Female entrepreneurs are playing an increasingly important part in the US economy. It has taken decades for women to break through a largely male dominated corporate culture. But times they are a changing. Successful women are emerging at every opportunity. They are every bit as capable as their male counterparts, if not more so. In fact, statistics point to robust growth in successful female entrepreneurs in recent years. According to a recent CNBC Upstart 25 list, some 40% of new companies are founded by females.
This encouraging trend spans the full spectrum from retail operations through finance and the medical spectrum. Several notable female entrepreneurs have broken through, including the inimitable Dia & Company founded by Lydia Gilbert and Nadia Boujarwah. There retail operation caters to plus size woman, with a fashionable selection of clothes and accoutrements. The company is based in NYC, and customers can enjoy stylist-selected clothing, return what they don’t want through the convenience of online shopping.
Women feature prominently in the CNBC Upstart 25 list, and their contribution to the entrepreneurship spectrum is growing rapidly. In fact, throughout the US, women now comprise 40% of new entrepreneurs. According to the 2016 Kaufman Index of Startup Activity, this is the most prosperous time for female entrepreneurs in the US. A Global Entrepreneurship Monitor survey comprising 40 economies reflects high growth rates among female entrepreneurs (+13%) compared to just 5% for males between 2011 – 2016.
This growing trend in the United States, and elsewhere, is encouraging angel investors to seek out female entrepreneurs. Many such instances abound, since this market is largely untapped by big banks and finance companies. Often deemed a contrarian investment, angel investors seeking out female entrepreneurs are becoming commonplace. Companies that are run by women are being perceived differently by financiers.
They are getting more financial backing than ever before, and the returns are equally strong. Many male entrepreneurs are also cashing in on the action. A sterling example of a millennial entrepreneur who has enjoyed phenomenal success is Sam Ovens entrepreneur par excellence. Originally from New Zealand, this bright star set up shop in New York, and commands a fortune in consulting fees. His business has generated over $10 million to date, and he has made many people incredibly wealthy – both men and women.
Current Trends with Entrepreneurial Capital Flows
Consider that currently just 3% of all venture capital in the US goes to businesses with female CEOs. Between 2011 and 2013, a total of $50.8 billion was invested, and $49.3 billion went to companies with male CEOs. However, when companies have executive teams comprising 1+ women, the venture capital that gets allocated to these corporations increases to 21% of the $50.8 billion (or $10.9 billion). There is a disconnect between the entrepreneurial ability that is present, and the money flow. Female entrepreneurs may be perceived as an outlier in the broader Global economy, but there’s skills and ability to generate positive returns are firmly established.
The most successful female entrepreneurs include the likes of Sara Blakely of SPANX, Tory Burch of Tory Burch, Arianna Huffington of the Huffington Post, Cher Wang of HTC, Beyoncé Knowles of House of Dereon, Kiran Mazumdar of Biocon, Diane von Furstenberg of DVF, and scores of others. In the business world, Sheryl Sandberg tops the list as the chief operating officer of Facebook, and CEO Indra Nooyi of PepsiCo is a top contender for most powerful female chief executive officer. The Kraft family is well known, and its CEO is none other than Irene Rosenfeld. The CEO of Xerox Corporation, Ursula Burns is no pushover. These women have inspired an entire generation of female entrepreneurs and leaders in the global community.
