The continued funding gap for women entrepreneurs

"The Schwab Foundation's Global Alliance for Social Entrepreneurship report, The State of Social Enterprise 2013-2023, notes that there are 10 million social enterprises around the globe, accounting for $2 trillion in annual revenue, and providing 200 million jobs. Half of those businesses are led by women. This number corresponds with business startups in general. In fact, 49% of new startups in 2024 were woman-led."

"Behind that seeming equality, however, is the devastating reality that solely owned women-led companies get a meager 3% of available venture capital funding. You read that right, 3%. To work around that wall, women often must be more creative and innovative to secure funding. They often turn to less traditional funding sources-organizations such as ours, Boundless Futures Foundation (BFF), and Kiva. BFF provides financial support and leadership resources to female founders whose businesses also address a societal issue."

"Kiva is a global nonprofit that supplies much-needed capital to social entrepreneurs through crowdfunded loans. Our organizations recently partnered to establish a revolving loan fund, produce an impact study on the effects of women social entrepreneurs, and collaborate on strategic approaches to reduce barriers facing female founders. Organizations like ours are making an impact in a world that desperately needs businesses to stand up and do the right thing."

There are 10 million social enterprises globally, generating $2 trillion annually and providing 200 million jobs. Half of those enterprises are female-led, and 49% of new startups in 2024 were woman-led. Solely owned women-led companies receive only 3% of available venture capital, creating a stark funding disparity. Women entrepreneurs often pursue nontraditional capital through organizations like Boundless Futures Foundation and Kiva, using creative strategies to bridge financing gaps. Partnerships have formed to create revolving loan funds, produce impact studies, and develop strategic approaches to reduce barriers facing female founders. The rollback of DEI policies threatens to widen the funding gap for social-impact women founders.

Read at Fast Company