Breaking through prejudices holding back female founders

Making up nearly 50 per cent of the labour force and contributing about 30 per cent of Vietnam’s GDP each year, women are becoming an important driver of economic development. 

However, the startup stage is still heavily slanted towards men, with deep-rooted stereotypes and prejudices putting women in a disadvantage.

Breaking through prejudices holding back female founders
Having more women entrepreneurs can create more employment for women while addressing crucial preconceptions holding them back

Marina Tran Vu, one of the 21 female entrepreneurs to watch highlighted by Female Laboratory of Innovative Knowledge in 2021, surprised the audience of Shark Tank Vietnam by appearing on the show at the end of May to raise capital for startup Equo Vietnam.

Vu is a veteran who has filled senior management roles at several large corporations. She has served as assistant brand manager at Unilever, brand manager at LG Global, global brand manager at Spin Master Global, and head of marketing at California Fitness & Yoga Centers Vietnam.

However, she gave up her cushy corporate position to produce disposable plastic substitutes such as straws, knives, and spoons from used coffee grounds and rice grass two years ago.

Although only established a short time ago, Equo Vietnam’s products are now distributed in the United States, Australia, Canada, and Vietnam, drawing the attention of prestigious international press agencies such as Forbes and Business Insider.

Vu shared, “There are many women who are very smart but are not brave enough to overcome the prejudices surrounding them,” she said. “I believe that the value of a woman lies not in her family background, status, or her life partner but on what she brings to life, to her family and loved ones. Women should be given more opportunities to pursue success and demonstrate their capabilities, and I aspire to be able to do that as a young woman starting a business,” said Vu.

Difficulty finding support

Vu is certainly not the first or only person to raise their voice about the challenges women face in starting a business. In a country like Vietnam where the startup movement is on the rise, the increasing number of women starting up a business means that more of them are coming face to face with discrimination and prejudice.

According to the Mastercard Index of Women Entrepreneurs 2020, Vietnam ranks sixth among the countries with the highest percentage of female entrepreneurs and is the only Asian representative in the global top 10.

Women-owned enterprises in Vietnam accounts for 26.5 per cent of the total number of enterprises in the country but they are mainly micro- and small-sized enterprises with limited access to support programmes and policies. Besides, pre-defined gender roles and characteristics mean that women also face more difficulties than men in realising their business ideas.

According to Pham Khanh Linh, founder of Logivan, one of the 15 startups with great influence in the Vietnamese economy as voted by Asia’s leading technology news site Tech in Asia in 2019, while many people first think of capital as the No.1 difficulty for startups to take off, there are deeply ingrained prejudices that make it an uneven playing field for women.

Since establishing Logivan, Linh has been facing the abundant stereotypes in the digitisation and trucking industries, two fields that are more associated with men than women.

“From the very beginning I have been told that I know less about the transport sector because I am a woman,” she explained, adding that this has made it particularly difficult to convince business partners that she can develop this “Uber for trucks” in Vietnam, replicating a tried and tested model from around the world.

“Apart from the common difficulties of a startup, women have to make more sacrifices and tradeoffs. However, I hope that in 10-20 years, none of these prejudices about women leaders will remain,” Linh shared.

 

In fact, female-owned businesses find it much harder to access capital in the very first stages. Tu Thu Hien, CEO of the Women’s Initiative for Startups and Entrepreneurship (WISE), said that only 2 per cent of venture capital investment reaches female startups due to prejudices. Investors think that women are less ambitious than men when it comes to business, therefore, many investors will unconsciously favour male-owned businesses.

According to WISE, the majority of women have little access to credit from banks, mainly because they do not own collateral or have their name on the family assets.

Lack of motivation

In addition to the issue of capital, long-standing prejudices make it twice as hard for women then for men as they have to take care of their families while running a business. Women also lack opportunities to participate in trade promotion activities and have far fewer opportunities to participate in training or exchange next to family and childbirth.

A survey of Vietnamese labour force by the International Labour Organization (ILO) shows that women spend an average of 20.2 hours per week cleaning the house, washing clothes, cooking, shopping, and taking care of the family and children while men spend only 10.7 hours on such tasks. Nearly a fifth of men do not even spend time on housework.

Valentina Barcucci, labour economist from the ILO, affirmed: “Inequality for women in terms of job quality and career development also stems from the double responsibility they have to shoulder. They have to spend more than twice as much time doing housework as men.”

Family responsibilities require women to work more and their startup journey is often quite lonely without the support of family members.

Mai Pham, founder of “Made in Vietnam” leather goods brand Lecas, said that she was luckier than most other female startup entrepreneurs as she received a lot of support and help from her husband. However, her responsibility for their children kept her from longer business trips that men can take. While building a brand and opening stores, Pham also had to overcome disrespect and bullies.

However, she affirmed that if they can overcome these challenges, women founders will experience success they would not see in any other way. “Starting a business will help women become more brave and proactive. Successful women will not only earn a certain amount of respect from men, they will also be able to support and create jobs for many other women,” said Pham.

Currently, 90 per cent of employees at Pham’s business are women. They are also filling up positions that are traditionally reserved for men such as warehouse management, machinery operation, and technical management.

Vietnam’s National Strategy on Gender Equality defines that by 2025, about 20,000 women will be supported to start a business. The rate of female directors or owners of businesses is expected to reach at least 27 per cent by 2025 and 30 per cent by 2030.

Since 2017, more than 38,400 women have received support to start a business. The proportion of women holding senior leadership positions in businesses in Vietnam is 39 per cent, according to a 2020 report by Grant Thornton Vietnam.

Source: VIR

Two VN female entrepreneurs named in 2021 Forbes 30 Under 30 Asia

Two VN female entrepreneurs named in 2021 Forbes 30 Under 30 Asia

Three Vietnamese women, including two entrepreneurs and a fashionista, were listed in the 2021 Forbes 30 Under 30 Asia, which was announced on April 20.   

The female successors of Vietnam's tycoons

The female successors of Vietnam's tycoons

Despite their young ages, a number of women hold important positions in large corporations and own assets worth trillions of dong.

 
 

Other News

.
Vietnam Airlines resumes several international routes as of mid-July
Vietnam Airlines resumes several international routes as of mid-July
BUSINESSicon  12/07/2021 

Vietnam Airlines announced on July 12 that it will reopen international routes from the country to a number of destinations in Asia, Europe, and Australia between July and October.

Coal conundrum ahead forces Vietnam to rethink priorities
Coal conundrum ahead forces Vietnam to rethink priorities
BUSINESSicon  12/07/2021 

While the pressure on the environment and issues like climate change are increasing, it remains difficult for Vietnamese companies and the government to turn away from fossil fuels completely.

Vietnam spends nearly $2 billion importing meat
Vietnam spends nearly $2 billion importing meat
BUSINESSicon  12/07/2021 

Vietnam's total import turnover of livestock products in the first six months of 2021 is estimated at US$1.82 billion, a year-on-year increase of 8.9 per cent.

Businesses adapt to the pandemic, offer workers temporary housing
Businesses adapt to the pandemic, offer workers temporary housing
BUSINESSicon  12/07/2021 

Many businesses and manufacturers are finding ways to adapt to the COVID-19 pandemic, maintaining operations and keeping workers safe.

Bac Lieu prioritises renewable energy
Bac Lieu prioritises renewable energy
BUSINESSicon  11/07/2021 

The Mekong Delta province of Bac Lieu has chosen renewable energy as one of its top priorities, aiming to restructure the economy towards green growth and sustainable development.

Vietnam - top destinations for ASEAN companies looking for growth opportunities
Vietnam - top destinations for ASEAN companies looking for growth opportunities
BUSINESSicon  11/07/2021 

The country continues to offer appealing business and investment opportunities given its strong fundamentals.

Vietnam FTA portal to be upgarded
Vietnam FTA portal to be upgarded
BUSINESSicon  11/07/2021 

The Vietnam Free Trade Agreement Portal (FTAP) with people and businesses at the center of its service is aimed at improving the quality and efficiency of Vietnam's FTAs implementation.

Online investment apps offering choice and clarity
Online investment apps offering choice and clarity
BUSINESSicon  11/07/2021 

The stupendous surge of retail investors across the globe has prompted digitally-led investment applications and online platforms to develop, as they look to automatically optimise their passive indexed portfolios.

E-commerce platforms to be connected with tax agencies from next year
E-commerce platforms to be connected with tax agencies from next year
BUSINESSicon  10/07/2021 

E-commerce platforms must be electronically connected with tax management agencies from the beginning of next year, not from next month, as the tax watchdog aims to better collect taxes from sellers operating on the platforms.

Hoa Phat to boost digital transformation through strategic collaboration with CMC Corporation
Hoa Phat to boost digital transformation through strategic collaboration with CMC Corporation
BUSINESSicon  12/07/2021 

Hoa Phat Group has chosen CMC Corporation as a strategic consulting partner to help accelerate its digital transformation journey in the next 5 years.

Technology comes to aid of HCM City small retailers amid COVID challenges
Technology comes to aid of HCM City small retailers amid COVID challenges
BUSINESSicon  10/07/2021 

Within a few hours of offering to sell vegetables online, Thanh Truc sold out her stocks and had to refuse orders.

Vietnam aims to have 7 world-class state-owned corporations
Vietnam aims to have 7 world-class state-owned corporations
FEATUREicon  12/07/2021 

The world is changing, with many great opportunities opening up for Vietnam.

VN agricultural exports hit record: achievements and worries
VN agricultural exports hit record: achievements and worries
FEATUREicon  12/07/2021 

Amid difficulties and disruptions caused by the Covid-19 pandemic, Vietnam's agricultural exports in the first 5 months of 2021 still reached $22.5 billion, up 30.1% year on year.

Vaccine passport: key for tourism during pandemic
Vaccine passport: key for tourism during pandemic
FEATUREicon  11/07/2021 

A vaccine passport is a new concept mentioned by many countries to open borders.

Industrial development needs State’s long-term vision
Industrial development needs State’s long-term vision
FEATUREicon  10/07/2021 

To develop the processing and manufacturing industry, the State needs to have stronger policies that focus on domestic enterprises. To have strong policies, it needs strong resources.

Vietnam needs more private corporations
Vietnam needs more private corporations
FEATUREicon  10/07/2021 

After over 30 years of Doi Moi (reform), Vietnam has had large private groups operating in many industries with international stature. There are also Vietnamese USD billionaires, but only a handful.

Vietnam should not be slow in opening its door: economists
Vietnam should not be slow in opening its door: economists
FEATUREicon  10/07/2021 

Prime Minister Pham Minh Chinh has said that Vietnam should not adjust the development goals and agrees with the two GDP growth scenarios designed by the Ministry of Planning and Investment (MPI).

Lychees and the agricultural revolution in Vietnam
Lychees and the agricultural revolution in Vietnam
FEATUREicon  09/07/2021 

Farmers in the northern province of Hai Duong have earned revenue of VND1,600 billion in the lychee season this year, the highest ever. 

Stock market continues to draw new investors
Stock market continues to draw new investors
BUSINESSicon  12/07/2021 

Cash flow from individuals and businesses deposited in banks at low interest rates has been increasing gradually, while capital mobilization in the securities sector has also been quite active.

VIETNAM BUSINESS NEWS JULY 10
VIETNAM BUSINESS NEWS JULY 10
BUSINESSicon  10/07/2021 

Pork imports surge during first half of 2021

 
 
 
Leave your comment on an article

OR QUICK LOGIN