Why So Many Women Are Turning to Entrepreneurship And What to Know Before You Leap
- Erika Lucas
- Jul 25
- 5 min read
Updated: Sep 15
Almost 50% of VEST Members own a business, and in speaking with them, one thing is clear, for many, entrepreneurship wasn’t their first choice, it was the only viable option.
Many members have shared they never planned to become business owners. Instead, they turned to entrepreneurship after facing rigid and inflexible work environments that made it difficult and often unsustainable to remain in traditional roles. They’re not alone.
According to the 2024 McKinsey “Women in the Workplace” report:
Women are more likely to leave or step back from roles due to a lack of flexibility.
Many feel pushed out rather than supported in their careers.
Caregiving responsibilities still fall disproportionately on women, with few reentry pathways after time off.
As a result, many women are turning to entrepreneurship as a way to reclaim their time and autonomy. But while starting a business can be deeply rewarding, it’s rarely easy and often misunderstood. So, if you’re thinking about stepping into it, whether driven by ambition, necessity, or a mix of both, here are a few things to keep in mind before you take the leap.
Know the Business and Life You Want to Build
One of the most common mistakes women make when stepping into entrepreneurship for the first time is chasing a business model that doesn’t match the life they actually want. There’s a persistent myth, often reinforced by headlines, social media, and startup culture, that “real” success means raising millions, scaling fast, and eventually selling or going public. But that version of entrepreneurship is not only rare, it’s also not the only path or even the right one for most people.
Before you dive in, take time to ask yourself some honest questions. Do you want consistent income and more control over your time, or are you aiming to grow quickly and eventually sell the business? Would you prefer to build a small, agile team or lead a larger organization? And are you committed to maintaining full ownership, or are you open to investors having a say in key decisions?
Your answers will help guide you toward a business model that aligns with your goals, values, and the life you want to lead. Here are a few common approaches to consider:
Sustainable or values-driven business: Often self-funded, designed to support a certain lifestyle or mission, and built for long-term stability, not rapid growth.
Venture-backed startup: Built to scale quickly, usually involves giving up equity to investors, and comes with high pressure and fast timelines.
Services-based business: Think consulting, coaching, or creative work, typically lower overhead and great for building income and flexibility.
Product-based business: Selling physical goods or tech products, which may require more capital upfront and longer timelines to profitability.
The key is to build around your reality, not someone else’s version of success. What you’re creating should align with your values, your capacity, and your vision for the future not just what’s trending or getting media attention.
Think About How You’ll Support Yourself in Year One
Starting a business is exciting but it’s also financially demanding. The first year is often the hardest, and success doesn’t happen overnight. In fact, 1 in 5 small businesses fail in their first year, and many more struggle with consistent revenue in the beginning. That’s why one of the most important questions to ask yourself is how you will support yourself while the business gets off the ground.
If you have savings and can cover your expenses while you build, that’s a huge advantage.
But let’s be real, many women, especially those who are the primary earners in their households, don’t have that kind of financial cushion. So before you take the leap, ask how you will support yourself while the business gets off the ground.
Here are a few ways:
Start as a side hustle. Keep your current job while building on the side. This gives you time to test your idea and create a financial cushion before going full-time.
Secure a contract or retainer. If you’re offering services (like consulting), aim to lock in a client or project upfront. A guaranteed stream of income can ease the pressure.
Set a runway. Figure out how many months of living and business expenses you can cover. Even 3–6 months of savings can make a difference.
Explore Funding Options Beyond Venture Capital
Beware that venture capital often dominates the headlines, but in reality, less than 1% of all early-stage businesses ever raise VC funding. Of that small slice, only about 2% of venture dollars go to women founders and even fewer to women of color. And not every business is built for the VC path or needs to be. You have options and understanding them will allow you to choose what aligns best with how you want to build.
Here are a few options:
Self-funding (bootstrapping): Full control, but can stretch your personal finances.
Revenue-based financing: Flexible repayment based on your business income.
Grants: Competitive but worth applying for, especially for mission-driven businesses.
Traditional loans: Useful for businesses with predictable cash flow, but know that banks don’t typically lend to startups until there’s a proven track record of revenue, profitability, or collateral which many early-stage businesses don’t yet have.
Angel Investment: Angel investors are individuals who fund early-stage businesses in exchange for equity. Look for them through pitch competitions, women-led networks, accelerators, or platforms like AngelList.
Venture capital is funding from investors in exchange for equity, reserved for companies with high growth potential. It can fuel rapid scale but often comes with pressure, oversight, and giving up some control, best for founders aiming to grow fast and big.
Prepare for the Emotional Side of Entrepreneurship
Starting a business isn’t just a financial or strategic decision, it’s an emotional one. The highs can be thrilling, but the lows can feel isolating, especially if you’re used to steady paychecks, team structures, or external validation. You may wrestle with imposter syndrome, feel disconnected from peers who don’t understand your new path, or question your decisions more than you expected. That’s normal and that’s why community matters.
Whether it’s a founder circle, a coach, or a network like VEST, being part of a community of women who’ve walked this path can be the difference between growing with intention and burning out.
Know When to Pivot, Pause, or Press On
Entrepreneurship is rarely a straight line. Not every idea will take off as planned and that’s not failure. That’s part of the process. At different points, you may need to shift your business model, take a break to regroup, or double down on what’s working. The key is giving yourself permission to respond to what’s real, not just what’s ideal.
Entrepreneurship can be one of the most empowering career moves you make but it works best when you approach it with clarity, intention and surrounded by support. If you’re building something of your own and want to be surrounded by women who understand the journey, consider joining our community. Learn more at www.VESTHer.co
About the Author
Erika Lucas is the Founder and CEO of StitchCrew and VEST. She is an investor and nationally recognized advocate for women, small businesses, and economic opportunity for all. Erika also hosts the VEST Her Podcast, where she talks about the hidden challenges holding women back at work, in society, and in building wealth and highlights stories of women working to change that. Follow Erika’s on LinkedIn