Women entrepreneurs are an overlooked source of growth and job creation

This is an opinion article by an external contributor. The views belong to the writer.

Did you know that there is far less investments in women entrepreneurs than in men?

In 2018, start-ups solely founded by men received 93% of all capital invested in European tech. That does not make sense and is unacceptable.

Women entrepreneurs have a good nose for innovation because they, among other talents, identify market opportunities and address needs that so far have been overlooked in most industries and among investors.

At the same time, women are 73% more likely to found a venture that have an overall positive impact on society. Studies also show that women entrepreneurs generate more revenue, even though they receive less funding.

These findings suggest that by investing in women, investors get more value for money.

Gender-conscious investors

In this regard, we find that the EU is lagging behind when we measure ourselves against global trends. If we ignore this fact, it will in the not-so-long run weaken the EU economy and make it more difficult to provide the return of investments that makes EU the world's best place to live and do business.

However, if women and men participate equally as entrepreneurs, global GDP could rise by approximately 3% to 6%, boosting the global economy by $2.5 trillion to $5 trillion, according to an analysis conducted by Boston Consulting Group (BCG).

One of the big problems is that women entrepreneurs and investors seem to have a hard time finding and connecting with each other. There are many solutions, but we would like to highlight one that is crucial to get started at EU level: The Commission should create an EU network for gender-conscious investors.

This way, we can create awareness and highlight those actors who work purposefully to boost diversity in entrepreneurship and to facilitate access to capital for more women entrepreneurs.

A gender-conscious investor network can inspire, increase knowledge of facts and enable best practice-sharing, therefore making it easier for women entrepreneurs to find the right investors who target women's and diverse teams' business ideas.

A gender-conscious investor network at EU level will also be able to help break down the many barriers that exist between industries with either a very high percentage or a very low percentage of women. Moreover, it would create additional value through cross-border and cross-industry relations and initiatives.

Overall, the network will be able to harness the full potential of our women entrepreneurs and provide a boost for the ecosystem of small and medium-sized enterprises in Europe, which is the backbone of our economy.

By Angelika Winzig MEP,

Christine Schneider MEP,

Pernille Weiss MEP


Latest News

Copyright © 2021 The Brussels Times. All Rights Reserved.