Building a Better Business: The Hope and Force of Women Entrepreneurs
Yup, I was a former corporate woman in a not-so-kind industry that I hoped to change. I paid my dues and rose through the ranks trying to make a difference in corporate culture. Then I hit that perennial “glass ceiling.” It wasn’t fair then and it’s not fair now.
I worked hard, received kudos for my management style from both employees and the company, led creative new initiatives, earned a reputation for efficiency and encouraged continuous process improvement and servant leadership.
But it wasn’t enough.
I remember the day my boss, one of the senior executives at the company said, “You’re doing everything well. You are an asset to the company, but you will never go farther because you’re not a warrior and you’re too soft. You need to put your feelings aside, be aggressive and go for the WIN!”
Let’s just say there was not a lot of emotional intelligence coming from that toxic boss who left me in tears every time I met with him. So, I transferred to a more respectful boss with a cut in pay and stayed two years longer at the company. I learned a hard lesson about surviving in corporate America.
Becoming an Entrepreneur
But it wasn’t until I became an entrepreneur of my own company, some years later, with an enlightened partner that I truly could actualize my values as a leader including exercising my soft-soft side and my emotions.
This is where the hope lies for our communities and for our economy. I believe it begins with the many social entrepreneurs, benefit corporations, and environmentally sustainable companies led by women as well as individuals from other diverse communities. These are individuals who understand and actualize the Triple Bottom Line of “People, Planet, Profit.”
Yes, there are a rising number of conscientious leaders who are male particularly among Millennials, the most cause-driven generation in history, who also give hope to a model of the triple bottom line. But truth be told, in my experience and as studied by several researchers, it seems easier for female leaders to embrace humility, kindness, compassion, authenticity, empathy and equity, the new values of the future and of conscientious leaders.
HBR: Women Score Higher in Leadership Skills
A 2019 Harvard Business Review article reveals that women score higher than men in most leadership skills. Findings show that “women in leadership positions were perceived as being every bit as effective as men. Yet, it is sad to report that only 4.9% of Fortune 500 CEOs and 2% of S & P 500 CEOs are women according to Catalyst.
Given this reality, what can a woman to do to fulfill her potential in a male dominated business world? And this reality may be even be more apparent for individuals from diverse communities who aren’t even considered for leadership positions because they don’t fit the “norm” of the white, male, heterosexual profile, or their skin color is different or they speak with an accent. For them the glass ceiling may be even lower.
Yet, hope can be seen every day in our communities as many of the emerging small businesses are being launched by women of all races, creeds and sexual preferences. In 2018, the US Small Business Administration stated they make up 99.9% of all businesses in the country
Here are a few stats from 2018 data that show the driving force of women in our economy;
1. The US has 12.3 million women-owned businesses.
2. US women-owned businesses generate $1.8 trillion a year.
3. 40% of US businesses are women-owned.
4. Women started 1,821 net new businesses every day last year.
5. 64% of new women-owned businesses were started by women of color last year.
6. Latina women-owned businesses grew more than 87%.
7. There are 114% more women entrepreneurs than there were 20 years ago.
8. 62% of women entrepreneurs cite their business as their primary source of income.
9. Private tech companies led by women achieve 35% higher ROI.
10. Women-founded companies in First Round Capital’s portfolio outperformed companies founded by men by 63%.
11. Just 25% of women business owners seek business financing.
12. Women-owned businesses added half a million jobs between 1997 and 2007.
13. Women receive just 7% of venture funds for their startups.
14. Women have a 69.5% success rate of crowdfunding for their businesses while men have a 61.4% success rate.
15. 57.4% of the SBA Microloan program went to women-owned or women-led businesses.
16. Female entrepreneurs ask for roughly $35,000 less in business financing than men.
17. Overall, men receive an average loan size of $43,916 while women receive an average loan size of $38,942 – almost $5,000 less.
Making a Difference While Making a Profit
These startups are led by individuals, like me, who recognize the patriarchy that still exists in much of corporate America. We are bailing to become ambassadors and advocates for the power of conscientious leaders as women starting our own businesses.
In our business, Benefit Corporations for Good, we are honored to meet women from the LGBTQ, Latino, Black, Asian, Veteran, and Elder communities who do not represent the white, male, heterosexual hierarchy of the “traditional” American business world. These emerging businesses believe in local, in the power of grassroots support, in “green” efforts to save the world for their children and grandchildren. And they respect and honor ALL and promote equity.
There is hope. Consider:
New efforts are underway to launch placement services for senior-level female executives placing them up for consideration as CEOS in mid-size and large firms.
New venture capitalists are emerging who are focused on funding only female owned businesses.
State and local governments are offering additional “points” and consideration in RFPs by certified “Women and Minority Owned Business.”
Business training and mentoring programs are offered for women to prepare them with hard business skills to survive as entrepreneurs.
A growing community is emerging within the Conscious Capitalism, Benefit Corporation and B-Corps movement to support female and diverse leaders.
Increasingly the media is showcasing stories and giving recognitions toward female and diverse social activists and entrepreneurs who are “doing good” while making a profit.
Finally, the tide is turning as multicultural, gender-fluid Millennials begin to assume more leadership positions, even within Fortune 500 companies According to Inc. Magazine , Millennials, those born between about 1980 and 2000, are forecast to comprise 50% of the American workforce by 2020 and by 2025, 75% of the global workforce. “Their emphasis is on collaboration, flexibility and they “double down on Servant leadership. “
Together with them, let’s BREAK THE GLASS CEILING!
—>Learn more about the 6 simple steps to becoming a certified Oregon Benefit Company or benefit corporation.
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