Women-Owned Businesses Can Recharge the Global Economy
KANSAS CITY, MO, (PRNewswire-USNewswire), November 16, 2009 - Ernst & Young has released the second report in its "Groundbreakers" series during the annual Strategic Growth Forum in Palm Springs, California. The report, titled Scaling up: why women-owned businesses can recharge the global economy, details how women entrepreneurs are critical drivers of economic growth and provides resources and insights for private sector, government and NGO leaders who are seeking to close the gender gap.
Worldwide, women own or operate 25-33% of all private businesses, according to the World Bank. Ernst & Young's Scaling up report highlights key barriers to growth and unique characteristics of women-owned businesses, which historically do not reach the size and scale of businesses owned by men. The report notes several key barriers that must be overcome -- including addressing issues of employment, opportunity, lack of role models and access to financing, among others.
In the US, for example, women are starting businesses at nearly twice the rate of men -- if these women entrepreneurs started with the same capital as men, they would add 6 million jobs to the economy in 5 years, according to research from Babson College referenced in the report. The report also notes that, according to a new study by the Center for Women's Business research, women create or maintain more than 23 million jobs, or 16 percent of all US employment.
The global recession could cause the loss of 25 million jobs worldwide by the end of 2010 and could reach 57 million if the recovery doesn't achieve momentum, reports the Organisation for Economic Co-operation and Development (OECD).
"We have seen good progress with microfinance in helping women start and grow their businesses - this success is in the early stages," said Beth Brooke, Global Vice Chair of Ernst & Young. "We must focus and accelerate our efforts to scale women entrepreneurs into the global economic growth engines that they are. It's not only about gender equity, it's about job creation and growth."
The "Groundbreakers" report, which analyzes data and research from organizations including the World Bank, the OECD, and The World Economic Forum, details targeted support and initiatives that can accelerate the growth of women-owned businesses and add millions of jobs to the struggling global economy. These recommendations include:
- Ensure that women entrepreneurs are not hampered by discriminatory laws
- Although women represent 40-50% of businesses in developing
countries, the World Bank/IFC's Doing Business project has
identified several legal and regulatory barriers facing women.
Women are prohibited from working after 8 p.m. in certain Gulf
States and in other parts of the world women require the
permission of husbands or fathers to open a business, a bank
account, obtain a passport or enforce a contract.
- Help women-owned companies scale their businesses by meeting their
distinctive needs
- These needs include lack of access to capital and business
networks. While women own about 30% of US businesses, only about
5% of all equity capital investments in the US go to businesses
headed by women and just 3% get investments from venture capital,
according to Babson College research. Women appear more reluctant
to apply for loans -- more than 10% of men seek external equity
financing, but less than 2% of women do the same.
|
- Most programming offered through both public and private sectors
is dated and focuses on starting, rather than growing, a business.
Few programs instruct women on accelerating business growth,
according to the Center for Women's Business Research.
- Improve women's access to the global supply chain
- At present, global spending on supplier diversity is largely
undocumented, according to WEConnect International. However, only
a fraction of governments and large corporations actively source
from women-owned businesses. With the exception of members of the
Billion Dollar Roundtable, which spend more than US$1 billion on
purchasing from minority and women-owned businesses, less than
2.2% of large corporations' procurement budgets and only 3.4% of
federal government contracts go to women-owned businesses.
Scaling up highlights several successful public and private initiatives geared toward helping women entrepreneurs such as: The World Bank's Gender Action Plan; American Express' OPEN initiative; Goldman Sachs' 10,000 Women initiative; The Nike Foundation's investment in girl's education; Vital Voices Global Partnership; the US State Department's Pathways to Prosperity program; and Ernst & Young's Entrepreneurial Winning Women program.
Advertisements
$15 off orders of $150 or more at StreetSideAuto.com
now thru 10/31/09 when you use code SSA15OFF150
|
Employers May Be Generous with Thanksgiving Holiday Paid Time Off in 2009
The Kansas City Front Page is owned and maintained by the Moore Design Group for the sole purpose of disseminating news and information about the Metropolitan Kansas City area. Text or graphics may not be copied, rewritten or distributed in any manner whatsoever without written permission. For more information, contact editor@slfp.com All rights reserved world wide © 2007 - 2009 Moore Design Group.