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Women still the distinct minority of nation’s business leaders

Despite their accomplishments, women don't command as much of a presence on the national scene in politics and business, a newly released survey suggests.

You are here: Home / Small Business Tips / Women still the distinct minority of nation’s business leaders

August 8, 2017 by boardmember1 53 Comments

There’s no denying that women business owners represent a much larger footprint on the entrepreneurial world than ever before. Just last year, north of 11.3 million companies in the U.S. were owned and operated by women, according to data compiled by American Express – a 45 percent increase from 2007. They’re also increasingly successful, with business revenues up 35 percent since 2007, compared to a 27 percent revenue uptick for businesses overall.

Yet despite these accomplishments, women don’t command as much of a presence on the national scene in politics and business, a newly released survey suggests.

Only 5 percent of Fortune 500 CEOs are women
This is particularly evident on the Fortune 500 list. Through the first three months of 2017, just 5.4 percent of chief executives were women, according to the Pew Research Center. While that’s 5.4 percent more than the number of women CEOs in 1995, it still represents a fractional amount by comparison to the number of men who hold these positions. However, as Fortune Magazine reported, female CEOs of the U.S.’ 100 largest companies earn more than their male counterparts, averaging $22.7 million in 2015 compared to slightly less than $15 million annually.

“Women business owners produce more engaged employees.”

Not only do many of many of the nation’s most prominent women business owners bring in more earnings, but they also get more out of their workers. According to analysis conducted by Gallup, 35 percent of employees with female managers are engaged or actively involved in producing a quality product or service. This contrasts sharply with 25 percent engagement for employees whose managers are men.

“Diversity in all spheres is good for engagement and company performance,” said Karina Govindji, managing consultant at Gallup and 2014 Asian Woman of Achievement in Business Award recipient. “No one understands the female consumer base – and the [trillions of dollars] they spend – better than women, and boosting gender diversity is a step toward a more engaged workforce.”

Revenues highest for companies with diverse employees
Gender diversity not only makes common sense, but it makes good business “cents.” A 2014 study, also conducted by Gallup, found that retail industry companies with the highest level of women-to-men parity had 14 percent higher revenues than businesses where men outnumbered women. This was also true for gender-diverse businesses in the hospitality sector, earning 19 percent more in quarterly net profits than their less heterogeneous counterparts.

Even though women may be underrepresented in business and in politics – approximately 24 percent of state legislators are women, according to Pew’s analysis – many signs point to women business owners expanding their reach. Growth Capital can help make this possible for aspiring entrepreneurs in the Buckeye State through Ohio small business loans. By taking out an Ohio 166 Regional Loan, small-business owners can get the capital they need to fund operational essentials, with interest rates for well-qualified borrowers as low as 3 percent.

Small Business Tips woman entrepreneur,  women,  women in business

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