There is a tendency in the business world to go with what has proven success. In most circumstances involving money, a risk-assessment or cost-effectiveness analysis is a meticulously thought out process. If the results reveal the risk is too high, or that the profit margin isn’t projected to be wide enough to warrant this new venture, then the project is either sent back to the drawing board or abandoned completely.
Ironically, many of the wealthiest and most successful business owners began with an idea that did not have widespread support initially. One of the many benefits of the increase in women-owned-businesses is that women are adding new perspectives and innovative solutions to old problems. This is true across a variety of industries. There are plenty of examples where women with thriving businesses were turned down by investors for the very ideas that ultimately made them successful.
New Perspectives and Solutions
Women business owners provide new perspectives and innovative solutions to old problems. The biggest piece of evidence supporting this claim was the discovery that 58% of businesses categorized as “other services” were owned by women. The other two industries in which women-owned a majority of firms were healthcare and social assistance (64%), and educational services (54%). Furthermore, administrative support (49%), waste management (49%), and retail trade (43%) were not far from being a majority women-owned industries as well.
Women are not simply adding new perspectives and innovative solutions. They are also generating trillions of dollars. Thanks to projects such as American Express OPEN and their publication “The 2017 State of Women-Owned Businesses Report”, it is easy to find information regarding the financial impact women-owned businesses are having on the American economy. According to this report, between 2007 and 2017, the increase in new women-owned businesses outpaced the increase in all new businesses by 36%. Minority women, in particular, are driving this recent incredible surge in the development of new businesses, with Latina women leading the way in the creation of new businesses and Asian women leading the way in revenue generated.
Women Business Leaders
Every year Forbes releases their annual list of America’s Richest Self-Made Women. After a quick look at The 2016 State of Women-Owned Businesses Report, it is easy to see how many minority women made Forbes’ list. There are a wide variety of nationalities and ethnicities represented on the list. After a careful analysis of the above-referenced list, we concluded that there were 4 minority women in the top 15, and 11 minority women in the top 30.
Many of these successful women have sought to extend their success to other women and young professionals, joining organizations seeking to empower other rising leaders. For example, Dr. Sachiko Kuno, the Co-Founder of Sucampo Pharmaceuticals, was named as one of Forbes Magazine’s Top 50 America’s Richest Self-Made Women in 2015. As a board member and director of several organizations, she has taken her experience and expertise to reach out to aspiring young professionals, providing advice, training, and venture capital. Mei Xu, the Co-Founder, and CEO of Chesapeake Bay Candle attended the 2017 NextGen Awards Gala in Washington D.C. and gave a speech offering advice to rising Asian leaders.
Since 2007, women, and minority women, in particular, have exponentially increased their impact on the world of business and economics. Any time there is an influx of new demographics in leadership, a shift in outcomes follows. Thus far, the rise of women in business has led to tremendously positive effects on factors such as employment rate and GDP, among many others. As you can see, women-owned businesses are successful, innovative, and beneficial to the economy.