Whether you’re thinking of starting a small business or are already a small business owner, there are many reasons women should be involved in small business ownership. From financial challenges to creating multiple income streams, you’ll find all kinds of reasons to start a small business.
Despite the fact that women are still outnumbered three to one in the overall population of business owners, women continue to drive the creation of new businesses. In fact, there are currently 8-10 million SME’s that have women as their owner.
During the pandemic, most new businesses were in the Personal Services sector. In 2021, however, there was a significant shift in the distribution of new businesses. Professional Services accounted for 28% of new businesses. This shift likely reflects the mid-pandemic economy and the fact that Professional Services firms continue to go through a number of profound changes related to technology and remote work.
In addition to the shift in the distribution of new businesses, there are other significant changes in the overall demographic profile of new business owners. For example, the overall age distribution of new business owners is shifting upward. Since March 2020, the proportion of under 35s has increased from 16.4% to 34%. Despite this increase, the failure rate for new businesses remains below the pre-pandemic rate.
Finding local community or government support
Whether you are considering starting a new business or looking to expand your existing one, the local government and the private sector may be able to provide the financial assistance you need. From low-interest loans to tax incentives and grants, government programs are designed to help small businesses and entrepreneurs grow and thrive.
The best way to find out about these programs is to talk with your local government. The state Department of Corporations may be able to point you in the right direction.
Another great source for free business resources is your local library. Libraries often work with community business organizations to provide resources that will benefit your business. They also have subscription-based search engines and research databases to help you find the information you need. You may also find that they are able to connect you with experts in your local area.
The federal government is also a big player in the small business space, offering loans and loan guarantees to help entrepreneurs start and grow their companies. They may also offer tax credit programs, which allow businesses to deduct money they pay in taxes.
Creating multiple income streams with more than one business idea
Creating multiple income streams can be a big step toward financial independence. Having more than one income source can help you reach your goals faster. If you’re living paycheck to paycheck, having more streams of income can help you save for retirement and pay off debt.
You don’t have to be a business owner to start creating multiple income streams. If you have a full-time job, you can look for other ways to generate additional income. You can start an online store, do freelance work, or offer services in your field. If you’re an expert in your field, you can create a course on a topic you’re knowledgeable about.
Creating multiple income streams can be a good way to keep your money rolling in while allowing you to have some extra time to do the things you enjoy. For example, you can open up a restaurant and add cooking classes and branded merchandise to the menu. If you’re a doctor, you can offer health supplements.
Financial challenges for women entrepreneurs
Despite the progress made by women in the workplace, women entrepreneurs continue to face challenges when starting small businesses. A lack of capital, professional connections, and relevant networks are the most prominent challenges women face when launching a business.
Women are often forced to take on the role of a “momrenuer,” which means they must balance a family and a career. In addition, they face a variety of systemic challenges that can make running a business more difficult.
For example, women who don’t have a male relative as a co-signer for a business loan may be subject to harassment. Furthermore, women who don’t have a network of business associates are more likely to be seen as less legitimate, more risky, and less moral than men. In addition, women are less likely to receive government-supported loans.
A new report by Gusto suggests that women will start almost half of all new businesses in the U.S. by 2021. However, the report also suggests that women face several significant financial challenges when starting small businesses.