The beginning of the 21st century was a turning point for women-owned businesses. In 2000, women owned only 33% of all small businesses. Today, women own more than 51% of all small businesses.
Extraordinary Financial Impact
Women-owned businesses contribute nearly $3 trillion to our national economy and create or maintain 23 million jobs, according to new research by the Center for Women's Business Research.
"Women-owned firms employ or generate a total of 16% of the jobs in our nation's economy," said Gwen Martin, Executive Director of Research for the Center for Women's Business Research. http://www.womensbusinessresearch.org
Further research conducted by the Guardian Life Small Business Research Institute projects that women-owned businesses will create an additional 5+ million jobs by 2018. This prediction has far-reaching effects for both of our economy and for organizational culture. http://www.smallbizdom.com
Extraordinary Employment Impact
Based on the Institute's projections, women-owned small businesses will generate more than half of the 9.72 million new small business jobs expected to be created, and approximately one-third of the 15.3 million total new jobs anticipated by the Bureau of Labor Statistics by 2018.
Extraordinary Organizational Impact
As a result of the increasing influence and business leadership of women business owners, tomorrow's workplace will be far less hierarchical," said Mark Wolf, Director of The Guardian Life Small Business Research Institute. "This distinctive approach strongly counteracts the top-down, command-and-control style of management long practiced by their male counterparts."
Specifically, research has proven that women leaders are:
- More diligently engaged in strategic and tactical facets of their business
- More proactively customer-focused
- More likely to incorporate community and environment into their business plans
- More receptive to input and guidance from internal and external advisers
- More committed to creating opportunities for others
"This women-led management approach will have a profound impact on the employees and customers connected to these businesses," said John Krubski, research adviser to the Institute. "Women small business owners will ultimately create more opportunities for employees to grow in their jobs and inspire others to start their own small businesses - all while providing customers with superior service."
The institute's projections are based on a rigorous analysis of converging factors, including the faster growth rate of women-owned businesses vs. male-owned; higher college graduation rates by women vs. men; and the predicted growth of industry sectors and occupations dominated by women.
The projection also reflects the timely fact that women-owned businesses are more often self-funded than male-owned ones and are therefore less reliant on bank financing at a time when many business owners say small business lending practices are more restricted.
Comments
Great article. Wish there was more funding for women-owned businesses. As a female business owner, financing is one of my biggest obstacles, but collectively, we're definitely making huge strides.
Hi Mimi: I've posted a few articles recently on how to really stretch your money. All small businesses struggle with funding. That's why we need to get creative! bartering whenever possible for other services is always good... it builds our list of clients and creates mutually beneficial relationships without impacting our cash flow. Partnering with larger firms to get work that you may not be able to secure yet is another way to slowly build your portfolio with minimal risk. You're doing great! Congratulate yourself on your success.
Thanks for starting the New Year off with a such a positive article. The saying "behind every great man is a great woman" will soon be "in FRONT of every great man is an equally great woman, making a difference in all the lives she touches, locally and globally." I believe we have always had the power to change the world in a positive way and now armed with confidence and know-how we will see those changes come to fruition.
Wishing everyone a Happy, Prosperous, and healthy New Year now and always,
Heidi Richards Mooney, Publisher
WE magazine for Women
Thanks for the great article Marissa...Yes, I agreee that the largest challenge for our clients is having the reveune to build their businesses. Ovber the last 2 1/2 years, we have discovered jhow little (in general) business owners understand their finance. AS business coaches, our team focuses early on cash flow projections and bringin in other trusted professionals (CPS, Business Brokers/Buisness Attorneys/etc) to make sure the business foundation is strong before growth is planned.
Barb Kyes
President & Managing Partner
Certified Business Coach
ActionCOACH (Pinellas, Florida Firm)
linkedin.com/barbkyes
Hi Barb & Heidi: Thank you so much for the comments. Wishing you a healthy and prosperous 2010!
I have spent 20 years fighting against gender discrimination. My goal has been to create a level playing field regardless of gender, race, religion, etc. Part of the battle is to hold those who discriminate accountable. The next part of the battle is to recognize talent and ability. There is still a great deal of work that has to be done. However, it is better than it was 20 years ago.
To answer Mimi's comment, there is funding and other benefits available for women-owned businesses. There are also ways to deal with the other obstacles.
Perhaps a conference is in order?
David Gabor
400 Garden City Plaza
Suite 406
Garden City, New York 11530
(516) 248-2525
esqs@gaborlaw.com
Thanks Marissa for the article. We will be creating one of the 5 Million jobs - we plan to hire in the first quarter of the year.
Dear Marissa,
Your article was encouraging! I completely agree how men business owners rely on financing more than women. My company sales have been low this past year but we manage to survive. Wish you a happy new year.
Hi Marissa,
Thanks for sharing these great stats. I'm curious to know where the first stat (Women own 51% of small businesses) came from?
Thanks!
Claire
Yes, we can do it. Nice article
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