In such a competitive climate, starting a business can be challenging. This is especially true for women who are over 40 and are branching out on their own. There are many legal and corporate hoops to jump through to get a business off the ground. Often, women over 40 have more hoops that they need to jump through to even get started.
At Let’s Get Down To Business Bootcamp, we want to help women over 40 skip the hoops and get right to their goals. As a woman entrepreneur, you can empower yourself (with the help of a support system) to grow your business. In this article, we will discuss 3 additional challenges women over 40 face when starting their businesses and how to overcome them.
Challenge #1: Competing against younger men, our own expectations, and society’s expectations
As previously mentioned, there is a lot of competition in the business world. Women over 40 are competing with other current and potential business owners, but they are also competing with societal and personal expectations.
When men in their 20s and 30s start their own businesses, they are not worried about making sure they know everything. They will just wing it! Studies have shown that a man will apply for a job if he is 50-60% qualified, while women will wait until they are 90% qualified. Men are also more likely to consider themselves entrepreneurial and feel more confident in their future as business owners than women do.
Women are also less likely to get into business not because they are less qualified, but because they feel the pressures of society. In our 40s and 50s, we are still part of the generation that expects women to be softer and nicer without ambitions. These pressures are put on us, and we also internalize them and put them on ourselves.
Resolution #1: Be confident in your skills and experience
According to Ethan Mollick, Associate Professor at the Wharton School of the University of Pennsylvania, the difference between a successful entrepreneur and an unsuccessful entrepreneur is confidence. He stated the following on the Knowledge at Wharton podcast:
“...overconfidence is the biggest psychological predictor of whether or not you’re going to become an entrepreneur. Having misplaced confidence in yourself and thinking you can win when other people always lose is a strong predictor of entrepreneurship.”
He continued that the “male hubris, female humility effect” can affect the way that men and women view their success:
“Men have more hubris. Women, in addition to having a lower hubris, also have higher levels of humility. Humility means that in the face of actual success, you’re less likely to attribute it to yourself and you’re less likely to take advantage of it.”
So what does this mean for female entrepreneurs over 40? We have to take advantage of this phenomenon and use it to our advantage. It seems so silly to reduce everything to “if you believe it, you can do it,” but studies have shown that there is something to that!
When we are starting businesses, we need to stand our ground and be confident in our experience. We are more knowledgeable than younger people who are starting out, and we know how to do it better.
Additionally, women over 40 are not just competing with men; we are also competing with society’s expectations. We are expected to pass up leadership roles and not be upset about it. Once again, this is where confidence can conquer your competition.
Don’t undersell yourself; age is an asset!
Challenge #2: Accessing funding
Another major challenge women face is getting initial opportunities to start their businesses. In 2020, women-led start-ups were granted a measly 2.3% of venture capitalist funds. According to CNN Business, in 2016, “[venture capitalist funds] put $64.9 billion into male-founded startups in 2016. Female-founded startups got $1.5 billion.”
Based on this data, it seems like women are less likely to start a business than men, but this is not true. Women started 49% of businesses in 2021, according to the World Economic Forum. This means that women are not getting the same opportunities in funding as men, making it more difficult for women to get their businesses off the ground.
Resolution #2: Be aggressive in your pitches
When you are pitching your business, it is important to know who and what you are dealing with. Gloria Kolb, CEO/co-founder of Elidah and a mentor in the University of Connecticut’s Technology Incubation Program told Business News Daily, “when [women] pitch investors, we are often pitching realistic numbers. But men so often overstate and exaggerate that investors often discount the numbers off the bat.”
This doesn’t mean we need to lie in our pitches, but we need to make sure that our investors know how valuable women-led businesses are. In fact, on average, women-led businesses grow 84% after launching compared to men-led businesses which grow about 78%. Women-led businesses “ultimately deliver higher revenue — more than twice as much per dollar invested,” according to an analysis by the Boston Consulting Group. This same analysis also found that women-led businesses earned 10% higher revenue in five years than men despite being provided less funding.
Know your worth both figuratively and literally. Go into your pitch meeting with confidence (see above) and a plan that investors can’t resist.
Challenge #3: Lack of support system
Networking is more important than ever when it comes to starting a business. We are now able to access people all over the world to promote our business and find new opportunities to grow. However, with all of these channels available, women are still left behind. About 48% of women reported that they do not have advisors or mentors to help their professional growth, according to a report by Inc.
Resolution #3: Get your name out there, especially online
Take advantage of having the world at your fingertips. Many start-ups have taken off because of online interaction. One way to use the internet to grow your business is through fundraising or crowdsourcing. Regardless of the crowdsourcing platform, women performed just as well if not better than men in fundraising efforts. These outreach efforts will not only earn funding but also catch the eyes of other women entrepreneurs who are looking to connect.
A great way to find a community online is by looking for Facebook or LinkedIn groups. As we have discussed, millions of women are trying to start their businesses, and we all need support and guidance. Look for groups that are specifically for women entrepreneurs, but also look for groups that are focused on your business niche. That way, you will be able to connect with other women in that group who are just as knowledgeable about your field as you are.
Memberships to networking groups are also available. For example, Ellevate is an online networking community committed to making meaningful connections. They also focus on creating safe spaces for women, women of color, and members of the LGBTQIA+ community. Different membership options allow you to attend virtual workshops, attend in-person events at chapters, meet with focused community groups, and more.
If you prefer to meet with people face-to-face, you can attend women-centered networking events. Such events include WIN Conference, eWomenNetwork, and Bizwomen events. Local women-centered networking events can often be found with a quick online search.
Working with consultants like Let’s Get Down To Business Bootcamp is another great way to attain the mentorship you are looking for. You are already an expert in your field, but you may not be an expert in entrepreneurship. Legal coaching and business coaching will allow you to learn how to run a business with guidance every step of the way. You can take the lead on the field knowledge, and your legal or business coach can support the business side of things.
Overall, women over 40 face additional challenges when it comes to starting their businesses. We are underestimated, underfunded, and unsupported. But it doesn’t have to be that way! Women-led businesses are a better bet than men-led businesses, so it’s time for us to get out there and make a difference.
DISCLAIMER: NO ATTORNEY-CLIENT RELATIONSHIP IS FORMED BY READING OR ACCESSING THE CONTENT OF THE HEALTH & TECHNOLOGY LAW FIRM. All of the information provided across our platforms and presentations are for your educational and information purposes only. It is not intended as and does not constitute personal legal advice, and is not a guarantee of any results. Sharon L. Tasman is licensed to practice law in the District of Columbia, Maryland and Virginia but neither she nor the Health & Technology Law Firm, are acting as your personal attorney. Some states may consider this attorney advertising, but it is not intended to be. You should not act, or refrain from acting, on the basis of this content without first consulting legal counsel who practices in your jurisdiction.
