20 Feb 5 Differences between male vs female entrepreneurs
We speak to hundreds of entrepreneurs every year. They do come from all walks of life but we do notice that they share a number of common traits. One things that has stuck out in those conversations and we would like to share is some of differences between male and female entrepreneurs. Without trying to box either of the 2 groups into a stereotype, we are simply sharing our personal observations. If you recognise some of those traits in yourself, great, if not, we are glad that we will be proven wrong.
From the size of their teams, to the money they raise, all the way to the grandness of their ambition, men instinctively work towards building empires. Their visions are more bold and fearless and can be considered a lot more reckless. Women, on the other hand, have more community-oriented models: they start ventures with the aspiration to make a positive differences in the communities they inhabit. As a result, we see women-led businesses being smaller in size, revenue and teams.
TECH VERSUS TRADITIONAL MODELS
Men are distinctly more drawn towards technology related ventures. They are interested in experimental and esoteric concepts, such as deep tech, crypto, VR and anything else that might sound esoteric to the average person on the street. Women, on the other hands, lean towards B2C concepts and innovation in already existing niches.
Hands down, women create more visually pleasing products. In many cases, even at the expense of business profit, they would not compromise on quality. The majority of women entrepreneurs have strong inner creative drive and that is why they start businesses in the first place. We are the finance folks and one thing we struggle with highly create women entrepreneurs is to instil cost control as many of them will see that as compromise on the quality.
WORK LIFE BALANCE (OR LACK OF ONE)
Frequently, women create businesses in order to gain control of their own time. Many start after they build a family nest and need some flexibility. Alternatively, they are quite burned out from the office treadmill and move to vocations that are more in line with their inner calling. Men, on the other hand, tend to pick up working pace after starting their own business. That naturally brings higher pace of growth but also increases the risk of personal meltdown.
RAISING AND BORROWING MONEY
This one is very distinct: women do not feel comfortable managing external funding unless it is absolutely necessary to finance growth. For them, bringing investors onboard carries extra burden of responsibility and accountability. Men are quite different in that respect and fundraising comes a lot more natural to them. Again, this is a trade-off between slower organic growth vs speedier but more risk venture building.