How Women Entrepreneurs Can Survive In Harsh Economic Times
It would not be a stretch to say that these are stressful economic times. Just when we thought we could see the light at the end of the COVID-19 tunnel here comes Putin’s soldiers as numerous as virus variants! Outside barely opening up and we now sit here with bated breath, on the brink of possible war and untold hardship spawned by the Russia-Ukraine geopolitical conflict currently playing out.
Stress is taking a toll on women not just via their emotional well-being but also their financial. Have you taken a look at gas prices? I wonder if ‘ten toe turbo’ will become a thing. But seriously, in a matrifocal society like Jamaica’s, whose women can be considered the emotional nerve centre of their communities and, by extension, the society, it is critical that they thrive not only when times are good but also when they get hard.
Whether it’s a matrifocal or patrifocal society, women play a critical role in driving economic development throughout the world. So, the better the lot of women, the better the lot of the community, the society, the country. A 2006 article in The Economist seems to suggest that an increase in female employment over the last few decades has decidedly been the driver of economic growth. So, empowering women economically makes sense in order to help lift not only their families, but also their entire communities, out of poverty.
The truth is, women are also oftentimes the primary breadwinners in Jamaican households. According to the UN Development Program, during the ongoing economic crisis women will likely suffer most. They are the ones who are more likely to spend their income on food, education and health care for their children. That’s just a hard economic fact.
But the good news is, according to the same UN Development Program, women have a major role to play in rebuilding the world economy. Jamaican women, thankfully, though, are possessed of a strong entrepreneurial, never-say-die spirit and are ready, willing and able to play their role, to this end. What the pandemic served to underscore was the fickleness of employment and some women are now contemplating going the route of self-employment. We have been advocating multiple streams of income, including a side hustle, and the benefits of having multiple streams have played out in full neon lights during the past few years.
Whether it’s a backyard business or a larger-scale enterprise, Jamaican women will always find a way to improve themselves and their children. Still, even women with bigger businesses that are actually surviving, which started before the onset of COVID, will perhaps be dealing now with decreased sales and market volatility, not to mention downright fear about the future. They may be contemplating closing the business or just scaling back and facing tough decisions about staff. This is very true in a rising interest rate environment. The cost of capital has gone up and will continue to be problematic for businesses needing capital, given current inflationary pressures. As if all these factors weren’t enough there are still responsibilities at home. All told, women entrepreneurs may be facing more sleepless nights than ever before.
But, as someone who understands the importance of supporting women in order for them to take their rightful position in helping to develop this country, here are a few tips women in business can use to navigate rough economic waters.
Become financially literate
Financial literacy means having possession of the skills and knowledge to make informed and effective decisions about your financial resources. This pertains not just to your business finances but also your personal finances. Do you know how to read a balance sheet? How is interest calculated? As with any endeavour, education is critical for success when it comes on to money. We have been hearing a lot about interest rates, inflation, oil, etc. Know what this means for your business. The budget was just read; what impact will it have on your business plans? Luckily for us, there will be no new taxes, but how they are applied might change.
Seek out mentors who are also entrepreneurs
Find other women who have been doing what you’re trying to do now for much longer than you. They are good resources for advice when problems threaten to overwhelm. It’s not about competing; you are simply asking for help from someone with experience. As the saying goes: Two heads are better than one. I also find that women tend to only seek out female mentors. Let us be frank, in most fields men have been at it longer and have had more access, so male mentors are important too.
Don’t underestimate the importance of cash in hand
As these pandemic years have so eloquently taught us: Everything can change dramatically in the blink of an eye. Your profits must be able to cover an emergency fund, should the unforeseen occur. This fund should be kept for the business only and separate from your personal emergency fund. Also, always try to have live cash on hand to fund the growth of the business, bearing in mind that you have to spend money to make money.
Bottom line
Use these tips to sharpen the lines between your business’s financial interests, and your own, to stay focused when economic waters get choppy. Business has its ups and downs; everybody loves the ups. But you can use a downturn in business for an opportunity; don’t give in to fear. Panicking, or throwing in the towel too early, will not serve your long-term financial goals.