Money Analysed

The Power of Investing in Women-Owned Businesses: Promoting Equality and Profitable Returns

Investing in Women-Owned Businesses: A Wise Choice for Gender Equality, Economic Growth, and Profitable Returns

In the last few decades, the number of women-owned businesses has grown dramatically, becoming a significant driver of economic growth and job creation. According to a 2019 report by American Express, the number of women-owned businesses in the United States increased by 58% since 2007, representing the creation of over 12.3 million jobs and generating $1.8 trillion in revenue.

While women entrepreneurs have made considerable strides over the last decade, the gender gap in entrepreneurship and access to capital remains a major challenge. To ensure that women continue to contribute to economic growth and create more inclusive communities, we must empower women entrepreneurs by investing in their businesses.

Investing in women-owned businesses not only helps to promote gender equality but also presents a wise investment opportunity. In this article, we explore the benefits of investing in women-owned businesses and successful companies to invest in, as well as resources for women entrepreneurs.

Importance of Investing in Women-Owned Businesses

Women entrepreneurs face unique challenges in financing and scaling their businesses. They are more likely to bootstrap their businesses and rely on personal savings, borrowings from family and friends, and credit card debt, rather than getting funding from venture capitalists or financial institutions.

Furthermore, women entrepreneurs often struggle to overcome gender bias and the unequal distribution of opportunity and resources. Investing in women-owned businesses can help to address these issues and unlock the full potential of women entrepreneurs.

Investing in women-owned businesses promotes gender equality and supports female entrepreneurship as a catalyst for economic growth. Women-owned businesses have been shown to outperform male-owned businesses in job creation and revenue growth, yet they still have significantly less access to capital.

By investing in women-owned businesses, investors can support gender equality and contribute to the growth of the economy.

Successful Women-Owned Businesses to Invest In

Many women-owned businesses have shown remarkable success in the past and continue to do so. Here is a list of some successful women-owned businesses that are worth investing in:

– Veracyte: A genomic diagnostics company that uses advanced genomic technology to help physicians better diagnose and manage various cancers and diseases.

– Sunrun: A leading provider of residential solar energy solutions that enables households to achieve energy independence. – Stitch Fix: An online personal styling service that uses data science and personal stylists to deliver personalized clothing options to customers.

– Cortexyme: A pharmaceutical company focused on developing treatments for Alzheimers disease and other degenerative disorders. – Eventbrite: An event management and ticketing platform that offers a broad range of services to event organizers and attendees.

– The RealReal: An online luxury consignment store that offers authenticated luxury goods, such as jewelry, watches, handbags, and clothing. – Ayala Pharmaceuticals: A clinical-stage company that develops and commercializes innovative cancer therapies.

– Bumble: A social networking platform that empowers women by providing them with a safe and inclusive online dating experience. – Twist Bioscience: A synthetic biology company that manufactures DNA and other biological materials for research and development.

Resources for Women-Owned Businesses

Investors can support women-owned businesses by developing meaningful relationships with female entrepreneurs and investing their resources. Here are several resources for women-owned businesses:

– Office of Womens Business Ownership (OWBO): A federal agency that provides entrepreneurship and technical assistance programs to women entrepreneurs.

– Womens Business Centers (WBCs): A national network of WBCs that provides training, counseling, and mentoring services to women entrepreneurs. – Women-Owned Small Business Federal Contracting Program: A government program that gives federal contractors greater incentives to work with women-owned businesses and encourages their participation in the federal marketplace.

– Economically Disadvantaged WOSBs (EDWOSBs): A program that provides additional support to women-owned small businesses that are economically disadvantaged. – U.S. Women’s Chamber of Commerce: A national organization that advocates on behalf of women-owned small businesses and provides access to mentorship, education, and networking programs.

– Women’s Business Enterprise National Council (WBENC): A certification organization that evaluates women-owned businesses based on criteria such as majority ownership, control, and operation. – IFundWomen: A crowdfunding platform designed for women entrepreneurs and creatives.

– SCORE: A nonprofit association that helps small business owners and entrepreneurs start, grow, and succeed by offering free business counseling, mentoring, and affordable business education resources.

Benefits of Investing in Women-Owned Businesses

Investing in women-owned businesses helps to diversify investment portfolios, mitigate risks, and generate returns. Here are three key benefits of investing in women-owned businesses:

1.

Positive impact of women in leadership positions

Studies show that women in leadership positions can lead to greater value appreciation, increased stock price momentum, and higher revenue. According to research by S&P Global Market Intelligence, companies with women in CEO or CFO positions had higher median growth in stock price compared to companies with men in similar positions.

Additionally, gender-diverse companies tend to have better decision-making, improved employee satisfaction, and a more engaged workforce. 2.

Gender diversity and innovation

Investing in women-owned businesses can help investors tap into a vast and growing market. Women make up nearly half of the workforce and account for more than 70% of household spending.

By investing in women-owned businesses, investors can gain access to new and innovative products and services that cater to female consumers and beyond. 3.

Closing the gender gap

Investing in women-owned businesses helps to drive gender equality and close the gender gap. Despite the progress made in recent years, women remain underrepresented in leadership roles and in the Fortune 500 companies.

By investing in women-owned businesses, investors can help to create more inclusive communities, promote diversity, and contribute to social and environmental well-being.

Conclusion

Investing in women-owned businesses not only helps to promote gender equality but also presents a wise investment opportunity. Women-owned businesses have shown remarkable success in the past and continue to do so.

By investing in women-owned businesses, investors can contribute to economic growth, promote gender equality, and benefit from profitable returns. The resources and companies listed above are just a few examples of how investors can support women-owned businesses and make a difference in their communities.

Examples of Women-Led Companies to Invest in

Women entrepreneurs have been making remarkable strides in the business world, leading the way for gender diversity and innovation. In recent years, more women-led companies have emerged, with strong financial performance and diverse leadership teams that represent a significant driver of economic growth.

In this section, we will take a closer look at some of the successful women-led companies that investors should consider investing in. 1.

Veracyte

Veracyte, founded by Bonnie Anderson in 2008, is a genomic diagnostics company that uses advanced genomic technology to help physicians better diagnose and manage various cancers and diseases. Veracyte is dedicated to empowering patients, improving patient outcomes and reducing healthcare costs.

Bonnie Anderson was the chief executive officer of the Company until 2020, when she became Executive Chairman of Veracyte. Anderson remains a critical leader of the company, responsible for producing a culture of innovation and growth.

Veracyte has a diverse leadership team with a 50/50 gender ratio of both male and female executives, which is credited to the company’s success. With its continued focus on innovation, Veracyte is well positioned to continue growing and taking its rightful place as a major driver of healthcare research.

2. Sunrun

Sunrun is a leading provider of residential solar energy solutions that enables households to achieve energy independence, founded in 2007 by Lynn Jurich and Edward Fenster.

Sunrun is committed to delivering easy, affordable, and reliable renewable energy to millions of households across the United States. Lynn Jurich, the current CEO of Sunrun, has been pivotal in leading the company’s growth and success.

Sunrun’s executive team has a good gender ratio, and several board members are women, demonstrating the company’s commitment to diversity. Sunrun’s installation business, installation technology, and financing methodology have set it apart from the competition.

Sunrun’s solar solutions are easy to install and affordable, making them accessible to a broad range of customers. Despite the challenges of the pandemic, Sunrun has seen significant growth and expansion in recent years, and it continues to demonstrate its commitment to sustainable energy solutions.

3. Stitch Fix

Stitch Fix is an online personal styling service that uses data science and personal stylists to deliver personalized clothing options to customers.

It was founded in 2011 by Katrina Lake and has since become an industry leader in the fashion industry. Katrina Lake, the current CEO of Stitch Fix, has been instrumental in leading the company to success.

With her data-driven approach, Stitch Fix has grown into a successful business that continues to innovate and expand its services. Stitch Fix’s board is also highly diversified, with several women in leadership positions and serving as directors.

Not only has Stitch Fix made shopping more convenient by allowing customers to receive personalized style recommendations from home, but it has also prioritized social responsibility and sustainability. In recent years, Stitch Fix has taken steps to improve the sustainability of its clothes and reduce its carbon footprint.

4. Cortexyme

Cortexyme is a clinical-stage biopharmaceutical company focused on developing treatments for Alzheimer’s disease and other degenerative disorders.

Founded in 2012 by Casey Lynch, Cortexyme’s mission is to improve the lives of those affected by significant neurological diseases. Casey Lynch, the co-founder and CEO of Cortexyme, has been instrumental in the development of several drugs aimed at treating Alzheimer’s disease.

Cortexyme’s leadership team is well-diversified with women serving in key positions. Also, the company is actively conducting clinical trials to further develop its Alzheimer’s therapies.

Cortexyme is one of the few biopharmaceutical companies with a strong focus on Alzheimer’s disease, an area that remains underserved due to the complexity of the disorder. The company’s innovative approach to treating and understanding the underlying mechanisms of Alzheimer’s disease gives it a significant competitive advantage and potential for growth.

5. Eventbrite

Eventbrite is an online platform that enables people to create, promote, and sell tickets to events.

It was founded in 2006 by Renaud Visage, Julia Hartz, and Kevin Hartz. Eventbrite is the world’s largest event technology platform, having expanded from its initial roots in Silicon Valley.

Julia Hartz is the current CEO of Eventbrite, and she has played a vital role in the company’s growth and development. In addition to being one of the few women-led technology platforms, Eventbrite’s executive team and board of directors have a well-balanced gender ratio.

Eventbrite’s platform is highly functional and user-friendly, allowing event organizers to create, promote, and sell tickets for events of all sizes, from small community gatherings to massive music festivals. As the world recovers from the pandemic, Eventbrite’s technology and services are more important than ever, helping event organizers adapt to the new normal.

How to Help Women-Owned Businesses

Investing in women-owned businesses presents a golden opportunity to promote diversity and promote economic growth. In this section, we will discuss some ways to support women-owned businesses, qualifications for women-owned businesses, and resources that can help women entrepreneurs thrive.

1. Ways to support women-owned businesses

There are several ways to support women entrepreneurs, including:

– Purchase products/services: By purchasing products and services from women-owned businesses, you not only show your support but also help mitigate the economic challenges women face.

– Social media promotion: Social media platforms are a powerful tool for promoting businesses and raising awareness about their products and services. By sharing posts that promote the company, you can help increase their visibility.

– Crowdfunding: Crowdfunding platforms like iFundWomen can help women entrepreneurs get the financial support they need to bring their projects to life. – Financing: Women entrepreneurs often face difficulties accessing capital.

By investing in women-owned businesses, you can help support their growth and success. – Direct support: Mentoring, advising, or providing access to networks can help women entrepreneurs overcome challenges and build their businesses.

2. Qualifications for women-owned businesses

To qualify as a women-owned business, the company must meet certain criteria, including:

– At least 51% owned and operated by women

– U.S. citizens

– Women making long-term decisions for the business

3.

Resources for women-owned businesses

There are several resources available to women entrepreneurs, including:

– Office of Womens Business Ownership (OWBO): A federal agency that provides entrepreneurship and technical assistance programs to women entrepreneurs. – Womens Business Centers (WBCs): A national network of WBCs that provides training, counseling, and mentoring services to women entrepreneurs.

– Women-Owned Small Business Federal Contracting Program: A government program that gives federal contractors greater incentives to work with women-owned businesses and encourages their participation in the federal marketplace. – Economically Disadvantaged WOSBs (EDWOSBs): A program that provides additional support to women-owned small businesses that are economically disadvantaged.

– U.S. Women’s Chamber of Commerce: A national organization that advocates on behalf of women-owned small businesses and provides access to mentorship, education, and networking programs. – Women’s Business Enterprise National Council (WBENC): A certification organization that evaluates women-owned businesses based on criteria such as majority ownership, control, and operation.

– IFundWomen: A crowdfunding platform designed for women entrepreneurs and creatives. – SCORE: A nonprofit association that helps small business owners and entrepreneurs start, grow, and succeed by offering free business counseling, mentoring and affordable business education resources.

Conclusion

Women entrepreneurs are leading the way for gender diversity and innovation in the business world. By investing in women-owned businesses, supporting their growth and success, and providing them with the resources they need, we can promote gender equality, economic growth, and innovation.

With more opportunities and access to capital, women entrepreneurs can continue to contribute significantly to building a more inclusive and diverse business ecosystem.

Getting Started with Investing in Women-Owned Businesses

Investing in women-owned businesses offers opportunities to promote gender equality while earning returns. However, investing can seem daunting, particularly if you are new to this area.

In this section, we explore how to get started with investing in women-owned businesses by examining investment accessibility, incorporating values in investments, and best practices for investing in women-owned businesses. 1.

Accessibility of investing

Investing in women-owned businesses is more accessible today than it has ever been. With advancements in technology and financial innovation, you can invest in women-owned businesses with as little as $1.

Here are some ways to invest in women-owned businesses:

– Investment platforms: Platforms like Ellevest, SheCapital, and Pax Ellevate offer investors exposure to portfolios of companies with diverse leadership, including women, as well as promotion of gender equality. – Fractional shares: Fractional shares allow investors to invest in a company without having to purchase a full share.

This makes it easier and more affordable for individuals to build a diversified portfolio that includes women-owned businesses. – Diversified selection: Exchange-Traded Funds (ETFs) and mutual funds offer exposure to multiple women-owned businesses in a single investment, providing greater diversification.

There are also funds that specifically focus on investing in women-owned businesses, such as The Womens Small Cap Opportunity Fund (WSC) or The She-ventures ETF (HERZ). Investing in women-owned businesses is no longer an exclusive option reserved for the wealthy or well-connected.

With low barriers to entry and accessible investment vehicles, it is easier than ever to

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