Your Support for Women-Owned Businesses is Socially Conscious and Economically Responsible

As a founder of a business, supporting other women-led businesses is one of my biggest priorities. All over the world, Women-Owned businesses supply an incredible range of products and services. When you support women entrepreneurs, you’re investing in the empowerment and economic growth of women. We’ve done our research, below we’ve compiled ways that your support for Women-Owned businesses supports women Founders economically.

HOW WOMEN-OWNED BUSINESSES ARE TAKING THE LEAD

Women-led businesses have grown substantially over the years; the growth percentage is about 58% from 2017-2018. According to statistics, four out of 10 businesses in the United States are owned by women. In 2018 alone, women started an average of 1,817 new businesses per day in the United States. Women-owned businesses represent 42% of nearly 13 million businesses overall, which employ 9.4 million workers and generate revenue of $1.9 trillion. 2019 saw a 55 percent increase in women-owned businesses in the health, beauty, and fitness industries. Food-related businesses and restaurants also had a 45 percent growth rate.

WHY IT’S IMPORTANT TO SUPPORT/SHOP WOMEN OWNED

The visible rise and success of women-owned businesses is only half of the importance as to why we should be supporting them. Women who are socioeconomically disadvantaged face an aggressive number of challenges when seeking to advance in the workforce. There is a constantly growing need to ensure that women are being provided the support and funding needed to successfully grow their businesses.

71 percent of female-owned businesses are acquired at under $100,000 in comparison to male-owned businesses which make up about 61 percent of businesses acquired under $100,000. The profitability of women-owned businesses is up by 3 percent from prior years but surprisingly, male-owned businesses are still the focal point.

One of the most significant challenges reported by women business owners is the lack of marketing and advertising, cash flow and capital. Cash flow and capital for women-owned businesses is roughly 35 percent while marketing and advertising are at a staggering 16 percent. The statistics show that gaining funding for women-owned businesses is far more difficult than those that are male-owned.

In 2014, women received only 16 percent of all conventional small business loans. Financing is even more difficult for women of color, even though women of color account for 89% (1,625 of the new businesses opened daily within the last year. While women work tirelessly to bring awareness and further the conversations around equality to systems that create these challenges, it is our support as consumers that help keep these businesses active when traditional financing and funding is a struggle for them.

Like any business, support to keep it afloat is essential. Women-owned businesses need our support now more than ever and by doing so, we are increasing the economic stability of families and our communities. Representation also matters. When younger girls are able to see women in ownership/leadership, it is a visible reminder that they too are capable of achieving such success. It is our belief that when it comes to supporting women-owned businesses and investing in them, the opportunities and advantages are endless.