The impact of women entrepreneurs is large and growing. Companies owned by women make up 20% of all businesses in the U.S. and employ more than 10 million people. The revenue decreases, supply problems, cost hikes and hiring challenges of the past few years have been challenging for small companies, and women-owned businesses are no exception.

We recently discussed opportunities and obstacles facing women entrepreneurs with Sarah Lindstrom, Citizens’ president and head of business banking.

Citizens: What obstacles do you see for women entrepreneurs currently?

Sarah Lindstrom: Women entrepreneurs face a number of challenges. Inflation has been on the rise, therefore many small businesses feel like they have less money. While interest rates are historically low, they’re increasing, making it more expensive to borrow money. Many women-owned businesses were not as well financed as their male counterparts before the pandemic, and they continue to feel the effect of that. Of course, add to this that many business owners are still facing supply chain challenges and labor shortages.

Citizens: Aside from having the right financing, what else can entrepreneurs do to set their businesses up for success?

Lindstrom: Listen to your customers and develop relationships with them. This will show them you’re a true partner. My first job out of college was working as a banker at an in-store retail branch. I learned there that if you take the time to strike up a conversation with someone and really listen, you learn a lot. Everyone has a unique journey and story to their business—if you listen to your customer, you’ll learn how to serve their needs. It also gives you insight into your competition to help you better understand your marketplace. This will help you continue to evolve and stay relevant.

Citizens: What challenges have you faced as a female leader, and how did you address them?

Lindstrom: It can feel challenging to have a voice at the table, to show that you’re a visionary and strategic thinker. A woman I know who runs an engineering business recently told me that “imposter syndrome”—doubting one’s own abilities and feeling like a fraud—was one of her biggest challenges. It surprised me, because she’s one of the most self-assured, confident women I know. But this is a challenge that we face every day. Having confidence in who you are, remembering your past accomplishments and having the right network in place to help fill in any of your blind spots can give you the support to tackle any problems you need to solve.

Citizens: What advice do you have for entrepreneurs leading a team?

Lindstrom: In my experience, it’s important to lead with empathy. I lead from the heart. I’m a big believer that if you invest the time to get to know your team and show them that you care about them as people, they’re going to invest more into work and serving their customers. I’m all about supporting my team and helping them on their journey.

Citizens: How important is networking?

Lindstrom: I wouldn’t be where I am today had I not made the right connections. You never know when you’re going to be able to help somebody or when you might need some advice yourself. I’ve been very intentional about networking and mentorship. Every week I try to connect with somebody in my network. I recently spoke with a woman I connected with through a networking group. We’d never met face to face, but she had an interesting career path and there were things we learned from each other. I also had great mentors that gave me feedback along the way, and so it’s important to me to invest in the female business owners and leaders of the future. You have to pay it forward.

Citizens: Is it important to take risks in business?

Lindstrom: Yes. You’ve got to take calculated risks and you have to understand the pros and cons of those risks, and whether they can help your business grow. As a professional, there are risks I’ve taken to advance my career. There were many times I turned down opportunities because it wasn’t the right time, and there were times where I decided with my family to take a calculated risk. In some instances, such as the time we moved to New England for an opportunity, it paid off. In others, such as the time we relocated to California from Chicago and my position was changed significantly within eight months, we questioned the decision. Every opportunity comes with risks, and every opportunity can lead to growth and how you respond to those challenges can help set you apart. As a business owner, you need to invest in your company to take it forward, but have a solid plan in place to mitigate risks.

Citizens: How do you balance the demands of your career with self-care?

Lindstrom: It starts with taking care of yourself. If I’m not the best version of myself at work, my team will feel it and we’re not going to be as strong as we could be. I make sure I can devote time to my own self-care—working out, meditating and making time for my family as well. If you love what you do and you’re passionate about it, it doesn’t feel like work. But work is demanding, and you need to take time to breathe, relax and recharge so you can be the best leader for your team.

Citizens: What can business owners do to put their companies on firm financial footing?

Lindstrom: Take advantage of all the financial tools available to you, and consult with your network of advisors, including your banker. The right financing improves access to cash flow and credit when you need it, and your banker can help you to understand what is available and best for your needs. If something unexpected happens, a line of credit can help you continue paying your employees and serving your customers. Options such as business loans or business credit cards also enable you to reinvest in your business, so you can innovate and market new products and services.

Resources for Women Entrepreneurs

A number of organizations have programs to support women-owned businesses:

Small Business Administration (SBA). The SBA’s Women-Owned Small Business (WOSB) Federal Contracting Program enables qualified businesses to compete for federal contracts in specific industries where WOSB are underrepresented.

Office of Women’s Small Business Ownership (OWBO). The OWBO helps women entrepreneurs with programs conducted through SBA district offices, including training, advocacy and support.

Ladies Who Launch (LWL). LWL’s mission is to empower women and nonbinary entrepreneurs with free educational, networking and financial opportunities.

SCORE for Women Entrepreneurs. Funded in part by the SBA, this nonprofit offers mentorship, education opportunities and other tools to support women-owned businesses.

Association of Women’s Business Centers (AWBC). This network of nearly 150 Women’s Business Centers around the country provides training, mentorship, business development and financing opportunities to more than 150,000 women entrepreneurs each year.

Amber Grant. Founded by WomensNet, Amber Grant awards over $30,000 each month, including a $10,000 grant to a women entrepreneur and a $10,000 grant to an entrepreneur in a selected business category such as hair care, creative arts or animal services.

National Women’s Business Council (NWBC). This nonpartisan federal advisory committee makes recommendations to the president, Congress and the SBA on issues of importance to women business owners and entrepreneurs.