As new research reveals that the number of female business leaders in Britain has fallen for the first time in eight years.1, experts highlight the barriers facing female entrepreneurs.
Studies show that women are eight times more likely to be the primary caregivers of children, which can present a significant barrier to career progression and entrepreneurship.2
The experts at money.co.uk business loans have offered their insights on the barriers ‘parent-preneurs’ – particularly women – face, as well as tips on how to overcome them.
Challenges entrepreneurial parents face:
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Work-life Balance
As a result of time being so tight for parent entrepreneurs, finding the right work-life balance is one of the biggest issues they face. Many find themselves working too much or too late around their busy family schedules, which can lead to fatigue and blurred lines between work and life.
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Access to Childcare
Access to childcare is a significant challenge for working parents, particularly for those wanting to start their own businesses. Start-ups and small businesses require a lot of attention and time investment, meaning more hours of childcare are needed. This is particularly true for female entrepreneurs, as women are statistically more likely to be the primary caregivers.1
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Barriers to Funding
Running a business presents its own set of financial issues, particularly for parents. In addition to managing their business expenses, parent entrepreneurs also have to balance the extra financial obligations that come with having children.
This increased financial burden of having dependents can also make it more difficult to secure funding to support a start-up, due to often being marked as less eligible for lending.
Tips on how to be successful as an entrepreneurial parent:
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Set Boundaries
Establishing and sharing clear boundaries with your family and clients is crucial. Determine your own set of working and family hours and stick to them. Setting these parameters allows you to avoid the guilt and stress that come with feeling like you’re not committing enough time to either.
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Build a Support Network
Having a strong support network is critical for entrepreneurs to stay motivated and positive through difficult times. Lean on family, friends, and other entrepreneurs who understand the challenges of balancing the two roles to provide support – be it emotional, offering advice or helping out with childcare.
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Review Finance Options
Securing funding is often crucial for the growth of any business. Look into the different finance options available to you. Business loans can be a good option, as they can be used for many, typically unrestricted business purposes. This gives company owners spending flexibility and takes away the pressure of delving into personal, and family finances.
Kyle Eaton, money.co.uk business loans expert, comments on how parents starting a business can get financial support, should they need it:
“Navigating the financial challenges of launching a business as a parent can be overwhelming at times. You may have additional financial responsibilities, such as childcare expenses, that need to be factored into the budget for your start-up.
“To support the expansion and stability of your business – as well as your family life – it’s wise to consider finance options designed especially for small enterprises, such as business loans.
“Being a parent can present challenges when applying for a business loan due to the perceived higher financial risk of having dependents. It’s crucial to have a carefully considered business plan, including a financial roadmap of investment and profits, for the best chance of your application being accepted.
“To take the stress out of the application process, you could also consider consulting with a financial advisor that specialises in funding for start-ups and SMEs. Their skill and experience could help you create a strong application and identify and address any possible issues.”