Breaking Barriers: What’s Holding Female Founders Back?

 More women than ever are starting businesses—but they’re still much less likely to receive funding, scale up, or survive long term. The journey of a female founder often involves navigating invisible hurdles that male counterparts may never face. So what’s really holding women back?

Academic research over the past few years has started to shine a light on the real barriers. These aren’t just about money—they include deep-rooted cultural biases, confidence issues, and limited access to the right networks.

At Canopy Community, we believe in removing these barriers and helping all founders thrive. Here are the top three challenges facing female entrepreneurs—backed by research—and what we can do about them.

1. Access to Finance and Funding Bias

One of the most consistent barriers across all studies is access to capital. Female founders raise significantly less funding than male founders—despite often delivering better returns when they do.

A 2023 study titled Female Entrepreneurship: Barriers, Opportunities, and Impact on Global Economies points to a lack of financial resources and persistent gender bias in investment decisions. Another article by the Advisory Board Centre in 2020 found that women face greater scrutiny during due diligence and are less likely to be invited into funding networks.

Even when programs target women, they tend to support microbusinesses rather than growth ventures—limiting scale and long-term impact.

What helps? Financial inclusion programs, gender-lens investment funds, and mentoring support during pitch preparation can all level the playing field. Female founders also benefit from investor communities like those involved in Demo Night, where feedback is constructive, not biased.

2. Fear of Failure and social expectations

Starting a business is always risky—but for women, the fear of failure often carries extra weight. Societal expectations and internalised self-doubt create a confidence gap that starts early and continues into adulthood.

The 2024 paper The Influence of the Fear of Failure on Women Pursuing Entrepreneurship highlights how many talented women hesitate to take the leap into business—not because they lack ideas, but because they fear being judged for failing.

Combined with lower access to role models, this fear can become paralysing. A founder might delay launching, underprice their product, or avoid seeking investment altogether.

What helps? Building confidence is not just about training—it’s about community. Seeing others like you succeed is a powerful motivator. That’s why Canopy Community events intentionally create a safe space for feedback, encouragement, and peer support.

3. Limited Networks and Cultural Norms

Who you know still matters in business. Female founders often lack access to the informal “old boys’ networks” that make warm introductions, unlock capital, or offer hard-earned advice.

The 2023 paper Aggregate Implications of Barriers to Female Entrepreneurship applied to India but with lessons globally, shows how social and cultural norms prevent women from building or using business networks. Whether it’s due to caregiving roles, lack of mobility, or societal expectations, women are less likely to be present where deals get made.

What helps? Networks like Canopy are designed to connect underrepresented founders to investors, collaborators, and supporters. Building your network isn’t about “networking”—it’s about showing up, sharing ideas, and being visible in the right rooms.

Final Thoughts

The research is clear: the barriers to entrepreneurship for women are real, complex, and solvable. Funding, confidence, and connections are the top challenges—but each can be addressed with the right combination of policy, community, and opportunity.

At Canopy, we’re committed to helping founders of all backgrounds go further, faster. That starts with creating spaces to share ideas, get support, and be inspired.

If you're a female founder, or want to support one, join us at our next Demo Night and experience the power of the community for yourself: canopy.community/demo-night

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