There are many benefits to owning and running a business. Business owners tend to have access to information and data that some employees do not. Business owners thrive to solve industry problems, creating job opportunities and influencing the world around them.
Woman-owned businesses are defined as a woman that has 51% or more ownership and focuses on operations and managing a business. Women have a different set of skills, and this can be of great benefit within the workplace. Not only can these set skills enhance the business, more, however, women-owned businesses have access to a certain amount of benefits. Some benefits are access to government contracts, a diverse group, inclusion, and financial benefits.
Creating and operating a business takes courage and support. Women in business can be overlooked due to the simple fact that they are women, however, the impact and knowledge they have can be of great benefit to an entire industry. Supporting businesses is important, no matter who owns it.
Increased Access to Government Contracts
There are approximately 13 million woman-owned businesses in the U.S. and they are employing around 9.4 million workers. Thus supporting women in the business industry will have a greater impact on the country.
Overview of Government Programs for Woman-owned Businesses
The federal government has a few options and programs for women-owned businesses that will benefit them. With female-owned businesses, the company must apply for a certificate to state that 51% of the private company is female-owned. This is only the start of a women’s business enterprise.
Benefits of Government Contracts for Woman-owned Businesses
Certification for women-owned businesses is a must. For a company that is owned and registered as woman-owned, the government has set a goal of leveling the playing field, which allows 5% of all contracting dollars to be awarded to female entrepreneurs.
Success Stories of Woman-owned Businesses that Won Government Contracts
Many success stories can showcase and indicate the success of a woman’s business enterprise however, the fight is only starting. The success stories are in the minority and companies will have to fight for equality on the federal level.
Diversity and Inclusion
There are many benefits for a diverse team. Not only will the input and reach be extended, but the company will also have information from various backgrounds that can be used to improve its marketing strategy.
Importance of Diversity and Inclusion in the Workplace
A diverse and inclusive workplace has more to it than a limited amount of policies and acts. A diverse workforce focuses on ensuring that the entire team feels comfortable speaking up, and has equal opportunities to grow and learn within the company.
Diversification and inclusion will provide the team with a higher employee retention rate, and a higher growth rate for employees and the business. This will boost innovations and leave a space for learning from other cultures and individuals within the company.
Benefits of Having a Diverse Team
With a diverse team, the members have access to more creativity and greater innovation. A diverse team will be able to bring different aspects and viewpoints to the table which will lead to problems being solved in innovative and creative ways.
Diversity will allow the business to make use of a variety of different skills and talents to choose from. Companies can save money and time by simply using the skills and talents they have within the team, not needing to outsource or find individuals that can perform set tasks or objectives.
How Woman-owned Businesses Contribute to Diversity and Inclusion
Individuals tend to follow leaders they are comfortable with, Those with the same vision and goals for life. As woman-led businesses more women recognize that there is a place for them in the workforce. Thus motivating them to pursue a career.
Financial Benefits
Access to Grants and Loan
The access to business grants and loans is competitive. Not only are women competing with each other, but they are also competing against men. According to the research, only 12% of woman business owners receive the full financing that they apply for. Thus showcasing the difficulty woman face, however, here are 11 grants for women that women business owners can use for business funding.
Tax Benefits for Woman-owned Businesses
There are tax benefits that businesses can use to ensure that the money they accumulate stays within the business. By simply knowing the tax deduction and assembling a team that can support the business, a woman-owned business can benefit greatly from tax.
Research and Statistics on Financial Benefits
In fact, in a recent report, 75% of companies with supplier diversity programs found their diverse companies through certification agencies. Thus showcasing the certification and benefits connected to woman-owned businesses.
Check Out Woman-Owned Small Business Program: What You Need To Know:
Improved Brand Reputation
Benefits of being a Woman-owned Business
A strong brand can be represented by multiple values and standards. Woman-owned businesses add value to the brand through their diversity and inclusion. The female business owner will place focus on core values and stick with them, which will ensure a strong company brand.
Importance of Showcasing Woman-owned Status
Companies that display their female owner on multiple sites and social media, tend to have more attraction towards the business. A strong woman will attract more females to the brand and her business.
How Woman-owned Status Attracts Customers and Investors
Many customers and investors are standing with female business owners and their ideas. There is no benefit to any industry if it is solely male dominant and with a diverse group of leaders the entire industry can grow. Investors are looking for female business owners to support.
Networking Opportunities
Importance of Networking for Woman-owned Businesses
Networking plays a key role in running a successful business. Most businessmen and entrepreneurs do not particularly converse with female business owners due to stereotypes. Women must work harder in showcasing their skills and vision to ensure that the industry and others within the network listen.
Opportunities for Woman-owned Businesses to Network
There are amazing opportunities for women to network with fellow business leaders and owners. The woman does not only have the opportunity to network through woman-based associations but can take charge and connect with male leaders at business conferences and networking opportunities.
Success Stories of Woman-owned Businesses that Benefited from Networking
A study has found that these businesses can increase their return on investment by as much as 130%. This draws many potential investors and clients by simply just being present. Networking partners want good revenue and a high return on investment.
Flexibility and Work-Life Balance
How Woman-owned Businesses Prioritize Flexibility and Work-life Balance
A Women-owned small business can struggle with work-life balance. Not only do they have to ensure that the company grows and increases revenue, but these women must complete mentorship programs and fight for a spot at the top of the industry.
Benefits of Having a Flexible Work Environment
The benefits of having a flexible working environment for women-owned companies are that they will have the freedom to do the work acquired and have time to release stress. This will increase productivity and revenue, which means all business loans or federal contracts will be met.
Statistics on the Success of Woman-owned Businesses with Flexible Policies
There are many reasons for starting a business, however, the top three main reasons women start a business is to increase their flexibility. Other references display that women-owned businesses had annual revenue of $330,226 in 2020. These statistics showcase that flexible policies are ensuring higher revenue.
FAQs
Are There Tax Benefits to Being a Woman-owned Business?
There are tax incentives for business owners, and a federal contracting program will ensure that the certifications for women entrepreneurs will produce a 5% return.
How Do You Define A Business Woman?
National Women Business Owners Corporation defines businesswomen as a business that is under female ownership. This can refer to women that are innovating and fighting for the success of women’s business enterprises.
Final Thoughts
There are many benefits to women-owned businesses, however, most of these benefits can be accessed only when Women-Owned Small Business certification is acquired. Female entrepreneurs will have access to business loans and federal programs that can ensure financial support.
With a supplier diversity program, the business will draw investors and corporations that want to support the system of diversification. Economically Disadvantaged Women-Owned Small Businesses have access to opportunities. However, a women’s business enterprise can access federal agencies and private grants that will ensure enough dollars of opportunity to grow the business and increase revenue.
Females bring a different environment to the business world. With their sense of innovation and ability to diversify a group, female businesses can insure a steady revenue increase and growth within the private sector within any industry.
