7 Reasons to Work with a Certified Women-Owned Business
MadeToOrder is proud to enter our 16th year as a certified Women-Owned business. When you support Women Owned businesses, you are investing in women's economic empowerment, gender parity in commerce, vibrant communities, and the growth of the economy overall.
Buying Women Owned is both socially conscious and economically sound. Women Owned businesses represent a significant portion of economic and business growth. As of 2019, there were an estimated 13 million Women Owned businesses in the U.S., employing nearly 9.4 million people and generating $1.9 trillion in revenues. As of 2019, Women Owned businesses account for 42 percent of all businesses in the U.S. but only 8 percent of overall business revenues.
There are a multitude of benefits and incentives to working with a certified Women-Owned Business, including an investment in a future of economic success, innovation and equality. Read ahead for just a few of many reasons to partner with a women-owned business today!
1. Play a Role in Closing the Gender Gap
As structural and systemic barriers for women seeking to start their own businesses persist, one report suggests that the imbalance in access to capital for women and minority-owned businesses represents up to $4 trillion in missed revenue.
Women entrepreneurs face challenges getting fair access to capital. Still in 2021, women entrepreneurs are offered smaller loans with significantly higher interest rates than men. Research further reveals that women are about half as likely as men to receive a Small Business Administration loan, with only 3.2% of all women receiving a loan, versus 6.4% for male business owners. What’s more, when women receive these loans, they receive 2.5 times less than male business owners.
While the World Economic Forum’s 2020 Global Gender Gap Report estimates that closing the gender gap is nearly a century away, supporting female entrepreneurs and women-owned businesses is a good place to start.
2. TAX. INCENTIVES.
The federal government supports supplier diversity as a business strategy by offering tax benefits and incentives to businesses that prioritize working with women-led companies. While most states offer special training and networking for registered minority-owned businesses, some states, including California and Georgia, encourage minority firms to participate in municipal purchasing programs. What’s more, in many cases tax liabilities are reduced for projects funded with federal or state grants or loans. Click here to learn more.
3. Support Better Business Practices
Research shows that businesses with more women in senior positions are more profitable, more socially responsible, and provide safer, higher quality customer experiences-- among other benefits.
Boston Consulting Group found that women-led startups “ultimately deliver higher revenue––more than twice as much per dollar invested” and that these same businesses are also “more likely to be focused on making a social contribution and building good relationships with employees.” And research found that despite facing greater challenges at work than men, women managers do more to support their teams, and are more active champions of diversity, equity and inclusion (DEI).
4. Generate New Revenue Opportunities
Working with diverse organizations is proven to be good for business. Many companies see an increase in market share, and access to new opportunities. A study conducted in 2017 showed that virtually all diversity suppliers meet or exceed expectations, and top corporate performers in supplier diversity experience no loss in efficiency and see increased ability to gain access to new markets and improve supplier partnerships.
5. Make an Investment in Diversity & Support Local Economies
Diverse companies are some of the fastest growing and most innovative in our country. The good news is that these companies are everywhere. Working with women-owned businesses means you will be investing in communities spurring economic opportunity and growth. Studies show women reinvest up to 90 percent of their income in their families and communities, compared to only 40 percent for men.
6. Attract Prospective Employees
Looking to grow your workforce and attract the best talent to work at your business? About two-thirds of those seeking new employment opportunities will inquire about a company’s diversity policies. This is especially true for Millennials and Gen Z professionals. They want to know if the company hires a diverse workforce, helps employees in underrepresented groups advance, and seeks out diverse suppliers.
7. Help Aid in COVID-19 Recovery
In 2020, COVID-19 drove millions of women out of the workforce. Female workforce participation dropped to 57 percent – the lowest level since 1988, according to the National Women’s Law Center. In fact, in December 2020, women accounted for ALL 140,000 jobs lost. Reinvesting in women-owned businesses and suppliers is good for everyone as we journey along the road to economic recovery post-pandemic.
Get in touch with us today to start a project.
MadeToOrder wants to celebrate the contributions we and other women make to the economy and our communities! Supporting Women Owned businesses by exercising your purchasing power and choosing to #BuyWomenOwned products will help women entrepreneurs and the entire economy. Join the movement and find other Women Owned products at www.womenownedlogo.com.