The Reality of Discrimination Against Women in Business -- And How To Overcome It

Despite decades of progress, women in business continue to face significant discrimination, from funding gaps to leadership biases. While the number of women entrepreneurs and executives is steadily rising, the systems around them have not evolved at the same pace. The result: many women are still underpaid, underrepresented, and undervalued.

This article outlines the most pressing disparities women in business face today, backed by data—and offers strategies to overcome them.

The Gender Funding Gap

Perhaps the most glaring disparity in business is access to capital. In 2023, only 2% of venture capital funding in the U.S. went to startups founded solely by women, according to PitchBook and the National Women’s Business Council. When women of color are factored in, that number drops to less than 1%.

Even when women do secure funding, they often receive smaller investment amounts. Harvard Business Review reports that male entrepreneurs are more likely to be asked about potential gains and vision, while women are questioned about risk and defensiveness, revealing bias even in pitch meetings.

Income Inequality and Profit Disparity

The gender pay gap persists in entrepreneurship as well. A 2023 FreshBooks study found that women small business owners earn 28% less than their male counterparts in the same fields.

This isn’t always because they charge less—though social pressures often encourage underpricing—but because women-owned businesses are less likely to receive large contracts, recurring clients, or high-profile opportunities. Systemic underestimation of female-led businesses leads to lower profit potential, even with equal talent and work ethic.

Barriers to Leadership and Representation

Representation in leadership is slowly improving, but progress remains uneven. As of 2023, only 10.4% of Fortune 500 CEOs are women. For women of color, the numbers are even more stark: fewer than 2% of all Fortune 500 CEOs are Black, Latina, or Asian women combined.

Boardrooms also lack gender balance. According to Catalyst, women hold 30% of board seats on average across S&P 500 companies—but many boards still have only one or no women at all, creating environments with limited perspective and persistent bias.

Invisible Labor and Burnout

Women in business often take on more invisible labor, especially in leadership. They are more likely to:

• Mentor junior staff without compensation

• Lead diversity and inclusion efforts

• Manage emotional support roles within teams

McKinsey’s Women in the Workplace report (2023) found that women managers are 1.5 times more likely than men to spend significant time on DEI work—often with no reduction in other responsibilities.

At the same time, they are more likely to face burnout. Nearly 43% of women leaders report feeling burned out, compared to 31% of men at the same level.

Overcoming Systemic Barriers: Actionable Strategies

While systemic change is necessary, there are practical ways women in business—and their allies—can begin shifting the landscape:

1. Normalize Transparent Pricing and Value-Based Rates

Women entrepreneurs should price based on value, not assumptions or fear of rejection. Pricing audits, coaching, and industry benchmarking can help ensure services and products are aligned with market rates and profitability.

2. Leverage Women-Focused Funding Platforms

Organizations like iFundWomen, SheEO, and the Tory Burch Foundation offer grant opportunities, networking, and investor education specifically for women founders. These platforms help bypass traditional gatekeeping in VC funding.

3. Advocate for Representation and Equity Internally

For women in corporate settings, advocating for gender-balanced teams and promotions matters. One seat at the table is not enough—representation at multiple levels is necessary to break recurring patterns of exclusion.

4. Outsource or Delegate Invisible Labor

Whenever possible, business owners should outsource administrative tasks, automate repetitive work, and set boundaries around emotional labor. Time and energy are business assets—and should be protected as such.

5. Build Strategic Networks

Studies consistently show that women benefit from mentorship and sponsorship. However, access to strategic connections—those who can refer clients, offer capital, or open doors—is often missing. Women need networks that combine support and opportunity.

6. Invest in Your Own Leadership Development

Whether through executive coaching, leadership retreats, or specialized training, women must prioritize their own growth—even if the system does not. Leadership presence, negotiation, and visibility are skills that create long-term impact.

Final Thoughts

Discrimination against women in business is not anecdotal—it’s quantifiable, and it’s systemic. Yet women continue to rise, build, lead, and transform industries. The road may not be level, but it is navigable—with strategy, community, and resilience.

The key is not to ask women to work harder—it’s to build better systems, call out bias when it appears, and ensure future generations have fewer obstacles and more opportunities.