October Is National Women’s Small Business Month

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It’s always a good time to show some love to your favorite women-owned businesses, but especially now since October is National Women’s Small Business Month. Originally started by the National Women’s Business Council, Women’s Small Business Month is a time for people all over the nation to highlight and honor the contributions women have made to the business world.

In 1988, women still needed a male relative to co-sign a business loan application. The National Women’s Business Council was established in 1988 as part of a landmark legislation that removed barriers to women in the workforce and provided support to female entrepreneurs. Now, there are over 12 million women-owned businesses in the U.S., employing over 10.1 million workers, and responsible for over $2.1 trillion in total sales. According to Forbes, average earnings for women-owned businesses increased 27% in 2022. We’re proud to say women-owned businesses have not only come a long way since the 1980s, but provide significant economic impact to their communities.

However, women still face unique challenges as business owners. While they have made significant strides in recent decades, male entrepreneurs still outnumber female entrepreneurs. Women experience barriers in getting the necessary resources for their business and are less likely to get approved for funding. According to the Boston Consulting Group, women are provided with significantly lower funding than men, if they are approved for a loan. Despite this barrier, women-owned businesses typically delivered more than twice as much revenue per dollar invested over a five-year period. This goes to show women-owned businesses often make a great investment.

Women in the workforce

While women in the workforce have made major strides in recent decades, women in the workforce still face challenges as well. On average, women are paid 22% less than men, according to the Economic Policy Institute. This statistic is consistent across education level and years of experience. While women are more likely to graduate from college, the more education a woman has actually widens the wage gap from her male colleagues with the same education.

Barriers to women in the workforce are still prevalent, despite the significant power women hold in the economy. Women-owned businesses account for 42% of businesses nationwide and should have equal access to important business resources. At National Funding, we eliminate traditional barriers to funding and make it easy for all business owners across a variety of industries to access funding. We tailor each financing solution to the specific needs of the business to help business owners achieve their goals.

 

 

 

 

 

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