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Something important happened between 2019 and 2020. I don’t fully understand why it happened and the dynamics behind it, but I’m extremely grateful that it happened. An unprecedented number of women entrepreneurs entered the workforce.
Thousands of new women-owned businesses appeared seemingly overnight and began to flourish in areas such as wholesale trade, retail trade, and pharmaceuticals.
This unexpected but much-needed surge shifted long-held paradigms and rebalanced the scale of the previously male-dominated world of entrepreneurship. According to a study produced by Gust, only 28% of women were entrepreneurs reported in the United States from 2018 to 2019. And within a year, the tide rose and the momentum changed for her, and this percentage jumped to nearly 50% for her. And this number was maintained from 2020 to 2023.
And the best part is, they show no signs of slowing down.
Empirical evidence, as well as numbers and survey results, seem to support the above facts. Everywhere you go, new women-owned businesses are popping up. No matter which podcast you listen to, the guests are female entrepreneurs. She finally decided one day to just give it a go and started building her empire. They’re winning awards, creating jobs, and flipping categories.
As impressive as the number of women entering the entrepreneurial world is the variety of industries they enter. Less than a decade ago, women-owned businesses were concentrated in just three industries, according to a Wells Fargo report. Currently, the company continues to expand with its 50% foothold in four different industries (medical/social assistance, administrative and remedial services, professional and technical services, and many other services).
Related: 4 ways to grow your women-owned business in 2024
From supplements to donuts, wine and spirits to services and technology, women are driving change and having a huge impact on overall markets and individual lives. The same Wells Fargo report mentioned above shows that since the pandemic:
“Women-owned businesses with 50 or more employees account for almost half of all women-owned businesses.”‘ employment and income. Currently, the average revenue for women-owned businesses with 50 or more employees is $31.8 million, with total revenue reaching $1.3 trillion. ”
This growth is not just limited to the United States. International women entrepreneurs are also adding their voices and businesses to the mix. One of the investment firms I often work with, Ariel Capital, has a large foothold in Israel and reports an unprecedented number of female entrepreneurs in its circles. .
As mentioned earlier in this article, the impact these businesses create is significant and there is still significant room for growth. If you’re a woman interested in starting your own thing, it’s never too late to the party. In fact, we might have arrived on time.
Related: 4 industries where women continue to dominate
Why this sudden spike?
As important as understanding the significance of this surge may be to analyze its causes. Some of what I’m about to say is speculation, but at least some of it has been substantiated by some scholars, and the reasons why are interesting.
It looks like COVID-19 is playing a big role in this rise (and I know we’re all tired of talking about the pandemic). It seems like at least a small positive has emerged from the rubble of the pandemic. The “traditional workplace” as we knew it has disintegrated, and from its fragments a new vision of what is possible has emerged.
The 9-to-5 no longer worked, but I realized I could still work without the 9-to-5. Women who identified as traditional “housewives” took advantage of this disruption and began to create workplaces and creative spaces that were more flexible and tailored to their specific needs. The impossibility of starting and running your own business was now completely destroyed, and behind it lay new ways of getting work done.
Massive resignations also seem to be involved in this sudden rise. Individuals around the world have begun to reevaluate their values, motivations, and aspirations within the context of their work. They realize that their employer (or career path) doesn’t align with their basic moral values, so they leave. This extensive self-reflection has helped to enhance our collective vision and may have led to us pioneering new or less traveled paths for individuals, especially women, everywhere. there is.
At least some of this growth can be attributed to crowd-generated momentum. Seeing your peers doing something you’ve always wanted to do can provide some level of inspiration and motivation. This momentum only seems to be growing as more and more women dive headlong into entrepreneurship.
Finally, new support groups, systems, and funding are now available. More organizations dedicated to supporting and empowering women entrepreneurs have sprung up. Venture capital flooded in and was ready to invest. And publications everywhere began to feature stories about the fruit falling from the fruitful tree.
I’m not saying there weren’t great resources for women entrepreneurs before 2017, but there are so many more now. There are numerous publications with insightful thought leadership and advice for every stage of entrepreneurship.
At the same time, government agencies were established to support women-owned and women-started businesses. Many women-focused events, summits, and conferences around the world offer in-person training, roundtable discussions, and invaluable Q&A sessions. It seems like the infrastructure is finally catching up.
