Women are often driven to start businesses out of economic necessity because there’s a lack of quality job opportunities for them or they cannot reconcile the demands of being a mother and work. That is why launching our own company is often not to take advantage of a market opportunity, but to make a living and have more time to take care of our families.
Why women owned businesses are still lagging behind?
The number of women-owned businesses in the U.S. has grown dramatically, and these companies create the largest number of new jobs. Yet, for all the strides women business owners have made, their revenues still don’t measure up. Women own 4 out of every 10 businesses but don’t achieve the same financial success that men do.
First, let’s look at these statistics* about women in business that illustrate the contribution versus compensation disparity:
- Since 2007, the number of new businesses in the U.S. has increased by 12% overall. Of these new businesses, the number owned by women has increased by 58%.
- From 2007-2018, employment by all businesses declined by 0.8%, yet employment by women-owned companies ROSE 21%.
- But, nearly 90% of businesses owned by women generate less than $100,000 in revenue.
Watch this video to learn more in detail the statistics that show the inequality of profits between businesses owned by women versus men.
What’s our takeaway?
Women owned businesses almost never achieve revenues more than $250,000—the figure that triggers exponential financial growth. They miss out on the chance to develop their companies, hire significant numbers of new employees, and increase their own wealth. We have a lot of education to provide to ensure that women’s businesses are becoming more profitable. And still at this moment in time women struggle with combining our professional ambitions with their desire to raise our children.
For more information on the women-in-business statistics I highlighted in this video, please visit here.
*(Data source: 2018 State of Women-Owned Business Report by American Express and SCORE’S Megaphone of Main Street: Women’s Entrepreneurship, Spring 2018 Report.)
Beate Chelette is the Founder of The Women’s Code and serves as the Programming Chair for the National Association of Women Business Owners (NAWBO-LA). Once $135,000 in debt and a single mother, she successfully sold her business to Bill Gates in a multi-million dollar deal.
Beate’s supports Business Owners and organizations who want to reach them two-fold. As The Growth Architect she creates training, outreach and sponsorship programs through customized Entrepreneur skills training following the 5 Star Success Blueprint that shows step-by-step how to grow, build and scale businesses.
In addition Beate provides leadership development programs for organizations that want to implement the ROI of Balanced Leadership through The Women’s Code, her signature system that educates leaders and helps companies achieve gender equality. The Women’s Code creates and implements programs that improve organizational culture, foster productive work environments and help companies improve their people ROI.
Beate is a respected speaker and mentor and is the author of the #1 International Amazon Bestseller “Happy Woman Happy World – How to Go From Overwhelmed to Awesome”, a book that corporate trainer and best-selling author Brian Tracy calls “a handbook for every woman who wants health, success and a fulfilling career.”
If you’d like to book Beate as a speaker on Leadership or Entrepreneurship for your next event please connect here.