The 21st century shows women continually breaking through the glass ceiling at an incredible rate and taking control of their careers and futures. According to the 2018 State of Women-Owned Businesses Report, women-owned businesses have increased by 58% since 2007 to an estimated 12.3 million. In comparison, there was just a 12% increase among all businesses in this time frame! As women continue to charge ahead, it’s worth taking note of some of the reasons why women make great entrepreneurs:
- Women make great leaders
Women are natural leaders. Statistically, they listen better, are more empathetic, and more intuitive. As a result, they get to know their staff better. They understand each person’s strengths, where there are opportunities for improvement, and what challenges they may be facing. By taking a more personal approach, they are more respected and liked by their peers and staff.
- Women drive progress
Women aren’t just respected leaders, they are also enjoying higher productivity from their teams. The proof is in the numbers. High-tech women-owned firms used a third less capital to attain the same early-year revenues as their male counterparts. Firms with women in senior roles achieve 35% higher return on equity, 42% higher sales revenues, and 34% better total return to shareholders. In addition to great leadership skills, other factors including communication skills, a willingness to take risks, and a lower tendency toward over-confidence drive this continued success.
- Women are the consumers
Women control 80% of all consumer spending. As a result, women are in a better position to make judgments about what other women want from products and services. This also includes products and services where a man may be a contributing decision maker, such as with automobiles and electronics.
- Women stick together
We’ve all heard the comment that women travel in packs. The fact is that there is value in a sense of belonging and strength in numbers. Whether it’s within personal or professional circles, women stick together and stand up to support each other. In business, we see this in the founding of organizations such as the National Association of Women Business Owners, American Business Women’s Association, Ladies Who Launch, and Women’s Business Development Center.
- Women network
That “Chatty Cathy” who is always running into people and saying, “Hi!” has an important skill that all entrepreneurs need – networking. Thanks to the communication skills that make them great leaders, women tend to be very good at forming relationships with their suppliers, vendors, and other business owners. This practice helps to form strong, mutually productive networks.
- Women learn from failure
Women have been facing glass ceilings and other barriers to entry for a very long time. Whether for themselves, for their families, or some other reason, there are more and more signs that past failures are being replaced by tremendous successes. Reasons for this include that women outshine men in self-development, admit when they don’t know something, are willing to listen, read and attend professional training events, and proactively seek outside mentors and advisors.
Whatever the reasons, all of us stand to benefit economically and socially as women continue to break boundaries in the entrepreneurial arena. Specifically, those 12.3 million women-owned businesses employ 9.2 million individuals and generate $1.8 trillion in revenue. Here, here!!!