Celebrating Female Entrepreneurship During Women’s History Month
Over the last 50 years, the number of women business owners has grown exponentially — and the ceiling is still very, very high.
By Kim Folsom
March is Women’s History Month, and we have so much to celebrate — especially in the business world!
Ladies, we’ve come a long way since 1972 when female entrepreneurship was first mentioned in the U.S. Census. Today, 36% of small business owners are women. They rock health, beauty, and fitness businesses. They run restaurants, retail stores, education-related businesses, and business services. One out of four healthcare startups are led by women. Plus, women are more inclined to start up their own endeavor rather than buy an existing one — almost 60% of the largest female-owned businesses started from scratch, according to What to Become.
The number of women business owners grew from 402,000 in 1972 to 12.3 million in 2018, and there are no signs we’re slowing down with 1,821 net new women-owned businesses launching every day in 2018 — and 64% of those being founded by women of color. According to the Women’s Business Enterprise National Council, women-owned businesses generate $1.8 trillion per year in the U.S.
Middle-aged women are crushing it, too. With years of professional experience behind them, 62% of female business owners are between 40 and 59 years old.
At the same time, we still have a long runway. Almost 90% of women-owned businesses generate less than $100,000 annually, and only 2% generate more than $1 million. Only 25% of women business owners seek financing, and women receive just 7% of venture funds for startups. That $1.8 trillion in business that women-owned companies generate that I mentioned above? While fantastic, it’s only 4.3% of total private sector annual revenue. So, we have room to grow.
It’s not easy right now. According to Forbes, in America’s ecosystem, companies often operate in the red for years before becoming profitable. Their sustainability is often made possible by outside investors or their ability to secure loans from commercial banks or credit unions. Unfortunately, Black entrepreneurs have historically been locked out of these kinds of funding operations, especially Black women. The COVID-19 pandemic has made it all the more difficult, with Black-owned businesses in leisure, hospitality, transportation, and retail being the hardest hit. Without deep financial reserves or government assistance, hair salons, catering, and restaurants, and many businesses have faced heart-wrenching closures.
But even beyond that, many women feel less optimistic than men when it comes to their business performance. Part of that comes from the lack of education or training. This is exactly why Founders First CDC’s mission is to help women and other minorities succeed by offering them the know-how, resources, mentorship, and introduction to possible funding sources to help them excel. Many women entrepreneurs have graduated from our Challenges, Bootcamps, and FastPath training to fantastic results. Consider joining us!
You can also find resources for women-owned small businesses at the SBA.
No matter what stage your business might be in — enduring the effects of the pandemic, soaring to new heights, or still incubating an idea and waiting for your opportunity — the future looks bright. We’re celebrating with you during Women’s History Month — and all year long!
Kim Folsom is the founder and CEO of Founders First Capital Partners, which has helped accelerate the success of hundreds of small, service-based, business-to-business companies since 2015. Visit our website to learn more.
