In the journey toward financial independence, women in the United States have made incredible progress in a relatively short span of time. Though women have always played a role in driving the economy, it wasn’t until the 1960s that they could even open credit accounts in their own names—often needing a male co-signer. A pivotal shift came in 1974 with the Equal Credit Opportunity Act, which finally allowed women to obtain credit cards independently, without the need for a husband or male relative’s approval. This legislation was a crucial step toward women’s economic empowerment, enabling them to start, lead, and grow businesses, and contributing significantly to both local and national economies.
As the co-founder of Relate Search and a woman business owner, I understand firsthand the importance of financial independence and the ability to shape my own path. Women’s involvement has always been critical in shaping and strengthening the social and economic foundations of their communities. As financial independence for women has grown, their businesses have become essential to building more inclusive and resilient communities. Women entrepreneurs, like myself, often prioritize reinvestment in local education, healthcare, and social welfare, while fostering inclusive hiring practices that create opportunities for underrepresented groups, all of which fuels broader community development.
By removing barriers and empowering women financially, we unlock the ability to transform not just industries, but the very fabric of society, creating stronger, more diverse, and more equitable communities.
The Economic Power and Growing Community Impact of Women-Owned Businesses
Today, the influence of women-owned businesses on the U.S. economy is profound. According to the National Association of Women Business Owners (NAWBO), there are around 13 million women-owned businesses across the United States, collectively contributing over $1.8 trillion to the economy each year. These businesses now represent 39.1% of all U.S. firms and employ nearly 9 million people. What’s even more remarkable is that the growth of women-owned businesses has consistently outpaced that of male-owned businesses. Wells Fargo reports that from 2019 to 2023, women-owned businesses expanded at a rate 4.5 times higher than male-owned counterparts, especially in high-impact sectors like finance, technology, and transportation.
Women-owned businesses also play a key role in contributing to Gross Domestic Product (GDP). While they make up 39.1% of U.S. firms, their revenue represents a significant portion of the economy. Globally, women contribute approximately 37% to the world’s GDP, according to research from the World Economic Forum. Closing the revenue gap between women- and men-owned businesses could add $8 trillion to the U.S. economy alone, according to the 2024 Wells Fargo Impact of Women-Owned Business report.
Beyond driving economic growth, women-owned businesses are making a meaningful difference in their communities. Studies show that women entrepreneurs tend to reinvest profits into local initiatives, focusing on improving education, healthcare, and overall well-being. According to the U.S. Chamber of Commerce, women-owned small businesses are more likely than their male counterparts to support local charities and sponsor community events, underscoring their commitment to social responsibility. Seventy-three percent of women-owned businesses reported giving back to local charities, compared to 62% of male-owned businesses, with many offering discounts to teachers, veterans, and other community groups.
The broader social impact of women-led enterprises is also highlighted by research from the World Economic Forum. Women entrepreneurs often focus not only on profitability but also on building more inclusive and supportive communities. Women are more likely to hire diverse teams, actively seeking out talent from various backgrounds to foster an inclusive environment. This diversity leads to enhanced creativity, better problem-solving, and innovation. Women-led enterprises also understand the importance of offering flexible employment opportunities, such as remote work options or nontraditional work hours, which cater to the needs of working parents and caregivers. By prioritizing diversity, inclusion, and flexibility, women-led businesses create a ripple effect that extends far beyond their operations, positively impacting the communities they serve and fostering a culture of equity and opportunity.
This impact is about more than economic figures; it reflects the quality of leadership and innovation these businesses bring to the table. Studies show that leadership teams with diverse perspectives, like those found in women-owned businesses, tend to drive stronger innovation and better financial outcomes. As a woman entrepreneur, I bring unique insights to business challenges, helping to lead the way in new solutions and product development, especially in emerging industries. When companies invest in women-owned businesses, they aren’t just boosting GDP—they are making long-term, sustainable investments in the future of both business and society.
Navigating the Challenges Faced by Women Entrepreneurs
While women entrepreneurs have made tremendous strides in recent years, we still face considerable challenges that can limit our full potential. One of the biggest barriers is access to capital. Many of us rely heavily on personal savings or small business loans—often with higher interest rates than those offered to male counterparts. This gap in financing options can restrict growth and hold back the scale of our businesses. Additionally, securing venture capital tends to be much harder for women-owned businesses, as these funds are still disproportionately directed toward male-led startups.
In addition to challenges with accessing capital, the lack of formal networks, mentorship, and key business resources creates further obstacles for women entrepreneurs. Many operate without the same level of connections or mentorship that male business owners often use to fast-track their success. This absence of a strong support system makes it even harder for women to scale their businesses and compete in larger markets.
Addressing the revenue gap between women- and men-owned businesses requires more than just financial solutions. We need initiatives that offer women equitable access to funding, combined with mentorship programs and business development resources designed specifically for our needs.
One key to overcoming these challenges is building supportive ecosystems through organizations like the National Association of Women Business Owners (NAWBO). NAWBO offers critical resources, advocacy, and networking opportunities, equipping women entrepreneurs like myself with the tools we need to grow and scale our businesses. Supplier diversity programs also play a vital role, opening doors for women-owned businesses to join larger supply chains, which helps expand our reach and influence.
In addition to financial resources, mentorship programs that pair women entrepreneurs with experienced business leaders provide crucial guidance, access to networks, and personal support. Companies can make a real impact by creating or participating in these mentorship opportunities and actively seeking out women-owned businesses through supplier diversity initiatives.
By fostering a more inclusive and supportive environment for women entrepreneurs—through greater access to capital, mentorship, networking, and supplier diversity programs—we can drive both gender equality and economic growth. With the right combination of resources and support, women-owned businesses, including my own, will not only survive but thrive in an increasingly competitive market, contributing even more significantly to the overall economy.
How Companies Can Diversify Their Supplier Base with Women-Owned Businesses
Incorporating women-owned businesses into your supply chain isn’t just about meeting diversity goals—it’s a strategic move that can lead to stronger business outcomes. Supplier diversity programs are gaining traction as more companies recognize the value of working with diverse vendors. These programs not only support underrepresented groups, like women entrepreneurs, but also help companies build more resilient, innovative, and adaptable supply chains.
Here are some actionable steps companies can take to diversify their supplier base:
Create or Strengthen a Supplier Diversity Program
A supplier diversity program actively seeks out diverse suppliers, including women-owned businesses. Companies can benefit from building a solid framework for identifying, vetting, and incorporating women-owned suppliers. By setting clear metrics and tracking progress, organizations can ensure their efforts are generating meaningful results.
Certify Women-Owned Businesses
Certification is crucial for women-owned small businesses to gain visibility and access opportunities within larger corporations. Programs like the Women-Owned Small Business (WOSB) certification give women entrepreneurs a competitive edge. Companies can partner with certified women-owned businesses through platforms like WBENC (Women’s Business Enterprise National Council), which connects them to a vast network of certified suppliers.
Collaborate with Industry Associations
Collaborating with industry associations is a great way to engage with and support women-owned enterprises. Partnering with organizations like the National Association of Women Business Owners (NAWBO) gives companies access to a wide network of women entrepreneurs across diverse industries. These collaborations not only open doors to a broad range of suppliers but also provide mentorship and development opportunities to help women-owned suppliers boost their competitiveness. NAWBO plays an essential role in facilitating training, certification, and resources, ensuring that women entrepreneurs have the support they need to thrive. These partnerships benefit both sides: businesses diversify their supply chains while empowering women entrepreneurs to grow their businesses and contribute more significantly to the economy.
Leverage Local Women-Owned Businesses
While national and global partnerships are important, companies shouldn’t overlook the value of local women-owned businesses. These businesses often offer specialized products and services tailored to meet specific community or regional needs. Supporting local women-owned businesses not only strengthens your supply chain but also helps contribute to the economic development of the surrounding area.
Going Forward: Unlocking Economic Potential Through Women-Owned Businesses
Investing in women-owned businesses is not just about fairness—it’s a powerful economic strategy that can transform industries and spur growth. By diversifying supplier bases, partnering with local women-owned businesses, and supporting certifications like WOSB, companies contribute to a stronger, more inclusive economy. As we continue to break down the barriers facing women entrepreneurs, we move closer to a future where gender equality is more than just a goal, but a reality.
Let’s continue investing in women-owned businesses and ensure their impact on the economy keeps growing, to the benefit of everyone.