If you are to take a look at the business owners of all the world’s largest businesses, they’re mostly men. And those are the companies that often seem to be involved in large business scandals and underhanded corporate work. With scandals like Amazon’s allegedly anti-competitive practices, or Nestle’s allegations of slavery and child labor, it’s safe to say that the people running these businesses, owned by men, are quick to take risks and break laws if it means turning a profit.
Even ignoring the largest companies, men own 6 out of 10 businesses in the United States. In a world where so much of the economic world seems to be male-dominated, it is worth taking some time to consider paying more attention and money to women-owned businesses. While supporting these businesses is helpful and constructive for communities culturally and personally, there are also a number of unique economic reasons to give support to businesses owned by women.
Especially with the economy being the way it is right now (teetering on an edge), here are a litany of good reasons for why you should support these businesses, which we will get into here.
Firstly, women owned businesses tend to embody values which help the community that they are in. These businesses tend to promote social responsibility, community involvement, and diversity, along with creating a more equitable environment. These values encourage a more positive community, to the benefit of all who live there. And equality is good because, well, of course it is. More equality of opportunity and other economic means leads to a more diverse society on every level, which is vital.
Diversity has become a bit of a hot word as of late, but it really just means a variety of different kinds of things, people in this case. With a more diverse economic environment, we open ourselves up to new viewpoints and perspectives from many different people. This gives us more ways to solve problems and improve the workings of our world together. Diversity, especially in the workplace, tends to enhance creativity and innovation as well as improved performance and social cohesion, among other benefits.
In all, women owned businesses encourage positive social change more often than not. Where many businesses strive for profit and growth above all else, these businesses do better when they consider their workers and keep them healthy as well as profitable. And, strangely enough, staying considerate to your workers seems to work just as well if not better for businesses in the long term.
But if this evidence isn’t enough for you, there are also a litany of real, economic reasons to put more support behind these businesses. With a recession looming, women-owned businesses can help bring economic stability and improve growth.
Economists have shown that women-owned businesses statistically have higher economic resilience and generate more revenue, on average. What’s more, these businesses are more often keen on profitable new ventures and boast leadership with unique qualities that lead to better business outcomes.
For a specific example, economists also found that businesses owned by women of color tended to come out of the 2008 financial crisis much better than others. All of the “too big to fail” banks fell, but these businesses survived.
As women open doors in more industries, the economy grows more diverse and therefore more resilient. In these businesses, people are supported socially and culturally as well as tending to be stronger economically as well.
These businesses and their leadership can also help to serve as good role models to young girls in the communities they inhabit. While this is a softer benefit, there is a benefit to inspiring young people to pursue the path of entrepreneurship. It will no doubt lead to more diverse business practices across the board as diversity brings new perspectives and strengthens old ones.
Considering the evidence, it does seem strange that so many businesses seem focused on short term profit at the sacrifice of their workers, when women who run businesses do the opposite for more gain in the end. Why might that be?
It’s difficult to straight up say that women are kinder, gentler, and more compassionate than men. And looking at the information about how they run businesses on average, it’s pretty easy to say it. But of course, that’s not at all how the world works and these problems are not so simple. Biologically speaking I could go on forever, but these issues are not biological, fortunately! The difference we see between how women and men run businesses is cultural and social. There is an expectation of strength and ruling with an iron fist for men, while women are expected to lead with kindness and motherhood. Both of these expectations obviously work to run a business, because they have and still do, but is one better than the other? That depends.
It depends what you want from a business. Long term, most of these businesses work out either way. But, let’s not get into the specifics. The point is not about the economic standard. If that were all, this conversation would not be necessary.
The issue is the same issue that women have been facing for a large portion of history: even if they are just as capable of running a good business, many people are still prejudiced against women and will probably refuse their business for no good reason.
This is why it’s more important than ever to support women in business right now. In an age where women need more backing, we really should try to champion women owned businesses. It can help them out, and at the same time support businesses that might be facing prejudice and misogyny.
We are all a part of the system, so we have to use the little power we are given to help where we may. If you have an opportunity to go and support a business that you know is owned by a woman then you should! Purchase their services, leave good reviews, anything good you can do will help. More the case with smaller businesses, anything you can do might help more than you know.
If you liked this article, then you might want to check out more from this blog! Here’s an article about meal prep if you want to learn more about taking care of yourself, or one about learning tarot readings, if that interests you.
