Women Entrepreneurs: Diversity, Inclusivity, and an Economy Smiling Back at You

How Many Are There – and Why It Matters

Women represent more than fifty percent of Europe’s population, yet they account for only around 30–34 percent of all startups and entrepreneurial ventures. That is like having a chocolate bar split into two halves and suddenly realizing one half mysteriously disappeared. (Eurochambres, European Parliament, Paris School of Entrepreneurship)

What does this mean in practice? Experts estimate that if women engaged in entrepreneurship as actively as men, it could add 1.95–3.15 trillion euros to the European Union economy by 2050. (Reuters) The economy, of course, does not give standing ovations, but in this case, it probably should.

Estonia: Not in the Last Place – and Yet There Is Room to Grow

According to the Organisation for Economic Co-operation and Development (OECD), women in Estonia were almost 1.7 times less likely to launch new businesses compared to men during 2019–2023. (OECD)

Yet, here comes an intriguing twist: Estonian women-led startups are more export-oriented than the European average. That is a pleasant surprise.

Still, the Global Entrepreneurship Monitor (GEM) 2023/2024 report highlighted a challenge: entrepreneurial activity among women remains relatively low, especially in Estonia’s north-eastern regions. (ResearchGate)

On the positive side: in fintech and climate technology, about 44 percent of Estonian startups have at least one female co-founder. Not a record, but definitely encouraging. (Potter Clarkson)

The Barriers: Slippery Roads Ahead

Access to financing is perhaps the most notorious stumbling block: female founders receive only about two percent of venture capital funding in Europe and the United States. This would sound like a comedic sketch about scarcity if it were not such a depressing reality. (Reuters)

Why is this the case? Research shows that investors tend to ask different types of questions:

• To men: “How will you conquer the market?”

• To women: “How will you avoid failure?”

  
  

This difference between promotion-oriented and prevention-oriented questioning reveals unconscious bias: from men, success is expected; from women, failure is assumed.

And even when there are more female investors in the ecosystem, if they remain in junior positions, very little changes: their voices are not heard, and the key decisions are made by someone else.

Still, the business case is strong: companies with gender-diverse leadership teams outperform competitors in profitability by around 25–28 percent — a finding consistently confirmed by McKinsey’s Diversity Wins report. (McKinsey)

What Should Be Done (No Superhero Cape Required)

1. More women investors in decision-making positions. Not just present in funds, but actually driving the agenda. (Reuters, Financial Times)

2. Bias-awareness training. Sometimes the issue is not the entrepreneur, but the person on the other side of the table.

3. Alternative metrics for success. Not only aggressive growth, but also sustainability, social impact, and environmental responsibility should become priority performance indicators.

4. Integrated networks instead of “gender silos.” Female-only networks are valuable, but isolating. Inclusive, mixed communities lead to broader opportunities.

5. Mentorship and sponsorship. When investors (male or female) commit to mentoring female entrepreneurs, the effect can be exponential.

   
   

A Living Example – Kadri Tuisk

One of the most visible female founders in Estonia is Kadri Tuisk. She is a serial entrepreneur: first with Clanbeat (educational technology plus mental health), and now with Wundamental AI (artificial intelligence coaching for businesses). In 2021, she was recognized as the Young Woman Entrepreneur of the Year by BPW Estonia. (Wikipedia)

She not only builds companies but also mentors others, raising concerns about how the venture capital industry treats female founders. She is both an inspiration and a reminder of the challenges still ahead.

And Yes, a Bit of Humor Never Hurts

Why are women entrepreneurs still considered a “rare species”? Because when a woman says, “I have a business idea,” some investors still ask, “Do you also have a husband who invests?” No, she has an idea, a business plan, and possibly even a sleeping bag for the office. (Joke. Or maybe not?)