United We Stand, Divided We Fall – 8 Powerful Ways to Support WBEs

Reflecting on the past two years, the world has come to new realizations. From supply chains, education, prices, the way we work, and now war, things may never return.?Although many of these changes have made lasting impacts on our lives forcing us to adjust to a new normal, key findings around inequality in business point to a need for even more change, particularly in how we support women-owned businesses.

One noticeable yet encouraging change has been in the accelerated growth of women-owned firms. In 2019, the American Express 9th Annual State of Women-Owned Business Report found that women-owned firms accounted for 42% of all businesses, growing twice as fast on average than all businesses nationwide[1]. Furthermore, the report, based on U.S. Census Bureau data, claims that businesses owned by women of color grew at more than double the rate of all women-owned businesses. Not only were these trends good for women. They were good for everyone since WBEs account for nearly 13 million firms, employ 9.4 million workers, and generate $1.9 trillion in revenue, continuing to feed and source the economy. However, despite these milestone achievements proving that WBEs are a formidable force in society, WBEs woefully lack the much-needed support to get off the ground in comparison to male-owned businesses. If more women could reach their dreams of owning their own businesses, or sustaining it, the economy would benefit that much more. So what’s stopping them?

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Divided We Fall

Since February of 2020, the early days of the pandemic, the already vulnerable American society built on two-income family households suffered tremendous loss when more than 2.3 million women left the labor force to stay home to care for and homeschool their children. This mass exodus marked the lowest women’s labor force participation rate in 33 years, at 57%[2]. ?Without adequate childcare, safe schools, meaningful wages, and flexibility and support, women lose. When women lose, jobs and money disappear within the community. Ultimately, society suffers. That’s why everyone has a responsibility to ensure that these businesses succeed. With the Women's Business Enterprise Council National Conference in two weeks, it is time to recognize that from the enterprise to the individual level, we should all share the work of supporting WBEs.

Lift Every Woman

To get women back to the labor force, we must help WBEs thrive. Businesses can hold themselves accountable by challenging misperceptions and expanding mindsets to open up the playing field for all. Rather than hiring WBEs and minority owned suppliers to fill stereotypical roles that can include administrative staffing, corporations should also consider the robust number of suppliers that operate as specialists in professional services, finance, marketing, legal, and information technology[3]. ?Widening the net for more women and minority-owned suppliers, increases the corporation’s ability to support these businesses as well as having a positive hand in fueling the community. Through the Multiplier Effect, these businesses will in turn hire more women and minority employees who will purchase goods and services throughout the community, helping families and producing tax revenue and providing economic benefits.

From gender discrimination, racial bias, and the reluctance to hire, the reasons may be many but it is clear more equitable work needs to be done to ensure WBEs and minority-owned businesses get the support they deserve to thrive and build a stronger economy. Here are some recommendations on how companies and individuals can help lift women and minority-owned businesses:

Ways Corporations Can Better Support WBEs

·??????Develop a Mentoring program for WBEs/Minority-Owned Suppliers

·??????Formalize a Supplier Diversity Program at the Corporate Level

·??????Be intentional. Diversify the Portfolio of Suppliers

·??????Include Women on VC Board with Decision-Making Power

Ways Individuals Can Better Support WBEs

·??????Extend More Hands-on Support to Startups

·??????Help WBEs Network with other Large Corporations

·??????Engage in Community-Related Events that are Relevant to Supplier’s Community?

·??????Throw a New Business Shower Party

United We Stand

Without vital assistance, support, funding and equitable access, women and minority-owned businesses can suffer debilitating limits to growth and ultimately catastrophic loss, thereby further weakening an already strained economy. With support, coaching, and more equity, in time, WBEs will one day attain their rightful share of the pie and continue on supporting the community and society at large. Be a part of the change. Support women and minority-owned businesses.

[1] https://about.americanexpress.com/all-news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-On-Average-Than-All-Businesses-Nationwide/default.aspx

[2] https://www.cnbc.com/2021/02/08/womens-labor-force-participation-rate-hit-33-year-low-in-january-2021.html

[3] https://www.forbes.com/sites/christinecarter/2022/01/29/yes-everyone-plays-a-role-in-the-success-of-minority-owned-and-women-owned-businesses/?sh=1af605386db7