Crowdfunding Helps Take Down the Glass Ceiling

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Women in the United States own more than 9 million businesses. That’s over 1 million more than in 2007. These companies combined to generate $1.4 trillion in sales in 2014. 20% of the firms in the US which have revenues of more than $1 million annually are owned by women, yet there are still wage gaps and difficulties in receiving loans or good terms on capital funding.

Women who make the exact same sales pitch as men score lower with their impact, according to a study by MIT. Why is this? Why are women at such a disadvantage in the business world when they are clearly successful?

Do Women Face an Unconscious Bias?

Crowdfunding helps to level the playing field for women because it removes the apparent unconscious bias that exists against women in the business world. With men, the primary focus is placed on risk benefits when figuring out the pros and cons of a deal. With women, the primary focus is placed on the dynamics of gender instead.

Crowdfunding removes the bias because the dynamics of gender are no longer part of the sales pitch. People get to see the proposals in action, gain access to needed information about what is being created, and the strength of the profile of the campaign’s creator.

That doesn’t mean the bias won’t still exist. Some backers won’t touch a crowdfunding campaign if they know a woman is behind it. Times are changing, however, and the statistics are already proving that women are as good – if not better- than men in the world of entrepreneurship.

What Will Change the Hearts and Minds of Backers?

In a word: success. Women who are successful are going to set the stage for the glass ceiling to finally come down. Crowdfunding equalizes the stage because not only can women help other women succeed in a meaningful way, but they can establish evidence of their expertise at the same time. As large networks of backers see success happen again and again, the gender dynamics will become blinded by the chance to make some profit.

The next 10 years are going to be an exciting time for female entrepreneurship. Doors are going to be broken down. The glass ceiling is going to be removed. Crowdfunding is going to help make that happen.