Download The Growth Dividend of Women Entrepreneurs

The Growth Dividend of
Women’s Inclusion in the Economy
Milan
Ginger Lew
CEO, Three Oaks Investments
March 2012
Inclusion Of Women In A Country’s Economy Is
Essential To Future Growth
• Today there are more than 200 million women
entrepreneurs worldwide. Women earn more
than $10 trillion every year, which is expected to
grow by $5 trillion over the next several years.
• Investing in women is an important strategy for
job creation and economic growth, which many
have recognized. Yet, the pool of talented women
is still underutilized, underpaid and
underrepresented in business and society.
LEW PRESENTATION
2
Inclusion Of Women In A Country’s
Economy Is Essential To Future Growth
• A Goldman Sachs report shows how a
reduction in barriers to female labor
force participation would increase
America’s GDP by 9 percent.
• It would increase the Eurozone’s GDP by
13 percent and Japan’s GDP by 16
percent.
LEW PRESENTATION
3
American Women Significant Contribution to
U.S. Economy
• In 1970, 41% of women were working either full- or
part-time, accounting for 38% of total workers in the
U.S.;
• 56% of women are working and women make up 47% of
all workers in the U.S.
• If no additional women had joined the paid economy
since 1970, U.S. GDP would be 75% of its current size
($11T v $15T).
Source: McKinsey and Company, April 2011; U.S. Department of Commerce, ESA: “Women in America” March 2011
Women’s salaries are playing a more critical role at home
• In 2008, 62 percent of married families were dual
income households with the mother as the primary or
co-breadwinner.
LEW PRESENTATION
4
U.S. Has Active Women Entrepreneurs
• Women Owned Businesses today account for
nearly $3 trillion in total economic impact and
their influence is expected to grow.
• In 2007, at least 7.8 million businesses were
majority owned by women – that’s nearly 3 out
of ten non-farm businesses.
• Women Owned Businesses created or maintained
23 million jobs.
• That’s more than the population of about 180
nations around the world including New Zealand,
the Netherlands and Ireland combined.
Source: http://www.womenonbusiness.com; U.S. Small Business Administration
LEW PRESENTATION
5
Economic Impact Of U.S. Women Owned Businesses
Compared To Other Countries’ GDP
Economy
Annual GDP/Economic
Impact
United States
European Union
China
Japan
India
Germany
U.S. Women Owned
Businesses
Russia
United Kingdom
Brazil
$15.6 Trillion
$14.8 Trillion
$10 Trillion
$4.3 Trillion
$4 Trillion
$2.9 Trillion
$2.8 Trillion
$2.2 Trillion
$2.1 Trillion
$2.1 Trillion
http://www.womenonbusiness.com
6
Gaining Ground
• 20.1% increase in Women Owned Businesses
from 2002 through 2007 compared to 5.4% of
Men Owned Businesses during the same time.
• During the recession, from 2007 to 2009, Women
Owned Businesses created 500,000 net new jobs
while Men Owned Businesses lost thousands of
jobs.
• Women Owned Businesses will create 1/3 of the
15.3 million new jobs by 2018.
Source: U.S. Small Business Administration
LEW PRESENTATION
7
Four Key Barriers To Women
Entrepreneurs – San Francisco Declaration
http://fpc.state.gov/172626.htm
•
•
•
•
Access to Capital
Access to Markets
Capacity and Skills Building; and
Women’s Leadership
LEW PRESENTATION
8
How Does the Obama Administration Support
Women Owned Businesses And Small
Businesses?
Access to Capital
• Through 1,000 partner banks – U.S. Small
Business Administration (SBA) Loan
Guarantees.
– Nearly $62 billion in loans to small businesses
since 2009 – costing USG $1.3 billion.
– Almost $9 billion to women owned businesses –
over 17,000 businesses.
• Innovation Fund - $1 billion
• Impact Fund - $1 billion
LEW PRESENTATION
9
Training And Skills Building
• SBA has 110 Women Business Centers counseling more
than 150,000 entrepreneurs.
• SBA has over 900 Small Business Development Centers
across the U.S. counseling more than 1.5 million people.
• State Department – International Women’s Business
Council.
http://www.state.gov/r/pa/prs/ps/2012/01/182299.htm
• SBA – the National Women’s Business Council
http://www.nwbc.gov
LEW PRESENTATION
10
Access To Markets
• USG purchases over $4 billion in goods and
services from women owned businesses in 2011.
• Billion Dollar Club –17 companies each purchase
more than $1 billion annually in goods and
services from women owned small businesses.
• Coca Cola’s “Five by Twenty” campaign will
support five million women entrepreneurs
worldwide by 2020.
• WalMart increasing goods and services bought
from women owned businesses to $20 billion by
2016.
LEW PRESENTATION
11
Reducing Regulatory Barriers
• President Obama has implemented 17 small
business tax cuts
• Proposed to make it easier to raise money from
private markets – crowd funding
• Reduce regulatory burdens - create an IPO onramp
• StartUP America Legislation
To see Startup America 2012 Legislative Agenda:
http://www.whitehouse.gov/sites/default/files/uploads/startup_america_legislative_agenda
• Lilly Ledbetter Fair Pay Act – National Equal Pay Task
Force – Paycheck Fairness Act – Launch a new APP!
LEW PRESENTATION
12
Promoting Women Leadership As
CEOs And On Corporate Boards
Country
Norway
Canada
U.S.
New Zealand
United
Kingdom
Australia
Germany
Spain
Belgium
Netherlands
Italy
Percent
Women
34.3%
12.5%
15.2%
16.1%
12.1%
8.5%
Gender Quota
8.3%
8.2%
8.0%
6.8%
4.02%
3.4%
None - BUT
None
Yes
Pending
Pending
Pending
Yes
None
None - BUT
None
None
Source: Deloitte Global Center for Governance, “Women in the
Boardroom: Global Perspective,” Jan 2011
13
Biggest Success Factor
Changing the culture – changing the mindset
Political will of governments and the broad
social support of its citizens
• The U.S. has a culture that encourages the
spirit of entrepreneurship.
– We encourage risk taking
– We accept failure, and
– We celebrate success
LEW PRESENTATION
14
Ginger Lew
CEO, Three Oaks Investments
1045 North Utah Street Suite 512
ARLINGTON, VA 22201
tel. (703) 528-1963
mail [email protected]
www.threeoaksllc.com