Contact: Beth Dolan
New Research Reveals Economic Clout of Women-Led Businesses
STAMFORD — Months of research by a federal advisory council shows that women-led businesses hold a significant amount of economic clout in the U.S., according to Fran Pastore, CEO of the Women’s Business Development Council (WBDC).
Pastore, who is a member of President Obama’s National Women’s Business Council (NWBC), recently attended the council’s public meeting in San Francisco, where the research was discussed. She said the findings underscore her belief that women-owned businesses are important and significant contributors for the economy of this nation and, more specifically, for Connecticut.
The NWBC’s data, which is available at www.nwbc.gov, is being shared with Obama, Congress, and the U.S. Small Business Administration, according to Pastore. “The research is staggering, and the story is just beginning to unfold,” she said.
“Women have a greater economic impact than most people think,” Pastore said, citing statistics from the NWBC that show 36 percent of businesses are either women-owned or women-led.
“Women hold a majority ownership in 17.5 percent of businesses,” she said. “Women also own at least 30 percent and have leadership roles in another 18.8 percent of businesses. When you add those two numbers, you see women’s true economic impact.
“When not focusing on women’s leadership role within a company, the numbers look even better: among 42.4 percent of businesses, women hold at least 30 percent of the ownership. These firms capture $2.6 trillion in receipts.”
Pastore said the new research shows that firms with more owners bring in more revenue, based on median receipts. Additionally, companies that are co-owned by women and men perform better financially than companies owned just by men or women. Despite this, women do not take on partners as much as men do; 89 percent of firms entirely owned by women have just one owner, according to the research.
The NWBC is a non-partisan, federal advisory council created to serve as an independent source of counsel to President Obama, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. Pastore, a Stamford resident, is one of only 16 women nationwide to serve on the NWBC. Connecticut’s Congressional Delegation nominated her for this post, and her three-year term culminates in March 2014.
As Connecticut’s leading source of education, training and advocacy for women-owned businesses, the WBDC is a partner to thousands of women-led firms in Connecticut. Since 1997, it has served more than 11,000 clients, resulting in 1,575 businesses launched and 2,500 established businesses assisted. Overall, these businesses have created 2,200 jobs and realized more than $50 million in gross revenues annually.
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The Women’s Business Development Council (WBDC) is a nonprofit organization dedicated to economic independence. The leader of entrepreneurial and financial training for women in Connecticut, it has been educating, empowering and promoting women through entrepreneurship, financial education and expanded career opportunities for 16 years. For more information, visit www.ctwbdc.org or call 203-353-1750
Note: To view NWBC’s info graphic, go to http://www.nwbc.gov/sites/default/files/NWBC_infographic2-web_081213_r1.pdf.