Yesterday, I kicked off Women’s History Month talking about the leading women in government taking a humanist approach to an economic recovery. This was important for me to highlight how the face of decision-makers on policy is changing. That post had me wondering what we might point to in history for the progress we see today in the private sector. Women-owned businesses have been more common, for longer, and there is legislation to credit.
In 1988, Congress passed the Women’s Business Ownership Act to expand access to capital for women-owned businesses through the Small Business Administration, now headed by Isabel Guzman, appointed by President Biden. Today, women are the majority owners in 40% of the 30 million small businesses nationwide. This is a marker of progress, and yet the barriers to capital remain.
Although over 50% of women-owned businesses are BIPOC, their white counterparts earn 3:1 for every dollar generated. Startup capital investment looks similar. Just 2.3% of all venture capital funding goes to women, after a record 2.8% level was reached the year before. One step forward, two steps back. Slow progress.
Initiatives like Project Diane are also shedding light on the inequity in funding Black and Latinx women-led startups. They count 650 in their database in 2020. That’s a nationwide statistic, and those Black and Latinx-led entrepreneurs are concentrated in three U.S.states — New York, California and Georgia. We have so much work to do. The barriers are systemic.
That’s why we saw a growing number of women-led VC firms last year. Step aside, gentlemen. The sheer number of women entrepreneurs tells us that there is no lack of talent, energy or savvy. We do not have a pipeline problem. We have an imbalance in power and decision-making. Women are working to change that too.
My mom used to often say, ¡Ojos que no ven, corazón que no siente! The English translation might be “out of sight, out of mind.” Another, more direct version I prefer, translates to: “Blind eyes, cold hearts.”
My eyes are wide open. Women are leading the way. It’s heartwarming when you see it.
Onward, my People.