Supporting women entrepreneurs doesn’t just benefit the business owners themselves; it benefits everyone around them. Through studies from organizations like Center for International Enterprise and the Harvard Business Review, it is becoming more clear just how beneficial supporting women entrepreneurs is for communities and the world as a whole. When women have entrepreneurial opportunities that provide financial freedom, their children become healthier and the benefits begin to spread throughout their community.
Supporting entrepreneurship is generally great for communities, but women-owned businesses provide a unique set of benefits to their owners and the community that surrounds them. Read on to learn more about these various benefits.
Reduction in poverty
Women are more likely than men to be living in poverty conditions across the globe. This skewed risk is in big part due to the burden many women have of having to provide for children. By removing barriers to entrepreneurship with support — like credit, legal restrictions on poverty, etc — women can earn their own incomes and gain more financial independence. Children benefit from their mothers finding financial freedom because it also lifts them from poverty and allows them to pursue education and careers.
Removing barriers to entrepreneurship is often much easier than trying to shift other cultural norms that can lead to poverty. Religious oppression can sometimes keep women in poverty, but the more help that is given to women who become business owners, the more those cultural factors can change.
Boost in local economy
When women are earning more through entrepreneurship, they have greater disposable income to spend within their local economies. According to some sources, women put as much as 90% of their income back into local economies. That percentage is higher than men, according to the World Bank’s VP on Poverty Reduction and Economic Management Network.
Women spend a bit differently than men too, offering a different boost to local economies. More than men, woman are prone to purchase items for their children and family — while men are more likely to spend money on personal consumables like tobacco and alcohol. This variation in spending provides growth and balance to the economy.
Women-owned businesses often work in niches that might not exist in men-owned operations. Because of a unique perspective, women-owned businesses tend to be more innovative as a whole than their male-owned counterparts. This innovation is critical to the economy evolving and flourishing.
Empowering women through entrepreneurship is good for everyone.