Unconventional Entrepreneurship and Women

Societal changes and rising economic challenges have transformed entrepreneurship, shifting its drive from traditional professional interest to passion. This new paradigm has paved the way for an unconventional approach to entrepreneurship. The key elements defining the unconventional entrepreneur include:

1) the pivotal role of passion, particularly in the pursuit of leisure and adventure;

2) the significant influence of tribes before, during, and after the entrepreneurial journey; and

3) the impact of a liquid society, which contributes to an identity crisis and fuels the quest for entrepreneurial recognition.

Unconventional entrepreneurship—defined as entrepreneurship that deviates from the traditional processes of planning, launching, and building a venture—is central to several emerging theories. These new theoretical frameworks emphasize the contexts in which individuals gain the resources and courage needed to embark on entrepreneurial ventures.

Research indicates that the average investment in companies founded or co-founded by women is half that of male-founded companies. Despite this funding disadvantage however, women-owned businesses generate higher revenues than those of their male counterparts, and the average return on investment for women-owned companies is double that of men-owned businesses.

Nevertheless, investors predominantly invest in male-owned companies. Women face more gender-based barriers to fundraising from both investors and banks. Venture funds, which ostensibly aim to optimize their investments for maximum returns, often let inherent biases hinder their objectivity. Consequently, they tend to favour companies started by men.

By most measures, women entrepreneurs are performing quite well. However, several factors contribute to women being less likely than men to pursue entrepreneurship. Firstly, women are less likely to secure the necessary funding to start a company, which naturally inhibits them from following their entrepreneurial ambitions.

Secondly, women often lack the “overconfidence” that many male startup founders exhibit. While overconfidence does not predict business success, it is a strong predictor of the desire to become an entrepreneur. Individuals who decide to start a company often have an inflated belief in their abilities to succeed. This high degree of self-belief is sometimes necessary for someone to want to quit a job and start a company.

Women excel in leveraging their passions for unconventional entrepreneurial ventures. In their everyday activities, women often learn and develop skills that can become valuable resources for innovation. Passions developed through a variety of leisure or hobby activities may lead to new forms of entrepreneurship.

An entrepreneur’s commitment may be driven by motives beyond the rational pursuit of profit; it can be based on passions unrelated to professional experience but connected to personal aptitudes and leisure interests. These passions arise from a realm focused on consumption rather than production. Most passions drive consumption, leading individuals to engage with related artifacts and share their passion with fellow enthusiasts. Simultaneously, these passions foster the development of competencies, skills, and knowledge, which in turn spur innovation.

Examples

Some illustrative examples of female unconventional entrepreneurs who translated their passion into successful entrepreneurial ventures include:

Sophia Amoruso, Founder and CEO of Nasty Gal

Sophia Amoruso exemplifies the ultimate accidental entrepreneur. At 29, she transitioned from an eBay seller to a successful online entrepreneur, generating nearly $100 million in clothing and accessories sales within seven years. In 2006, at the age of 22, Amoruso began selling on eBay while working at an art school lobby, checking student IDs for $13 per hour. Despite being a community college dropout and living in her step-aunt’s home, she discovered her passion for selling women’s vintage clothing online. By 2008, Amoruso had launched the Nasty Gal website, hired her first employee, and quit her job to focus on her startup full-time.

Today, Amoruso leads what she describes as “one of the fastest-growing retailers in the country.” She expanded her customer base through social media platforms like Facebook, Instagram, Twitter, Tumblr, and Pinterest. Her grassroots approach and distinct brand voice have cultivated a loyal following. Company reports indicate that “a quarter of Nasty Gal’s 550,000 customers visit the site daily for six minutes, with the top 10 percent returning more than 100 times a month.” In 2011, Nasty Gal generated $28 million in revenue. The following year, the company launched its free semiannual lifestyle magazine, “Super Nasty,” which covers fashion, music, and culture. To date, Nasty Gal has secured $49 million in venture capital funding.

Kim Etheredge and Wendi Levy, Co-founders of Mixed Chicks

Kim Etheredge and Wendi Levy, co-founders of Mixed Chicks, first met at a family gathering where they discovered a shared challenge as women of mixed heritage: the struggle of managing their curly hair with multiple products. In 2004, they launched Mixed Chicks, a hair care brand tailored to women of mixed heritage. They initially promoted their products through grassroots efforts, building awareness for their e-commerce website. Today, Mixed Chicks products are available in nearly 1,000 beauty supply stores and salons across the United States and internationally.

Takeaway:

Despite the fact that men seem to venture more into the entrepreneurial world, women outperform them in unconventional business ventures that are fuelled by their personal passions!

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