File: Austin City Seal
AUSTIN (KXAN) — There are many challenges that female entrepreneurs in Austin face when starting and growing their businesses.
Areas that need improvement include access to capital, broader professional networks, and more business resources.
The City of Austin’s Mayor’s Task Force for Women Entrepreneurs is addressing these challenges.
What is a task force?
Mayor Kirk Watson formed the group last summer to address obstacles faced by women-owned businesses.
The goal was to find a way to make Austin a great place for women to start and build businesses.
The task force brings together women entrepreneurs from all industries, including finance, tech startups, government, and consumer goods.
Kara MacDonald, founder and managing director of Dynabrand Ventures, has been named chairman.
Obstacles faced by women
The group was tasked with producing a report with recommendations to address the needs of women founders.
According to the report, they “surveyed more than 300 Austin women entrepreneurs, held five focus groups, and conducted numerous one-on-one interviews with the city’s women business owners.”
The study found three significant obstacles:
- access to capital
- Access a wider and more convenient network
- Access to affordable goods and services
access to capital
The report said the biggest obstacle Austin women entrepreneurs face when running and expanding their businesses is access to capital.
“62% of those surveyed cited access to capital as the biggest challenge they face when building a business,” the report states.
The organization said this issue is the biggest problem when women are in the profitable stage of business.
“45% of those surveyed who run profitable businesses said ‘access to capital/financing’ was a significant barrier for them,” the report said. There is.
As a result, women are funding their companies in other ways, the report said.
- sale
- savings
- credit card
Access a wider and more convenient network
Another barrier is a lack of access to helpful networks and mentors.
The survey found that 52% of participants cited “access to broader and helpful networks” as a major barrier to running and growing their business.
“30% highlighted ‘access to mentors’ as a barrier, pointing to challenges in navigating an ecosystem primarily defined by male entrepreneurs, many of whom they have known for decades,” the report said. states.
As a result, the report says, many women have started dozens of different women-only networking groups.
Still, the task force noted that this does not help women meet challenges or “integrate women into the broader entrepreneurial ecosystem.”
“Unless you’re a young white male in tech or a venture capitalist, there’s very little space for women.” [to do] There’s something new and innovative here. ”
Austin Mayor’s Women’s Entrepreneurship Task Force Survey Participants
Access to affordable goods and services
Participants in the report said the lack of affordable access to business-building goods and services was also an obstacle.
“Respondents are looking for tools and technology to power their business (39%), office space (32%), healthcare (28%), education (17%), childcare (10%), and aged care (5%). ,” the report said.
Another barrier was tolerating delays. Women entrepreneurs said these delays could prevent them from starting a business and affect their access to capital.
Task Force Recommendations
The task force made 12 recommendations based on the needs identified in the study.
Some initiatives can be implemented immediately, while others require more time and planning, the report said.
Here are some recommendations:
- U.S. Small Business Administration Women’s Business Center opens in Austin
- Create an angel investor group that invests only in women-owned businesses
- Create the Mayor’s Fund for Women Entrepreneurs in Austin
- Establish a capital commitment
- Increase access to affordable debt financing
- Create an online marketplace for affordable goods and services
- Creating the Austin Women Entrepreneurial Parenting Initiative
- Create the Women’s Innovation Academy
- Create a virtual hub to centralize resources and facilitate connectivity
- Establishing the Austin Women’s Entrepreneurship Council at the Austin Chamber of Commerce
- Audit and streamline the company formation process
- Create a Women Entrepreneurship Advocate at Austin City Hall
“The report’s recommendations are practical, actionable, and tailored to address the unique challenges faced by women entrepreneurs in Austin,” the report states.
KXAN’s Sarah Al Shaikh will have more on this story. You can see her on KXAN News tonight at 6 p.m.
