Why investing for the future is smart for women – and our country
Many small businesses are looking to invest to grow over the next 12 months. That’s great news. But what’s the picture for women-led businesses? New NAB Small Business Executive Krissie Jones offers her insights.
One of the best parts of my job is getting out to meet small business owners across Australia. It’s energising to hear their stories of resilience and innovation, especially in these tougher economic conditions.
While some are doing it tougher than others, there are some who are looking to future opportunities and growth.
Our latest NAB research shows almost 6 in 10 (55%) Australian SMEs are planning to invest to grow their business in the next 12 months.
It’s a great sign for the long-term health of our country’s businesses and our economy.
Putting women in the picture
But it does raise two questions around female entrepreneurialism: how are women-led businesses doing in these more challenging times, and to what extent are they in a position to grow (or even establish) their operations?
At first glance, the news is positive: funding of female-owned businesses doubled from 2022 to 2023, according to the latest the latest State of Australian Startup Funding report.
Unfortunately, this comes off an incredibly small base. In fact, those businesses with women-only owners received just 4% of all venture capital funding in 2023 and represented only 12% of all deals – despite making up around one third of Australia’s small business owners.
Room to grow
Certainly, lack of financing is a big reason why greater growth continues to elude many of our female-owned businesses.
Finance is not the only issue holding them back though. According to the CSIRO, barriers to female entrepreneurship include fewer role models, smaller and less effective networks, lower confidence and competing demands on time.
It’s why organisations like Business in Heels are so important. By championing women to start and grow businesses, and fostering strong relationships to help female entrepreneurs thrive, it amplifies the truly powerful role women-led businesses play in our economy.
NAB, too, is working to better support these businesses.
More recently, we’ve successfully grown the number of women in leadership positions in the bank through our 1500 Degrees program. By ensuring more female-owned businesses have access to people who truly understand what they’re up against, there’s a greater chance they’ll receive the help they need – including the all-important financing.
I’ll continue to meet more of our female small business owners, I’m keen to keep listening and hearing about what matters most to them, but also, how we can best show up for them to help them succeed.