How To Prevent The Pandemic From Taking A Greater Toll On Women Entrepreneurs
Geri Stengel with Forbes examines trends in women business owners, what small business owners face during the coronavirus pandemic, resources helping women business owners navigate the outbreak, the importance of equal economic participation, and the economic and societal benefit of diversity in entrepreneurship.
“In this time of great need, it behooves the entire women's entrepreneurial ecosystem — policymakers, funders, supporting organizations, educators, researchers, the media, and the women themselves — to take swift bold action to expand or create policies that will address women's specific needs,” Stengel says.
Read below and click through to read the entire article.
By Geri Stengel, Forbes
Between 2007 to 2012 — the period before and after the Great Recession — the number of women-owned businesses jumped 27% while privately held businesses grew only 3.3%, according to the Survey of Business Owners by the Census. Average revenues for women's businesses decreased from $154,300 in 2007 to $143,700 in 2012 and privately held businesses revenue grew from $417,400 to $440,200 during the same period. One reason for the decline in revenue among women's businesses was a surge in startups, which had not yet achieved their full revenue potential. Another reason is that many of these businesses were necessity businesses: The entrepreneur's only viable employment option was to start a business. These entrepreneurs also tend to be sidepreneurs, working only part-time.
Like the canaries in the coal mine, women's businesses were already experiencing a downturn. Their numbers increased by 5.4% between 2018 and 2019, privately held companies only increased by 2.4%, according to the American Express 2019 State of Women-Owned Businesses.* However, after a slow but steady rise, women-owned businesses' average revenues declined from $143,100 in 2018 to $142,900 in 2019, while all privately held businesses rose from $468,000 to $474,900.
On the flip side: Women are also going for the brass ring. Between 2007 and 2012, million-dollar-plus women-owned businesses increased by 21% compared to 3.3% for all privately held businesses and between 2018 and 2019, it was 4.2% compared to 2.4%, respectively. These are the women I write about in this column.
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10 Stats That Build the Case for Investing in Women-Led Startups
Women-led startups don't just provide women entrepreneurs with opportunities—they're sound investments. From solving tech problems and fighting bias to efficiency and determination, women have had to have it all to make it in the startup scene. And from higher revenue and return on investment to performance and growth, they're making it work. Here, Forbes looks at 10 statistics that make a strong case for investing in women-led businesses.
The next Steve Jobs will be a woman. She understands how to solve a specific problem facing this world by leveraging tech. She knows the diverse and inclusive team it will take to build the product and implement solutions. She’s an experienced entrepreneur who knows how to operate with the leanest resources because, let’s face it, she’s had no choice considering how VCs have invested 98 percent of their capital in startups led by men. And the women-led startups that did raise capital, on average, raised 36 times less money in 2017 than those founded by men, according to PitchBook Data Inc.
But is the tide turning as more VCs diversify the startups in their portfolio? For example, Indie.vc, a fund founded by Bryce Roberts, (and currently accepting applications for their next round of investments) has been intentional about recruiting women-led startups since it launched and 50 percent of their portfolio is comprised of startups founded or cofounded by women. Golden Seeds has also focused on significantly diversifying their portfolio with women-led startups. Make no mistake though, these VC funds are not funding women-led startups as charity. They are investing in women founders because they understand the strong ROI of investing in diverse startups.
Here are 10 stats that build the case for investing in women-led startups. If you’re an investor, print this list out and post it on your wall to remind yourself to stop leaving money on the table. If you work with investment associates on your team, tape yellow sticky notes to their laptops so they never forget this money-making data.
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Image credit: Patrick T. Fallon | Bloomberg
12 Months of Entrepreneur Goals
By Lindsay Tigar
This article first appeared on SWAAY.
If you take a moment to look through those old dusty journals you kept as a child, teenager and college student, or simply scroll through long-forgotten iPhone notes, you’ll probably both recognize and be surprised by your musings. As a probably type-A personality who has always had many dreams, goals and ideas, you’ve likely set many resolutions for yourself, regardless of December 31 was knocking on your door or not. While having an idea of where you’d like to go and what type of career or company you’d like to lead is an important factor in success, many experts argue that starting small, shorter goals can actually be more impactful over time. And well, set you up for more accomplishments than a larger, overreaching resolution that could be hard to meet.
“Entrepreneurs are visionaries, first and foremost. We have a vision for how the world should be, and through our businesses we are creating that change. We are so inspired by our big vision, tough, that it can become overwhelming,” life and success coach Alionka Polanco says. “Small goals are important when you’re an entrepreneur because they keep you moving forward every single day to achieve your big vision!”
If you’re having trouble crunching those numbers and mentally prepping 12 tiny goals – whew! – don’t worry, we did the blueprinting for you. Here’s what to focus on, by the month:
January: Create a Vision Board
Even if you’re not artistic, a vision board can be easy to create with the help of magazines or printing off some influential images or words. As an entrepreneur, you likely find it pretty simple to dream, not only about what you hope for but what you know you can accomplish, if you put the right amount of gusto and grit behind it. That’s why Polanco says creating a vision board can help take those lofty ideas floating in your mind and give them grounding by being on paper and up where you can see them. “How do you want the year to go? This month is a great month to envision how you want to feel and what you want to see by January 1, 2018,” Polanco says. “ This way, you can reverse engineer that vision to set your goals.” Regardless if you choose construction paper or a bulletin board, make your collage as big or small as you like, just make sure it’s somewhere you can catch a glimpse each day.
February: Identify the person you’re helping.
You know all of the major components of running a business: your employees, your budget, your investors, your strategy… and of course, your customer. While February is often considered the month of romance and love, Polanco says it can also be about a different type of attraction in the business world. “Once you’re clear on who your favorite customer is, you can start attracting them by going where they go, speaking their language and winning with them,” she explains. So grab a box of chocolates, buy yourself a bouquet of flowers for your desk and figure out who you want to help, sell to, assist and attract. Without customers, after all, what would your company be?
March: Be fearless and get out there.
There’s a reason so many songs, literature and vacation plans start to feel more lively and positive in the springtime. It’s a season of change, and not just in terms of flowers and warmer temperatures – but because it seals off the first quarter of the year, giving a clearer perspective of what you can expect, predict and prepare for. That’s why Polanco says this is the time to be fearless and pitch your heart away without doubting yourself. “Spring is a time of immense growth both personally and professionally, so it’s a great time to start selling your products or services with gusto,” she explains. After all, the work you do this month could help make your numbers, your profits or your goals for the rest of the calendar year.
April: Nurture your audience.
While you likely have a firm grasp on the people who have already signed up for your service or have expressed interest in working with you, what about all those emails and all that info you have from people that haven’t been persuaded yet? As the second quarter begins, Polanco suggests taking time to nurture your prospective audience and engage with them in a meaningful year. “To keep your prospect line full, you’ll want to take care of your audience who hasn’t bought from you yet,” she explains. “This could mean hosting a free webinar, doing a blog series, or even getting on the phone with them for 15 minutes to learn what they’re most struggling with at the moment.”
May: Network.
When you look at your iCalendar and it’s bursting with deadlines, meetings, conferences, client desksides and well, dry cleaning slips and credit card bills to pay – you might roll your eyes at the very mention of an ‘after work happy hour for young entrepreneurs.’ As difficult as is it can be to prioritize networking with everything else you’re company is demanding, it’s often through these experiences that much success, impactful collaboration and partnerships are created. “Like the African proverb says, “’If you want to go fast go alone. If you want to go far, go together.’ Team up with other lady bosses and make magic,” Polanco says.
June: Host an event.
Even if you’re company doesn’t require face-to-face time to be successful, holding an event for your customers, possible customers, investors, employees and everything else that makes your engine run is a good idea. Why? Polanco says that summer yields itself to a more sociable atmosphere, and more people are inclined to get out and get involved when the weather is warm. The conversations and ideas sparked at these events could help shape your business model.
July: Rest and take a vacation
Repeat after us: even successful women take vacations. While the ability to completely disconnect, go offline and be present in the moment (with a margarita in your hand) doesn’t come natural to you, Polanco says it’s absolutely necessary to your own mental health, stability and happiness. Before you enter the last part of the year, it’s essential that you take the time that you need to regroup, relax and prepare for any challenges and goals ahead.
August: Strategize the last quarter.
“Now that you’re two-thirds of the way done, you can take inventory of what worked and what hasn’t and readjust your original year-long plans,” Polanco says. For most companies, what happens at in the last quarter is not only indicative of how hard you worked and how much you accomplished in the previous year, but it sets up how your first quarter will be. Since August is historically a slower time for most industries and international markets, you can take a moment, breathe, and really get serious about what you’ll be able to accomplish in the next few months.
September: Identify your daily metrics.
Now that you’ve made it through the majority of your calendar year, your business is chugging along and your employees are satisfied and growing professionally and personally, take a second to look inward. This is where you can begin to create and identify some micro-goals on a more intimate, individual level and acting on them. “Entrepreneurs build confidence by taking action, learning, while getting feedback on their actions and ideas and accomplishing micro goals,” Loral Langemeier, speaker, New York Times best-selling author, CEO and success and career coach says. “Micro goals strengthen your ‘action’ and ‘money making’ muscles. Just like the muscles in our body atrophy if we don’t use them, so do our action and money making muscles. The more you ‘do’, the easier it is to continue doing and to do more.”
October: Meet with your mentor.
Maybe it’s your very first boss who had a major impact on your life. Or someone you met in your industry that is revolutionary and ever-inspiring. Whoever your mentor is, take this month to actually get a date on the calendar and keep it. Take them to lunch, meet for after-hours drinks or try a new fitness class together. Having a melting-of-the-minds session will not only spark creativity in you, but empower you to finish the year strong and confidently. Why? Because they’re able to be real with you and give constructive criticism where needed. “Mentors provide outside feedback and insight that you might not see when you’re in it,” Langemeier says.
November: Tie up loose ends.
November often feels like a sneaky month that came out of nowhere and suddenly, you’re being fast-forwarded into all-things-holiday-and-travel. With many people out of office, a social calendar that quickly fills up and added stress, now is the time to get your affairs in order. While Polanco says to take care of your bookkeeping, update any legal documents and prep for the upcoming year, Langemeier says to have a money date with key players. And she says not just to do it in November, but each month if you can. “Sit down and review all of the initiatives, activities, etc. from the past month. Identify what worked well and what didn’t work well. Identify what made money, what cost money, what’s moving you towards your goal, what’s distracting you,” she explains. “Be honest with yourself and identify any activities that are distracting you from your bigger goal. Remove the distractions from your day to day actions and free up time to focus on the activities that will get you to where you want to go.”
December: Reflect and reward.
Chances are, you’re not where you thought you’d be at the end of the year. In some ways, you’re probably further along and more successful. In others, you perhaps fell behind your goal or targets. No matter where you are, Polanco says to take a moment to unwind, reflect and think back to the major successes you had and all that you learned, achieved and did. And while you’re at – remind your employees how thankful you are for them, too. This is a month of celebration! “Being an entrepreneur is one of the greatest gifts. You get to create our lives and income – so don’t forget that when the going gets tough, it’s 110 percent worth it,” she says.
How Far Are Women Leaning In? The Number Of Female CEOs Tells Us It's Not Enough - GirlTalkHQ
GirlTalkHQ brings us a write-up from graphics and sources provided by Towergateinsurance.co.uk illustrating aspects of the gender gap in business--including age, earning capacity, barriers to success, and more. One major issue in access to leadership roles, as the findings highlight, is the way attitudes and perception affect the role gender plays in the workplace: Which traits do we consider necessary for a leader, and are women likely to embody those traits? Even with changing attitudes, it turns out that the messages women receive--particularly during our younger years--have a crucial impact on whether women will "lean in." Read below and click through for more.
girltalkhq.com - The gender pay gap is a central issue in the modern business world, but is this disparity present even in the most senior positions? Are women at the top being treated equally? If not, why do they perceive that to be? In the age of “leaning in” and women starting their own businesses at a much higher rate than men, we are still yet to see a major change in the existing corporate titans in terms of women in key positions of leadership. So just how big is the gender gap between make and female CEOs?
The following graphics break down the specifics of how the gap occurs. Let’s now look into how exactly women are faring at the top of the business world by examining common barriers, differences in opportunities for progression and pay discrepancies. When it comes to age, female CEOs and generally the same age as men.
But when it comes to earning capacity, it is a different story. On average, male CEOs earn upwards of £2 million ($2.5 million USD) more than women as of the fiscal year 2016.
Even when women do manage to achieve the same level of leadership as most male CEOs, it takes them a lot longer. On average, it takes women nearly a year and a half longer to become CEO than men. That figure is based on results from 313 companies in both the FTSE 100 and S&P; 500.
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This Is What It's Like For Female Entrepreneurs In Afghanistan
fastcompany.com - It's been 15 years since U.S. forces invaded Afghanistan. In the capital city of Kabul—the world’s fifth-fastest-growing urban population, which jumped from half a million in 2001 to over 4.6 million—the Afghan government struggles against a worsening humanitarian situation. As U.S. and NATO troops continue to withdraw, so do international aid workers.
Typically, the burden of international problems such as poverty, disaster, and war are left exclusively to governments and nonprofit organizations. In recent years, a new approach has emerged. Social entrepreneurs are spearheading job growth and stability, and a burgeoning private sector seeks to stabilize the economy and break the dependency on foreign aid.
They walk a fragile line. They must build networks with trusted government workers, the international business community, young students, and professionals. Many Afghan business leaders hope to attract investors who will bet on them to secure hard-won gains in human rights, especially for women.
Great News: Women Owned Businesses Growing, Thriving, Employing More
taketheleadwomen.com - The 11.3 million women-owned firms in this country are performing five times better than the national average of businesses, employing close to 9 million people and generating over $1.6 trillion in revenues, according to the latest American Express OPEN report.
Just to repeat for the record, that was trillion with a “t.”
The greatest growth in these companies owned by women is shown by companies owned by women of color.
In all women-owned businesses, “Comparative employment growth is even stronger. Employment in women-owned businesses has increased by 18 percent since the recession, while among all businesses employment has declined 1 percent since 2007,” the report showed.
While not at parity, women own 38 percent of small businesses in this country and revenues are increasing at a more brisk pace. “Business revenues among women-owned firms have increased by 35 percent since 2007, compared to 27 percent among all U.S. firms – thus at a rate that is 30 percent higher than the national average.”
While overall employment growth across sectors has been stalled, “employment in women-owned firms, which – according to this report – is up 18 percent since 2007 compared to a percent decline among all U.S. firms,” the report shows. Firms owned by women with 50 to 99 employees, have seen a 27 percent increase in employment since 2007.
Women take more risks than you think — which makes them a better investment
And yet, investors hand men, not women, the money. A lot more money. Researchers at Babson College found that over a two-year period, companies with a female CEO received $1.5 billion in venture capital dollars, while companies led by men received $49.3 billion. That means for every $1 invested in companies led by women, about $34 went to companies led by men.
What’s going on here? It’s not that there are 34 times more male entrepreneurs. Women own 31% of all privately held firms in the United States. Nor can we shrug and say men simply have a lock on superior business ideas. According to a 2014 research study led by Alison Wood Brooks, a professor at Harvard Business School, when men and women pitched the same idea, investors were 60% more likely to invest when a man proposed it.
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Warren Buffett says he is looking to invest more in women
independent.co.uk - One of the most famous investors in the world has said he is looking to invest in more women-run companies and bring more women onto his board.
Warren Buffett, chairman and CEO of Berkshire Hathaway, told the audience at the first ever United State of Women summit in Washington DC that he currently invests in six companies with female CEOs and is "looking for more”.
He also has three women on the board of Berkshire Hathaway and wants to up that number too.
“What makes me even more enthusiastic about the future, is that 90% of that time [in the past] we were only using half of our talent. Think about what would happen if we used all the talent for 100% of the time,” he said. “It’s like having one hand behind your back.“
The first woman to join his board in 2003 was Charlotte Guyman. Her name was suggested to him at first by his wife.
“I said ‘bingo’, but I didn’t think of it myself, and that demonstrates one of the problems we men have to get over,” he confided.
Since then, Susan Decker and Meryl Witmer have joined the 12-strong board, which includes Bill Gates and Mr Buffett's son, Howard Graham Buffett.
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This One Thing Gives Women The Edge In Crowdfunding
fastcompany.com - From glass ceilings to wage gaps, women in the workforce are often at a disadvantage. For female entrepreneurs, the challenges are sometimes even greater. But recent research has uncovered something that is working in women founders’ favor: storytelling on crowdfunding platforms.
Even though , an MIT study found that when women pitched investors for funding, they were less likely to score than a man delivering the exact same pitch. If you’re a mother or a woman of color, hurdles from biased thinking to lack of networks make it even harder to get funding.
Crowdfunding aimed to level the playing field for startups. Industry analysis from Massolution, a research firm specializing in crowdfunding, estimated that global crowdfunding raised over $34 billion in 2015, making it an increasingly popular alternative to venture capital and angel investing.
Platforms such as Indiegogo and Kickstarter eliminated the need for pitch presentations and their potential for unconscious bias. A study from NYU and Wharton revealed that women tended to support each other in greater numbers in crowdfunding. Women-only teams had a 40% better chance of meeting fundraising goals, while in tech, the success rate for women-led Kickstarter projects was 65% as opposed to just 35% for men.
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Female founders bring much more than diversity to startups
shethepeople.tv - The gender biases of the startup community are long-standing topics of debate but this piece is focusing on really why women make the startup community more relevant and how they matter to growth.
Diversity in founders is imperative for the ecosystem. Women founders bring elements different from male ones and often those inputs can go a mile more in determining the longevity of the enterprise. Investors are missing out by not investing in startups led by women. This is a really big problem, folks, and it’s one that we have the ability to change.
Higher return on investment: Women-led tech companies in the US achieve 35 percent higher return on investment, and, when venture-backed, bring in 12 percent more revenue than male-owned tech companies as per a survey by Kauffman Foundation. In India the number of women startup owners have increased over the year 2015 in a big way. “Now, women are more into technology than in the previous years. Digital media has also empowered them a lot more to come into entrepreneurship,” shared Swati Bhargava, co-founder of coupons website CashKaro.com at the Digital Women Awards.
Women tend to empathize more. They listen and understand. Women have a brilliant way of understanding the consumer pysche and reflect with an intuitive sense.
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5 Powerful Tips For Female Professionals Who Want To Own The Table, Not Just Have A Seat
huffingtonpost.com - As a millennial entrepreneur, I was once asked by a journalist about the challenges of being young, African-American and female. Admittedly, I was taken aback; in my career — I’ve grown a “one-woman” startup blog into a leading global business media platform — none of these perceived challenges ever held me back. I was simply executing on my vision.
“I see it as a triple-threat,” I replied with a laugh, “certainly not a challenge.” While she applauded my gusto, our conversation made me keenly aware of gender parity. She, like many others, still saw my success and advancement in media as an outlier.
I get it.
The U.S. Department of Labor says that in 2014 57 percent of working-age women participated in the labor force, compared to 69 percent of men. Writing for the McKinsey Global Institute, Laura Tyson reports that, “Women continue to lag behind men in economic participation and opportunity by 15 to 25 percent.”
Tyson, a former chair of the President’s Council of Economic Advisors, went on to suggest that “taking bold actions now to increase the economic participation and advancement of women is critical to ensuring a strong foundation for rising prosperity in the long run.” I couldn’t agree more.
So how do we, the leaders, entrepreneurs and professional game-changers, boldly and pragmatically normalize what it means to be a woman in our respective industries? Can we truly get past being the “first woman to do X”? Here’s a refreshing approach every woman can take, both personally and professionally, to claim a seat at the table, and even own it if you dare.
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Why it’s important to empower women entrepreneurs with Selling Skills
More and more women are starting businesses and becoming self-driven entrepreneurs--which is fantastic. What is sometimes lacking, especially in an environment that might not be used to nurturing women in entrepreneurship, is selling skills. Even the most successful founder or entrepreneur can benefit from gaining more sales expertise and polishing her selling game. Silicon Cape Initiative, serving entrepreneurs and investors in the Western Cape of South Africa, has five tips to harness your selling power.
siliconcape.com - Why it’s important to empower women entrepreneurs with Selling Skills
It is very exciting to see the growing numbers of women entrepreneurs in South Africa. And even more exciting is to witness how these entrepreneurs are dominating the space that they work in, owning their market share with their most amazing products and services.
Take a closer look though, and you'll see that there is one essential ingredient missing from the mix - selling skills. Why is this, you may ask? Is it due to lack of training, lack of confidence or just relying too heavily on referral business?
I love sales and everything that goes with it. I love the energy of sales, I love closing the deal and getting the signature! That is one of my key motivators and keeps me going every time. So why aren't more women closing deals, asking for the signature?
It may just be due to shyness or not being fully educated about all the nuances of launching and running a business. Whatever the reason, I want to take the time here to highlight where we as entrepreneurs can improve and take our businesses to the next level.
Read more here.
Woman-Owned Businesses Growing But Still Not Equal
Candace Klein, Chief Strategy Officer at Dealstruck, covers trends in women-owned businesses for Crowdfund Insider. Women still lag behind men in starting and running businesses, but they're catching up—and growing at faster rates than men in many respects. For example, they are very strong in certain high-growth industries like education and health and beauty, they added jobs during the economic downturn, and they often borrow less—taking on less risk—even as their businesses are keeping pace with corresponding male-led companies. Klein unpacks these and other facts and statistics; showing that despite daunting odds, women are still building enterprises—and thriving. Read the full article on Crowdfund Insider, and keep supporting women entrepreneurs.
crowdfundinsider.com - A common theme in business and finance circles is that women are underrepresented, less capitalized, and face an uphill battle when it comes to building and financing their small businesses. While the statistics may bear this out to some degree, the women-owned business horizon is markedly better than the picture painted by this conventional data.
It is true that though women represent slightly over half of the U.S. population, they only own 30% of the businesses.
It is true that they employ a mere 6% of American workers. And it is true that their sales are 25% of those of male-owned small businesses. However, it is also true that women-owned businesses are growing at a rate of 1,200 per day, far outpacing the growth rate of those owned by men, and one-and-a-half times the national average. Four out of ten new businesses are now owned by women. And women own a greater share of enterprises that are in high-growth service industries, like education and health care, giving them a great deal of opportunity for continued expansion.
Read more here.