According to Forbes, 2022 is off to a good start when it comes to the financial support that’s going to female-led business founders.
Indeed, just this week the Greens announced a new policy aimed at generating more employment and greater economic opportunities for women in business, particularly for those in regional and rural areas.
The policy, endorsed by Femeconomy and the Rural Woman, includes a micro-financing scheme to provide low-and no-interest loans up to $10,000 to women-led businesses in regional areas who struggle to access traditional finance.
The Greens will also legislate to require government agencies to spend a minimum of 3% of their annual procurement budget with women-led businesses, which currently only access less than 1 % of the global procurement market, despite making up 34.8% of Australian business.
Female-led face serious challenges in accessing financing and venture capital. In the US, all-women founder teams received only 1.9% of venture capital in the first three quarters of 2021, down from 2.2% in 2020.
There are several reasons often cited for the lack of funding to women in business, including gender bias among critical decision makers, a lack of female representative in the venture capital space, and on a more individual note, a lack of financial knowledge and confidence when it comes to sourcing or pitching for funds.
But despite these challenges, Janine Sickmeyer, co-founder of VC firm Overlooked Ventures told Forbes that she is optimistic for what 2022 will bring for female business owners.
“Women founders have always been capable, and ready, to make a difference in the world of VC and startups, it was just everyone else who needed to catch up,” she said. “Although progress isn’t where it should be, more and more women are starting successful businesses and getting the recognition and support they need to grow.”
Sickmeyer continued, “2022 will be a strong year for women if venture capitalists and the industry put their money where their mouth is. Many great initiatives and investments were started to back women founders, but it’s clear that there’s more work to do. It’s up to venture capital to make 2022 a strong year for women, specifically women of colour.”
Of course if optimism isn’t enough for you, here’s some tips that could also help expand your financial prospects in business:
- Scour the web for financial grants – consider business and government grants
- Find a good mentor – someone connected in the business space where you are or want to be
- Network like crazy – yes this means getting social!
- Don’t give up – a positive mindset and that doggedness to just keep going are critical to keeping a good business dream alive
- Get to know your financials – it’s important to know which areas of your business are revenue generating to support growth and to be able to attract lending or funding opportunities.
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