The Future is Being Created by Women Owned Business.
But we have a long way to go.
In the United States, the number of women-owned businesses are growing daily, and I for one couldn’t be any more excited to support this powerful trend!
According to reports recently shared by Fundera at the end of 2020...
With 12.3 million women-owned businesses, 40% of all U.S. businesses are women-owned.
U.S. women-owned businesses generate $1.8 trillion a year in revenue.
Women started 1,821 net new businesses every day last year.
There are 114% more women entrepreneurs than there were 20 years ago.
62% of women entrepreneurs cite their business as their primary source of income.
There’s a LOT of amazing news in these statistics for women in business! Woo hoo!
And honestly, the fact that female entrepreneurs are growing in number daily makes a whole heck of a lot of sense as we’re coming out of this pandemic.
Why are the number of women in business growing post-pandemic?
It’s no secret that women bore the brunt of the burden for their families during the COVID-19 pandemic.
According to Fortune, women have now lost more than three decades of labor force gains in less than a year. In January 2021 alone, nearly 80% of the 346,000 workers who vanished from the U.S. labor force were women.
Also, researchers from Montana State University found that the pandemic disproportionately affected women in their mental loads, workplace disruptions, and impacts on daily life. This was especially true for women with children.
From running virtual classrooms at home to planning extra meals for the whole family, the majority of the stress and labor fell to women.
And the result:
The U.S. regressed to 1988 levels in terms of women’s labor force participation, meaning we’ve lost 32 years of progress toward gender equity in the labor markets—all in a span of 11 months. (Katica Roy, Pipeline Equity in Fast Company)
Personally, I find some hope in the fact that while women are leaving corporate jobs; the number of women launching their own companies is soaring.
The pandemic just accelerated the growth of women launching companies - a movement that was already in motion.
Between 2014 and 2019, the number of women-owned businesses in the U.S. increased 21 percent to a total of nearly 13 million, while all businesses increased only 9 percent.
The workplace and corporate America certainly aren’t supporting women or respecting what we bring to the table.
In July, Zoe Scaman published Mad Men. Furious Women detailing abuse, misogyny and harassment in the advertising industry. We’ve seen it before: in tech, in Hollywood, in the restaurant industry in Governor’s mansions. The stories of abuse, harassment and unequal pay are consistent; and consistently enraging.
A world built by men for men is not the answer for many women, and we are certainly seeing the results of this in the explosion of women-led companies.
Women in business, especially women of color in business, are the wave of the future.
The number of entrepreneurs who are Black, Latina, and other women of color is rapidly increasing in the United States.
2 powerful statics shared by Fundera:
64% of new women-owned businesses were started by women of color last year.
Latina women-owned businesses grew more than 87%.
These women are changing our country and helping us all turn things around post-pandemic.
Fast Company reports that minority female entrepreneurs generate $422.5 billion in revenue for the economy, and these women are starting businesses faster than any other group.
In fact, while women of color represent 39% of the total female population in the U.S., they account for 89% of the net new women-owned businesses per day (1,625) over the past year. (Business Wire)
As we women in business are the future of our country, and I’m thrilled about the part I get to play in supporting us grow profitably, make an impact, and thrive both personally and professionally.
Obstacles for women-led companies still abound
While Women-owned companies are launching and growing quickly; we still have lower revenue, fewer employees, and a harder time getting capital to grow.
Several studies have shown that women-owned companies have faster growth and higher profitability than their male-owned counterparts. Still, a vanishingly small amount of venture capital goes into women-owned tech businesses.
At the same time, women-owned small businesses have a harder time accessing bank loans and when we do get loans, those loans are smaller than loans to similar male-owned companies.
The statistics are predictably even worse for companies led by Black, Latina, or other women of color.
How can CFO on Speed Dial support YOU as a woman in business?
I’m so glad you asked!
Building your financial skills and continually upgrading finances is at least as important as having a great product or service and growing sales.
If you’re ready to get the skills and systems you need to quickly adapt and grow your business along with the amazing support and accountability you need along the way, then our CFO Advisor program is the place for you!
Check out the details and apply to join here: CFO Advisor Program