Entrepreneurship failure rate: why women are lower than men

Why is the entrepreneurial failure rate lower for women than for men?

Entrepreneurs need to find like-minded partners. Don’t think about whether the partner is male or female. The partners who can go the furthest must have the same values.

Ten years ago, there were very few female entrepreneurs in China, no more than 10%, but in the past two or three years, there have been more and more women entrepreneurs. I invested in 7 companies last year, 3 of which were led by female entrepreneurs. Our company invests in approximately 30% of companies where women are the main founders. Especially among those born in the 1980s and 1990s, there are more and more female entrepreneurs. Although the proportion of female entrepreneurs is still lower than that of men, the failure rate of the companies they lead is lower than that of men. Among the projects we have invested in, so far, we have not found any company with a female entrepreneur that has completely failed in its development. I believe that there are several characteristics of women that ensure the persistence and success of a company.

First of all, women are more patient. Just like running, men are generally better at sprinting than women, while women are better suited for long-distance running because they have more endurance. Likewise in entrepreneurship, women can usually persist for a long time, because most women start businesses not to make quick money, but because they really like doing it and it is their career. Relatively speaking, sometimes men may start a business to make money to support the family, or to compare with their classmates. The motivation for starting a business is not so pure, and it is easy to be unable to persevere when encountering difficulties. There are many standards for measuring the success of a company. The market value of a company is only one definition of success. In fact, many European companies are not big, but if the brand can last for hundreds of years, this is a greater success. If the company I founded sells for more than one billion dollars, but the brand is gone in the end, it is better to be a small business. As long as there are customers who like my products and are willing to use my services, I can really do it for decades or even hundreds of years. From this perspective, the businesses run by women are not inferior to those of men at all. Women should find an industry that suits them, and really stick to it for 10, 20, or 30 years, and they will definitely succeed.

Second, women are better at communication. Communication is very important in the process of enterprise development. It can ensure that the enterprise can do longer and better, and the team can be more popular. Because various situations may occur during the entrepreneurial process, and everyone may not have the same ideas. If communication is not good, problems may arise. Communication is the most important aspect of corporate culture, and this is where women excel. Male managers generally pay more attention to who are my enemies, how to defeat them, and how much sales will increase? In fact, if a company wants to develop well and develop for a long time, the most important thing is whether you can gather a group of particularly capable people together. At the same time, there are no such complicated office politics. Everyone can exert their efforts together and have the same philosophy. When I talk to female entrepreneurs, I often learn a lot. They sometimes have different concerns about corporate culture than men. It may be something very small, such as how to care for employees. If male managers are the commanders who direct the charge from the front, women are the political commissars of the company.

Third, speaking of the fundamental reason, women have higher emotional intelligence. Many Internet entrepreneurial teams are IT men. A group of IT men with higher IQs and lower EQs start a business. When various problems arise in starting a business, if there is a woman with a relatively high EQ around, the situation will be much better. Looking back, if there were women on our entrepreneurial team at that time, we would have avoided a lot of detours.

In what field is it more suitable for women to start a business? The most important thing for those who want to start a business is to grasp two points. First, the market for what you want to do should be big enough, or even if the market is not big today , it will also be a big market in the future. The second is that you have a full and deep feeling about this matter. If you majored in computer science, you may not necessarily have deep experience in making medical equipment. Many women have a deep understanding of new lifestyles, including Internet-related fashion, beauty, cooking, etc.

After starting a business, many people worry about what kind of partner to find. I believe that entrepreneurs need to find like-minded partners. Don’t think about whether the partner is male or female. The partners who can go the furthest must have the same values. If one person wants to make quick money and the other person wants to go a long way, there will be a conflict. The most important thing about enterprise development is not who is strong and who is weak at the beginning, but who has strong learning ability in the development process.

People with strong learning ability and those with the right values ??go further. Many women are as good as men in this regard. ;