionally, these programs can inspire other regions and countries to adopt similar initiatives, creating a ripple effect of positive change.
The latest developments in female entrepreneurship, highlighted at the UN Dubai Forum, underscore the urgent need for greater access to financing. Equitable access to financial resources is not just a matter of fairness but a crucial factor in driving sustainable economic growth and innovation.
Black-owned digital product companies serve as shining examples of what can be achieved when entrepreneurs are given the opportunity to thrive. These companies not only lead in their respective industries but also pave the way for future generations of entrepreneurs.
Empowerment initiatives, such as those seen in Taraba State, further demonstrate the potential for transformative change when women are supported and given the tools to succeed. As we move forward, it is essential to continue advocating for policies and programs that foster an inclusive and equitable entrepreneurial landscape for all.
For more information on initiatives supporting female entrepreneurship, visit UN Women and Kiva.
By addressing these challenges head-on and celebrating the successes of women entrepreneurs, we can work towards a future where gender parity in entrepreneurship is not just an aspiration but a reality.