Women’s
empowerment will be front and centre in 2014 as more companies, communities and
countries invest in women’s entrepreneurship. Increasingly, they recognise what
organisations from the World Bank to Coca-Cola already know: that women are
crucial to economic growth around the world
Based on
our experiences, women entrepreneurs see the world through a different lens
and, in turn, do things differently (to my three brothers and three sons: not
better, just differently). This is reflected in the kinds of businesses we
start, whether it’s Coco Chanel, who learned the trade of a seamstress as a
child, Estée Lauder, who turned a passion for skincare and make-up into a
beauty empire, or Oprah Winfrey, whose media business focuses on helping women
to reach their potential.
According
to the Global Entrepreneurship Monitor, there are 126m women operating new
businesses and another 98m at the helm of established ones. Yet we face a huge
equality gap. In only seven countries—Panama, Thailand, Ghana, Ecuador,
Nigeria, Mexico and Uganda—do women take part in business at rates equal to
men’s; in some countries, like Pakistan, they barely take part at all. Even
when women are active business owners, they do not reach their potential: women
own almost three in ten American firms, yet employ only 6% of the country’s
workforce and account for barely 4% of business revenues.
I
launched our company in 2004. I had a concept and, with the help of a small
team, began developing it out of my apartment. As our company has grown, I’ve
learned about the obstacles that women in business face, from balancing work
and family (my greatest challenge) to securing financing. These are among the
reasons why in 2009 we created the Tory Burch Foundation (TBF) to support the
economic empowerment of women entrepreneurs. Drawing on our experiences as well
as on conversations with businesswomen from Manhattan to Marrakesh, I see three
priorities.
First,
access to capital. When it comes to finance, women face particular hurdles,
from a lack of collateral to discriminatory regulations and ingrained gender
bias. Small loans can make a big difference. Microfinance providers such as
Women’s World Banking, Grameen and Accion are addressing the need. But
financial institutions must do a better job of banking on women’s potential by
thinking creatively and forging partnerships, like Coca-Cola’s $100m initiative
with the International Finance Corporation, to give more women a shot at the
resources that can enable them to start up or scale up.
Second,
nascent businesses need support to flourish. I have always believed in the
value of mentors and, to this day, turn to trusted advisers from many different
industries for insight. Most women don’t have that support, which helps explain
why around the world they see fewer opportunities for entrepreneurship than
men.
A growing
number of groups like Vital Voices Global Partnership, with support from
organisations such as America’s State Department and Bank of America, are
building networks for women in the Middle East, Africa, Latin America and the
Caribbean. As we have seen at our TBF mentoring events, there is a tremendous
need for these connections. Our entrepreneurs often develop networks with women
they meet at our events. Whether you own a restaurant or design clothing, you
face some of the same challenges and can learn from each other.
Third,
women need entrepreneurial education. Winning business concepts are just as
likely to be conceived at the kitchen table as in the garage or at business
school, but research shows women doubt their capabilities and fear failure more
than men. Training can equip women with the confidence to see bold ideas
through. Goldman Sachs’s 10,000 Women programme, for example, provides
underserved women with business and management education. Eight out of ten of
the programme’s graduates have boosted revenues; nine out of ten have paid it
forward by mentoring other women.
Not a
passing fashion
Narrowing
the gender gap in employment will increase global income per person by as much
as 20% by 2030. But the benefits go beyond the bottom line. Women business
leaders inspire other women to pursue their dreams. They may also find it
easier to balance work and family outside the traditional corporate world. In
emerging markets, women reinvest 90% of their earnings in their families and
communities—which means that investing in women is an investment in our
collective future.
The world
needs women entrepreneurs, and women entrepreneurs need all of us. It is time
to provide the support and tools to ensure that, in 2014 and beyond, women-led
businesses flourish.
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