Closing the Gender Pay Gap Through Entrepreneurship
The Gender Pay Gap
Today we are going to talk about a topic that is close to all of our hearts – the gender pay gap!
As you’re likely aware, the income disparity between genders has been a persistent issue across the globe. Nonetheless, despite longstanding principles of equal pay for equal work, women continue to earn less than men.
A 2021 study by Olan McEvoy revealed that men in the European Union earned approximately 13% more than women. However, entrepreneurship offers a powerful avenue for closing this gap. At Exploring with Suzi – A Boutique Business and Mindset Consultancy – we believe that empowering women to start and grow their own businesses can significantly address this issue.
Understanding the Gender Pay Gap – The Big Stats
The gender pay gap is the difference in average gross hourly earnings between women and men. As of 2023, the EU average gender pay gap stood at 13%. This disparity can be attributed to various factors according to a study performed in 2023 by the European Parliament, including:
- Part-time Work: Women often engage in more unpaid work, such as childcare and housework, limiting their time for paid work. As a result, about 28% of women work part-time compared to 8% of men.
- Career Choices Influenced by Family Responsibilities: This leads women to take career breaks for childcare, impacting their long-term earnings and career progression.
- Sectoral Segregation: Female representation is disproportionately higher in lower-paying sectors like care, health, and education.
- Fewer and Lower-paid Female Managers: In addition, women hold fewer executive positions. Furthermore, female managers earn 23% less per hour than their male counterparts.
A report by the European Commission highlighted that, in 2023, the gender pay gap in the EU was 13%. This means women earned, on average, 13% less per hour than men. To put it into perspective, for every €100 men earned, women earned approximately €87. Hence, women would need to work an additional 1.5 months to match the annual earnings of their male counterparts.
The Role of Entrepreneurship in Closing the Gender Pay Gap
Entrepreneurship provides a unique opportunity to bypass some of the systemic barriers that contribute to the gender pay gap. Here’s how:
1. Autonomy and Flexibility
Starting a business allows women to create work environments that accommodate their needs and responsibilities. In addition, this flexibility is crucial for balancing professional and personal life, especially for those with caregiving duties.
2. Breaking the Glass Ceiling
Entrepreneurial ventures enable women to take on leadership roles and set their own earnings, thus breaking free from the limitations of traditional corporate hierarchies. Accordingly, this can lead to higher income potential and career satisfaction.
3. Diverse Opportunities
Entering entrepreneurship opens doors to diverse industries and sectors, enabling women to enter and innovate in fields where they are traditionally underrepresented. As a result, this can lead to more equitable representation and earnings across different sectors.
4. Building Wealth and Economic Independence
Running a successful business can significantly boost women’s financial independence and wealth creation. Besides, it reduces the long-term risks of poverty and social exclusion associated with lower lifetime earnings
Supporting Female Entrepreneurs
At our Business and Mindset Consultancy, our mission is to support and empower female entrepreneurs through our 6-week interactive training program, The Right Foundation for the Right Business. This program is designed to provide:
- Comprehensive Business Education: Covering everything from business planning and financial management to marketing and operations.
- Mentorship and Networking Opportunities: Connecting women with successful entrepreneurs and industry experts.
- Practical Tools and Resources: Offering actionable strategies and tools to help women start and grow their businesses.
The Broader Impact of the Gender Pay Gap
Reducing the gender pay gap through entrepreneurship has broader societal benefits too. It promotes gender equality, stimulates economic growth, and can lead to a more diverse and inclusive business environment. Moreover, according to the European Parliament, reducing the gender pay gap by one percentage point could increase the gross domestic product by 0.1%.
Conclusion
So, while the gender pay gap remains a significant challenge, entrepreneurship offers a viable and powerful solution.
By supporting and empowering women to start and grow their own businesses, we can create a more equitable and prosperous future.
Here at Exploring with Suzi, we are committed to being part of this transformation, providing the resources, education, and support needed to turn entrepreneurial dreams into reality. Therefore, join us in this mission to close the income gap and build a brighter, more inclusive future for all.
For more information on our programs and how we can help you start your entrepreneurial journey, visit our website and explore the opportunities awaiting you. Together, we can make a difference.
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If you’re ready to embark on an entrepreneurial career or advance your current business, consider enrolling in our interactive online training course, “The Right Foundation for the Right Business.” Over the span of 6 weeks, this course, limited to 10 participants, provides a clear roadmap and equips you with essential skills for success on your entrepreneurial journey. Additionally, it offers the opportunity to network and connect with like-minded women on a global scale.
Schedule and Enrollment
Next Program Dates: October 3rd to November 14th, 2024
Time: 19:00 to 21:00 hrs Amsterdam time
Duration: Each session is 2 hours long, held weekly.
More info and registration here.