5 Common Obstacles in the Women Entrepreneurial Environment

Since entrepreneurship is a source of economic development, innovation, and the growth of societies, starting a new business has become a significant subject on the agendas of economists, researchers, and politicians in most countries.

Moreover, by empowering women in businesses that create jobs and contribute to economic growth and social progress worldwide, the women's entrepreneurial environment has gradually increased.


According to the Global Entrepreneurship Monitor (GEM) report in 2020/21, the women established business owners rate is 5.6%, representing one in three established business owners globally.

In low- and middle-income countries, 17% of women are entrepreneurs, and 35% aspire to become entrepreneurs compared to only 25% in high-income countries.


Thus, it's evident to the world the importance of women in economic development, individual health, and societal advancement through involving women in entrepreneurship as a path to a better future.

However, the women entrepreneurial environment still faces many obstacles.


Obstacles Faced in the Women Entrepreneurial Environment


Many studies and researches revealed the factors that pose as obstacles in the women entrepreneurial environment are the following:

First, sociology, gender roles, and the dominance theory states that a woman's role in some societies is limited to work such as housework, nursing, or teaching.


Secondly, culture, the influence of culture on an individuals' entrepreneurial orientation, is mainly for men.


Thirdly, research shows that women are less confident in their entrepreneurial skills and their ability to get funding. A study showed that women start out their businesses with 53% less capital than men.


Fourthly, another barrier many women face are the responsibilities of family care. A few face difficulties in balancing between running a business and fulfilling family responsibilities, compared to men.


Lastly, there are still a number of people who view females in a position that is typically held by men as less credible compared to if the position were held by a man. Positions such as CEO’s, the tech industry, lawyers, etc, are just a few examples of positions that are undermined when filled by a woman. These views are likely to contribute to self-doubt.


The Covid-19 pandemic has caused the closure of many women owned businesses. Because of public policies in many countries that have still fallen short with insufficient support for family care, schooling, and small business impacts, woman entrepreneurs have shown remarkable resilience and ingenuity in adapting to the resulting business disruptions and new market realities.

Societies can utilize women entrepreneurs due to the female talent of multitasking, a creative pulse to develop ideas, joint efforts between diverse talents, and a critical vision on solving everyday problems.

With more and more women starting up their own businesses, those who are mothers to girls will have a particularly powerful influence on their daughters’ aspirations and self-efficacies, potentially resulting in more women owned businesses in the future.