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5 Reasons Why Women Are Better and More Successful Entrepreneurs Than Men

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Women today aren’t only homemakers; they’re money-makers, too. As each day passes, more women are dominating the business world. Companies like IBM, General Motors, and other Fortune 500 companies have female CEOs. 

But when you put all the data into context, only a small percentage of U.S. businesses are women-owned. Research shows that women-owned companies generate higher revenues than those owned by men. It also showed that women are more effective as a leader and are better at creating jobs. 

Experts at Boston Consulting Group also found that women made twice as much per dollar of investment than men. Because of that, they believe that it would be better to invest in women-owned companies than those run by men. 

Here are some of the reasons that make women better entrepreneurs than men:

1. They’re More Honest

The reality is that women are more honest than men both in business and in life in general. While men focus on discussing problems, women examine the issues closely. From there, they can extract the cause and provide solutions to address the problem. They know that the earlier they solve the problem, the sooner they can go back to focusing on their company’s growth.

Women are more talkative than men and are less restrained when it comes to verbalizing their thoughts. They are not afraid to express their feelings, making it easier for them to communicate with their peers. 

Women’s honesty also makes it easier for them to ask for help when they need it. While men think that asking for help can be a sign of weakness, for women, it’s one way of avoiding mistakes. All they care about is how they can address the issues their company is facing. This characteristic makes them better equipped in running a business.

“I want every little girl who’s been told she’s bossy to be told again she has leadership skills.” – Sheryl Sandberg

2. They’re Better at Collaborating

Women tend to be more empathetic compared to men. And because of this, they’re able to pick-up some non-verbal cues. This helps them understand the needs and wants of the team. Successful companies are not built by a single person. It is a product of collaboration and teamwork. But for them to collaborate, they need empathy. 

This is yet another reason why women make better entrepreneurs than men. Women are likely to see each person in their team as actual people rather than machines. They consider each person’s feelings and use them in creating better strategies. 

3. Women-Run Companies Generate Higher Revenues

Women-run companies generate higher revenues than firms run by men. There’s no sure way of telling why, but experts think that it’s because women target specific niches. While men look at the industry as a whole, women dig deeper into it and look at each component closely. For them, opportunities lie at every nook of each industry just waiting to be discovered. This strategy helps them expand their client base and get loyal customers.

The best part is, this is all backed up by research. Women-run companies generate a 35% higher ROI than companies managed by men. When it’s venture-backed, the number further increases by 12%. Even with the funding gap, women-run companies generated a 10% cumulative revenue within 5 years. For that reason, many investors are starting to favor women-run businesses.

4. Women are More Resilient

Women are no strangers when it comes to discrimination in the business world. They are prone to experience unfair treatment, lesser opportunities, and lower wages. But, instead of letting these bring them down, they take it as a reason to do better and succeed. 

A lot of successful women have battled the same problem in their journey towards success. Lori Greiner, a host and investor of the popular show Shark Tank, experienced a lot of obstacles throughout her career, including gender discrimination in the business. But she didn’t let that affect her. Instead, she focused on strengthening her voice to shut off the negativities. She is now a well-known TV personality and a successful entrepreneur. 

Both men and women entrepreneurs encounter discrimination at some point. Unfortunately, women experience it more often. But instead of letting it pull them down, they learned how to overcome it. These experiences taught women how to be resilient. It also taught them to persevere even in the most difficult time in their business.

5. Women Take Calculated Risks

Men and women entrepreneurs are both risk-takers. However, research shows that women are more ready to take risks compared to men. For them, ‘risk’ is just another word for opportunity. 

But women also like to make sure that the risk will produce great results. So, they assess the situation first. They take into account and weigh the advantages and disadvantages. They know better than to bet all their money on something too risky. 

“It was a risk. I had a husband and I was pregnant with my oldest son. But I don’t look at risks the way other people do. When you’re an entrepreneur, you have to go in feeling like you’re going to be successful.” – Lillian Vernon

It’s Time for Women to Shine

Despite the challenges, women continue to persevere in the business industry. They’re way past being a homemaker. Today, they continue to prove that if given the chance, they could offer more ideas on the table that will transform the entire business industry.

Women are going above and beyond the role that society expects from them. The reasons mentioned above are proof that women have all the qualities needed to run a successful business. While they may still be far from dominating the business world, the trends are showing that they’re closing in on achieving it. 

Do you have a favorite female entrepreneur? If so, share who it is with us in the comments!

Rumzz is a digital strategist and content marketer for SMB Compass. She enjoys spending time with her family. She loves to go out and experience new moments whenever they came to light. Rumzz discovers satisfaction in investigating new subjects that help to extend her points of view. You can frequently locate her immersed in a good book or out searching for a new experience.

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Are you completely new to networking?

Then this article is a great place to start. Networking isn’t hard on paper…you go along to online and in-person meetings, make new connections and build relationships, and those relationships lead to more work so you can grow your business! The challenge is that in reality, it isn’t quite so straightforward, as our emotions get involved and make things much tougher.

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Here’s a few tips to help you embrace every business networking opportunity you get, so you can grow your business and achieve your goals.

Rock up with confidence

If you want to keep those nerves at bay and ooze confidence at networking get-togethers, you’ll need to downplay it rather than seeing it as a big occasion. Try not to put pressure on yourself and see it as a casual meet-up with a bunch of people with similar goals to you. To help you relax in the run-up to the event, be sure to set achievable goals and expectations before you go.

Keep your chin up and your goals in mind – positivity is key. One easy goal for your first networking meeting is very simply to speak to one other person and see where the conversation goes. Introduce yourself and your business, but take the time to listen to their story, too. It’ll only take a few minutes and will be over before you know it, so it’s nothing to fear. You may even enjoy it and want to speak to a few more people, too!

“You can close more business in two months by becoming interested in other people than you can in two years by trying to get people interested in you.” – Dale Carnegie

Where to go networking

If you’ve never been networking before, it might not be very easy to find a group – but only because there’s so much choice and you don’t know where to start your search! Groups come in different sizes and styles, so it’s important to find one that suits you and your business. Informal, formal, big, small… the choice is yours.

For your first meeting, start small to ease yourself in – a big group could prove too daunting, and stop you from feeling comfortable enough to get involved. After all, you want to make a strong first impression!

If you’re wondering which group to opt for in the long-term, give a few a go! Get a feel for them, speak to as many people as you can, and see which one suits! You’ll know when a group feels right for you, and you can see where those all-important relationships are most likely to be built. If a group doesn’t feel like the right for you, give a different one a go.

Get more leads and referrals

This will happen for you, as long as you put the effort into building those relationships. If you take the time to get to know people, and then check in with them and support them, they’ll see you as a trustworthy and reliable contact who they can call on. And when they feel that way, those leads and referrals you’re looking for will come a-knocking.

Once you’ve made relationships with people who you trust, and they’ve had a positive experience working with you, you can even ask for referrals! But don’t rush this, as you don’t want to inadvertently push people away or try and force the relationship along too quickly.

When you do get an opportunity to work with someone you’ve met at a networking group, go above and beyond to offer more value than they’re expecting, as then, they’ll be much more likely recommend you and introduce you to more of their contacts!

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By investing your time and effort in networking, you will gain more business through the relationships you make, and you will be able to grow your business.

We know that it’s not easy, going networking for the very first time. And that’s why we want to give you all the advice and tools that you need so you can walk in with confidence and make the most of the opportunity.

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