Becoming an entrepreneur is easier today as emerging technology and greater connectivity have allowed individuals to become incorporated and sell their goods and services online. The internet has given rise to an interesting phenomena. According to the Service Corps of Retired Executives (SCORE) Association in Washington D.C.:
- From 2007 to 2016, women-owned enterprises grew 45%, making up 39% of the 28 million small businesses in the U.S.
- These nearly 11 million woman headed businesses generated $1.6 trillion in revenue and employed more than 9 million Americans
- Of the woman-owned business startups for the years 2007 to 2018, 64% were started by African-American women
These numbers, which are also supported by a 2018 report by American Express, raise a question about why woman are starting companies at a faster rate than men and how they have become good at running business online.
Strengths of Women Business Owners
Starting a business and bringing a product to market online seems better suited to the strengths woman bring to business ownership. Woman are more patient than their male entrepreneurial counterparts, and able to able to be more empathetic in meeting their customers needs. These traits allow women businesses to react to customer’s expectations of their products and make changes (when necessary) to keep them happy. A woman’s lack of access to capital does not necessarily prevent her from being successful. An ability to improvise and quickly adapt to a wide variety of niches, which allows specialization and profitability.
Level Playing Field
Traditional brick-and-mortar companies have been slow to recognize the talents of women executives. The famous “glass ceiling” limitations on promotions and advancement have been a contributing factor in the rise in woman-owned businesses (made easier through the ability to launch online). Woman have leaned to become good business owners online because it is online that the playing field becomes level. The examples of successful woman-owned businesses online include Not Ordinary Media (NOM), which experienced 3,000% three-year growth (2016–2018) and $21.4 million in revenues (2018) and Nutpods, a woman-owned online retailer whose products also sell in chain groceries such as Whole Foods, Sprouts, Publix Markets and Kroger.