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ENTREPRENEURSHIP

Empowering female entrepreneurs in 2024

Female entrepreneurship: progress and future steps

There are around 252 million female entrepreneurs worldwide, with 153 million running well-established businesses. Over the past two decades, female entrepreneurship has surged by 114%. Yet, women entrepreneurs still lag behind their male counterparts.

In 2020, Chile led the OECD countries with 32.4% of women starting their own businesses, followed by the US with 16.6%. In the US, women-owned businesses make up 40% of all businesses, generating up to $1.8 trillion annually. 

2024 trends in female entrepreneurship

As of 2024, women entrepreneurs are increasingly leveraging digital platforms and e-commerce, driven by the growing trend of online shopping. Women's participation in the global digital economy has grown by 30% since the pandemic, with women-led startups in tech and digital services seeing significant growth. Additionally, a 2023 study from Eurostat reported that women-owned businesses in Europe grew by 14% from 2020 to 2023, with a notable rise in sectors such as health tech and sustainable products.

Impact of COVID-19 on female workforce

The pandemic severely impacted women in the labor force. By January 2021, over 2.3 million fewer women were in the workforce compared to February 2020. Women, predominantly employed in the informal sector, faced significant job cuts due to lockdowns and social distancing measures.

Supporting female entrepreneurs

The entrepreneurial spirit of women has shown resilience, particularly in recovering from economic crises. Post the 2008-2009 recession, minority and women-owned businesses added 1.8 million jobs to the US labor force, highlighting their role as job creators and economic stabilisers.

Where we can improve

Funding

As a female entrepreneur, you may find that receiving venture capital (VC) funding is more challenging than it is for your male counterparts. A 2019 study found that female-led ventures are 63% less likely to receive VC funding, even though businesses founded by women tend to perform better. As of 2024, this gap remains, with only 2.3% of venture capital funding going to female founders in the EU.

Support Networks

Developing female-centric business support networks is essential. Consider seeking out startup incubators specifically designed for female-owned businesses, offering easier access to funding and marketing. Increasing the worldwide representation of women in leadership can inspire you and future generations of female entrepreneurs. Notably, initiatives in countries like Finland and Germany have made strides in establishing mentorship programs aimed at women entrepreneurs, contributing to their growth and success.

Summary

While female representation in the global startup space has improved, there is still a long way to go to achieve gender equality. Supporting female entrepreneurs with the necessary tools, networks, and funding is crucial for fostering gender diversity and ensuring a robust, inclusive economy. By nurturing your entrepreneurial spirit, we can inspire a new era of progress and equality in the business world.

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