It seems like all small businesses are struggling in today’s economy. Over the last year, people have recognized how vital it is to support small businesses. But there are a few categories that are especially important to highlight.
Women-owned businesses were hit the hardest during the pandemic, especially compared to male-owned companies in the corporate world. Today, we’re going to look at how to support women-owned businesses in four ways.
Why you should support women-owned businesses
Supporting women-owned businesses is vital to leveling the playing field of the ratio of men to women in businesses. So let’s look at some reasons why you should be supporting and investing in women-owned businesses.
Women’s economic empowerment is vital in all countries, yet we often think the work in developing equality has been achieved in the developed world. Unfortunately, this is not the case. There are still huge disparities that exist between men and women in today’s world. We cannot maximize our economic potential until all workers have equality.
In the small business realm, all businesses deserve to reach success in our economy. However, not all businesses are equal, and women-owned companies especially are struggling. So, if we want to see our economy truly recover, special attention needs to be paid to women-owned businesses.
Reinvest in families and communities
Compared to men, women are more likely to reinvest their income by putting it towards their family and their communities. The money women earn often goes back into clothing, feeding, and educating children. Women often reinvest 90% of their money back into their families and communities, whereas this value only amounts to 35% for men. Women are also more likely to save their money and create a financial safety net. So, when women succeed, everyone around them reaps the benefits.
It’s essential to have multiple perspectives involved in business. For example, there are known biases in the car industry when testing cars for crashes. The car industry simply didn’t make crash test dummies that fit the dimensions of a typical woman’s body. The result? More women have died in car accidents. There have to be more women at the table making decisions in business.
Seek out innovation
It’s not just a matter of diversity, but it is imperative for innovation. Men and women think differently. There have to be women in all facets of the economy if we want to create a well-rounded workplace. Innovation can only happen when there’s diversity. If women-owned businesses fail, then we end up missing out on innovative opportunities.
Offer fair access to capital
Women-owned businesses and female entrepreneurs are offered smaller loans with higher interest rates than men. As support increases for women-owned businesses and more women start their own businesses, we can increase capital for women. Fair access to capital is essential for all businesses.
Women-owned business were hit hardest during COVID-19
Women-owned businesses have had a hard time recovering from COVID-19. This is because women often take on more traditional roles in the home, even though they have experienced great strides in the workforce in recent decades. So, women often have to decide to put their children and family’s responsibilities above their small businesses. We see this occurring mainly in top female industries like salons, home care, and service. If we want these women-owned businesses to recover, then we must support them in as many ways as possible.
4 tips to support women-owned businesses
We compiled a list of ways for you to get started with supporting women-owned businesses. You’re not only helping women, but you’re also supporting small businesses with these tips.
1. Shop certified women-owned bands
Show your support by spending money on women-owned businesses. It’s the best way to do your part. Not sure where to start? There are organizations that certify women-owned companies to take a lot of the guesswork out of where to shop. The best way to promote equality for all is to put your money on it.
2. Invest in women-owned businesses
Investing in women-owned businesses will require more money but it will also have a big effect on women-owned businesses. They typically receive less than half of the money than male-owned businesses. In addition, loans for women’s businesses tend to have higher interest rates and have to be paid back faster. You can invest directly into a small business or seek out stocks for companies that are women-owned.
3. Show support on social media
Are you feeling a little strapped on cash but you still want to help women-owned businesses? A free and effective option is supporting women-owned businesses on social media. Hashtags that you can use are #WomenOwned and #BuyWomenOwned. Reviews also go far on sites like Facebook, Google, and Yelp. It doesn’t cost a thing to stop and write a review, but the social proof will bring more customers to that business.
4. Share your network and resources
There’s a lot of ways professionals can share their networks and resources. Often, we aren’t even aware that we have these resources, but women in under-represented industries lack these things. So, start by mentoring women entrepreneurs in your field.
If you have experience and perspective, this relationship can be beneficial to women-owned businesses. If you hear about an upcoming networking event, let female business owners know about it, too. There are so many opportunities that women aren’t aware of, and there must be support within all industries.
Want to do more to support women-owned businesses?
We know it can be tough to support let alone run a woman-owned business. Investing in a woman-owned business will help level the playing field. Check out our Women Who Roar resources blog for more information. You can also build your financial safety net by setting up a MoneyLion investment account today! There is no limit to how high women can rise.