Gender Pay Gap Impacts Women Entrepreneurs

The #HackThePayGap event has just taken place in the US, an initiative from the Presidential Innovation Fellows with the White House Council on Women and Girls and Secretary of Commerce Penny Pritzker. Some interesting discussions emerged about the gender pay gap and its impact on women starting businesses. It’s a well-known fact that women tend to start businesses with half the capital of their male counterparts, and instead use more capital directly from their personal savings or by incurring credit card debt. Women also typically receive less venture capital funding for their businesses. What’s the impact of all this? Well, globally women are starting businesses at half the rate of men, predominantly due to the funding gap. But another interesting and perhaps more surprising trend emerged from the discussions at the event. Women entrepreneurs also tend to pay themselves considerably less than their male counterparts. It would appear that long entrenched views on what it is like to be paid as a woman in the corporate world reach beyond the boardroom and into the entrepreneurial space, when women should be empowered to pay themselves at an equitable rate. As a result, the gender pay gap continues to grow. Surely it’s time to reverse this trend?