Emerging technologies can create more equal economic opportunities for women across the globe…
This post was originally featured on ThriveGlobal
In today’s budding digital economy, many of us often assume social progress is bound to improve at a similar pace as technology. However, the gender gap is causing an even deeper divide than we originally expected.
According to the World Economic Forum’s latest Global Gender Gap Report, the gender gap continues to widen as women remain behind in politics, health, education and economics. In fact, recent research predicts that at our current rate of progress, gender parity won’t occur for another 217 years. That sounds frightening, especially given that women earn 80 cents to every dollar men make while only 6 percent of Fortune 500 CEOs are women.
But there is still cause for hope. Emerging technologies now democratize access to resources like education and finance, helping improve gender equality at a faster rate than we might have previously thought possible. Not only will this kind of tech advancement be instrumental in closing the gender gap, but it will also help accelerate economic growth and promote innovationfor companies across the board.
Here are three crucial ways we can utilize emerging technologies to support more economic opportunities for women — and close the gender gap for good.
To Secure Financial Assistance
Women often lack the financial resources and infrastructure that men receive in and out of the workforce. Globally, 42 percent of women and girls remain unbanked, meaning that women are less likely to be financially informed and economically independent.
Bill and Melinda Gates’ Level One Project aims to fix that problem. It focuses on using blockchain technology to bring the financially disenfranchised, including women in underdeveloped nations, into the traditional banking and digital economies.
The project has created a model for a country-level digital financial services system designed to bring the poor into the formal economy. The system uses wireless and simple 2G cell phones to reduce processing costs for users while integrating fraud and security protections. Crucially, this transparent setup gives women in developing nations access to a bank account and the freedom to take charge of their financial futures.
Fintech also eases the financial burdens caused by collateral or credit history issues. For example, data can help financial providers assess and help clients in lieu of traditional documentation which many women in developing countries don’t hold. Companies like Kenya’s FarmDrive, Mexico’s Konfío and banking services like M-Pesa are paving the way in this realm. An MIT study identified M-Pesa as particularly effective in assisting female-led households out of poverty.
Meanwhile, developing countries are using biometric IDs to introduce financial safeguards for women, like Pakistan’s emerging fintech tools that ensure women receive direct payments to avoid going through male family members.
But Fintech’s unique tools can offer women financial autonomy in more ways than one. Blockchain is yet another innovation that allows self-starting women to send and receive direct payments via a digital ledger. In developing countries, the ledger is especially important to lowering barriers to financial inclusion for women. Further, the interface allows for quicker access to funds and transparent recordkeeping of their finances without having to deal with the (sometimes discriminatory) practices of central banks.
Genevieve Leveille, CEO of AgriLedger, is an expert in using blockchain to connect users. Leveille believes that “blockchain will give [women] not only the ability to communicate, but also…to [fully realize] themselves in ways that we can’t right now.”
To Banish Unconscious Bias
Unconscious bias causes gender discrimination due to ingrained cultural notions concerning a woman’s role or ability in the workforce. But artificial intelligence is stepping in to conquer these patterns. For instance, the Seattle-based augmented writing company, Textio, uses automated technology to write job listings with gender-neutral phrasing. It helped one of their clients increase female recruits from 18 to 57 percent. Mya Systems, an AI recruitment tool, incorporates AI-based chatbots that interview and evaluate job candidates to ask objective, performance-based questions which could help avoid unconscious bias in the early rounds of hiring.
In addition, companies like Ideal are helping to eliminate bias from the hiring and promotion process. Their AI-based software connects to a resume tracking system, screening prior candidates and external databases to source outside candidates for open positions (and current employees for promotions). These tools help reduce bias during the screening process, allowing more women to take that crucial step towards a face-to-face interview.
To Create New Career Opportunities
As automated technology disrupts all industries, more and more people are getting pushed out of jobs. Women are no exception. At the same time, however, automated and intelligent technologies are creating new educational opportunities for self-starting women.
According to a recent PwC report, using intelligent tech like big data creates strategic support systems — helping women advance economically. These technologies create career advantages, lowering the costs of starting new businesses and also providing more flexibility during working hours.
Big data solutions and cloud computing innovations offer unique opportunities to connect working women in any field to educational opportunities with other industry professionals. Big data analytics help educate women in their fields, providing predictive analysis on consumer insights, real-time data and trends so that they can be on the forefront of emerging talent. EY’s Analytics and AI Academy is one such learning program seeking to educate its female employees on big data.
Companies use big data analytics to help organizations close the pay gap, too. Data reporting tools help businesses audit salaries that allow them to assess if they’re closing pay disparity on a regular basis. When used transparently, the technology can give women access to data that clarifies if they’re earning equal pay. Gapsquare, for instance, uses machine learning and cloud-based software so companies can match finance data with HR data in systems like payroll. The tool is already implemented by major companies like Conde Nast and Vodafone. With these tools, employers have no excuse for keeping men and women at separate and unequal pay scales.
Power Up and Power On
Gender parity is crucial to help all entrepreneurs, including female business leaders, create more agile and innovative growth opportunities. Emerging technologies will be a crucial driving force that helps women across all sectors achieve this equality. At the same time, major companies and society must hold each other accountable when we use technologies that reiterate gender bias. Now more than ever, we have an opportunity to create an equitable legacy so women aren’t struggling to keep up for another two centuries. It’s time to power up those devices so we can use them to empower everyone.
This post was originally featured on ScoreNYC
Yet, less than 10 percent of venture-backed companies have a female founder and less than 1 percent have a black female founder. Female-led startups only received 2.2 percent of total venture capital funding in 2018.
Investors claim that the lack of funding for diverse candidates is a pipeline problem, meaning they can’t find any female or minority females founders with whom to invest. However, it’s clear that it’s not a pipeline problem; biased structures limit women from accessing funding and support as easily as their male counterparts.
The way we construct and invest in the entrepreneurial ecosystem has to change. If female entrepreneurs are to gain more funding, traditional power bases must become more inclusive. To create a more immediate impact, women leaders can help disrupt the sector in a few simple ways to help themselves and each other earn more equal opportunities for funding and success.
1. Use Diverse Decision Makers
Nearly 92 percent of investment partners in the top 100 VCs are white men. It’s not surprising that a large majority of funding goes to similar demographics. But the system isn’t just going to change overnight. For their part, female-led startups should look for investment opportunities outside of traditional VC networks and Ivy League schools. Instead, try networking with a more diverse group and actively seek out female venture capitalists. Chloe Capital and SoGal Ventures are two examples of venture capital firms led by women seeking to fund only women-led businesses. As female entrepreneurs utilize more diverse sources of funding, they can start to diversify decision-making in the sector, and also support other women and minorities, creating an equal and unified entrepreneurial environment.
2. Redefine Cultural Rules
The rules that help cradle patriarchal, unconscious bias in the venture capital and business spheres need to be redefined. Female founders can help lead the way for the cause by promoting and supporting entrepreneurial cultures and sourcing standards that redefine and level the playing field.
First, female-led startups should start by creating new work cultures that promote diversity, equality, respect and inclusion. The #MeToo movement helped pave the way for female business leaders like Susan Fowler, Elizabeth Scott and Amelie Lamont to speak out about the harassment they’ve experienced, showing that attempts to isolate and demean female founders are pervasive within every industry. Since the ecosystem stacks its odds against women, a dedicated refocus should be set forth to maintain more equal rules of conduct.
Second, to change the culture, female entrepreneurs should encourage every industry to turn previously biased competition practices into avenues for support and transparency. One way is through redefining pitch competition.
Pitching a business is often the best way to prove your company’s worth, but women are disadvantaged due to bias. While men get asked promotion-oriented questions, female founders are instead asked “prevention-oriented” questions.
Thankfully, recent innovations are helping to reduce that bias. For example, Village Capital uses a peer selection model while Springboard Enterpriseshas a “dolphin tank” which focuses less on competition and more on channeling expertise from industry professionals who can help female entrepreneurs succeed.
3. Create Coalitions and New Systems of Power
Most female founders try to assimilate to the structures set before them, hoping it will allow them to compete with the “big boys.” However, this mindset still leads to inequality because it doesn’t address the underlying problem.
Underrepresented groups should continue to ‘lean in,’ but if they want to create a true revolution they have to join and promote new power coalitions and movements that support them. Recently, the surge of new investment funds for women by women — think Ellevest’s Impact Portfolios and The Female Founders Fund — help equalize existing power structures. Further, crowdfunding financing platforms, like iFundWomenand Seed Invest, tend to create better opportunities to redistribute entrepreneurship and democratize the venture capital space. Other female founders are acknowledging their power to disrupt the industry by joining forces with initiatives like the #FoundersForChange coalition, whose signers commit to promoting and advancing racial and gender diversity in their investment decisions.
Female leaders have the power to disrupt traditional VC culture through diversity, solidarity and actionable coalitions that propel the idea of equality forward. As more women utilize these principles, they can transform the systems that have acted as barriers to fair and equal funding — and ultimately improve the level of success for female entrepreneurs across the country.
This post was originally featured on ScoreNYC
Entrepreneurship is normally associated with traits like power, strength and audacity, but soft skills like empathy and connection are just as important for entrepreneurial success, if not more so. According to Businessolver’s 2018 State of Workplace Empathy study, 87 percent of CEOs agree that a company’s financial performance is intricately tied to compassion.
Unfortunately, workers indicate they aren’t experiencing enough of the trait in the workplace. That’s perhaps due, in part, to the way technology disrupts the way we empathize with others. The same study found that while 96 percent of employees believe it’s essential for employers to demonstrate empathy, 92 percent of employees also believe organizations are under-valuing the invaluable trait.
By creating empathetic business environments and policies that encourage authentic connections with employees, small business leaders are able to better support their employees and develop the structure necessary to build highly successful enterprises.
Here are a few significant ways to foster empathy and connection in your small business:
1. Encourage Professional Support
If leaders want to promote a culture of empathy, it needs to come from the top down. CEOs can invest time and understanding in their employees, for example, by encouraging collaborative conversations instead of transactional relationships. As a small business leader, working in the trenches helps gain trust and insight into the everyday tasks your employees undertake.
As leaders maintain a hands-on presence, they should also require other executives and managers to meet with different employees (including workers in other departments) every week. This exposure helps higher-ups identify the personal and business challenges each individual faces while allowing leaders to practice the patience and understanding needed to create supportive and professional relationships.
2. Create Service-Oriented Practices
Incorporating service-oriented practices within your company can highlight your compassion for your team. Coined by American educator and businessman, Stephen Covey, these practices utilize empathetic traits to show employees how to treat their customers. Some essential ways to build empathy in your company are through basic communication skills:
Listen and Ask for Feedback: Learn about the concerns and need of your employees. Asking them for feedback is crucial to understanding different concerns and perspectives. Use survey findings and employee focus group interviews to examine the benefits and culture changes they need. Considering people’s concerns is a hallmark characteristic of empathy, so leaders that make listening a priority can expect to benefit from a higher level of trust loyalty.
Inspire Open and Honest Conversations: Authentic and transparent conversations allow leaders to identify any underlying issues within their companies. Leaders should consider addressing professional stress, for example, during general discussions that offer advice on how to cope with workplace issues. There are other ways to form bonds and support employees, too. Organizing a lunch meeting where leaders share inspiring stories of their own professional hardships before they reached success can provide honest and helpful examples for employees who feel pressure at work. Honesty opens up the conversation for others to share their needs at work. Empathetic leaders can better identify and understand the root causes behind poor performance and allow them to help struggling employees improve.
3. Offer Empathy Training
Soft skills don’t come easy for everybody. Two-third of employees surveyed in the 2018 State of Workplace Empathy study reported that they think it’s difficult for most people at their companies to demonstrate empathy consistently. But with the right training and guidance, building empathy can become a reality for many dysfunctional work teams and companies. Proven effective in helping interpersonal relationships grow, empathy trainingteaches employees to develop their communication skills and emotional intelligence so they can connect with and understand the perspectives, emotions and motivations of others. For example, trainees are advised on how to develop interpersonal characteristics like learning to ask people more questions or focusing on coworkers’ similarities rather than their differences.
The same empathy study referenced above shows the majority of employees are interested in participating in these training workshops or consulting outside specialists. The survey also showed that 90 percent of CEOs felt they could make the case for empathy training in their organizations.
Empathy training has worked in the past. Telefonica Germany, for example, implemented such a program within their company and saw customer satisfaction rates increase by 6 percent within a month and a half. With empathy training, employees can learn valuable lessons and increase their productivity through more positive ways of working.
Empathy Helps Companies Evolve
Just because leaders are busy running a company, doesn’t mean they need to dismiss the emotional needs of their most valuable assets: the employees that help the business operate on a daily basis. Empathy and connection are the cornerstones of a cohesive business and have been shown to increase engagement, productivity, sales and loyalty. As small business owners, our role is simple: build connections through empathy to watch our teams blossom and, overall, sustain company growth.
The #MeToo movement is paving the way for female leaders and entrepreneurs…
This post was originally featured on ThriveGlobal
During Dr. Christine Blasey Ford’s testimony recalling her experience with Supreme Court Justice nominee Brett Kavanaugh, women across the nation watched with bated breath. For many, the moment was not just a condemnation of the judge’s attitude, but a sober reminder that sexual assault and harassment are deeply ingrained within our society.
Ford’s statements — representative of the #MeToo movement’s core mission — emphasized the actuality and lasting impact of sexual assault and harassment women often face in daily life. During the hearing, calls to the National Sexual Harassment Hotline spiked by 201 percent.
The #MeToo movement has no doubt encouraged an increase in awareness, education, and reports around sexual harassment and other inequalities in the workforce. Even so, the business world remains largely male-dominated with gender bias a continued barrier to entry for women. Among those hurdles is some male leaders’ recent discomfort in mentoring women and working alone with women in the wake of increased allegations.
Will that apprehension stagnate progress for female leaders? Or will the #MeToo movement’s principles support their empowerment in business and ultimately lead to an increase the number of female leaders in the workforce?
Much of that answer depends on the level to which #MeToo can extend its impact beyond education and reporting, and make a lasting difference in improving company culture, increasing mentorship opportunities, and eliminating the confidence gap.
#MeToo Changes Company Culture
Well before the #MeToo movement, we saw how harassment cases created major changes within the workforce that empowered women. After Anita Hill testified against Clarence Thomas in 1991, sexual harassment cases in the United States went up by 50 percent a year later. The increased awareness also spawned the election of a record-breaking number of women, reports The Washington Post.
Since the #MeToo movement began over a year ago, the US Equal Employment Opportunity Commission reports that sexual harassment charges have increased over 12 percent in the past year. So far this year, the agency alone has filed 50 percent more harassment cases than in 2017.
Thankfully, workplaces are finally improving the way they react to these reports. In the movement’s wake, the Society for Human Resource Management (SHRM)reported that 1 in 3 executives claimed to have changed their behavior, some making it easier for HR to investigate harassment reports without fears of retaliation. Additionally, an American Psychological Association survey found that 32 percent of workers said employers had taken action to prevent workplace sexual harassment after #MeToo.
The movement has also helped establish sexual harassment resources and programs. For example, Hollywood’s Time’s Up legal defense fund raised over $20 million to offer legal support to women in the workplace. Under state jurisdictions, California and New York are now required to provide company sexual harassment training each year. The Weinstein Clauses demands that businesses know if any allegations of sexual assault were made against a partnering party.
What does all this signify for female leadership? As a PwC survey examines, the more laws and protocols established to protect the safety, transparency and moral support of women in the workplace, the more female leaders will feel like their thoughts, talents and goals matter. When women can think and grow freely at work (instead of missing them out of anxiety or fear), it allows them to harness and demonstrate confidence and leadership growth.
#MeToo Means more Mentoring
The #MeToo movement has exposed another inequality for women in the workplace: a lack of mentorship opportunities. Carol Stubbings, the Global Leader of PwC’s People and Organisation practices says, “It’s important having mentoring and good female leadership programmes to constantly tell these people that they are really good, they are really valued, they’ve got a great skill set that will take them far in the organization.”
A LeanIn.org and SurveyMonkey poll found that after #MeToo, half of male managers are now uncomfortable participating in common workplace activities like mentoring and working alone. Rachel Thomas, the president of LeanIn, identifies that this means women are losing valuable opportunities and interaction time with senior leaders.
In response to the #MeToo backlash, Facebook COO Sheryl Sandberg has since confronted the issue with the creation of the #MentorHer campaignwhich challenges men to mentor women in the workplace. Thus far, 38 prominent leaders and CEOs like Netflix’s Reed Hastings and Disney’s Bob Iger committed to mentor women at their own companies, setting an example for leading companies across the board.
Even if the average male leader is slow to follow suit, female leadership may very well fill the gap.
According to Development Dimensions International, 73% of women already mentor other women in the workplace. Building on the awareness of the #MeToo movement’s initiatives, the Harvard Business Review points out that when women support each other, they become more aware of information and are more united, two essential steps in learning and closing the confidence gap for potential female leaders.
Is the Future of Leadership Female?
Today, only 40 percent of small business owners are women and merely 6.4 percent of CEOs at Fortune 500 are female. Yet, as the #MeToo movement gains momentum, it sets the stage for an influx of more female leaders. That’s especially the case since companies with more female executives make more money, improving their competitive edge through innovation and collaboration.
Despite the hardships that women like Dr. Ford face after speaking out, Ernst & Young reports that women are projected to own nearly one-third of all business in the world by 2028, with half of them in developing markets. The 2017 Bank of America Women Business Owner Spotlight study indicates that most female entrepreneurs hold an optimistic outlook for the next 20 years. A further 61 percent of women business owners expect their incomes to match or exceed their male counterparts by 2037.
The #MeToo movement is helping to shape the discourse of a woman’s lead in the workplace. Women leaders must continue to be vocal about inequality and male leaders must act as allies, hiring, supporting and promoting more women. Change will occur, albeit slowly.
Calling out ingrained patriarchal systems is a testimony to the bravery and leadership that women are displaying to make their voices heard. We’ve already seen a record number of women running for Congress this year — why not female business leaders, too?
This post was originally featured on ThriveGlobal
Reasons why MLM could be a pitfall for professional women on their way to the top
Pyramids are some of the world’s most recognizable structures—from Egypt to Chichén Itzá, you know one when you see one. It should be no surprise, then, that the pyramid shape also represents one of the world’s most notorious schemes and sale structures.
Pyramid schemes operate and turn profit via top-down recruitment—essentially built opposite the way a physical pyramid would be— and are illegal for a simple reason: they make money off the sale of distributorship rather than products and services. While the top of that pyramid reaps many rewards, mathematically as many as 99% of distributors end up losing money as it funnels ever-upward, making the structure unsustainable (another area where the parallel to ancient Egypt ends).
MLM businesses aren’t illegal, at least not technically—so long as there are legitimate products bought and sold, they can skirt the label. And who are we to deny the women that do feel empowered by the ability to make extra money while, often, doing the brunt of housework and child-rearing unpaid?
It’s a complicated topic. As a female entrepreneur myself, I try to support all women and whatever their version of success may be, because I know first-hand how harrowing it can be to prove yourself in a world that’s very eager to box you in. While it’s any woman’s choice to get involved in MLM, and business integrity is best judged on a case-by-case basis, overall MLM may be taking advantage of more women than it empowers.
A false promise of entrepreneurship
One way MLM businesses recruit is on one level an issue of semantics, and on another an issue of bombast. By calling independent sales consultants entrepreneurs, these businesses promote a false idea of entrepreneurship. In reality, those involved are salespeople with no control over the product or its prices. Like any other salesperson, they have a goal to hit and earn commission dependent on how well they do. That’s okay, but call it what it is, not entrepreneurship.
Unfortunately, women targeted and too often exploited by these kinds of businesses are sold on an idea of empowerment and entrepreneurship that is, at best, a smokescreen. It may not be likely an entrepreneur will make it big, but if she succeeds she can go from zero to 100 on her merit and hard work. The same isn’t true of the “entrepreneurs” in MLM businesses. Many put their savings and social lives at stake just to break even.
These women want what we all want. Financial independence. Flexibility. Credibility. Success. And if they fail to get there, it’s less their own failure than a failure by design. Ambition can only get you so far if you’re dozens of tiers down in a pyramid where cuts of your earnings flow to those higher up, and you rely on those below you to to sell and stay loyal (often by pressuring family and friends).
Women who could otherwise put their skills to use and find success starting up a small business may have their dreams warped by predatory MLM companies. And for those that do succeed, or enjoy it enough to ignore the small paycheck? It seems a shame to channel positive energy into a system that is likely to harm more women than it benefits.
A spectrum of severity
The appeal of the modern MLM business model is no mystery. With less of a startup cost than a traditional business and a built-in network of support, many independent consultants have found happiness with these opportunities.
But it’s important to note that not all MLM are created equal after all. I won’t paint them all with the same stroke because, while the model has its flaws, so do many models including capitalism. Like anything, there is a spectrum of severity. While the crimes of one shouldn’t indict the whole, they should caution them at least.
As one example, popular MLM business LuLaRoe has a billion dollar lawsuit on its hands after a number of consultants, who paid a hefty $6K startup fee, found themselves in mountains of debt trying to sell sometimes-damaged clothes of declining quality.
If that sounds bad, on the far end of the spectrum are groups like NXIVM, an MLM organization that purports to offer professional development and mentorship for women–in addition to referring to its members as “slaves,” physically branding their skin, and much, much worse.
The line between MLM and cult, then, is finer than any of us would like to believe. A vast majority of these businesses would never abuse their members, yes, but the association is disconcerting to say the least.
Knowing the difference
Those in the business can articulate what to look for if you actually want to find success in MLM. Network Marketing professional Gino Niccoli advises seeking an upline that trains you well and brings you prospects for your downline, for example. The product should be of quality and have a unique selling proposition, he says, if you don’t want to work uphill to make less money in a saturated marketplace. Lastly, if company profit comes from distributorship fees more than product sales, that’s a definite red flag.
At the end of the day we are all responsible to approach business propositions with healthy skepticism, but MLM has earned an extra dose of it in my opinion. Many of us as women can and should do more with our talents. The world needs them more than it does overpriced leggings.
This post was originally featured on ScoreNYC
Talking about money can be profoundly uncomfortable. The social awkwardness sets in at even the most casual times; a cheerful dinner with friends can devolve into embarrassed stammers when a waiter asks how they should split the check, or a business meeting might turn awkward when those involved hesitate over bringing out the company credit card to pay for coffers. Most of the time, we can tiptoe around the discomfort with a few halting words and split checks. For female entrepreneurs, however, the shadow of that monetary anxiety is a daily — and expensive — issue.
Women own more than 11.6 million firms in America. They employ nearly 9 million people, and in 2017 generated $1.7 trillion in sales; their owned ventures account for a full 39% of all privately held firms in the United States. Women aren’t waiting by the door for a chance to be let into the business world’s metaphorical conference room — they’ve pointedly claimed over a third of the seats at the table.
However, for all their success and progress, women entrepreneurs and employees still struggle to stand on an equal financial par with their male colleagues. A recent study conducted by the online accounting venture FreshBooks surveyed over 2,700 American professionals and found that women tended to earn around 28% less than their male counterparts. This gap, the study showed, remained even when the researchers compared male and female entrepreneurs in the same industry.
To rephrase: even when women entrepreneurs had the opportunity to determine their salary, they tended to pay themselves over a quarter less than male colleagues. For female business owners, anxiety over asking for money isn’t just a problem at restaurants and social functions — it has a real impact on their financial health.
The problem extends to the health of their businesses, too. Some studies have found that women are reluctant to be as assertive as men when asking for money at investors’ meetings. As Gloria Kolb, the co-founder of the women’s health startup Elidah and a mentor at the University of Connecticut’s tech incubator explained for Business News Daily, “When we pitch investors, we are often pitching realistic numbers. But men so often overstate and exaggerate that investors often discount the numbers off the bat.” This leads, Kolb explains, investors to assume that women are also inflating their figures. As a result, female entrepreneurs often receive lowball offers that don’t meet their businesses’ financial needs.
But why do we have such a taboo around money in the first place?
Forbes writer and senior editor Laura Shin suggests that our awkwardness has roots in old-money traditions. For many upper-class elites, she explains of her research, it was considered gauche to discuss monetary specifics and appear braggy or over-interested in others’ financials. Over time, their mentality trickled down through the classes — and with the rise of new-money entrepreneurs and an increased media focus on their financial activities, navigating money-centered conversations can become awkward, to say the least.
However, women tend to struggle more with the assertiveness talking about money requires. When you sit down at an investor’s table, you need to be firm, decisive, and unafraid to ask for the monetary resources you and your business need to grow. Social norms, unfortunately, tend to paint women in a less flattering light when they stand their ground.
As writer Olga Khazan puts the issue in an article for the Atlantic, “People expect women to be communal leaders and men to be autocratic ones. When women violate those norms — or “push” past them, if you will — they still suffer consequences.”
To Khazan’s point, women do tend to be labeled as “pushy” twice as often as men– and that negative label can have real repercussions on their business. The Freshbooks study mentioned above also noted that 20% of self-employed womenreported feeling forced to charge less than their male competitors to obtain and retain clients. Worse, multiple studies published by researchers from Carnegie Mellon found that people tended to penalize women who initiated negotiations for higher compensation more often than they did men.
Some might say that the potential for blowback means that women shouldn’t bother being assertive or asking for their due — but I couldn’t disagree more.
Fear keeps women entrepreneurs silent, and that silence leads in turn to a damaging ignorance about what they deserve from their industry. As novelist Porochista Khakpour reflects on the problem in an article for Forbes, “Because people don’t know what the rates are, [the taboo against speaking about money] creates a system in which people will say, ‘I’ll take whatever I can get.’”
This tendency towards settling thus reinforces the problem, Khakpour explains. “People are going to get cheated over and over, and it tends to be women, people of color, people in more marginalized positions — if people are silent about problems, things can be perpetuated.”
Female entrepreneurs deserve to be assertive in the boardroom; they deserve to earn, make, and claim just as much as any male in their profession. Discomfort over money is an outdated social norm that inevitably holds women back if they cede their voice to it. You can overcome your conversational anxiety about money if you remember these three steps:
Reevaluate your Discomfort
Consider the social context of your conversation. There is a difference between talking to someone at a social gathering and having a discussion with an investor or business partner. In the first case, you probably shouldn’t put someone on the spot by asking them how much they paid for their shiny new laptop or personal possessions. In the latter scenario, however, you’re not only allowed to discuss money — you are required to. It is quite literally your job to have those conversations to further your business.
Remember, no one will go out of their way to give you something. If you don’t take the initiative to ask, your chances of receiving the funding, advice, or support you need will drop to nil.
Reframe Your Questions
Trust your instincts. If you feel that it might be better to word your requests carefully and avoid the appearance of being too eager or stubborn, do so! Conversely, don’t be afraid to be assertive if showing confidence seems like the best way to make an impression. You can reframe your questions in a myriad of ways to better engage your conversational partner in a productive discussion. However, this advice comes with a caveat — never let your fear of being assertive hold you back from asking what you need to ask during a meeting.
Above all, be yourself and take what you deserve. You don’t need to settle for less because outdated social norms dictate that you should feel awkward about discussing money! Entrepreneurs live in the financial spotlight; they need to talk about financial details to thrive.
More to the point — if women don’t push boundaries and ask for their due, how can we expect those outdated and confining norms to change?
This post was originally featured on ScoreNYC
The gender gap remains a yawning chasm. Forbes reports that just 2.4 percent of the CEOs at Fortune 500 companies are women.
Those exalted few who have reached that rung in the ladder share many qualities with their male counterparts. One study, while a bit dated (as it was completed in 2012), went so far as to suggest that female executives are actually superior to men in such areas as practicality, organizational ability and sensitivity to people.
Suffice it to say, then, that there are leadership qualities that transcend gender. Here are three of the more important ones.
It is variously described as “grit” and “tenacity” in relation to female executives, but a trait by any other name is still a trait.
There is no greater example than J.K. Rowling, author of the Harry Potter series. Jobless, nearly penniless and a single mother to a young daughter, she wrote the first book in the series in various Scottish cafes in the mid-’90s. The manuscript — “Harry Potter and the Philosopher’s Stone” — was rejected by no fewer than 12 publishers.
It was finally accepted by a small British publishing house, Bloomsbury, and published in 1997. It was an immediate hit, and over the next 19 years, seven other installments were released, and some 400 million copies sold.
She nonetheless remains a profile in perseverance — and far from the only woman who can be designated as such. There is also Michelle Breyer, who struggled to find investors for her beauty brand, NaturallyCurly, when it was in its infancy. It was much the same for Melanie Travis, founder of Andie Swimwear.
Nevertheless, they persisted. And it made all the difference.
Creativity is an often-overlooked quality, and one that can obviously be applied to Rowling’s prolific writing career.
Less obvious, perhaps, is how it impacted Spanx founder Sara Blakely. One night in 1998, she was looking to wear cream-colored pants with open-toed shoes. Wanting to smooth out the look, she elected to wear pantyhose underneath — while cutting the feet off the pantyhose.
That proved an unsatisfactory solution, as the pantyhose began riding up. She went in search of an undergarment that might alleviate the issue, but discovered there was no such item on sale anywhere.
Out of that grew the idea for her shapewear. She used all her savings — $5,000 — to found her company, and the first year it took in some $4 million in revenue. The second year her profits ballooned to $10 million, in large part because Oprah Winfrey gave the product a plug on her TV show.
By 2012 Blakely had become the world’s youngest self-made billionaire, at age 41.
“Differentiate yourself,” she once told fundable.com. “Why are you different?”
That aligns with something once said by Coco Chanel (1883–1971), the famed fashion designer: “My life did not please me, so I created a new one.”
Adaptability is especially critical in this day and age, where new ideas are coming down the pike with ever-increasing speed — especially in the tech industry.
As Ashley Cisneros Mejia, co-founder and Director of Communications at Chatter Buzz Media said in one report, adaptability and flexibility “will ensure you lead with a clear mind. In order for your company to grow, you must adapt to changes quickly and be open to take it in another direction.”
April Underwood, the vice president of product at Slack, is one example of a woman who has been able to reinvent herself. She branched out from her “day job” — her description, in a CNBC report — in March 2015, joining five female colleagues to co-found an investing group known as #Angels.
Two years in, that group had invested nearly $3 million in more than 50 startups.
Underwood told CNBC she sees nothing unusual about taking on this added responsibility, pointing out that men have been doing so for years.
“I am seeing a lot of female operators who are hungry and who have a bit of that — I don’t know how else to describe it — but, that ‘hustle,’” she said.
Not to mention that adaptability.
There are various other traits that are important — confidence and passion come to mind — but in my estimation, perseverance, creativity, and adaptability head this list.
This post was originally featured on ScoreNYC
Whether in a small or large business, mentor and mentee roles provide mutual benefits for guidance and support that can foster promising career opportunities. One need look no further than some of today’s most impactful leaders to gauge the impact of a great mentor — Mark Zuckerberg had Steve Jobs and Bill Gates had Warren Buffett.
A Harvard Business Review survey found that 84 percent of CEOs with formal mentor relationships were able to avoid costly mistakes and become efficient in their roles more quickly. Further, 71 percent of CEOs surveyed also found that their mentors helped improve their performance.
Mentees also bestow powerful benefits upon their mentors, too. Research from Boston University supports the notion that mentoring enhances business executives’ leadership and management skills while increasing their knowledge and insights.
Business leaders and mentees who foster two-way partnerships can positively contribute to each other’s professional development and their company’s overall success. In terms of career growth, here are a few benefits which the mentor/mentee connection provides:
1. Learn How to Collaborate and Network Better
Establishing external business networks can afford both the mentor and mentee more collaborative support and new opportunities, ultimately helping to bolster your bottom line.
Famous pop artist Andy Warhol, for example, helped his mentee, Jean-Michel Basquiat gain connections to other neo-expressionist artists and patrons, ultimately leading him to global recognition. In return, Basquiat gave Warhol new and diverse artists to collaborate with while evolving his vision and talents into new areas.
Within organizations, beneficial mentorship relationships can create strong collaboration skills between various departments which allow for cohesive management, cross-department communication and employee productivity. As a mentor, take the time to educate, share ideas and ask for input on projects from your charges. When mentees feel valued and supported, they’ll be happier to be a part of the team, and more productive as well. Mentors may also find that the ideas and feedback mentees contribute fosters insightful, trusting workflows that help emerging entrepreneurs advance their business ideas.
Executives who exhibit consistent mentoring and coaching behaviors can help create highly collaborative teams that work more efficiently and engage in a more positive workplace atmosphere. The motivation to connect with team members and increase expertise can also extend to building professional networks. A successful mentor/mentee relationship not only includes engaged, flexible and authentic partnerships, but it also helps the mentee expand upon their communication skills so they can make professional network connections to which they might not otherwise have access.
2. Gain Insight into Diverse Perspectives
Adaptability and self-awareness are crucial for anyone’s professional development. While mentees can use a mentorship relationship to learn how to develop their professional skills and the necessary mindsets to execute everyday business decisions, mentors also stand to benefit by reskilling themselves to stay relevant in the changing digital economy.
As both the mentor and mentee expose themselves to different mindsets, diverse perspectives help them create and innovate. As Forbes mentions, experienced advice helps the mentee’s career blossom. Likewise, inexperienced entrepreneurs can benefit by utilizing their board of advisors to provide examples and solutions during their company’s growth stages.
A Harvard University study also demonstrates that a mentor/mentee relationship helps both parties diversify their thought patterns and practices: a mentor experiences new perspectives from future members of the profession, while the mentee can absorb insights in defining business strategies and outcomes in their field.
Through open communication, both can understand major issues surrounding a leadership and an employee mindset. Besides, learning new perspectives provides you with the insight to maintain your company’s competitive edge and relevance, especially for smaller companies needing to cater to market demands and niche consumers.
3. Enhance Interpersonal Leadership Traits
Oprah’s mentor, the famous author/poet Maya Angelou, demonstrated how important humanistic qualities are to the role of a leader. Angelou taught Oprah that professional relationships depend not on who a person says they are, but how they act toward you and others.
Of course, professional relationships are incredibly nuanced, and it often takes years of experience to identify the right response to a difficult and unprecedented situation. The mentorship relationship serves that role, guiding mentees toward an effective response, whether it’s an assertive justification when finalizing a business deal or a meditative gesture when dealing with a stressful client.
For mentors, the value in guiding interpersonal effectiveness comes down to the development of their own leadership skills.
UPenn researchers found that the digital age has created new leadership styles ranging from the commander — a leader who gives orders and tells others how to accomplish it — to the collaborator role — a leader who works hand-in-hand with customers and employees. Mentors should comprise both these styles so they can act as the inspiration and an equal for their employees and mentees.
Through the steady practice — and teaching — of key interpersonal skills, mentors stand to benefit by confirming which leadership skills resonate best as they guide their mentees. This is no small feat — it could mean becoming more transparent with employees, fostering inclusive decision-making or incorporating employee feedback into managerial roles.
Oprah recalls that Angelou said, “Your legacy is every life you’ve touched..it’s every person you’ve harmed or helped.” Indeed, a helpful, two-way value exchange is essential for building a healthy mentor/mentee relationship. With consistent effort, this symbiotic association acts as a catalyst that expands learning, work ethic, leadership and, ultimately, your company’s bottom line.
It is hard to believe that women were not able to obtain business loans without a male co-signer just 30 years ago. Up until 1988, an independent woman who wanted to start a business was denied a loan even when her finances indicated that she was qualified.
Therefore, the 30-year anniversary of the H.R. 5050: Women’s Business Ownership Act (WBOA) of 1988 is a historic and significant date. Introduced by John LaFalce, a former New York congressman, the act aimed to bolster female business owners by guarding against discriminatory lending practices. The purpose of this act was to recognize the enormous future potential of female business owners and entrepreneurs as well as women’s existing contributions to the economy.
The four tenets of H.R. 5050 included provisions that extended women rights that should have been established from the beginning: 1) Extending the Equal Credit Opportunity Act to include business credit, 2) Launching a “demonstration project” that resulted in the establishment of women’s business centers across the country, 3) Establishing the National Women’s Business Council 4) Directing the Census Bureau to include all women-owned firms in its quinquennial business census.
In 2018, it is sometimes hard to imagine that the principles of H.R. 5050 were needed at all. “Women business owners today are often shocked to hear about the challenges that their predecessors faced only 25 years ago,” says Virginia Littlejohn, a member of the National Association of Women Business Owners (NAWBO). It was the NAWBO leadership team that helped the House Small Business Committee organize hearings on H.R. 5050.
Littlejohn refers to a female witness at the time, who didn’t have a husband or father to co-sign her business loan, communicating, “[She] had to ask her 17-year-old son to co-sign for her—when he couldn’t even vote,” she said.
During the hearings, many stories came to light of open discrimination by which women were asked to put significantly more money down, and required to have guarantees and co-signers that men were not required to have. But with H.R. 5050 things started to change.
“This landmark piece of legislation ushered in a transformation in women’s enterprise development by addressing key barriers that had been impeding entrepreneurism and business growth by women,” said Billie Dragoo, former Chair of NAWBO. “As a result of this legislation, women entrepreneurs were provided with long overdue access to capital, education and technical assistance offered in a woman’s voice, access to federal policy making circles, and the undercounting of the number and economic contributions of women-owned businesses were finally addressed.”
Before 1988, women’s contributions to the economy were downplayed, and unaccounted for. A big part of this invisibility had to do with inaccurate census-taking regarding women-owned business. The concluding report of the H.R. 5050 hearings, which were the most extensive ever held by Congress on women-owned businesses, was called the “New Economic Realities: The Rise of Women Entrepreneurs”.
Fast forward 30 years and the following statistics, though not as strong as we’d like, are still rosy. As of January 2017, there were an estimated 11.6 million women-owned businesses in the United States that employ nearly 9 million people and generate more than $1.7 trillion in revenue. During the 20 years from 1997–2017, the number of women-owned businesses has grown 114 percent compared to the overall national growth rate of 44 percent for all businesses.
The future is indeed female.
While Wright’s 1988 predictions have not yet come true, things are definitely looking up for female entrepreneurs. It is important for younger generations of women in business to be aware that prohibitive lending discrimination is not ancient history. Women must not forget that 30 years ago, they would probably not have had access to the capital and support necessary to start a business. Women must continue to fight for equality, but H.R. 5050–and the activists who spearheaded it–certainly helped and continue to help tip the scales.
This post was originally featured on Business.com
“Unicorns” have been prominent in the tech world, but a new type of startup called “zebras” could soon be taking their place — and many of them are female-led.
Unicorns have been a huge trend in and out of the tech world in the last few years. While silver hair and rainbow eyelashes characterized a nostalgia-inspired beauty trend, the “unicorn” label more prominently describes disruptive startup companies valued at $1 billion or more.
Yet the age of unicorns could soon see its dusk. As bloggers voted “Baba Yaga” the next unicorn in beauty, the “zebra” emerged as a practical-yet-fantastical unicorn alternative in the tech world. Following a year in which “feminism” was the reigning term and female silence-breakers graced the cover of Time, it should be no surprise that women are leading the charge in this transition.
Why zebras? Unlike a mythical shiny-horned horse, zebras are real. As companies, “zebras” are also grounded in reality: Their goal is solve meaningful problems while repairing existing social systems. As the Medium article proposing this concept aptly describes, zebras fix what unicorns breakwithout sacrificing profitability.
VCs have long been attracted to unicorns, which in part explains the gender gap in VC funding. Women tend to create more practical businesses that are less risky and more socially conscious, traits that characterize the zebra concept. As cause marketing grows, VCs may find these investments more worthwhile than unicorns, which at times come with more problems than they are worth.
The unicorn problem
To understand the problem with unicorns it’s important to understand where unicorns came from, what’s exciting about them, and what can make them problematic.
The term is still new, coined in 2013 by venture capitalist Aileen Lee to describe how rare they are. But unicorns aren’t so rare anymore: as of March 2017 there were 223 unicorns, Uber, Pinterest, and Airbnb among the largest. The quantity of unicorns has led many to worry about a unicorn bubble, which would result in dead unicorns upon bursting.
Some unicorns, like Groupon, have imploded. Others have skyrocketed to success but in doing so have done damage, all while hoarding huge profits by remaining private. Facebook has arguably contributed to social good, but was also a vehicle for vicious fake news propaganda. Uber, for its part, has weathered a shocking number of scandals over the last few years.
As CEOs Mara Zepeda and Jennifer Brandel wrote for Quartz, the problem with our obsession with unicorns is that “it rewards quantity over quality, consumption over creation, quick exits over sustainable growth, and shareholder profit over shared prosperity.”
Focusing exclusively on unicorns is not helpful in a world with numerous pressing problems in finance and beyond. Is it so radical to support businesses that “repair, cultivate, and connect” instead of chasing companies bent on disruption? In a capitalist society that knows no different, it may be a hard to make the shift, but worthwhile to attempt nonetheless.
The rise of the zebra
Along with Brandel and Zepeda, female founders Astrid Scholz and Aniyia Williams first proposed an alternative style of investing that focuses less on unicorns in their “Sex and Startups” article in 2016. In it, they suggest the future could hold “another style of investing, one that recognizes founders with long-term, wide-ranging visions” which focuses “not only on how much money is raised, and on investor returns, but also on how we generate value for users, elevate communities, and build a more equitable and inclusive system.”
The overwhelming resonance and response to this sentiment led these women to form The Zebra Project, publish more literature on the topic, and form a conference called DazzleConfor founders that identify with the zebra ethos.
While these women may have put a name to the idea, it’s worth noting that there are startups out there that may be zebras without knowing it. Entrepreneur’s Handbook cites Basecamp, Zapier, and Mailchimp as startups that “fit into the current market instead of blowing it apart and seek long-term survival through sustainable, responsible growth.” (These examples, it’s worth noting, all have male founders.)
Investors need to change their tune, though, for zebras to get the funding they need to make an impact, and become a model rising entrepreneurs will seek to emulate.
Will zebras bring change?
The Zebra Movement, as kicked off by Brandel, Zepeda, Scholz, and Williams, is building momentum. But is it enough to change an investing culture that prioritizes quick growth, big return, and a churn and burn style of making money?
It may take more dead or corrupt unicorns before we see a dramatic change, but trends toward socially conscious investing, diversity initiatives, and out-of-the-box VC strategy are lights in the tunnel ahead for entrepreneurs, and women especially. Consumers are increasingly drawn to impact-driven, minority-run businesses, so investors would be wise to follow what sells.
Who knows? It may be that losing a few horns to gain some stripes is the best decision this zoo of a world could hope to make.