Unlocking the Power of Women-Owned Businesses: Impact, Potential, and Pathways to Growth

Women-owned businesses have become an undeniable force in the U.S. economy, and their impact only keeps growing. Wells Fargo’s 2024 Impact of Women-Owned Businesses report shows just how much women entrepreneurs have achieved—and how much potential remains untapped. Despite the remarkable progress, there’s still a lot more we can do to support women in business, especially as they navigate unique challenges in an ever-evolving market.

In this post, I’ll break down the economic power of women-owned businesses, the roadblocks they’re up against, and some practical steps we can take to foster an environment where they can thrive. Let’s dive in.

The Economic Power of Women-Owned Businesses

Today, over 14 million women-owned businesses are driving the U.S. economy forward, making up nearly 40% of all firms. Together, they employ a whopping 12.2 million people and bring in a massive $2.7 trillion in revenue. Women entrepreneurs are building momentum and showing the world what’s possible: since 2019, they’ve been growing at faster rates than men’s businesses in terms of the number of firms, employment, and revenue. And this trend continued strong.

The Untapped Potential

The report points out something eye-opening: if women-owned businesses generated revenue on par with men-owned businesses, we’d see an additional $7.9 trillion pumped into the economy. Yes, trillion with a “T”! And if we close the revenue gap between women of color (WOC) and white women entrepreneurs alone, we’re talking about another $667 billion. It’s clear that the economic potential of women-owned businesses is huge, but we need to address the existing gaps to bring it to life.

Resilience Through the Pandemic

When COVID-19 hit, many women-owned businesses—especially those run by WOC (eh em...that's me)—were hit hard. Limited access to the initial rounds of government support and reduced consumer demand were just the start of their challenges. But, as they’ve done time and again, these business owners adapted and kept pushing forward. Many expanded online, started offering new products, and formed creative partnerships to stay afloat. This resilience helped women-owned businesses bounce back stronger and even grow (also me).

Industry Representation & Growth

Women entrepreneurs are making their mark in more industries than ever before. While many continue to operate in sectors like caregiving, education, and personal services, there’s been a strong push into finance, insurance, transportation, and warehousing. This growth shows the breadth and diversity of skills women bring to the business world, though revenue potential remains lower in the caregiving and personal service industries, where many women entrepreneurs are concentrated.

Addressing Barriers to Growth

Despite their significant contributions, women entrepreneurs continue to face big challenges. Limited access to capital, smaller networks, and the balancing act of caregiving responsibilities can all hinder growth. But the right support can help change that. So how can we build an ecosystem that truly supports women entrepreneurs? Here are four ideas:

How to Foster a Supportive Environment for Women-Owned Businesses

1. Expand Access to Capital

One of the biggest barriers women business owners face is finding financing to fuel their growth. Providing access to diverse funding options—like microloans, grants, venture capital, and crowdfunding—is a great place to start. Let’s also make the application process easier and offer financial literacy programs tailored to women entrepreneurs. Helping them connect with reputable lenders can reduce barriers and create real opportunities for growth.

2. Enhance Market Access with Certification Programs

Certifications can help women-owned businesses tap into government and corporate contracts, thanks to supplier-diversity programs. But awareness of these programs remains low, and the process can be overwhelming. Raising awareness, streamlining the certification process, and providing support for international expansion can open up new markets. Connecting women with mentors and peers in similar industries is also key for growth.

3. Build Stronger Networks and Mentorship Programs

Having a strong network can make a world of difference. Unfortunately, many women entrepreneurs have fewer connections in the business world. Investing in mentorship programs, networking events, and peer learning opportunities can help women entrepreneurs meet industry experts, potential clients, and other resources. It’s about building an environment where they can strategize, connect, and access the right support to scale.

4. Support Work-Life Balance and Caregiving Resources

For women entrepreneurs who are also primary caregivers, finding time to grow a business is a balancing act. Policies supporting affordable child care, flexible work arrangements, and remote work can make a difference. Offering resources like caregiving support could allow more women to focus on their businesses without sacrificing their family responsibilities. When we invest in these areas, we invest in the success of women-owned businesses.

Looking Forward: Building a Thriving Women-Owned Business Sector

The power and impact of women-owned businesses are clear: they’re nearly 40% of U.S. firms, they employ millions, and they’re generating trillions in revenue. But imagine the economic boost we’d see if we could address the barriers that hold them back! By creating a supportive environment, we’re not just helping women entrepreneurs; we’re helping create a more robust, resilient economy.

Supporting women-owned businesses is about more than economic growth; it’s about equity, opportunity, and creating a space where everyone has a shot at success. With the right steps, we can close those gaps and fuel a future where women entrepreneurs not only thrive but lead the way in shaping our economy.

Let's give it up for all the women out there hustling and making it happen. I see you!

-L

LeiLani E. Quiray is the Founder and CEO of be the change HR , Inc., certified Minority and Woman owned, a conscious company and social enterprise, providing HR support for small-to-medium sized businesses in any facet of HR from pre-hire to post-term and everything else that happens in between. She and her team also teach free job readiness courses and provide free coaching to trafficking survivors.? Her team is not only HR Pros, they are Life Changers.?

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