Women Entrepreneurs Face a “Green Ceiling”

It should come as no surprise that women face a glass ceiling when it comes to success in the business world. New research suggests that similar barriers exist when it comes to finding investors. A study conducted by the University of Utah recently identified a “Green Ceiling,” or a bias against female CEOs looking for investors. The research found a reluctance to invest in IPOs lead by women due to perceptions that female founders/CEOs were less capable. “Like the glass ceiling of corporate America it comes to financing,” says the report. “Taken as a whole, our results suggest that gender stereotypes are alive and well and, moreover, that such stereotypes impact investment decisions.”

This year, 10 percent of our WPO 50 Fastest Growing Women Owned/Led Companies, sponsored by American Express OPEN, said they planned to take their businesses public. Despite their incredible growth and success, many are likely to face a unique set of challenges when it comes to finding investors. When surveyed, forty percent of this year’s winners felt that they were not on a level playing field with men. The self-sufficiency and determination of these women speaks volumes. Of the 90 percent who started the business themselves, 60 percent used their own personal funds compared to only 8 percent who received funds from investors. An additional 20 percent used funds from friends or family while 16 percent used a bank loan.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s