Can I talk to you about something I care passionately about? Something that is no secret, yet something that is not addressed very often?
It’s the importance of finance in business.
Now, before you roll your eyes and click off the page, please hear me out.
We know that men are the ones who are comfortable talking about finance and money. But women…not so much. We’ve been taught finance is a man’s world.
Well, I disagree. Finance is not gender-specific. Finance is about economic empowerment. And women should embrace it.
Women Business Owners
Between 2007-2018 businesses owned by women surged 58%. In 2018, women owned 40% of all small businesses in the country. This translates into 12.3 million businesses that employ 9.2 million employees and generate $1.8 trillion in revenue.
These statistics show that women are talented; women are courageous; and women are a huge driver in the economy.
But the hidden fact in these statistics is that while the number of women-owned businesses grew a remarkable 58%, the overall percentage of revenue hardly grew at all. In 2007 women-owned businesses generated 4.0% of all small business revenue, and in 2018 it was 4.3%.
Why do women-owned businesses generate such low revenue? And why has that 4.0% stayed almost the same for the past 20 years even though women own more and more of the small businesses in the country?
Extensive survey data compiled by the Kauffmann Foundation shows that businesses owned by men have significantly more revenue because they raise more capital – 80% more capital.
In the book “A Rising Tide” the authors Susan Coleman and Alicia Robb looked at why women didn’t raise outside capital. Their findings were surprising. Women didn’t ask.
Why? The predominant view among women business owners interviewed was that they didn’t want debt, were afraid to ask for financing, and were afraid they’d be turned down.
The authors concluded that women business owners feared finance and lacked confidence and/or skills in that area. And that held them back!
Finance Is Key
Finance is not as difficult as you may think. You don’t have to run numbers or understand complicated accounting principles. You simply need to understand the story behind your numbers.
If you ignore finance, you’ll find yourself working harder and harder while your business stagnates. That’s what the statistics show.
So, don’t let fear stop you!
Finance is empowering and levels the playing field for women business owners. A trusted financial confidante can help by providing the support, expertise and experience you need. Before you know it, you’ll be more financially competent, confident and compelling in business.
If you want to find out more about how you can eliminate your fear of finance and grow your business, please click here to contact me to set up a time to talk.