Gone are the days when women’s roles were confined to the domestic sphere. Today, women are stepping into leadership positions and taking charge of their destinies like never before. There are 114% more women-owned businesses than at the beginning of the 2000s. The rise of women-owned businesses is a testament to the incredible strides in pursuing gender equality and empowerment. From startups to established enterprises, women entrepreneurs are carving their niche across various industries, challenging traditional norms, and shaping the future of commerce. In this blog, we’re crunching the numbers and spitting the facts on the entrepreneurial journey of women-owned businesses.

The Growth of Women-Owned Businesses

The entrepreneurial spirit of women knows no bounds, as evidenced by the exponential growth of women-owned businesses worldwide. Recent statistics vividly show this rising trend, showcasing women entrepreneurs’ significant contributions to the global economy.  

In entrepreneurship, women-owned businesses are not merely keeping pace with their male counterparts but surpassing them in growth and impact. From 2012-2019, women-owned businesses grew 16.2% compared to men-owned businesses’ 5.2% growth rate. In addition, the gross income of women-owned businesses increased by 52%, an exponential amount, while men-own businesses saw an increase of 34%. This trend underscores the resilience and stamina of women entrepreneurs as they navigate the challenges of the business landscape with determination and ingenuity. 

The growth rate comparison also signifies a shift in traditional business dynamics, debunking the notion that entrepreneurship is male-dominated. Women-owned businesses employed 10.8 million workers in 2019, a 28% increase from the employment rate in 2012. Conversely, men-owned businesses only saw a 10% increase in employment. Women are proving to be visionary leaders, successfully steering their ventures to new heights and challenging the status quo.

Historically, women-owned businesses are underfunded compared to men-owned businesses. To start, women ask for $33,000 less in business financing than men and receive about $5,000 less in loans on average. Additionally, women receive only 7% of venture funds for their startups. However, this does not stop women-owned businesses from succeeding. To get around these disparities, women have turned to crowd-funding. With this strategy, women have a 70% success rate in achieving their goal funds compared to only 60% of men.

Women entrepreneurs leave an indelible mark across various industries, breaking barriers and creating paths for others to follow. Some of the industries where women entrepreneurs have excelled include:

• Technology and innovation
• Healthcare and biotechnology
• Finance and fintech
• Beauty and fashion
• Education and training
• Sustainability and social enterprises

Across each sector, the ventures of women entrepreneurs exemplify a commitment to excellence, vision, and social impact, driving positive change and redefining the future of business.

Impact on the Economy and Society

The emergence and success of women-owned businesses have become a significant driving force behind economic growth and prosperity. As women entrepreneurs continue to break barriers and establish thriving ventures, their contributions to the global economy cannot be underestimated. The economic impact of women-owned businesses is evident in several ways:

• Job creation: As previously mentioned, women-owned businesses employ at a higher rate than men-owned businesses.
• GDP growth: The growth and expansion of women-owned businesses directly contribute to the country’s overall Gross Domestic Product (GDP), bolstering economic performance.
• Innovation and creativity: Women entrepreneurs are at the forefront of innovation, introducing new products, services, and business models that drive competitiveness and economic advancement.
• Global trade: Women-owned businesses play a crucial role in international trade and export, enhancing global economic integration and fostering cross-border collaboration.
• Investment and finance: The rise of women-owned businesses has increased investment and financial support, attracting capital inflows and stimulating economic activity.

Beyond their economic contributions and empowerment efforts, women entrepreneurs frequently champion social initiatives and community development. Driven by a desire to create a positive impact, women-owned businesses often engage in various philanthropic activities, including:

• Social entrepreneurship: Women entrepreneurs frequently launch social enterprises that address pressing social and environmental issues, ranging from poverty alleviation to environmental sustainability.
• Community engagement: Women-owned businesses actively engage with local communities, supporting education, healthcare, and infrastructure development.
• Women’s empowerment programs: Many women entrepreneurs initiate programs to uplift and empower other women, providing mentorship, support, and networking opportunities.
• Corporate Social Responsibility (CSR): Many women entrepreneurs initiate programs to uplift and empower other women, providing mentorship, support, and networking opportunities.

Through their commitment to social initiatives, women entrepreneurs showcase their compassion and dedication to building a better world, ultimately leaving a lasting legacy of positive change and social progress.

The Road Ahead: Nurturing Women Entrepreneurs

With so much exponential change within the last few decades, it’s exciting to see how women entrepreneurs continue to grow and succeed. As we look to the future, it is essential to cultivate an environment that nurtures and supports women-led startups and small businesses. This support can come in various forms:

1. Ensuring equal access to capital for women-owned businesses
2. Establishing specialized incubators and accelerators that focus on women-led startups
3. Encouraging large corporations and government agencies to procure goods and services from women-owned businesses
4. Simplifying administrative processes and regulations can alleviate the burden on women entrepreneurs
5. Providing ample networking and mentorship opportunities
6. Incorporating entrepreneurship education into public school curricula and promoting entrepreneurial skills development
7. Encouraging media and educational institutions to showcase the achievements of women entrepreneurs
8. Offering internship and apprenticeship opportunities within women-led businesses
9. Encouraging families and communities to support young women’s entrepreneurial aspirations

Overall, the journey of women-owned businesses from the domestic sphere to the forefront of entrepreneurship is a testament to the progress made in pursuing gender equality and empowerment. The growth of women-owned businesses at a rate exceeding that of their male counterparts highlights their resilience, vision, and determination to create meaningful change.

The future belongs to women entrepreneurs who dream big, challenge norms, and fearlessly pursue their aspirations. As we nurture and support women-owned businesses, we pave the way for a world where every woman’s entrepreneurial journey transforms dreams into a resounding reality