4 Reasons to Watch Women Owned Startups in 2016

American Express’s State of Women-Owned Businesses Report details that the last 15 years have seen an unprecedented 54% growth in women-owned startups. Adding to this statistical momentum, the National Association of Women Business Owners estimates that there are more than 9.1 million companies owned by women, employing nearly 7.9 million people, and generating over $1.4 trillion in sales. Check out their great infographic .

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To clarify some of the data and what it means for women business owners, I connected with Vonda White, a serial entrepreneur, author, and advocate for women-owned businesses. The following are the top reasons you should back women-owned startups in 2016.

1. According to US Census data, the number of women in the labor force is almost equal to men.

While this data may not sound exciting on its face it is important to understand the implications. Culturally the United States is becoming as familiar with women in the workforce as men. The 2014 U.S. Census showed that women comprised 47.2% of the workforce, compared to 52.8% men. 

White explained why that number has grown “When I stepped into my first job in the insurance industry, the female executive was still an uncommon occurrence. Despite this, I believed that I had the solutions needed to get the j4 Reasons to watch Women Owned Startups in 2016

ob done, and in 1996 I was able to make that dream come alive when I started Collegiate Risk Management as the founder and CEO. It’s a positive multiplier effect, as more women start companies, it will become easier for others down the line.”

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2. The Funding Gap is beginning to close.

Finding funding for ventures has been historically difficult for women entrepreneurs. Vonda shared her own experience seeking funding to buy a bank owned College campus for a summer camp and boarding school. “When I was seeking funding for Camp Pillsbury several lenders were hesitant because I was a woman. 

The fact that I owned and ran my own multi-million dollar company didn’t assuage their doubts. Instead of giving up or getting upset, I kept searching, argued that the college campus we were going to purchase was a stagnant asset that I could turn around, and eventually I was able to secure the loan and open Camp Pillsbury, which is thriving in its 3rd year!” 

Vonda also pointed out that in the last few years there have been a growing number of startup accelerators, training programs, and leadership boot camps specifically for women entrepreneurs. A few names include EY’s Entrepreneurial Winning Women, Women’s Startup Lab, Dreamit Athena, and MergeLane. As these services become more and more prevalent, so do the opportunities for women to create profitable enterprises.

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3. Longer Parental Leave, and Flexible Vacation

A growing number of companies are recognizing the value of paid parental leave and flexible vacation requirements. Both the employment and investing spheres have long discriminated against women based on flawed assumptions about leaves and time off. For this reason, a lot of working women felt they had to counteract this concern by never taking a vacation. 

Recently however companies like LinkedIn, Netflix, and Virgin are moving to more flexible “unlimited” vacation systems. Google, Johnson&Johnson, and Twitter all offer longer than average parental leave, for both moms and dads. These sorts of updates are paving the way for a more flexible workplace.

 For employees, this means a de-stigmatized workplace that does not discriminate based on a woman’s interest in having a family. These changes represent a shift in mindset that will also help lenders understand that women do not pose a higher risk simply because they might have children.

4. The number of Women-Owned Startups is increasing rapidly

According to a study conducted by womenable.com, the number of women-owned companies has increased by 45% between 2007 and 2016. When you compare that to a sluggish 9% market growth over the same period of time it is clear that women entrepreneurs are leading innovation and growth.

 “When women understand they aren’t alone in their desire to solve problems in business, and even more importantly that there are real avenues for them to do so, they are empowered to take the steps needed to bring new ventures to the marketplace that benefit everyone,” White shared. This kind of expansion spells out why investing in, backing, and participating in women-owned startups is a solid plan for 2016.