"Behind the Pay Gap: Why Male Entrepreneurs in the U.S. Make Twice as Much as Women"

"Behind the Pay Gap: Why Male Entrepreneurs in the U.S. Make Twice as Much as Women"

By Carina Whitham

July 2023

"Women embark on entrepreneurial journeys at a rate nearly double that of men, yet the unfortunate truth remains that a significantly lower number of these ventures achieve substantial growth," reveals Kerrie MacPherson, a distinguished partner principal at Ernst & Young, entrusted with the invaluable responsibility of overseeing the esteemed EY Entrepreneurial Winning Women Program.

A gender disparity of this nature can be attributed to a myriad of factors. Primarily, businesses owned by women tend to be more modest in scale, primarily focusing on service-oriented industries that yield comparatively lower revenues.

Astonishingly, while women command 30% of privately owned companies, their collective sales account for a mere 11% of the market and contribute to only 13% of overall employment within the realm of privately owned enterprises, as documented by an exhaustive report compiled by the reputable U.S. Department of Commerce.

HERE ARE SOME NUMBERS

In 2021, the average annual revenue for women-owned businesses was $475,707, while men-owned businesses made $675,643 per Biz2Credit.

The biggest gap in financing occurs in the venture capital arena.?TechCrunch ?reports a mere 1.9% of women-only teams seeking VC investments got funded in 2022, while about 80.9% of men-only teams received funding. And 17.1% of mixed-gender teams got VC investments.

There are now 12.3 million women-owned businesses in the U.S., according to a report by American Express and SCORE.

The disparity in small business ownership between men and women can be due to a variety of complex factors, including historical, cultural, economic, and social. However, many corporations and consumers are increasingly recognizing the value of diversity and social responsibility, making it a great time for women-owned businesses to leverage this trend and convince others to utilize their services.?

STRATEGIES TO DIFFERENTIATE YOUR BUSINESS

Communicate your unique perspective: The value of a diverse perspective in problem-solving and innovation is well-documented. Women-owned businesses can leverage this by emphasizing their unique perspective in their marketing, highlighting how their experiences as women can offer fresh insights and innovative solutions.

Emphasize social responsibility: Many companies are increasingly interested in social responsibility and sustainability. Women-owned businesses can make it clear that partnering with them can contribute to the company's corporate social responsibility goals and most importantly show their customers that diversity initiatives and inclusion are a part of their company’s core values by the vendors they choose. Here is an ad I created which I post on social media and feel free to use it as your own and repost with your own logo. It is a very important message that companies need to see over and over.

Build relationships and network: Networking is critical in business. By building relationships with potential clients, women-owned businesses can increase their visibility, create opportunities for collaboration, and highlight their expertise.

My recruitment firm exhibits every year at Solar Conferences and there are no other competitors there. By being accessible, my team and I meet our clients and candidates in person 2-3 times a year which only fosters business and personal relationships within my industry and setting my firm apart. I even created a video of clips from over the years from various conferences that I use as marketing collateral.

Quality and competitive pricing: Ensure that your products or services are of high quality and competitively priced. No matter who owns the business, quality and value are paramount for customers and partners.

Leverage certifications: There are certifications available for women-owned businesses (like the Women's Business Enterprise National Council certification in the U.S.). These certifications can provide credibility and open opportunities for contracts that have diversity requirements.

Participate in supplier diversity programs: Many large corporations have supplier diversity programs, and governmental institutions often have procurement goals related to minority- and women-owned businesses. Research these opportunities and make sure your business is in the running. Just head over to the Supplier Diversity Portals of the companies you are seeking to do business with and register. Many have self-certification programs as well.

Showcase your success stories and case studies: Clearly demonstrate the value your business has provided to other clients. Success stories and case studies can be very persuasive, giving potential customers or partners confidence in your abilities. One example I use frequently is when our candidate was hired into a sales division doing $5M a year and took that division to $140M in sales in less than 3 years which is a 2700% increase in sales. What company would not want those results?

Market your business effectively: Make sure you have a strong online presence and use digital marketing strategies to reach your target audience. Social media, content marketing, and SEO can be effective ways to highlight your business.

Being a woman-owned business is just one aspect of what you bring to the table. Your skills, experience, and the value you provide are equally if not more important in convincing companies to use your services.

About:

Carina Whitham is the founder of Whitham Group Renewable Energy Recruitment, the leading Executive Search and Recruitment firm focused on finding Renewable Energy Talent for companies like SunPower, Schneider Electric, Engie, Panasonic and more. ?Carina has dedicated her 15-year career to helping organizations find top talent and has successfully placed numerous professionals in key leadership roles, contributing to the growth and success of companies across the renewable energy industry. Her keen understanding of organizational needs and her ability to identify exceptional talent have made her a trusted advisor to both companies and candidates.

In addition to her expertise in executive recruitment, Carina is also a woman certified business owner, demonstrating her commitment to fostering diversity and inclusion in the business world. Through her own entrepreneurial journey, she has overcome challenges and obstacles, and now serves as a mentor to other women entrepreneurs, offering guidance, support, and valuable insights to help them achieve their business goals.

Marketing Contact: Kay Reyes

[email protected]

(831) RECRUIT

www.WhithamGroup.comCompany