Women Entrepreneurs Leading the Way

Gone are the days when the typical American woman was a stay-at-home mom. Today they’re making waves – and money – in the business world. The number of $10-million-plus women-owned firms increased by 57% — a growth rate nearly 50% more than $10-million-plus firms overall. The number of wealthy women in the U.S. is growing twice as fast as the number of wealthy men.

According to Sources of Economic Hope: Women’s Entrepreneurship, a report by the Kauffman Foundation, which researches and advocates entrepreneurship, women-owned businesses could provide the boost our economy needs.

The report highlights the fact that female entrepreneurs are a source of untapped potential and that accelerating female entrepreneurship could have the same positive effect on the U.S. economy that the large-scale entry of women into the labor force had during the 20th century. [2] Economists agree that women entrepreneurs can provide a stream of companies that are innovative, market-expanding, export-oriented, and job-creating. [4]
There are, however, some areas where women entrepreneurs need help:

• Connecting to funding sources
• Advice and mentoring
• How to make their business quick, agile, effective

So while there is still room for improvement, it’s certainly cause for celebration that the U.S. ranked number 1 out of 17 countries for fostering conditions that favor high-potential female entrepreneurs. These conditions include entrepreneurial environment, entrepreneurial eco-system, and entrepreneurial aspirations.
Here are some of the reasons women make such good business owners:

• Women make better leaders than men: They build better teams, and they can combine intuitive and logical thinking.
• Women are better money managers: Venture-backed tech companies owned by women bring in 12% higher revenue than male-owned tech companies.
• Women also approach problem-solving differently than men: They look at all angles and find comprehensive solutions.

There is no doubt that women business owners in America are a force to be reckoned with.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.

Member FINRA & SIPC.