As a woman business owner, on a regular basis, you’re likely to see or feel the reality that, in most of the world, entrepreneurship is set up for men. The ecosystem was set up by men … for men, which has created many barriers for women.
Women in the U.S. are starting over 1,100 businesses a day – more than double the national average for men. But, until now, we’ve lagged behind them in multiple ways.
Here are the facts:
- On average, the typical men-owned business generates over $700,000 a year. For white women, that number is less than $150K. For women of color, under $30K.
- About 7% of men-owned businesses generate more than $1M in annual revenue. For women, only about 2% reach that mark.
- Of the $333 Billion invested by VC’s last year, less than 2% went to women. Which was less than the year before.
But slowly, the tides are changing in our favor!
Recent studies have shown that the ROI for women is much better than for men. Take the time to Google the studies done by the Kaufmann Foundation, First Round Capital, and Boston Consulting Group (BCG) and you’ll be astounded and delighted by their findings. The handful of women who are getting funded are making boatloads of money for their investors.
In the BCG report, they followed a group of VC’s over a 5 year period, and found that the results for women were so much better. They found that if the VC’s had EQUALLY invested in ventures led by women and men, they would have yielded $85M more in profits … in just 5 years. The investors left $85 Million on the table because they put most of their eggs in ONE basket. Hmm.
The numbers don’t lie. The word is out. And we are sharing the data with everyone who will listen. We are asking you to do the research too, and every time you meet an investor, TELL THEM. Share the numbers. Be loud and bold. And if they continue to turn away from the facts, then the women who are now creating their own funds will get all the great deals.
Experts say that the biggest hurdles for us are access to capital, markets and networks. In my opinion, the networks are the most important thing, because if you have access to the right people … if they are in your networks, you can gain access to the capital and markets. Start building your network today, starting with a group of peers who have your back. Share your connections and your knowledge, the hard-earned knowledge that came from experience.
BrainTrust is a peer-to-peer organization for women business owners. Still in its infancy, the BrainTrust process is yielding amazing results, with members reporting growth at 5 X the rate of non-members.
If you would like to know more about BrainTrust, we invite you to our next Lowdown event where you will learn how and why the process works and what it can do for your business.