By Megan SaylesAFRO Enterprise Writermsayles@afro.com
A latest report revealed that Washington D.C. is a number one area for ladies entrepreneurs. The 2024 Affect of Ladies-Owned Companies, commissioned by Wells Fargo, examined the Washington-Arlington-Alexandria metropolitan statistical space (MSA) amongst others throughout the nation. D.C. ranked quantity 9.
“D.C. was a prime 10 metropolitan space,” mentioned Val Jones, ladies’s phase chief for small enterprise at Wells Fargo. “There’s a reasonable agency progress of 9.6 p.c, however what they discovered within the D.C. space particularly is that women-owned companies contributed loads to strengthening the area’s economic system.”
The report was impressed by the necessity for extra present information concerning the state of women-owned companies. Beforehand, most individuals referred to the 2019 State of Ladies-Owned Companies Report, which was commissioned by American Categorical.
In 2020, the COVID-19 pandemic swept by the nation, disrupting and, in some instances, eliminating companies. The long-term results are nonetheless unfolding. As a lot has modified for companies up to now couple of years, Wells Fargo wished to evaluate the present panorama.
Jones mentioned of the highest 10 MSAs, together with D.C., there have been a pair widespread themes contributing to their areas being suited to women-owned companies.
“First, they’ve a powerful economic system usually. D.C. positively has the federal government there offering a number of totally different progress alternatives, and it’s very secure,” mentioned Jones. “Throughout the board, additionally they discovered that there was a extremely educated workforce. If you happen to’re needing experience to get your agency off the bottom, you’ve got that workforce round you and you are able to do that loads quicker.”
One different widespread thread is that the areas prioritize offering help to women-owned companies.
“These prime areas present centered help for ladies entrepreneurs,” mentioned Jones. “There are particular packages offering alternatives for bidding on contracts and technical help.”
Throughout the U.S., the report discovered that there have been greater than 14 million women-owned companies, representing 39.1 p.c of all corporations. They commanded 12.2 million workers, and their income was $2.7 trillion.
Their earnings characterize simply 5.8 p.c of complete agency income within the U.S., however they’ve extra to provide.
“Nonetheless, ladies may make a larger influence if the gaps between ladies of colour and White women-owned companies, in addition to between men and women, have been closed,” wrote the report.
It projected that ladies entrepreneurs may generate a further $7.9 trillion if their common income was on par with males’s. They might garner a further $667 billion if minority women-owned companies and White women-owned companies had the identical common income.
One problem is that ladies usually tend to begin companies in sectors that produce modest revenues.
“Ladies are likely to congregate in industries which have decrease revenues, versus their male counterparts, like service, schooling or private aides,” mentioned Jones.
Though this tendency prevails, the report recognized a couple of sectors that ladies are rising into.
“There are alternatives for ladies to contemplate industries that they won’t have thought of earlier than,” mentioned Jones. “Among the progress industries we’re seeing are finance, insurance coverage and building.”
Entry to capital can also be a persistent barrier for ladies entrepreneurs, particularly for Black and Brown ladies. Although the report discovered that Black ladies have comparable progress charges to their friends and eclipse them with employment progress charges, they’re extra prone to be denied loans or encounter increased rates of interest from lenders.
Whereas there’s been an increase in help packages for women-owned companies for the reason that COVID-19 pandemic to handle long-standing disparities, a few of these efforts have come underneath assault. Most not too long ago, a U.S. appeals courtroom suspended a grant program led by Atlanta-based Fearless Fund that targets Black ladies entrepreneurs
The enterprise capital fund is a part of an ongoing lawsuit lodged by the American Alliance for Equal Rights. The group is headed by conservative litigant Edward Blum, who championed the eradication of affirmative motion.
“Nobody is making an attempt to take something away from anyone that’s already getting capital. Nobody is making an attempt to take something away from helps that could be on the market for quite a lot of folks,” mentioned Jones. “If we allow ladies, minorities and any particular teams that could be on the market to achieve success, they’re going to rent workers and put more cash into the economic system. All of us profit.”
