HOUSTON, Texas. Gender discrimination can impact all aspects of women’s access to the workforce—from their compensation to their ability to advance in their careers and secure a promotion. Given the prevalence of gender discrimination and sexual harassment, who can blame women for choosing to forge out on their own and start their own business? Yet, when women seek investors, they often face unique challenges. Scientific American recently reported on the “subtle” differences in questions investors ask women when compared to the questions these investors ask men. These questions can have an impact on the money women receive for their ventures and whether they receive funding at all.

According to Scientific American, when investors are considering which businesses to invest in, they consider the product and the business’s financials, but they also base their decision on whether they like the person asking for the investment. Researchers have found that women don’t receive funding as often as men. Scientific American reports that women only receive 2% of all venture financing. Those who do receive money may receive much less than male peers.

Why is this the case? Researchers found that when investors spoke to women, they asked the women how they would avoid failing. Yet, when investors spoke to men, they asked them how they would succeed. It appears that the stance that investors have taken towards women comes from a stance of loss or avoiding loss. It’s no surprise that investors fail to invest. If they already think a venture will lose before they even know about it, why would they? Furthermore, when the questions asked were analyzed, men were asked questions that allowed them to answer with examples showing their idea’s possibilities, while women were asked questions that addressed problems—such as concerns about women’s companies breaking even and retaining customers.

The way entrepreneurs answered made a difference in the amount of funding they received. In general, entrepreneurs who could promote themselves received more money.

Unfortunately, this attitude extends to other interactions in the workplace. Women may have to work harder or try harder to show company leadership that they can handle a promotion or increased responsibilities.

Despite these challenges, women can and do succeed. According to Essence, the number of women-owned businesses grew by 117% from 1997 to 2017.

While starting your own business is a great way to take your destiny into your own hands, there are also many challenges that female entrepreneurs face. If you are thinking of starting your own business, it is important to be in compliance with employment laws, regulations, and to create contracts that are sound and enforceable. Moore & Associates are employment lawyers in Houston, Texas who work with employees and employers to protect their interests and rights.  If you have questions about what steps you’ll need to take legally and financially to start your own business, get sound legal advice. Reach out to https://www.mooreandassociates.net/ today.


Moore & Associates

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Houston, TX 77002