October is Women Owned Small Business month. I love this observance because it functions as a reminder of the gigantic hurdles female entrepreneurs have overcome – and the trails women continue to blaze.
Did you know? Female business owners couldn’t get a federal business loan.
Up until 1988, there existed significant barriers that hindered women from achieving equal and full financial status. One of the outstanding barriers was a law prohibiting women to legally obtain a federal small business loan without the signature of a male relative. Then, The Women’s Business Ownership Act of 1988 was passed to ensure female entrepreneurs could obtain federal business loans independently of a male relative. This landmark legislation was an acknowledgment how critical women business owners were and are to the national economy. The provisions of The WBOA transformed the journey for female entrepreneurs. Our economy has been better sustained because of it.
To boot, a study performed as a precursor to The Women’s Business Ownership Act illustrated that women business owners were audited more in depth than their male counterparts. Women were expected to show they could meet a higher standard of personal net worth and offer greater security. This occurred even though the loans women requested were less than men’s.
It’s difficult to imagine that only thirty years ago women weren’t allowed the same opportunities as men. Women were unable to have financial independence in the shape of business credit in their own name. This means that independently owned women businesses have only been in play for roughly three decades. Think about it – your mom or grandma wouldn’t have been able to start her business without a man.
The Rise of Women Owned Businesses and Female Entrepreneurs
In the 1970’s, there were roughly four hundred thousand women owned businesses, which made up less than 5% of businesses in the United States. Today? There are over thirteen million. Women begin their own businesses at twice the rate of men, and own over 40% of small businesses in the United States. We are increasingly reliant on the success of their companies in order to grow and sustain the world economy.
The transformation over the last few decades for Women Small Business Owners is something I will always celebrate and be inspired by. Join me in supporting and learning from the ongoing achievements of your fellow small business owners.
As always, I am cheering you on and wishing you tremendous success.
Wishing you health and wealth.
-Mike
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