How crowdfunding helps create gender-equal entrepreneurship #IWD 2023

Imagine a world where women are backed in business the way men are – we’re equally supported by capital investment; we’re fairly represented in leadership positions and we’re paid the same as our male counterparts.

Because as it stands, we only receive 2% of venture capital funding^[1] and the average female small business owner earns 22% less than the average male small business owner^[2].

At Lift Women, we’re on a mission to change exactly this and promote gender equality in entrepreneurship by helping women get the funding and support they need to start or scale their business.

And so, it should come as no surprise that we are 100% behind International Women’s Day, a day dedicated to accelerating gender equality.

If you’re wondering how to do this, the answer lies in crowdfunding – and if you read to the end of the article, we share 6 specific actions you can take to get involved.

Crowdfunding helps #EmbraceEquity in entrepreneurship in 2 ways. Firstly, crowdfunding contributes to closing the funding gap, meaning more women can become entrepreneurs. Secondly, crowdfunding promotes a more diverse business environment as it’s more accessible for women from disadvantaged communities.

Crowdfunding helps close the funding gap

According to the Australian Bureau of Statistics, only 35% of small businesses in Australia are owned by women.

This underrepresentation is largely due to a pronounced funding gap where female entrepreneurs receive less investment than their male counterparts. It’s not just about the venture capital funding either because women are also less likely to apply for business loans and if they do apply and are successful, they tend to receive smaller loan amounts than men – a huge $45,000 difference, in fact^[3].

Crowdfunding democratises funding and can help female entrepreneurs overcome these significant barriers to accessing finance and loans.

A rewards-based crowdfunding model, like that of Lift Women, is especially effective for female entrepreneurs. Studies show that female-led campaigns actually reach their funding goals at a higher rate than male-led projects!

This is because the success of a campaign is hugely affected by social proof and women are generally better at building a community and harnessing the power of a crowd than men.

Through the community that women can build via crowdfunding, they can also benefit from networking and mentorship opportunities. The relationships they build can open doors for their business through funding, investment, professional development and more.

Crowdfunding promotes diversity and inclusion in entrepreneurship

For female entrepreneurs in disadvantaged communities, the costs of business such as market validation and accessing advertising channels may also be an issue.

Crowdfunding is helpful here in a number of ways. Firstly, crowdfunding can be a low-risk, affordable way for female entrepreneurs to test and validate their ideas before launching their businesses. They can gauge interest and demand by seeing how many people are willing to pledge to their campaign. If their project is funded which results in product development, feedback can be gathered from the backers and used for improvements.

Secondly, crowdfunding can be a cost-effective way for female entrepreneurs to generate buzz, raise awareness and increase visibility for their business. They can leverage the platform itself to share their story and build a customer base and loyal following.

This is particularly the case with Lift Women because our platform is initially free to use to start a project – it’s only once a project becomes fully-funded that a small percentage fee is charged. What this means is that money is not a barrier; any female entrepreneur, regardless of their socioeconomic status, can start their business journey with Lift Women. This is how we are helping to create a more diverse and inclusive business environment in Australia.

So how can you be involved in crowdfunding this IWD 2023?

If you are a female entrepreneur with a business idea that is ready for backing, why not Start Your Project on Lift Women and start raising the money you need to take it to the next level?

We offer free 30-minute strategy calls to answer your questions and help you find the clarity and conviction you need to start your crowdfunding campaign.

Book Your Free Consultation

Besides creating your own crowdfunding campaign, here are 5 more ways to get involved with Lift Women this IWD and beyond.

Explore live crowdfunding campaigns on Lift Women and make a pledge to your favourite. If you aren’t in a position to pledge, a simple share on your social media channels is a wonderful way to celebrate women in business and spread good vibes about female entrepreneurs and Lift Women at the same time!
Become a Lift Angels™ member as a Founder or Backer for just $5/week. If you’re a female entrepreneur, and gain access to exclusive resources and a shared-value community, all aimed at your success in business. Plus, 50% of your membership fee goes into our Pay-It-Forward Fund, a circular funding system where the money is distributed as additional pledges to live crowdfunding projects.
Join our Lift Women Free Community on Disco to connect and grow with like-minded people, especially other female entrepreneurs.
Check out other Lift Women blog articles and share the one you find the most useful on your Instagram Stories, Facebook or LinkedIn.
Or, simply follow us on Instagram, Facebook and LinkedIn!

This International Women’s Day (and beyond!) is a chance for us all to ramp up our support of female entrepreneurs. Let’s rally together to celebrate women’s achievement and take action to drive gender equality!