More women in the United States are starting new businesses than ever before, raising $ 40 billion from women-owned startups in the first three quarters of 2021 alone. Although this is still only a small fraction of the $ 239 billion in venture capital invested over the same period, this is twice the amount raised by women-owned startups in all 2020 and 2019, which means fast the growing presence of women in the traditionally male-dominated business world.
Players in the banking and payment industry need to pay close attention to these developments in the growth of women’s entrepreneurship and understand the business these women are starting and the technology they are using to make their endeavors successful. Failure to do so could mean missing out not only on women’s empowerment opportunities in the business world, but also on significant revenue streams as these women entrepreneurs seek out the latest technologies to power their businesses.
The Guide for Women Entrepreneurs and Technologyand PYMNTS and Payoneer collaboration, explores how women entrepreneurs are disrupting the world of business with cutting-edge technology in a wide range of areas. This report includes interviews with women entrepreneurs whose success gives a first-hand look at the challenges they and their peers face and the methods they have used to overcome them.
That’s what we learned.
Successful companies owned or run by women have become a powerful driver in today’s economy and are expected to continue their incredible growth in the future.
A recent World Bank study found that in the United States alone, women-owned businesses grew more than twice as fast as any other business, contributing $ 3 trillion to the economy and employing approximately 23 million people. Developing countries have similar growth rates in proportion to their economies, with between 8 million and 10 million small and medium-sized enterprises (SMEs) having at least one female owner.
SMEs owned by women are twice as likely to receive rejection of their loan applications as small and medium-sized enterprises owned by men.
Breaking down this barrier will require active efforts on the part of investors to look for companies owned by women and prioritize their success. Women entrepreneurs could also benefit greatly from FinTechs, which promote women’s financial inclusion, especially in developing countries. This includes investing directly in women’s-owned companies, and these funds will outweigh their burdens when it comes to promoting women’s equality in the workplace.
The ability to take advantage of the right technologies or platforms is often the key to success in today’s digital economy.
Digital payments are one of these technologies and can put women’s businesses on an equal footing in key ways. Transactions from customers, suppliers and suppliers are simpler, faster and cheaper when done digitally rather than cash or check. Women entrepreneurs could also benefit from simpler cross-border transactions
Women face institutional disadvantage around the world in many aspects of their lives, and business is no exception. Technology companies, payment providers, investors and many other businesses have not only a moral obligation to invest in women-owned businesses, but also financially: bridging the gender gap in the business world can reap innumerable billions in dividends for investors, entrepreneurs and the world around them.
To learn more about how technology can improve the success of women entrepreneurs, Download the game book.