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The growing role of women in business
Everyone knows that small businesses play a critical role in our economy. What some may not understand is how big of a role women play in small business growth. According to new research from the American Express 2018 State of Women-Owned Businesses Report, across the country there are 12.3 million women-owned companies, accounting for 40% of all businesses.
“This new data demonstrates not only the remarkable impact women entrepreneurs have on our economy when it comes to creating jobs and generating revenue, but also the growing role of women-owned businesses in our communities,” said Julie Tomich, SVP, American Express Global Commercial Services.
Framing the challenge
Although women own 40% of all businesses, the research shows that these companies only account for 8% of all employment and 4.3% of total revenues. The report concludes that helping small businesses, those with $100-$999,999 in revenue, grow to become million dollar companies will unlock economic gains for all Americans. This task won’t be easy, since the report suggests improvement is needed in multiple areas; from better access to small business coaching, to closing the gap in access to capital.
With women starting an average of 1,821 new U.S. businesses a day, there is plenty of demand for new sources of financing. What’s critical is finding a match with investors who are looking to help build a more inclusive economy while generating financial returns. Increasing investment in women entrepreneurs would also go a long way towards closing the wealth gap between men and women.
Finding a solution
“What would the U.S. look like if women had fair access to capital? Would we see positive benefits not just in our local businesses, but within families, homes and communities? We believe the answer is absolutely. ” states CNote CEO, Catherine Berman. With a commitment to closing the wealth gap for women, minorities and low-income communities, CNote has been working diligently for the past 3 years to drive new capital and opportunity where it is needed most. To date, CNote’s members have committed over $18 million to fund women-led businesses, affordable housing and economic development in low-income communities that need it the most.
For more information on how your clients can help move the needle for access to capital for women, please visit mycnote.com
Also published on Medium.