Lady Mavericks in Western Australia part 2: Navigating female founder challenges

Introduction

As in any start-up ecosystem, female entrepreneurs in Western Australia face several challenges. Below we explore the challenges along the entrepreneurial journey, from choosing to become entrepreneurs to scaling up, as well as looking into the ecosystem as a whole and delving into some potential solutions.

Choosing Entrepreneurship: Lack of role-models

While a slow cultural shift towards entrepreneurship in the region is evident, the absence of visible female role models and success stories poses a hurdle for aspiring female entrepreneurs. Flexibility in work arrangements for women after childbirth remains inadequate, compounded by challenges in accessing childcare.

Starting-Up: A Quest for Financial Backing

For female entrepreneurs venturing into the start-up realm, securing funding remains a formidable challenge. Government grants, though available, are often viewed as cumbersome and inaccessible. The selection process is criticized for its opacity and potential bias towards well-connected candidates. The absence of tailored funding options for various business types, coupled with a dearth of funding for commercialization and operational aspects, hampers sustainable growth.

The gender-specific biases that women face extend to investor perspectives, impacting the types of ideas pursued and the level of ambition exhibited. A culture of risk-related questions for women and reward-focused questions for men further perpetuates gender bias. Additionally, challenges related to childcare and balancing family responsibilities often lead female entrepreneurs to opt for non-scalable ventures.

Scaling Up: Overcoming Funding and Geographic Barriers

Scaling a business presents distinct challenges for female entrepreneurs in WA. Access to angel and venture capital funding remains limited, stifling growth prospects. The geographical isolation of the region, especially compared to the East Coast, further restricts access to investment opportunities. The scarcity of corporate venture capital beyond mining compounds the funding challenge. As a result, many female entrepreneurs resort to bootstrapping their ventures.

Investor perceptions and biases persist during the scaling phase, impacting deal flow awareness and success stories. The need for strategic collaboration and increased visibility in female-centric industries becomes evident, requiring concerted efforts to amplify their impact.

Ecosystem: Fostering Inclusion and Collaboration

WA’s entrepreneurial ecosystem, while evolving, grapples with gender-specific hurdles that hinder its growth. The lack of visible female role models and mentors limits the inspiration and guidance available to aspiring female entrepreneurs. Echo chambers and limited diversity in perspectives hinder innovation and collaboration. The absence of male allyship and dedicated initiatives further exacerbates gender disparities.

Potential solutions: Addressing Challenges and Pioneering Change

While there are several challenges, WA holds ample potential for fostering female entrepreneurship. The biggest source of potential? The incredible women themselves. The amount of volunteer activity by women and men alike to bring female entrepreneurship and entrepreneurship more generally to the region was astounding. There is a passion for Western Australia and people are willing to give their time to make it work there.

That said, there are a several potential ways of addressing the challenges discussed above. Targeted mentorship and networking initiatives are pivotal for bridging gaps and empowering the next generation of female founders. Pioneering change requires a departure from traditional funding mechanisms. Alternative approaches such as revenue-based funding, crowdfunding, and data-driven models offer viable options. Revenue-based funding emphasizes financial performance over vision, allowing businesses to grow without ceding equity. Crowdfunding, presents opportunities to diversify funding sources. Government initiatives can play a crucial role by mandating data transparency on gender diversity within investment portfolios and supporting gender-focused ranking systems. Additionally, nurturing post-accelerator start-ups through “runway services,” including mentor mapping and media training, bridges the gap between start-ups and scale-ups.

Conclusion

The journey of female entrepreneurship in Western Australia is characterized by unique challenges that demand tailored solutions. By advocating for funding accessibility, and fostering a supportive ecosystem, WA can pave the way for a thriving community of female entrepreneurs. Through collective efforts, strategic collaborations, and a commitment to empowerment, the region has the opportunity to reshape its entrepreneurial landscape, enabling women to forge their own paths to success.