Come on out ladies! Now is your time. According to The National Women’s Business Council (NWBC), women owned business are 10 million strong. You read that right – 10 big million. So, who are all these women entrepreneurs? Why are they making this transition in such big numbers? Most importantly, are they planning for the next transition? Here are some exciting facts and figures.
Who are They?
In a 2015 report, NWCB stated that women-owned firms made up 36.2% of all non-farm businesses in 2012. This was over a 6% increase from 2007. Carla Harris, the chair of NWBC, sees these rises as partially due to the higher number of Bachelor and Master Degrees held by women in the Millennial and X generations. The report also noted that women entrepreneurs are focused on problem solving services as well as innovative products and ideas. An example is cottage industry crafts, with 88% of successful Etsy online businesses being owned by women.
While applications for traditional Small Business Administration loans have risen in the last 3 years, hybrid and alternative funding sources, such as Able, are funding a majority of these new businesses. There is also an increase in women-focused investment firms and “angel investors” in the marketplace as well. Women investors are responding to the need and creating alternative investment opportunities for women entrepreneurs. Many of these opportunities are through Indiegogo or Angelist, offering women-to-women funding.
Will They Plan?
As women transition to entrepreneurship from the Millennial and X generations in record numbers, the importance of personal financial planning for this transition and retirement is showing gaps between what they see as a valuable asset and how they prepare for their futures.
A study by The American College of Financial Services found that Millennial women consider their income their most valuable asset. The women of this generation also think they have too little income protection with 10% not sure how much they need. For the Gen Xer, the home is the most valuable asset. Most Xers think they have enough insurance to protect their home physically, but they don’t have enough insurance to protect their financial stake in their property if something devastating were to happen. For both generations, retirement planning is an important consideration and about three-fourths of each generation report having a retirement fund such as a 401(k).
Possibly the biggest hurdle to being prepared is the low percentage of women that believe financial planning services are right for them. But only one-third of women feel that they can confidently choose the right type of services to help them achieve asset protection and transition planning.
As with other innovative niches being filled by women entrepreneurs, financial planning services for women are blossoming, closing the gaps and helping savvy entrepreneurs be ready for the future.
So, if you are one of the 10 million strong, but feel a bit weak in the personal financial planning area, why not meet with a trusted financial planner that can help you with protecting your assets and preparing your retirement? We are here to help.
Linden Oak Wealth Partners offers fee-only financial advising customized for women, in particular, women in transition. Our goal is to create an environment where financial planning is efficient, simplified and easy to understand. We want clients to feel empowered and engaged every step of the way. Please contact us to schedule an initial consultation today.
Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital.
The views expressed in this blog post are as of the date of the posting and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.
Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Linden Oak Wealth Partners unless a client service agreement is in place.
If you have any questions regarding this blog post, please contact us.