Women Entrepreneurs in the US
Five decades ago, the idea of a female entrepreneur running her own business would have seemed ambitious at best. Gender inequality and discrimination were some of the factors that worked against women in business.
It took a while before women entrepreneurs broke free from social constraints and started their rise to fame. With plenty of funding opportunities combined with the changing business climate, women are now leading a boom in new business creation in the US.
According to a 2021 survey by Gusto, a human resources cloud software company, almost half of 2021’s new entrepreneurs were women. It’s particularly impressive that this happened while the nation was in the midst of a devastating pandemic.
The Face of Entrepreneurship Is Changing
Women have always owned businesses. What has changed in recent years is their increased participation, leadership, and impact in a broader range of businesses.
Over the last decade, women-owned firms have grown remarkably and now represent 42% of all businesses, According to the Center for Women in Business, 1 in 5 firms with revenue of $1 million or more is woman-owned.
The boom in women-owned businesses can be attributed to the fact that women are at the forefront of a new kind of enterprise – one that often hires no more than its proprietors.
In most cases, these “solo entrepreneurs” include technicians, corporate executives, and other professionals who, either by necessity or choice, have decided to launch their own microenterprises.
These entrepreneurs contribute to the “1099 economy”– a reference to the 1099 tax form that lets individuals report income received throughout the year other than the salary received from an employer.
A sizeable portion of this bustling 1099 economy comes from the growing ranks of boomers no longer willing or able to work for large corporations.
Women in Business Statistics
· Women-owned businesses employ more than nine million people
· Almost half of women-owned companies reside in 3 industries: Healthcare and Social Assistance; Professional, Scientific, and Technical Services; and Other Services (nail, hair, and pet services)
· Women launch over 1,200 new businesses every single day in the US.
Impact of Women Entrepreneurs on the American Economy
The rising economic clout of women entrepreneurs is probably one of the most remarkable economic shifts of recent decades.
Women-owned enterprises are a harbinger of what the workforce of the future may increasingly look like. These solo enterprises will likely garner adequate traction in the market to become employer firms, so giving special attention to their character and impact will contribute to the creation of policies and programs that will help women scale up their dealings to serve national and international markets.
While it may seem counterintuitive, small businesses have a significant impact on the American economy. They serve the nation as a critical force for innovation and job creation.
As more women continue to join the ranks of entrepreneurs, small business owners, and corporate leaders, that effect is only going to grow.
How Women Entrepreneurs are Creating Generational Wealth and Preparing for Retirement
“Since they can now create unlimited income on their own terms, women are prioritizing wealth creation, wealth management, and retirement planning,” says Martin Walcoe, President of David Lerner Associates. “And it’s not just the younger generation. Late-career women are taking the leap into entrepreneurship.”
These women need to plan their generational wealth and retirement strategies. The flexibility to work when you want to and retire when you’re ready has inspired more women entrepreneurs to create legacies for their children. They’re doing this by investing a portion of their profit and passing down a successful business to their family.
The Takeaway
There’s no doubt that American women have made a huge effort to be present in the world of entrepreneurship. Their impact is outstanding, and there’s a likelihood that it will only grow.
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