Since the pandemic, there has been a remarkable increase in the number of small businesses initiated by women outpacing their male counterparts. As of 2023, businesses owned by women account for 44% of all enterprises in the United States, suggesting they are narrowing the gap with male-owned businesses. The 2022 State of Women-Owned Businesses Report highlighted that there are nearly 13 million women-run businesses across the U.S., which collectively employ approximately 9.4 million individuals!
Nevertheless, in spite of the progress made by women, there is still a significant journey ahead. Female entrepreneurs often encounter greater obstacles when launching their ventures, especially in terms of attracting investors or securing business loans. This typically results in women-led businesses starting on a smaller scale and experiencing slower growth. Although studies indicate that women are more likely than men to earn a bachelor’s degree, there remains a glaring scarcity of women in leadership roles within the professional arena. As of March 2022, a mere 74 women held CEO positions among the 500 highest-grossing companies in America, an increase from just 7 in 2002.
To elevate the success of women-owned enterprises further, here are seven actionable ways to show your support:
1. Purchase from women-owned enterprises
Spend your money strategically. The annual Biz2Credit Women-Owned Business Study revealed that in 2021, profits for women-owned businesses dropped from the previous year, averaging $88,995—$47,152 less than male-owned businesses, which averaged $136,147. To provide tangible support for women-led companies, prioritize buying from them instead of their well-known male competitors, particularly when it comes to women of color entrepreneurs. Discover and frequently shop at your favorite national and local women-owned businesses!
2. Engage with and promote women-owned businesses on social media
The influence of word-of-mouth can be more substantial than you may realize. Highlight the products or services from women-operated businesses that you appreciate, using hashtags like #WomenOwnedBusiness or #BuyWomenOwned to expand your audience. Make sure to follow these businesses on social media and engage with their content to enhance their visibility in social media algorithms. A larger following also lends credibility to these admirable small businesses striving to establish their presence in a competitive market.
3. Purposefully collaborate with women-owned business vendors
If you’re a business owner, set a goal for 2025 to consciously foster ties with more women-owned businesses through your vendor partnerships. For recommendations, consider companies like Packed With Purpose, which specializes in corporate gifting while uplifting other women-led businesses through purpose-driven gift boxes suitable for any holiday or occasion. Founded by Peace Corps volunteer Leeatt Rothschild, they exemplify the positive impact of supporting women entrepreneurs.
4. Provide mentorship to women
It’s widely recognized that women in business face unique challenges that differ from those experienced by men. Successful female entrepreneurs possess insights that could be invaluable for aspiring women entering the entrepreneurial landscape. If you have wisdom gained from experience, don’t hesitate to share! Alternatively, you can support organizations dedicated to women’s mentorship. Explore your workplace’s mentorship initiatives for women—connect with your HR department; if none exist, consider proposing a program.
5. Contribute to organizations supporting women in business
Numerous nonprofit organizations are committed to supporting women in their entrepreneurial journeys. Here are a few you might consider donating to:
- Step Up offers mentorship for young girls to foster both personal and professional development; you can contribute your time or finances by becoming a mentor.
- The Women’s Venture Fund aids women in establishing successful enterprises in urban settings and provides one-on-one advisory sessions. They are currently looking for volunteers with a minimum of eight years of experience in various fields like accounting, marketing, and supply chain management.
- Astia is a global initiative focused on promoting equity in investments by supporting high-growth firms led by women. They also offer mentoring for entrepreneurs and access to expert advisors for feedback on business models and more.
6. Invest in women-owned enterprises
According to data from Crunchbase, women-led startups accounted for only 2.3% of venture capital funding in 2020, despite evidence suggesting that startups founded by women outperform their male counterparts. Over a five-year timeframe, women-owned startups generate roughly “10% more in total revenue.” If you have the means to invest, consider diversifying your portfolio by including women-owned businesses.
7. Write reviews for women-owned businesses online
In today’s digital landscape, small businesses find themselves vying with large corporations backed by extensive marketing budgets. One cost-free method of supporting women-owned businesses is to write genuine reviews on platforms like Yelp, Google, and Facebook to enhance their searchability. Potential customers might hesitate to purchase from unfamiliar small businesses, and a detailed review of your experience could encourage them to take that step.
