Five Reasons Women Choose Entrepreneurship over The Glass Ceiling

Over the past week, several sources on my radar shed light on the ongoing debate behind the corporate glass ceiling. Collectively I believe they punctuate the reasons behind why I – and perhaps 10 Million other women in the US – have chosen to shed corporate confines in favor of the freedoms, risks and rewards of entrepreneurship:

1. Bias is a natural behavior: Serial CEO Margaret Heffernan explains that corporate leaders act upon their natural biases by choosing others that are “like them” when hiring and promoting leaders.
2. Gender discrimination is embedded in our cultural perceptions: A recent University of Utah study found that female-led firms with identical personal qualifications and company financials were perceived as less capable than male CEOs in those same roles.
3. Behaving like men is counter-intuitive to our nature: Patricia Sellers points to the female power conundrum that happens when female CEOs try to behave and lead like men.
4. To break the glass ceiling, we have to jump off the glass cliff: A study in this month’s Harvard Business Review suggests that women’s perceived leadership attributes are only embraced when a company is in crisis and needs a change of leadership.

While all of this is very interesting it makes you wonder why any woman would want to stay and fight the corporate battle. Perhaps this is why women in the U.S. are starting their own businesses at twice the rate of men. Research on women in development reveals that nearly 75% of women involved in early stage entrepreneurship are already employed. Are many of these new entrepreneurs frustrated ladder climbers?

I’m not suggesting we should abandon our efforts to support women as corporate leaders. After all that same Harvard Business Review article found that the glass cliff isn’t an issue in organizations with a history of female leaders. But it does suggest another reason that women choose a different path:

• 5. Business is NOT just business anymore. By-and-large women entrepreneurs start businesses that are aligned with both their personal and business values. Riane Eisler suggests in her latest work, The Real Wealth of Nations, that there is a strong movement – a revolution if you will -- to create a genuine caring economy—one based on balance and a respect for the intricate relationships that keep our planet and society healthy.

It is these “caring” skills that the corporate world eschews until there is a crisis. And they are the very skills that The SmartGirls Way most values. It’s about time for women to stop trying to think and behave like men and start embracing our collective women’s wisdom. I’m willing to bet that’s an idea that any enterprising woman – corporate or otherwise -- can get behind.

Angry, Exhausted, Frustrated and Wrong!

by Jean Brittingham

I didn’t even know where to start when my new-media maven asked me to respond to this post by Penelope Trunk.  I get the power of a hyperbolic title, but really? Women Don’t Want to Run Start-Ups Because They’d Rather Have Children?

There’s so much wrong here it’s hard to set your sights.

At the same time I completely feel for her.

And before I say anything else, congratulations Penelope on leading (what one can hope) will be a great success in your third start-up. It’s clearly been a struggle that lasted too long with too little reward. That in itself is dismaying, but it’s much more distressing when women with talent who have begun to carve a spot for themselves succumb to the models that make entrepreneurship exhausting, silly, and impossible to love.

Let’s begin with the premise behind Trunk’s (and Jeff Steibel’s) definition of entrepreneurism as a disease.  This particular definition suggests that these two (and a few other business writers with this view of entrepreneurship) think they “own” the definition.  Entrepreneurs to them are men (and the OCCASSIONAL woman) who take on VC capital against an unlikely bet and work horrific and thankless hours (the thanklessness comes mostly from the VC partners but also from the team you are driving and the family you are deserting) to breakthrough the probability factor and post an amazing win. 

Or at least get a buy-out so that you break even.

This isn’t THE Entrepreneur typology; it’s ONE Entrepreneur typology.

The state of the planet, the state of the economy, the state of our lives and the incredible number of human beings who have GREAT ideas they are turning into GREAT businesses means that this is a limited and limiting view of entrepreneurs.

Most importantly--it’s not going to help us construct the next economy.

Instead, I see a future (and many join me here) where both the investment community and consumers take note of and then begin to actively foment support for some different breeds of entrepreneurs. 

While I am not at all sure about the role Solopreneur’s will play in the next economy, it is clear that the reemergence of a craft economy plays a significant role in the future. These individual contributors, who are often working in complex networks and loose affiliations with others, are crazy, all right—crazy smart.

More interestingly (at least to me) are the new breed of social entrepreneur—where a much higher proportion of women are striking out and making a difference while making a living. These social entrepreneurs are developing businesses that offer solutions and hope because they see themselves and their business ideas as an integral part of a better world.

And finally, there are the women who are breaking through and making businesses work well and also work with their lives—businesses that create financial success for founders and a growing contingency of employees. These women believe that you can, and should, have a life and a business, a financial goal and an nonnegotiable ethos, a current reality that works and a future that works better.

Suggesting that women don’t want to be entrepreneurs because you have burned yourself out by “manning-up and buying-in” to a set of investor and personal standards that leave no space for anything but profit, is not the future of entrepreneurs.

It’s not the future of anything.

Life is too short, the planet is too fragile and frankly, Penelope is right—there are children to raise.  The part she got wrong is giving up one to get the other. I believe we can change the rules instead!

Women Entrepreneurs--the New Equal Rights Amendment

It's interesting how consistently I am hearing from women who are perplexed that after 100 or more years of active effort to achieve equity in pay, opportunity and representation, we are still pushing a very heavy stone up a very steep hill. And further, we're pretty tired of hearing that things are all good.

Here's the issue from my perspective. While there may be a few men out there who consciously and with an agenda are seeking to keep women from achieving their goals and making progress, most of what is going on is unconscious, a part of the culture of male designed institutions that we have been living in for over 4000 years. It's not personal, it's just business. And politics. And culture.

And working to change culture from the inside is not very effective. You only have to look at the current resistance to clean-energy to understand the incredible hold that an in-place culture has on us. Who would vote for dirty over clean? Who would think that societies should spend tax dollars to supplement the incomes of traditional energy giants while they increase profits and decrease investment in clean energy options. It's not logical. It's not smart. But it is common. We're used to it so we don't even (mostly) notice it.

Culture is like air. We can't recognize it because we swim in it every day. Asking the male dominant culture to recognize the things they do that make it difficult for them to see, appreciate, and nominate women into positions of influence is a bit like asking a fish to describe water--or asking them to choose air instead.

After 50 years of focused effort, the statistics are abysmal.

So, what do we do now?

Well, as a start, how about we quit trying to break through glass ceilings with rubber (or even glass) hammers?

How about we demand parity studies and mentoring programs that ease the cost of entry into traditionally male dominated industries--and encourage and empower women to start their own businesses?

How about we build a serious movement of women entrepreneurs and help them understand that they can build businesses that are not only financially successful but are also great places to work and that these great places can allow for families, communities and a healthy and vibrant future?

I'll be discussing these issues in future blogs, but for now I think it's important to acknowledge that what we have been doing is not achieving the hoped for changes--in equity and fairness and importantly in achieving the balance that a woman's viewpoint and approach brings and that the world so needs now.

As a well-known women leader on Wall Street recently commented when asked if the meltdown would of happened if there were more women engaged in the decision-making process, "Women tend not to bet the farm, understanding as we do that the kids need to live on it."
Now is the time for the new entrepreneurial movement--fueled by the power and passion of women. Join us!