The year 2021 will be defined by how entrepreneurs and small business owners pick themselves up after the devastation wrought by the coronavirus pandemic. For women, the landscape of hurdles in the post-pandemic business world will be even harder to navigate due to the disproportionate negatives women in business face.
For female entrepreneurs going into financial technology (fintech), maximizing your business potential takes preparation and awareness of obstacles to success. With the right considerations, your fintech business can thrive. Here’s how.
Countering Gender-Based Obstructions
The same obstacles that are disproportionately impacting women business owners in all industries can be complicating factors when attempting to break into the fintech market. From the burden of domestic work to the gender bias common in financing endeavors, women face obstructions that will have to be overcome if your fintech business is to thrive.
Women are bearing more of the burden of unpaid care and domestic work in the wake of the pandemic, according to a UN report. Managing these disproportionate workloads requires a strict work-life balance and care accommodations that can be costly. Maximizing the potential of your fintech startup comes with making tough decisions regarding when to outsource tasks and change direction so that you have the time you need to balance all your obligations.
Additionally, increased domestic work and assumptions of equitability often lead to professional women being underpaid for the immensely valuable advice and expertise they bring to any sector of the economy. Counter these harmful practices by charging properly for your fintech services, whether you choose an hourly, per project, or retainer model.
Finally, combating gender inequality and the associated stereotypes can be a challenge in the male-dominated world of fintech. Only an estimated 37 per cent of fintech workers are women, with only 19 per cent occupying executive roles. Being taken seriously in this environment isn’t always easy—many people still carry harmful prejudices and assumptions regarding women in tech.
But countering these stereotypes can be easier with the right business model and financial base.
Overcoming Financing Challenges
When it comes to acquiring the financial backing to start a business, women commonly face discrimination that their male counterparts do not. For instance, 50 per cent of pitches from female entrepreneurs are denied funding, with 35 per cent of US and UK businesswomen saying they experience gender bias when attempting to raise capital.
Overcoming this financial challenge requires innovating and seeking out investment sources that work around this bias. There is no single method of raising funding for a new business venture. A little exploration can go a long way in driving your financial success. Here are some avenues you can approach:
Conduct data-driven research into new markets, audiences, and investment firms.
Collaborate with brands and influencers to increase the impact of your pitch.
Seek out investment sources that make use of analytics and AI rather than biased decision-making practices.
Consider a micro-entrepreneur payment structure that allows for easy lending and repayment.
These methods can help you enter the fintech market. Then, continued innovation will help you transform your efforts into revenue-boosting practices for unprecedented success.
With similar innovations, workarounds, and needs-based approaches to fintech, you can maximize the potential of your fintech startups.
Maximizing the Potential of Fintech Startups
Despite the strides we’ve made towards equitable work and pay for women, female entrepreneurs still face discriminatory obstacles in business. However, with a head for innovation and research, you can more clearly develop fintech pitches and systems that offer undeniable value for a modern audience.
For example, the need for secure online shopping experiences is key in the COVID-19 world. A fintech startup that embraces this need and offers solutions through secure payment practices might experience an easier time generating their necessary funding. All kinds of needs are out there, waiting to be explored through customer data and stakeholder feedback.
In the meantime, continuing your education online to obtain a more accurate understanding of business analytics can both improve your credibility and offer important insights. Data is a key element of financial technology, and learning how this data can be mined, analyzed, and applied can assist in the creation of invaluable fintech products. Understanding these processes can even help in the development of data protection features necessary for virtual transactions.
Explore the needs of the modern market and build your skillset to make the most of your innovative abilities. In turn, you can smooth the process of starting a new fintech venture in 2021 and beyond.
Final Thoughts
These methods of expanding your resources and countering bias can all make starting a successful fintech endeavor an easier experience for female entrepreneurs. The results, as we’ve seen, are diverse systems and services designed with users at the forefront. In our increasingly digital world, little is more important than the accessibility and convenience good fintech can offer.
Counter gender bias, overcome financial hurdles, and maximize your fintech success through research and innovation. While these strategies won’t make starting a business in fintech easy, they will certainly help you start with a more competitive foundation.
