The Rise Of Women-Owned Businesses But Without The Riches

Forbes

5 days ago

The Rise Of Women-Owned Businesses But Without The Riches
Women are starting businesses at an unprecedented rate, from side hustles to full time businesses, and we are seeing a powerful shift. It's an exciting time for women, especially Gen X and Millennial women, who are choosing entrepreneurship over traditional employment.
But there is a problem among women business owners.
Despite the surge in business ownership, only 1.9 percent of women-owned businesses ever cross $1 million in annual revenue. This is a tragic statistic, and too many brilliant, capable women are suffering because of it.
So why is this happening? It's not because women aren't ambitious or strategic. It's because the system isn't built for us to scale. From funding barriers to mindset roadblocks, there are structural issues that keep women playing small in business. And it's time for change. Not solely for the sake of equity, but because the economy needs more women building wealth through business ownership.
Nothing bad happens when women have more money.
While women are launching businesses in record numbers, several key barriers prevent them from scaling:
This is the biggest hurdle women face when trying to grow their businesses. Women receive a tiny fraction of venture capital and struggle to access business loans and angel investments, despite running profitable and innovative businesses. The lack of cash available limits the ability to hire, run marketing campaigns, and build the systems needed for growth. Women are then forced to bootstrap and that slows down the speed of growth and their potential as a business.
Without scalable operations and automation in place, the growth of a business hits a ceiling. Scaling requires building a business that runs without the owner doing it all, however women have been conditioned to do it all. And without the capital to expand their business, women have no choice but to do it all.
Business owners have been conditioned to chase revenue believing that it's the ultimate marker of success. But revenue alone does not build wealth. You need a clear understanding of profit margins, cash flow and profit drivers. It's easy to chase bigger revenue numbers while making less profit, and this revenue over profit mindset can lead to financial struggles and burnout. Profit is what fuels sustainable growth and financial freedom.
Women have been taught to play small. We are told to be agreeable and modest, and that mindset often follows into business. Many women hold back on their pricing or going after big deals and showing up competitively in the market because it is frowned upon. And to make money is viewed as greedy and unlikeable for women. These beliefs quietly sabotage the financial success of women.
If more women are to break past the million-dollar mark, we need to normalize financial ambition among women. Wanting to build wealth should be celebrated, not shamed. And it starts with shifting the narrative that wealth isn't selfish, and ambition isn't arrogance. Women deserve to make money, grow empires, and take up space in the business world unapologetically.
Women also need real support. Access to capital must be reformed and more funding should be directed to women. Real change won't happen unless the gatekeepers, who are primarily men, step up. Since men still hold the majority of decision-making power, they must take responsibility for reforming the system. The burden should not fall solely on the women to fix a funding gap that they did not create.
The bottom line is that the fact that only 1.9 percent of women owned businesses reach $1 million in revenue should be a wakeup call. As women continue to start and grow businesses, now is the time to provide the resources needed to grow and scale their businesses. Profit isn't a dirty word and there is no shame in financial ambition. We need to stop applauding survival and start investing in women.