Female entrepreneurs own only 19.9 percent of all businesses in the United States, but that number is constantly growing. Supporting female entrepreneurs means patronizing their businesses, investing in their work, and helping to promote their success.
Naxum, a Las Vegas, NV referral marketing company, explains how and why the community should support female entrepreneurs and the benefits that the business world and society could receive in return.
The Current State Of Women-Owned Businesses
Women-owned startups perform better than men-owned startups. These companies generate 10 percent higher revenues over five years than men-owned ventures. Many investors who are unaware of this phenomenon continue to shun female-owned firms.
Here are three ways in which the business world could come together and help female entrepreneurs succeed:
Improving Access To Credit
Around the world, women-owned businesses tend to have less access to credit. According to a study by the Center for Women’s Business Research and Wells Fargo, only 52 percent of women business owners, compared to 59 percent of men business owners, had easy access to credit from banks. When it comes to fast-growing firms, only 39 percent of these firms which women own had easy access to credit, compared to 52 percent of male entrepreneurs.
Naxum says that women business owners are faced with many obstacles in their search for business financing. Even though access to venture capital has grown exponentially since the late 1990s, female-owned firms have a small share of that money. Women entrepreneurs are more likely to rely on informal investments from friends and family and less likely to receive corporate or venture capital funding.
Lenders and investors should spend more time looking into how they can support female-owned business ventures. To make this happen, they should carefully examine their lending practices for bias against women business owners.
Investing In Human Capital
Worker training is another large part of the puzzle when it comes to women-owned businesses. Businesses that invest more in worker training are far more likely to succeed in their given fields.
Investment in human capital means that women-owned businesses will level the playing field between themselves and male-owned businesses. Understanding how to leverage and use human capital is an area where women-owned businesses could stand to improve, and business partners could help them increase their access to quality training programs.
Women are less likely to have robust business networks than men. In the business world, many women-owned businesses are key suppliers and partners of large corporations. Large corporations can help women-owned businesses access their networks, allowing them to partner with trade associations, non-profits, and chambers of commerce to support these businesses. This means that the supply chain will be more reliable and diverse.
Examples Of Companies Led By Women Entrepreneurs
Here are several great examples of women-led companies fighting back against discrimination and low visibility to succeed in today’s market.
WT Stevens Construction
This company is based in Flint, Michigan. It experienced a three-year growth period of over 4,000 percent. Its 2018 revenues were $7.2 million. The company provides contracting services for government and commercial customers. Rhonda Stevens Grayer is the CEO.
Core Software Technologies
This company manages cloud computing, Amazon Web Services, and Internet of Things applications for various commercial customers. Its CEO, Nagajyothi Pothukanuri, has led the company to a 4,000 percent growth over three years.
This company makes gluten-free, nut-free, whole grain, vegan cookie dough. It has experienced 3,026 percent growth and had a revenue of $6.4 million in 2018. Loren Brill, the founder, decided to start the company because she could not find cookie dough that met her standards. By catering to a market that prefers natural foods that consider dietary restrictions, Sweet Loren’s has reached success.
This company installs photo booths in hotels, retail stores, and bars. The photos that customers take can then be shared on social media, giving the host company a marketing boost. Jolina Li is the CEO, and the company has made $3.5 million in 2018.
4th & Heart
4th & Heart is a producer of grass-fed ghee or clarified butter products. The woman-led company is based in southern California and had a 2018 revenue of $14.3 million.
This staffing company was founded in 2013. It has grown to 500 employees and experienced over 5,400 percent growth in three years. Julie Dacar and Amrita Grewal are the company’s leaders. Staffing companies provide an important service in today’s business environment.
Promoting Female Entrepreneurs’ Success
With these successful examples of women-owned companies, it is possible to see the benefits they provide to the business world and the community. Promoting access to credit and networks could be the most effective means of supporting women-owned businesses.
Naxum promotes women-owned businesses, and its leaders believe that sharing the revenue between men- and women-owned companies are the best choice for today’s business world. We see study after study of how women represent the majority of promoters in direct sales today and see referral marketing as a vehicle women around the world can use to start their career in entrepreneurship to follow a proven path to grow.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.