Farnaz on Women, Emerging Power
Women start 70% percent of all new businesses and, since 1987, the number of women-owned businesses in the U.S. has doubled while revenues have increased five times. Today, women-owned companies account for 40% of privately held companies – or 10.4 million firms. A woman owns one in five of all companies in the country with revenues of $1 million or more.
According to a recent study by Guardian Life Small Business Research Institute, women-led companies will account for as many as 5.5 million new U.S. jobs by 2018.
A 2009 study, “The Economic Impact of Women-Owned Businesses in the United States,” which was underwritten by Walmart, the National Women’s Business Council and the Center for Women’s Business Research, showed that women-owned firms have an economic impact of $3 trillion annually that translates into the creation and/or maintenance of more than 23 million jobs – 16% of all U.S. jobs. (more…)
The significance of the total amount of economic impact – $2.8 trillion – once again proves that women-owned firms are not a small, niche market, but are a major contributor and player in the overall economy. We often hear that small businesses are the backbone of the U.S. economy, but when we speak of the U.S. economy, visions of large corporations and Fortune 1000 companies fill our heads. Again, we need to shift our thinking about what the U.S. economy is.
We cannot downplay the importance of small businesses in the overall economy. According to SBA’s Office of Advocacy, 99.7% of all employer firms are classified as “small businesses (less than 500 employees);” small businesses employ 51% of all people; have generated nearly two-thirds (64%) of net new jobs over the past decade and a half; and produce 13 times more patents per employee than large patenting firms. In fact, large corporations account for .03 percent of all firms and employ fewer people than small businesses. And women are in the forefront of creating small businesses. (more…)