Zooming in on the social and political environment of the United States, we see a gradual, but a rapid shift that has taken place over the last couple of years. A great way to measure how far ahead the US Economy is of other developed nations is by taking a look at the quality of life, gender equality, and how to open the labor and business market is to its residents.
In the last few years, the trend of women-owned businesses have been on a sharp incline. Dozens of surveys and analytics have concluded that women are quickly becoming a strong driving force for the economy – by doing so, more and more women are becoming business owners, leaving behind the safety and comfort of a corporate environment. Although this means that the gender gap in business is slowly decreasing, there are some other questions and remarks to consider. In the article below, we’ll review some of the key factors that have driven so many women to open their own business and also how it’s been growing in the US.
Women-Owned Businesses The Silent Driving force of the US economy
Regarding the annual State of Women-Owned Business Report that has been commissioned by American Express, it’s too to note that nearly 42% of all US businesses are women-owned. This remarkable figure translates into 9.4 million employed workers, generating an accumulated revenue of almost $1.9 trillion. This report that was published in 2019, reflects on the strong alteration in the US economy and also how the gender gap between various business owners are becoming smaller.
What’s driving more women to start their own business?
Although the numbers may reflect on the transition of the US economy and market, we need to consider what has been driving so many women opening new businesses and taking their entrepreneurial ventures to the next level.
Unsatisfactory working conditions
In an additional report released by The Small Business Trends Alliance, 55% of surveyed female lead business owners shared that opening their own business was motivated by being their boss. A fraction of this, a mere 15% showed that they were dissatisfied with the working conditions and inequality faced in Corporate America.
In the same pool, 6% of respondents started their own business as a result of being laid off, or the job being outsourced to another person. Women are forging ahead, building an entrepreneurial lifestyle, as dissatisfaction in the workplace and non-recorded events may push them to do so.
Education
In the same report, a total of 30% of surveyed business owners has a bachelor’s degree, 26% received a high school education, and 20% and 18% have an associate’s degree and/or a master’s degree respectively. This is a mere reflection of how a larger portion of educated females are leaping to start their own business while incorporating experience and knowledge and fusing it to become a leader in their field. In the same breath, we also see that female-led business owners are somewhat more educated than the average entrepreneur.
Personal Satisfaction
For many business owners and employees, the most important thing about your job is satisfaction and enjoyment thereof. Today, around 49% of women-owned small businesses replied that they are extremely happy and satisfied with their new job and/or business. Personal satisfaction with being a business owner can be linked to the confidence female business owners have in both the economy and the current political environment. More women are confident and satisfied with being a business owner, as the economy and political sphere allow them to leap into various sectors and start their own business.
Industry trends for women-owned businesses
The same survey published by American Express surveyed all 50 U.S. States and the District of Columbia. With this in mind, we see that Michigan, Georgia, Florida, South Carolina, and Nevada have the most positive expansion and growth in the number of women-owned businesses for 2019.
In this regard, we unfortunately still see only a fraction of different industries and marketplaces being intercepted by strong female business leadership. The three main industries that have been frequented by female entrepreneurs are health care and social assistance, professional, scientific, and technical services, and other services in the likes of hair and nail salons and pet care.
Women-Owned Business Certification
Although we see positive growth and the closure of gender pay gaps and more females taking lead in the US economy, it’s good to consider that women-owned business certification have been at the forefront of assisting more and more female entrepreneurs to start and operate their own business.
There’s a multitude of various certifications female entrepreneurs can obtain, including Women’s Business Enterprise National Council (WBENC), the Certification or Small Business Administration (SBA) and also the most popular is Women-Owned Small Business Program Certification or WOSB Certification. These types of programs and certifications open better financial and supportive opportunities to female entrepreneurs, giving them the initial push, they might require.
