Less than 30 years ago, the Women’s Business Enterprise National Council (WBENC) was founded.
Its purpose? To fuel global economic growth through their support and certification of women-owned businesses.
Since then, the WBENC has grown to be the largest third-party certifier for businesses owned and operated by women in the U.S.
It continues to offer resources that help those businesses and supply chains not only survive, but thrive.
Growth by the Numbers
Historically, women in the U.S. have made up a very small percentage of business owners. In fact, in 1972, only 4.6% of all businesses were owned by women.
But with advances in women’s rights and the creation of organizations like WBENC, women are now more supported. Women are making strides in growing the business sector.
By 2019, women owned 42% of all businesses in the U.S. That’s nearly 13 million.
This jump in statistics from 1972 to 2019 was no easy feat. It shows just how hard women have worked to eradicate inequality and forge business opportunities for themselves and others.
Between 2014 and 2019, not only did the number of businesses owned by women increase by 21%, their employment and revenue rose by 8% and 21%. Additionally, the number of businesses owned by women of color increased by 43%.
This kind of growth benefits not only women, but also the overall economy and all of its participants. Diverse and inclusive businesses are valuable to everyone and necessary for establishing a more equitable and sustainable future.
Unfortunately, this hard-earned growth has been cut short.
The Current State
The pandemic exacerbated many existing societal and economic inequalities. Women’s progress in owning and operating businesses was no exception.
To put it into perspective:
- Between February and April 2020, nearly 25% of all women-owned businesses closed, compared to 20% of men-owned businesses.
- Sixty-four percent of female business owners say their revenue decreased because of COVID-19.
- Over the past year, more than 2.5 million women left the workforce, compared to 1.8 million men.
There are a combination of societal factors to take into account.
According to a recent study from McKinsey, one in four women are considering downshifting their careers or leaving them entirely. For example, the increased burden of unpaid work has pushed many women to leave the workforce. This includes childcare, shopping, cleaning, and cooking, which were already disproportionately carried by women before the pandemic began.
Even women who keep their jobs experience increased stress and burnout in work settings.
Another driving factor in these economic imbalances during the pandemic include the types of affected industries.
Hospitality, education, retail, and personal services have felt a massive blow—and it’s more common for companies in these industries to be owned and operated by women. This also explains why so many women-owned businesses had to close their doors.
How to Show Support NOW
In the wake of COVID-19, women are in need of a little extra support.
Aiding these businesses and lifting women up economically helps everyone. The evidence is in the growth women-owned businesses saw before the pandemic—when they supported nearly half of the economy.
The WBENC provides this kind of support to many companies, including G3, so we understand the importance of championing each other and leaning into the conversation.
Raising our voices to share information and buying women-owned products and services are actions we can all take to help close the widening economic gender gap.
To learn more about how you can work with the pioneering women behind G3 Life Sciences, contact us here.