The power of women is changing the world. Throughout our culture, from the #metoo movement to the growing (and record) number of women running for office, women are flexing their power like never before.
Women-owned businesses have been growing steadily for the last 11 years (even during the recession). The number of women-owned businesses rose 58 percent from 2007 to 2018, according to a 2018 report on women-owned businesses from American Express, and now account for 40 percent of U.S. businesses. During that time, employment, revenues and new business starts all grew substantially faster for women-owned businesses than for businesses overall.
Why is it so important to encourage the growth of women-owned businesses?
Despite their growing numbers, just 1.7 percent of all women-owned firms have revenues of $1 million or more. However, those businesses contribute a disproportionate share to the economy and to employment. In other words, the more the better!
When women-owned businesses reach $250,000 in revenues, growth in both employment and revenues begins to take off, according to the same report. Supporting businesses that are approaching the $250,000 threshold (or have just crossed it) can help increase the number of $1 million-plus women-owned businesses—and that benefits us all.
How can you support women in business?
Here are five things you can do to help other women-owned businesses—and your own.
1. Show support with your dollars. Seek out women-owned businesses to buy from. If you can’t find entrepreneurial sources for what you need, look for businesses that have women in top leadership positions and show real commitment to a more equitable workplace. Support them by buying from them, and encourage others to do so, too.
2. Learn and share the history of women in business. Women business owners are sometimes treated like a recent development, but in fact, we’ve been contributing to America’s economy since our nation began. Consider Madame C.J. Walker. Born to freed slaves in 1867, she built a business that was valued at more than $1 million when she died in 1919—yet her story isn’t shared in most history books. Change that by learning about Walker and other groundbreaking women business owners and sharing their stories.
3. Take advantage of government programs. Linda McMahon, a successful entrepreneur in her own right as former World Wrestling Entertainment CEO, has long been involved with helping women entrepreneurs. Now, as Administrator of the Small Business Administration (SBA), McMahon is proud of the 109 Women’s Business Centers across the country, where women can get business training, advice and counseling, assistance competing for federal contracts, and access to credit and capital. Learn more about programs and assistance for women business owners from SBA.
4. Are you just starting out in business? Get a boost for your startup from business incubators, accelerators and boot camps for women entrepreneurs. (Here are six of the top programs to check out.)
5. Are you a successful woman business owner? Give back to other women entrepreneurs by mentoring a startup entrepreneur. Become a SCORE volunteer and mentor other business owners, or contact your nearest Small Business Development Center to see if they need help providing advice and consulting to small business owners.
As women, we’re stronger when we work together. Reach out to give to other women and get help from them in return. That’s the real power of women in small business.
About Rieva Lesonsky
Rieva Lesonsky is CEO and Co-founder of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBizDaily.com. A nationally known speaker and authority on entrepreneurship, Rieva has been covering America’s entrepreneurs for more than 30 years. Before co-founding GrowBiz Media, Lesonsky was the long-time Editorial Director of Entrepreneur Magazine. Lesonsky has appeared on hundreds of radio shows and numerous local and national television programs, including the Today Show, Good Morning America, CNN, The Martha Stewart Show and Oprah.
Lesonsky regularly writes about small business for numerous websites and for corporations targeting entrepreneurs. Many organizations have recognized Lesonsky for her tireless devotion to helping entrepreneurs. She served on the Small Business Administration’s National Advisory Council for six years, was honored by the SBA as a Small Business Media Advocate and a Woman in Business Advocate, and received the prestigious Lou Campanelli award from SCORE. She is a long-time member of the Business Journalists Hall of Fame.
Bank of America, N.A. engages with Rieva Lesonsky to provide informational materials for your discussion or review purposes only. Rieva Lesonsky is a registered trademark, used pursuant to license. The third parties within articles are used under license from Rieva Lesonsky. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.
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