Why Investing in Women Owned Startup Ecosystem Gives Highest Return on Investment

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Establishing a new business is not an easy feat as it cannot be compared with a prosperous one that has been in existence. Irrespective of the industry, every startup is likely to go through the same process of development except a variance in time.

Subject to certain factors, the speed in growth of startup businesses differ ranging from hiring the right team to maintaining the right customer base.

Forming the right team is critical in businesses, especially startups. Over the years, most businesses have been prejudiced in their workforce selection as they fit only men in management and relegate women to menial and insignificant roles.

On the movement of gender equality, women have been elevated to managerial levels lately except for a few that still hold the notion that gender matters in operation.

Great, we are having women-owned startups rising except for some constraints which are affecting their speedy growth. Most times, these constraints depend on the region of the startup, hence the counsel to set up businesses in environments favorable to it.

The issue of expectation from the society to take up tasks or run the business in a masculine way affects startups. If not handled through the approach of “men”, societies usually do not support them unknowing that various businesses need different approaches, i.e. not all businesses are run the same way.

During the covid-19 outbreak, several firms incurred losses, likewise female proprietors were hit hard. Women-owned startups received a significant drop in financing in 2020. Though not everyone’s firm suffered equally, the share of “dollars to women founders” fell drastically by 0.5% from 2019 to 2020. Investors have more faith in men-owned businesses than women because they believe men have been in the business of managing enterprises and so are skilled.