Financial advisors and investors who want to put money into small businesses should look to women-owned ventures, says OWL, an organization for women 40 years of age and older.
Only a small portion of venture capital is reaching women entrepreneurs, says OWL. Only 7 percent of available venture capital makes it to women-owned businesses, says OWL, which has set a goal of increasing that percentage to 20 percent by 2020.
One example of why women-owned businesses can be worthy investments: OWL notes that women-led technology firms are more capital-efficient, and when backed by venture capital, bring in 12 percent more revenue than their male counterparts.
“Women face many more challenges achieving economic security than men,” says OWL Executive Director Bobbie Brinegar. “What's exciting about the trends we're seeing now is the emphasis on getting women the tools they need to open new businesses.”
According to a report from Babson College, six million more jobs would be created over five years if women entrepreneurs started with the same amount of capital as men, Brinegar says. The Babson College report also debunks the conventional wisdom that most successful entrepreneurs are in their 20s. People 55 and older are almost twice as likely to found successful companies as those 20 to 34 years of age, she says.
“Our nation needs the talents of 100 percent of our population,” says OWL Board Chair Margaret Huyck. “If we don't start making sure everyone has equal access to capital, we will have a tougher time competing globally.”