CBD Start Up Business For Women

Why Are Women Successful At Running Startup Companies?

Why Are Women Successful At Running Startup Companies?

According to recent studies, women are able to bring in three times the revenue compared to men in similar entrepreneurial positions including startup companies [1]. Why is this the case? What is causing women to run better companies despite a lack of enthusiasm or support from venture capitalists?

There is a lot of information available illustrating the value of women-led startups and it’s important to dissect this detail.

Develop Resilience

Yes, the lack of support from venture capitalists and similar lending firms means women-led startup companies begin with less. In fact, it’s suggested these startup companies only receive 2.7% of the funding compared to men-led companies [1]. In fact, only 8% of all women get to late-stage funding rounds [2]. This begins to highlight the discrepancy between both parties and why it’s become important to close the gap.

When women are put into a situation where the budget is restricted, they start to maximize their budget. It’s not as easy to throw away funds and this helps develop professional processes from top to bottom. They develop the ability to “penny pinch” and that is ideal for startup companies. Too many startups lose out simply because they throw money down the drain without thinking about what they’re doing. Since women-led businesses aren’t in a position to do this, they become naturally resilient.

This is a human trait and is something only women end up having to deal with. While it might not seem ideal at the start, it can lead to a much better long-term business setup that can sustain itself. Once those built-in strategies are set up, a business can start to welcome more funds into their budget and grow rapidly.

CBD Start Up Business For Women

CBD Start Up Business For Women

Reasonable Predictions

Ever heard claims where a business is going to make $100 million in the next year?

There are many situations where men-led startup companies make large promises and hope to shatter through their competition. This might seem nice on paper but it doesn’t account for the market pressures put on a startup company. It’s not going to be as well-entrenched as the big companies, which means there is a huge learning curve. Unfortunately, these companies don’t think about those details and end up putting themselves into a tough spot.

However, women don’t do this and are often seen being conservative!

They are detailed with regards to potential predictions and how the business is going to grow in the long-term. They follow the ground rules of running a startup company and do not aim to show bravado. This is a wonderful way to run a startup company and is the right mindset to have. Over time, the business will grow but it’s better to push through easier goals than to fail running after unreasonable ones.

By making reasonable predictions, the business doesn’t put itself into a position where mistakes are made. Everything follows a plan and this keeps things simple. While not all men-led startup companies come in unreasonable, a larger portion do, which makes it harder for long-term success.

Better Understanding of Certain Niches

Emerging markets continue to provide new information and it’s difficult to determine what’s valuable. In such cases, male venture capitalists might not like the idea of heading into a market that’s new to them and prefer to stay in what’s worked before. However, many indicators show a willingness to dive into these markets when women are at the helm of a startup company. They are able to educate men on these niches and that can provide a plethora of new opportunities that are useful in the long-term.

It’s important for also being able to head into niches that are deemed challenging for men (i.e. segments of beauty). Being able to tap into these markets and learn with women-led startup companies helps everyone earn money and cut through the competition.

Along with being able to do well in those niches, it’s also a great way to learn more about traditional niches. Being able to look from a new perspective is a great way for maximizing profits. Over time, a lot of women entrepreneurs are earning the opportunity to do well in these niches.

Willing to Adapt

Adaptability is one of the most important qualities of a modern entrepreneur.

Women entrepreneurs are more willing to adapt and adjust based on what’s happening in front of them. There’s less rigidity in how a business is run and that can go a long way in making things work. Men-led startup companies tend to falter because they refuse to make amends based on mistakes that are made. Of course, this is not seen in all men-led companies but it is a trend that is noticed in recent years.

This ability to adapt is one of the main advantages of working with a startup company and growing together. Venture capitalists want to be able to work towards a progressively better business and that tends to happen more with the help of women entrepreneurs.

Whether it has to do with the budgeting, product development, or a combination of everything, this ability to adapt is essential.

Ideal for New Markets

Many new markets are popping up with each passing day and it’s becoming important to understand how they work. Since so many venture capitalists want to avoid a situation where they enter a market blindly, it’s best to have a new perspective.

Women are able to provide this new perspective and that goes a long way in helping push startup companies in the right direction.

Men-led startup companies tend to show signs of inflexibility when it comes to new markets and use older strategies. This becomes much harder to deal with and leads to failure. Women startups have shown this is not a problem and adjustments can be made regardless of the market.

See Women and The Modern Business

Passion to Push Ahead

The reason women are more successful at running startup companies has to do with perseverance.

Since there are so many “glass ceiling” moments for women to deal with in the corporate world, it becomes doubly important for them to push through. This has become one of the reasons so many women are willing to put in the extra effort needed to succeed.

While numerous men-led startup companies do show passion, it is not at the same level as a women-led startup company. Those additional hurdles whether it has to do with funding, partnerships, or other issues, women tend to push through at a better pace. This is essential when it comes to running a good business and ensuring things head in the right direction. If there is no passion, the business ends up folding because the leaders give up.

Improved Teamwork

There are examples of improved teamwork seen in these situations and that is never a bad thing. Since women are put into tougher corporate situations (i.e. minimal funding), it’s common to see these professionals emphasize the notion of teamwork. When that is the case, a business is able to come together and set up roots that last for a long time. In fact, this is one of the main reasons so many women-led startup companies do well over the long haul.

There is a sense of teamwork that ensures success and is essential for the betterment of a company.

Final Thoughts

In the end, there are many reasons for women doing well when it comes to running startup companies. It’s important to understand these reasons and continue to build towards a better economic future.

Women can take these examples and push forward with a passion!


1) https://www.forbes.com/sites/allysonkapin/2018/07/19/the-next-billion-dollar-startups-will-be-led-by-women/#2db755f3e3f4
2) https://techcrunch.com/2017/04/19/in-2017-only-17-of-startups-have-a-female-founder/

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