Women entrepreneurs have made a dramatic impact on the business world. According to the Global Entrepreneurship Monitor, women account for only 31% of all entrepreneurs globally, but their share of the market as founders of new ventures has grown by 9 percentage points over the past three years.
Women-led businesses are also growing at a faster pace than male-led companies. In fact, in 2014 and 2015, women-led businesses grew at a rate that was more than double that of their male counterparts.
In terms of social ventures specifically, women lead 45% of organizations focused on this type of company. Why is this? What drives women to take up entrepreneurship in fields related to social good? Here are some key reasons why so many women choose to invest their time and money toward social ventures.
1. Women are more likely to see a need for social change
Women have long been involved in social activism, but as entrepreneurs, they have recently gained more attention for their innovative attempts to tackle social issues.
In this blog post, we discuss why women entrepreneurs are more likely to succeed with crowdfunding campaigns because they are, for example, able to make better relationships with campaign donors as women entrepreneurs are more aware of social needs.
The same logic can be applied with social ventures.
Women are more likely to see a need for social change. This may be due to their experiences in the workforce, which show that women have a strong desire to see progress in areas such as equal pay and flexible work hours.
This desire to see change can motivate women to start businesses that help society. Women who work in industries related to social impact are more likely to notice problems that need to be fixed.
For example, many women working in the health care field have noticed that women often have trouble getting adequate health care because they have children and other responsibilities. This can make it difficult for women to make time for doctors’ appointments, which can be crucial for cancer and other diseases.
2. Women are driven to create a positive impact in society
Many women want to be involved in entrepreneurship that has a positive impact on society. They may want to make a difference in their communities by addressing issues such as poverty, health care, or education.
Women are often more strongly drawn to social entrepreneurship than men, who are more likely to be interested in commercial ventures. This might be because many women are interested in helping others and making a positive impact.
On the other hand, men entrepreneurs tend to be more ambitious and seek growth and profit maximization, according to this study, that is not entirely aligned with social ventures that actively pursue a social mission next to their economic mission.
In addition, women with children are more interested in entrepreneurship which allows them to work from home, which is often the case with social ventures. Women who want to get involved in social entrepreneurship may need to be flexible with their hours to allow themselves time to complete necessary tasks such as child care.
3. Women social entrepreneurs have higher chances to be treated equally by investors
Women have long struggled to be treated as equals in business ventures. In this blog post, we explain some issues women entrepreneurs face, such as lower ratio of women active in the VC industry and less networks of investors, that lead to less VC access for women entrepreneurs.
However, social entrepreneurship has less of a reputation for being a “man’s world” and therefore, is seen as a field in which women can thrive. This means that women are more likely to be treated as equals when they try to get financing for their business or gain other valuable resources like advice from experts.
Many women who start social ventures report that they have been treated more equally in their businesses compared to ventures that involve selling goods and services. This can be partially because social ventures often have more flexibility for remote work and part-time hours.
More access to investors is crucial for the future growth of the venture as women-led social ventures have more equal access to resources.
4. Society has a less negative bias toward women social entrepreneurs
Many people have a bias against women in business, especially when the venture involves selling products and services. This may be due to the fact that society has associated entrepreneurship with men for so long that it is difficult to change these perceptions.
In fact, women who seek funding for commercial ventures are often asked to provide more evidence of their ability to do the work than men.
Women social entrepreneurs have less bias against them, though, compared with women in commercial ventures. This may be because social entrepreneurship often relies on connections to people who have the power to help the company succeed.
Since society has less bias against women, women social entrepreneurs are often able to connect with people who may be more willing to help women than men.
Conclusion
Women are drawn to and flourish in social entrepreneurship. They see a need for change and create businesses that have a positive impact on society. Women are more likely to be treated as equals in social ventures and have less negative bias against them compared to commercial ventures.
This blog post suggests that social ventures can be a viable option for women with entrepreneurial plans and especially those who would like to make social changes at large scale.
