Elaine Gold, Global Business Consultant
Elaine Gold is an independent consultant and Co-Founder and, until December 2023, Managing Director of GEN UK. Elaine became active in GEN over 12 years ago while living in the Middle East for eight years. Working in leadership and organizational change, she has delivered consultancy and coaching interventions covering leadership development, inclusion, diversity, team building, and one-on-one development. Elaine has traveled to over 40 countries and delivered workshops and speaking engagements in over 20 countries. She understands the complexities and demands of working cross-culturally and in diverse organizations. Her focus is on supporting female founders in the transition from Founder to Leader.
Over 35 years ago, when I began my career as a management consultant, I encountered remarks such as, “talks a lot of sense, for a woman.” While progress has been made, the challenges women face in corporate leadership and entrepreneurship remain significant.
From Founder to Leader: A New Set of Challenges
The excitement of launching a business can quickly transition into the daunting responsibility of leading a team and scaling a vision. For female entrepreneurs, this shift presents unique challenges exacerbated by societal biases and a lack of role models.
Self-Leadership and Imposter Syndrome
Many female founders struggle with imposter syndrome, feeling inadequate despite their accomplishments. Research from Harvard Business Review suggests women are more likely to attribute success to external factors, while men often credit their own skills. Developing self-awareness and fostering supportive networks is crucial to overcoming this challenge.
Leading Others: Breaking Gender Stereotypes
The business world remains male-dominated, leading to unconscious biases against female leaders. A PWC study found that women are less likely to be seen as possessing the assertiveness and decisiveness traditionally associated with leadership. This bias can make it difficult for female founders to command respect, particularly from more senior male colleagues.
Maintaining Culture and Vision
As businesses grow, preserving company culture and vision is critical. Female founders often emphasize collaboration, empathy, and work-life balance. However, maintaining these values while scaling a business and facing pressure to conform to traditional structures can be a challenge.
Managing a Growing Team: Delegation and Prioritization
As companies expand, female founders may struggle with delegation due to fears of losing control or appearing to lack trust in their teams. Developing delegation skills and fostering shared responsibility is essential. Prioritization is also crucial, as many female entrepreneurs juggle personal and professional commitments.
Processes and Procedures: Building a Sustainable Foundation
The early days of a startup often rely on passion and adaptability. However, as a business grows, structured processes and procedures become essential. Female founders accustomed to the fast-paced startup environment may find the transition to formal structures daunting.
The Funding Gap: A Persistent Obstacle
One of the most significant challenges female founders face is securing funding. Research by the British Venture Capital Association highlights a stark disparity: for every £1 invested in UK startups, all-female founder teams receive less than 1p, compared to 89p for all-male teams. Several factors contribute to this gap:
Unconscious Bias in Investment Decisions: With venture capitalists predominantly male, unconscious bias can influence investment choices, often favoring male-led startups.
Lack of Female Investors: The scarcity of women in investment roles results in fewer champions for female-led businesses.
Pitching and Negotiation Challenges: Studies suggest investors perceive pitches from women as less ambitious and growth-oriented than those from men, making it harder for them to secure funding.
Overcoming the Hurdles: Building a Brighter Future
Despite these challenges, progress is being made. Encouraging developments include:
The Rise of Angel Investors: More female angel investors are emerging, providing crucial early-stage funding for female-led startups.
Support Networks and Accelerators: Numerous organizations, coaches, and consultants now offer mentorship, training, and networking opportunities specifically for female founders.
Increased Visibility: Media coverage and high-profile female entrepreneurs are helping to break stereotypes and inspire future generations.
Conclusion
The “Glass Ceiling” has long been recognized as a barrier for women in corporate careers. While it still exists, more women are taking control of their destinies by launching businesses to achieve greater flexibility and independence. However, the challenges remain. By acknowledging these obstacles and actively working toward solutions, we can create a more equitable and supportive environment for women in entrepreneurship.