Updated Resources for Women Entrepreneurs
&
Business Owners during COVID-19
Entrepreneurship is a tried and true way of generating wealth and women are driven to self-employment for its other benefits as well, including the ability to be their own boss, work flexible hours and do something that they are passionate about and enjoy.
vices sold in the nation grows the economy, and makes the nation more competitive in meeting needs of consumers. Moreover, when businesses thrive, so do the owners’ financial positions and their employees’ incomes.
Women entrepreneurs have notoriously faced hardships in gaining access to capital, from lack of information and resources and local and state government assistance, to facing cultural biases from investors. Without adequate capital, women cannot make their creative ideas a reality, nor can they afford to maintain the businesses that provide jobs for a significant portion of the population.
No "One-Size-Fits-All" Approach to Helping Women-Owned Businesses
Pre-Existing Disparities in Revenue between Women-Owned Businesses & All Businesses Women-owned businesses make a sizable contribution to the nation’s economy and are continuing to drive economic growth, according to American Express’s 2019 State of Women-Owned Businesses Report. At nearly 13 million in number, they represent 42 percent of all businesses, employ 9.4 million workers and generate revenue of $1.9 trillion. However, there are still glaring disparities between these businesses and total businesses in terms of size and revenue. The revenue disparity between women-owned and all privately held businesses has increased since 1997. For every dollar that a privately held company generated, women-owned businesses generated 37 cents in 1997 and 30 cents in 2019. In 2019, women-owned businesses had average earnings of $142,900 compared to $474,900 for all privately held businesses and $1.4 million for all firms. Closing this gap could benefit everyone as more goods and ser-
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Increasing the economic potential and opportunity for women-owned businesses requires change on multiple fronts, including policies, practices and attitudes. Indirect help to women-owned businesses can mean family leave and affordable childcare, both of which impact all working women. Direct help for financial growth might include training, access to capital and markets, which can be targeted towards segments of business. Most importantly, industries and actors within the entrepreneurial ecosystem must consider the unique needs and circumstances of women-owned businesses, since not every business or business owner faces the same obstacles. Below are a few resources that women-owned businesses can utilize to help them recover from economic loss faced during the COVID-19 outbreak.
COVID-19 Relief for Small Businesses: EIDL Loans & PPP
The Coronavirus Aid, Relief and Economic Securities (CARES) Act, which was signed into law by President Trump on March 27, 2020, provides $349 billion in relief for American workers and small businesses. The CARES Act also established several new temporary SBA programs to address the COVID-19 outbreak: SBA Economic Injury Disaster (EIDL) Loans & PPP (Paycheck Protection Program).
