American Women in Business

American Women in Business

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2015-09-22

 

Take your hats off to the women of America – they are leaning into their ambitions, and they’re succeeding.  9.1 million companies in the U.S. are women-owned, they employ almost 8 million people and produce $4 trillion in sales. That’s a big chunk of the U.S. economy in the hands of capable women.

Many of these women are very successful entrepreneurs – one in five firms with revenue of more than $1 million was started by a woman. Almost 5 percent of women-owned businesses in the U.S. have annual revenues of more than $1 million.

The number of U.S. businesses owned by minority women is growing faster than U.S. business in general. According to figures released recently by the Census Bureau and analyzed by the National Women's Business Council, government agency companies owned by Hispanic women rose 87 percent between 2007 and 2012, while the number of companies owned by black women rose nearly 68 percent, and the number of businesses owned by Asian women increased by 44 percent.

The White House is urging corporate America to embrace women in business. The government's Council on Women and Girls is urging business schools to improve the recruiting of female students into MBA programs to support a workforce that would be more flexible for women.

Women business owners face some challenges that are unique to their gender:

  1. Stereotyping:  Business is still predominantly a man’s world, and being the only woman in a boardroom or at a high-level meeting can be a challenge. 
  2. Funding: Women-owned businesses get significantly less funding. Funders tend to invest in people they identify with.  Only 5 percent of venture capital firms have a female CEO, and 6 percent have female partners.
  3. Work-Life Balance: Juggling home and work tend to be tougher for women, as there is still the perception that a woman would be more effective in business if she didn't have to deal with home and children issues.

These challenges can result in essential business strategies, like asset protection, getting lost in the mix. Women are the sole or primary breadwinners in a record 40 percent of U.S. households, and while it’s impossible to avoid all risk, it is possible to guard against resulting financial losses. One thing women business owners can do for themselves on this day is put in place the needed insurance and protections.

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances.
Member FINRA & SIPC.

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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