Female entrepreneurs favour human connection as many see isolation a challenge
Female founders and entrepreneurs have highlighted human connection as critical in building their business, as many still feel the challenge of isolation and loneliness.
Nearly 80 per cent of female entrepreneurs identified human connection as significant to their livelihood, a new study from Female Founders Rise has found.
Respondents highlighted the significant need for community support, mentorship and advice at all stages of their career, with 39 per cent citing peer networks as the most helpful to their careers.
One in seven survey respondents also confirmed having a network helped reduce their feeling of isolation and sped up their business growth, whilst others were better able to access private finance.
Co-author Joanna Jensen, entrepreneur and chair of the EIS Association, said: “Shared experience shortens learning curves and unlocks growth. If we want more successful founders, the entire eco-system has a responsibility to open more doors to expertise much faster.”
Loneliness and isolation
But, 14 per cent still identified loneliness and isolation as their biggest challenge, with some losing their network or being unable to find one.
Over a quarter also confirmed suffering from mental health pressures, including burnout and self-doubt, with both small and large business founders admitting feeling isolated.
Emmie Faust, founder of Female Founders Rise, said: “Being an entrepreneur is an unique experience and without the right mentors or a peer network it can be deeply isolating.
“The support, the opening of doors and willingness to share critical learnings have potential to make a difference to whether a business survives or not.”
Accessing funding
While some women were able to access funding through their network, nearly half identified financial insecurity as their biggest barrier.
This included accessing funding, issues from bootstrapping, cash flow management, attracting investors and achieving sustainable revenue.
Only two per cent of VC capital goes towards female founded businesses, according to the report, while a quarter cited raising private capital as time-consuming, often pulling founders away from their businesses.
Meanwhile 30 per cent also hailed the difficulty of accessing public funding, calling the process “complex and bureaucratic”.
A further 29 per cent highlighted accessibility and inclusivity issues, feeling excluded by opaque eligibility criteria, limited supports and processes better suited to well-resourced organisations.
Sam White, head of SME Business Banking at Barclays, said: “When women are backed by the right networks, support and opportunities… the potential is huge.”
Long term success
Despite the challenges to funding, over 50 per cent cited stability and profitability as the foundation to a successful business.
This includes consistent revenue, wealth creation and long term security for both themselves and their teams.
Nearly 40 per cent equated success to scaling their business, ultimately achieving an exit or acquisition.
However, others voiced the need for work-life balance, flexibility and creating a positive environment to creating a thriving business.