1 / 15

The Role of Women Business Ownership in the U.S. Economy

The Role of Women Business Ownership in the U.S. Economy. A Presentation to OWBO Conference Ying Lowrey, Ph.D. Ying.Lowrey@gmail.com September 19, 2011 at the Washington Plaza Hotel. Outline. Supporting small business including women-owned business was mandated by Congress

betty
Download Presentation

The Role of Women Business Ownership in the U.S. Economy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Role of Women Business Ownership in the U.S. Economy A Presentation to OWBO Conference Ying Lowrey, Ph.D. Ying.Lowrey@gmail.com September 19, 2011 at the Washington Plaza Hotel

  2. Outline • Supporting small business including women-owned business was mandated by Congress • Pervasiveness of business ownership is the key to improving people’s economic wellbeing • Business creation is job creation • Economic growth did not increase the median household income • Income disparity between large vs. small businesses is the reason for the erosion of business ownership

  3. Small Business Act • Promulgated in July 1953 • “The essence of the American economic system of private enterprise is free competition.” • “The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation.” • “Such security and well-being cannot be realized unless the actual and potential capacity of small business is encouraged and developed.”

  4. Women's Business Ownership Act • Established in 1988 • “Women owned business has become a major contributor to the American economy by providing goods and services, revenues, and jobs.” • “Over the past two decades there have been substantial gains in the social and economic status of women as they have sought economic equality and independence.” • “Despite such progress, women, as a group, are subjected to discrimination in entrepreneurial endeavors due to their gender.” • “It is in the national interest to expeditiously remove discriminatory barriers to the creation and development of small business concerns owned and controlled by women.”

  5. Owning a Business Doubles (or 8 Times) the Probability of Being High Income (or High Net Wealth) Household

  6. Business Density (Business Number per 1,000 People) and Median Household Income, by Race/Ethnicity

  7. WBD has stronger explanatory power for median household income, 1997, 2002, and 2007

  8. Business Creation is Job CreationNearly 6 million jobs created by new startups in 2007; over 34% created by women-owned firms; 10% were employment jobs and 90% were entrepreneurial jobs.

  9. Business Density Has Expanded Since 1997 for All Businesses and Women-Owned BusinessesYear BD WBD1997 76 202002 80 232007 90 26

  10. Ten States had Negative Growth Rate of Real Median Household Income for 1997-2007 Despite High GSP Growth

  11. Both number and receipts of publicly-held firms consistently increased since 1997; the receipt of privately-owned firms consistently decreased

  12. Number of U.S. firms and business receipts, 2007: 3% of total firms were publicly-held but had 64% of total U.S. business receipts

  13. Some of My Reports on Gender • September 2011 – Gender Issues: Privately Owned and Publicly Held U.S. Firms • August 2010 – Gender and Establishment Dynamics, 2002-2006 • August 2006 – Women in Business: A Demographic Review of Women’s Business Ownership • September 2005 – U.S. Sole Proprietorships: A Gender Comparison, 1985-2000

  14. Conclusions • Owning a business doubles the probability of being high income household (or 8 times high net wealth household) • States with high business density tend to have higher household income and lower poverty rate • Women Business Density has stronger explanatory power than total BD for medium household income • In 2007, women-owned startups created 34% of total 6 million new jobs, of which, 10% were employment jobs and 90% were entrepreneurial jobs • Ten states had negative growth rate of real median household income for 1997-2007 despite high GSP growth

More Related