Happy National Women’s Small Business Month! Throughout October, we want to recognize both women-owned businesses and women who are now taking the plunge into business ownership.
The number and economic contributions of women-owned firms continue to rise at rates higher than the national average – with even stronger business formation rates seen since the recession. Between 2007 and 2016, the number of women-owned firms increased by 45%, compared to just a 9% increase among all businesses, according to a survey made by American Express.
Small women businesses are on the rise; it is important to highlight the progress women business owners have made but also shed light on challenges they continue to face.
Familiar to any woman who has sought funding to start or grow her business is the difficulty of getting access to capital compared to our male counterparts.
According to a 2014 report by the Senate Committee on Small Business and Entrepreneurship, women account for only 16 percent of conventional small business loans and 17 percent of U.S Small Business Administration loans even though they represent 30 percent of all small companies.
Even with that being said, over 10 million women entrepreneurs is a big number with a positive impact on the U.S. economy. Women-owned business are innovative, well thought and scalable that will create more jobs for the future and move the needle toward a healthier economy. Businesses owned by women are generating huge revenue and cities are certainly seeing a return on their investment in woman-owned businesses.
Female business owners are also changing gender dynamics. Business owners who happen to be female are simultaneously creating a paradigm shift in gender roles in the workplace and reshaping our corporate culture. With the “Lean In” approach women are empowering each other to move forward and close the gender gap.
Women-owned business growth is happening in some unexpected places: Most people think of big, populous states like California and New York as being the largest centers of American entrepreneurship. However, the states with the fastest growth in quantity, job numbers, and revenues of women-owned businesses are North Dakota, the District of Columbia, Nevada, Arizona, Georgia, Wyoming, Virginia, Maryland, Texas, and Utah.
Women also enjoy the freedom of entrepreneurship and the fact that their ideas are solving a problem in the marketplace. Like Phyllis from Well Woman, one of Rocket Lawyer customers, she found a need in the market for life coach for new moms to help them feel their best. Most of these business ideas come from personal experiences.
We want to celebrate Women’s Small Business Month by highlighting female entrepreneurs but also helping them start and run their businesses.
Do you have an idea? A business opportunity waiting for you? Let us help you, check out our business help center.