This raises the question: what are the major challenges for women when starting a business? Why do they embark on this journey, and what lessons do they learn from being entrepreneurs? Which areas would they seek help in and how can they receive it? Our article explores these questions, especially in light of Visa announcing this year's She’s Next grant program aimed at supporting female entrepreneurs.

What Do the Numbers Say?

Comparing the gender distribution of business owners in Hungary reveals that there are nearly two and a half times as many male business owners (193,230) as female ones (80,366). The gap narrows when considering sole entrepreneurs, yet women are still outnumbered: for every 10 male entrepreneurs, there are 7 female. According to recent research by Visa, which examined various aspects of entrepreneurship, the primary motivator for Hungarian women to start their own business is the desire for independence. However, the possibility of innovating in their field also plays a significant role. The study also noted that men are more likely than women to start businesses with the expectation that it will significantly improve their financial situation.

The research revealed that many women face numerous challenges at the outset, including over half of the respondents struggling with a lack of confidence and many encountering financing difficulties. Following these, managerial challenges are common, and two-thirds of the respondents lack assistance in overcoming these hurdles: many would seek help in marketing, finance, digitization, and e-commerce if possible.

Venturing, Competing, Growing

The objective of Visa’s She’s Next program is to aid the development of local female entrepreneurs through mentoring programs tailored to their business needs. Last year, out of 383 applicants, 5 winning businesses were selected to receive support through personalized mentorship programs, in addition to a 2 million HUF grant. Bence Sármay, who is responsible for Visa's operations in Hungary, shared, “We continue to strive towards creating a more equal and inclusive economic environment. We aim to highlight the importance of female entrepreneurs and channel resources where they are most needed especially now, as they face many economic challenges.”

From Editing Suites to Carpentry Workshops

Hungarian women entrepreneurs who recognize development opportunities in their businesses often seek support, especially if it comes from experienced professionals via knowledge transfer. One of last year’s winners, Csilla Zsély, owner of Fatipli Workshop, highlighted mentorship as the most valuable aspect of the contest. Transitioning from a film editor to a carpenter, Zsély who designs, refurbishes custom furniture, and conducts workshops, expressed, “I felt the need for external inspiration and a new impulse to progress in my business and to realize those plans I struggled to advance on my own. The mentorship program offered a long-term benefit I saw. Previously, I enjoyed brainstorming with others, something naturally missing from my sole entrepreneurship, as was continuous feedback. Being a finalist alone would provide a tremendous boost and affirmation that it's worth pursuing my ideas and plans.” Zsély experienced a surge in momentum from the mentorship, acquiring a new mindset and learning tools and practices to navigate challenges, “Thanks to the mentorship, I finally conducted the carpentry workshops I envisioned back in summer 2021, which had seen no progress for 2.5 years. Within three months after our first mentoring session, I announced my first workshop. The opportunity for regular brainstorming sessions was invaluable for me.”

Holding a Mirror to Each Other

Among last year's winners was Nóra Németh, creator of PregHello, a mobile app supporting expectant mothers, mentored by Albert Sárospataki. Sárospataki emphasized the role of a mentor in identifying personal and emotional blockers to business growth and success. “A mentor's job isn't to solve problems for the entrepreneur but to ask questions that broaden perspectives and lead to solutions, enabling the entrepreneur to find the right path themselves. It’s crucial that the entrepreneur feels ownership over their ideas and solutions, as this maintains high motivation and is reflected in business outcomes. I believe that everyone has the answers within them; it’s just about bringing them out,” shared Sárospataki. Through their collaboration, PregHello’s revenues significantly increased, a new growth strategy was developed, and the team expanded. Németh described Visa’s She’s Next as an immensely supportive challenge and encouraged every female entrepreneur to apply.