Women will soon become the most influential business owners in the country. They’re opening more new businesses and creating more new jobs than any other demographic of business owner.
Women are ready to put small business capital to good use
According to Performance.gov, women-owned businesses executed 344,000 government contracts across the country in 2020. More than half of these contracts were in manufacturing, and many provided critical COVID-19 support. The SBA adds that in the past five years, total employment by women-owned businesses rose 8%, while other businesses rose 1.8%.
While women own about 42% of small businesses in the US and employ over 9.4 million people, they typically receive only 16% of traditional small business financing and request loans in much smaller amounts. Black women, whose entrepreneurial numbers are rising the fastest, are the most likely owners to self-fund their businesses instead of seeking out small business loans, with 61% of Black female entrepreneurs providing their own startup capital compared to the 47% of white women and 32% of white men.
At the 2020 Freedman’s Bank Forum, Lendistry CEO, Everett K. Sands encouraged his peers in the finance industry to lend to women, “Whether you call it a movement or call it opportunity, the fact is women are performing better as business owners than men, and with technology we have the data to prove it.”
Opportunity through small business contracting
Performance.gov adds that from fiscal years 2016 to 2019, women-owned businesses more than doubled their number of contracts executed.
With the passing of the Infrastructure Investment and Jobs Act, opportunity is opening fast. $550 billion in new government infrastructure spending is making its way to projects across the country, and federal and state government entities have set goals to grant more contracts to certified women-owned small businesses (WOSBs) and certified minority and women-owned businesses (MWBEs). Women looking to increase their opportunities should register their businesses today.