New Women-Owned Companies Rising

 Women Think Now is the Best Time to Move Forward

  1. The US has 12.3 million women-owned businesses.
  2. US women-owned businesses generate $1.8 trillion a year.
  3. 40% of US businesses are women-owned.
  4. Women started 1,821 net new businesses every day last year. 
  5. 64% of new women-owned businesses were started by women of color last year. 
  6. Latina women-owned businesses grew more than 87%.
  7. There are 114% more women entrepreneurs than there were 20 years ago.

Women in business are a driving force in the nation’s economy. The US economy is increasingly reliant on the work and devotion of female entrepreneurs. Women are starting and running businesses at an increasing rate—and they’re doing so with demonstrable skill and expertise, according to Fundera who goes on to say, “Women in business statistics are unavoidable—and most of them tell a story of a growing, thriving workforce of women business owners.”

Women in Business: Looking Back on 2021

To learn about small business and its future, Guidant Financial became a founding member of the Small Business Trends Alliance (SBTA), a group of companies dedicated to supporting small businesses with data trends and insights. To achieve this goal, Guidant Financial and SBTA companies surveyed over 2,400 small business and franchise owners nationwide. We asked current and aspiring women business owners to share what their businesses look like, how they responded to the COVID-19 pandemic, and more.

The Challenges Women Small Business Owners Face

The top challenges women business owners faced in the last year were marketing and advertising at 24%. (As a curious copywriter I discovered that the underlying issue was a lack of marketing and advertising tailored to the working from home labor force to meet the increase in online sales) Secondly was a lack of capital/cash flow at 17% and recruiting/retaining employees at 15%.                                       Other common challenges included managing/providing benefits at 14%, administrative work at 13%, and time management at 9%. Interestingly, challenges with marketing and advertising jumped significantly, up from the third-most common answer to the first. Cash flow challenges took a backseat for the first time in more than three years, dropping from last year to become the third-most-common answer from respondents. To help lighten the load, women business owners have plans to outsource some business services to another professional or organization in 2021. Outsourcing tax preparation at 25%, 19% payroll, and 17% CPA services. Other common responses included bookkeeping, IT support, and of course the number one concern, marketing/advertising as 29% plan to outsource.

 

Women Entrepreneurs and Business, Politics, and COVID-19

2020 proved to be a bumpy ride in business and politics alike. Women business owners are also not feeling confident about small business in today’s political climate. Just 37 percent reported feeling somewhat or very confident, 21 percent are neutral, and 42 percent said they are somewhat or very unconfident. This is a dramatic drop from last year’s responses, where 58 percent were somewhat or very confident, 22 were neutral, and only 19 percent somewhat or very unconfident.

graphic showing comparison between last years confidence in small business in today’s political climate vs last year for women in business

Responses about the post-COVID small business landscape were more evenly distributed, however. While 40% of women business owners feel somewhat unconfident about small business in a post-COVID world, 44% are feeling the opposite: somewhat too confident. 16% remain neutral. That’s not to say women-owned businesses didn’t take a hit during the pandemic: over 21% of these businesses experienced revenue loss due to COVID. Twelve percent of owners temporarily closed their business, 11% reduced their budget, and 9% cut their own wages. However, while 11% had to furlough or lay off employees, less than 1% of women-owned businesses have been forced to close permanently.

Instead, they’re getting creative: 9% of women business owners pivoted to a socially distant business model or changed their goods or services, 12% of respondents reported a positive effect during the pandemic, including:                                    

  1. increased revenue, 
  2. expanded business, 
  3. hiring more employees, 
  4. increased wages.                                                                                                                                                                                                    

An additional 4% said COVID has had no significant effect on their business. Despite the challenges they’ve faced throughout 2020, a full 77% of women business owners expect their business to survive through the COVID-19 pandemic. Customized Copywriting knows women-owned businesses face unique challenges. Many changes have come along for the better, some direct results of what women of prior generations accomplished. Witnessing certain situations can teach us how to navigate the waters more effectively. There is still a lot to be done, however. Our advertising and marketing efforts can keep strong positioning for your customers through evergreen content while customized copy can attract new ones. The year is young and the time is great to secure strategic positioning to overcome current concerns. Save 30% expires February 28, 2022