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Breaking Barriers: The Reality of Funding for Female Entrepreneurs and Building Your Own Path

Starting your own business can be one of the most rewarding journeys you’ll ever undertake. But for many women—especially women of colour—it can also feel like a battle against invisible barriers. One of the most significant challenges is funding. While the entrepreneurial landscape is slowly changing, the financial obstacles many women face when starting and growing their businesses remain daunting.


As someone who is navigating the complexities of self-employment, I’ve learned firsthand that securing investment can be particularly challenging. This is why developing independent income streams, such as my fashion rental business, has been crucial for both my personal and professional growth. In this article, I want to unpack the realities of funding for female entrepreneurs and share some practical tips for those considering self-employment or embarking on a side hustle.



A black woman stood in a moment of reflection and joy, wearing a bold orange dress, brown belt and gold-framed glasses. Photo by Wambam Photography
Being a women in business is wonderful but it comes with challenges | Picture credit: Wambam Photography

The Funding Gap: A Stark Reality

Women, on average, receive less venture capital investment than their male counterparts. Research consistently shows that women-led businesses attract only a fraction of total funding. For women of colour, the statistics are even starker, with a mere percentage of venture capital funds directed toward their businesses. This disparity isn’t just about numbers; it reflects systemic biases and outdated perceptions about who can lead a successful business.


While traditional funding pathways, such as bank loans or venture capital, are often held up as the gold standard for scaling a business, they’re not always accessible or appropriate. Many women find themselves being asked for more proof of viability, more collateral, and more time in the business—all while dealing with the persistent issue of being underestimated.


Why Building Your Own Income Streams Matters

Faced with these challenges, many women, myself included, have turned to alternative ways of funding and sustaining their businesses. Developing independent income streams—whether through side hustles, freelance work, or innovative business models—provides a layer of financial security and autonomy that traditional funding routes often don’t offer.


For me, fashion rentals became a way to merge my passion for sustainability with a viable business model. It wasn’t just about creating an income; it was about proving to myself and others that I could carve out a space in the market on my terms. Whether it’s creating digital products, offering consulting services, or monetising a hobby, these income streams can act as both a financial cushion and a stepping stone to greater opportunities.


Practical Tips for Aspiring Entrepreneurs

If you’re thinking about stepping into the world of self-employment, here are some practical tips to help you navigate the journey and set yourself up for success.


Get Real About Your Finances

The excitement of launching a business can sometimes overshadow the need for financial preparation. Before taking the leap, it’s crucial to have a clear understanding of your financial situation. Ideally, aim to have six months (or more) of living expenses saved up. This safety net will give you the breathing room to focus on building your business without the immediate pressure of generating income.


Create a detailed budget that includes both personal and business expenses. Be honest about what you need to live comfortably and what your business will require to get off the ground. Remember, cash flow is king, so having a solid plan for managing your finances is essential.


Start Small, Think Big

It’s easy to get caught up in the idea of needing everything to be perfect before you launch. But starting small can be a powerful strategy. Test your ideas with minimal investment and scale as you learn what works. Whether it’s selling a few products, offering your services on a freelance basis, or running a small-scale pilot, these steps allow you to refine your business model without overextending yourself financially.


Consider Alternative Funding Options

While traditional funding routes can be challenging, they’re not the only options. Crowdfunding platforms, grants, and community-based lending schemes are all worth exploring. Additionally, some organisations specifically support women entrepreneurs, offering funding, mentorship, and resources to help you succeed.


For example, government grants and initiatives aimed at promoting diversity and inclusion can be a lifeline for women-led businesses. Spend time researching what’s available in your region and industry. It might take persistence, but the right funding opportunity could make a significant difference.


Build a Network of Support

Entrepreneurship can be isolating, but it doesn’t have to be. Surrounding yourself with a supportive network of fellow entrepreneurs, mentors, and advisors can provide invaluable insights and encouragement. Look for local business groups, online communities, and industry events where you can connect with others who share your goals.


As a woman of colour, finding mentors and peers who understand the unique challenges you face can be particularly empowering. Their experiences can offer guidance, and their success can inspire you to keep going.

Know Your Value

One of the most important lessons I’ve learned is the importance of knowing and confidently communicating your value. This applies not just to pricing your products or services but also to how you position yourself in the market. Don’t undersell yourself out of fear or uncertainty. Invest time in understanding your unique selling points and how they solve problems for your customers.


Remember, confidence in your worth is a magnet for opportunities. People are more likely to invest in you—whether as customers, collaborators, or funders—when they see you believe in what you’re offering.


Be Prepared for Setbacks

The entrepreneurial journey is rarely smooth. There will be setbacks, challenges, and moments of doubt. Building resilience and developing a problem-solving mindset will help you navigate these hurdles. Keep reminding yourself of your “why”—the purpose and vision that motivated you to start in the first place.


Remember, every challenge you face is an opportunity to learn and grow. Embrace the lessons that come with failure and use them to refine your approach.


The Bigger Picture: Changing the Narrative

While individual strategies are vital, it’s equally important to address the systemic issues that make funding so challenging for women entrepreneurs. Advocacy and visibility are crucial. By sharing our stories, supporting each other, and pushing for change, we can help create a more inclusive entrepreneurial ecosystem.


As women, we have the power to reshape the narrative around funding and success. By building businesses that reflect our values, prioritising collaboration over competition, and championing each other’s achievements, we can pave the way for future generations of women entrepreneurs.


My Final Thoughts

Starting your own business is a bold and empowering move, but it’s not without its challenges. For women, and especially women of colour, the journey often involves navigating systemic barriers and finding creative ways to succeed. By taking control of your finances, building independent income streams, and embracing the realities of entrepreneurship, you can chart a path that works for you.


Whether you’re dreaming of leaving your 9-to-5, starting a side hustle, or scaling an existing business, remember that your journey is unique. Don’t be afraid to take small steps, seek support, and stay true to your vision. The entrepreneurial world needs more women like you, breaking barriers and proving that success comes in many forms.

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