We see women opening new businesses at a breakneck speed, with data showing an increase of 68 percent for women-owned businesses from 1997 to 2014. Currently women are starting more than 1200 companies every day, double the pace of men.
This is great news, as women are catching up to men in entrepreneurship and are unafraid to start new businesses. Women-owned businesses function differently along certain parameters, even coming out ahead under some conditions. As more women are finding success in starting businesses, more women see entrepreneurship as a viable career path. This changes the game, particularly for small businesses.
Women are starting these businesses out of passion. They come from stuffy corporate offices, seeking the freedom and flexibility that self-employment can offer. If they’re doing what they love, more women striking up businesses has to be a good thing, right?
Well, maybe not.
When defining success in terms of dollars, women are still coming up short. Women entrepreneurs from the corporate world often do not replace their income. They are also more likely than men to have sole proprietorships and work in industries with smaller average business revenues.
Outside of the money talk, women are still far behind men in numbers for executive positions. Women may be getting out of corporate just as they could reach for this level. While the statistics first appear promising- higher percentages of women in college and entrepreneurship- women still lag significantly in pay compared to men.
The numbers are clear on financial shortcomings. But if women aren’t starting businesses to get rich, is this a problem? We know that many women go out on their own because they want independence. They follow passion instead of looking for the hottest industry or venture. The choice to start a business is a personal lifestyle decision beyond a financial one.
While it can be disheartening to read about women’s continued inequality in pay and leadership positions, we should encourage those women seeking individual happiness over a paycheck. Certainly women can have both, but for the women who see entrepreneurship as a value decision more than a financial one, they’ve already made the call on what matters most.
The numbers can improve and women can take action to grow their businesses, but building the culture of taking risks to do what you love- that isn’t so easy.
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Elizabeth McCumber, marketing maven and freelance writer, focuses on providing quality creative content for entrepreneurs. She also specializes in email marketing and social media planning. Connect with Elizabeth on LinkedIn.
