Last year, the National Association of Women Business Owners (NAWBO) and ADP released the results of a survey of women business owners. Nearly 92% of women-owned busi- nesses are microbusinesses, businesses with fewer than 25 employees. While the businesses may be small, they provide the lion’s share of the family income, with 63% of the business owners providing 50-100% of the household income. By giving these businesses the resources to grow, we will see an opportunity to increase wealth in our most underserved populations.
“Women business owners are the drivers of our nation’s economy and the leaders in our communities,” said Karen Bennetts, NAWBO National Board chair. “By supporting women business owners and providing them with the necessary resources, we are building the bridge to wealth creation, allowing them to grow and scale their businesses. We appreciate the support of great companies like ADP who recognize this vital section of the American economy.”
According to the Annual Business Survey, women-owned 1.24 million or 21.4% of employer firms in the US. Women-owned businesses account for $1.9 trillion in receipts, 10.9 million employees, and $432.1 billion in annual payroll.
One of the challenging pain points described in the survey results is hiring. While hiring has been challenging in many industries, survey results show that 41 percent of NAWBO members report hiring is more difficult than ever before. Many reported losing an applicant to a competitor. Forty-three percent had no staff, so losing out on an applicant could mean the difference between missing or making an order fulfillment deadline.
The good news is that there are strategies to help ease the stress of hiring. Smaller businesses may even have an advantage, said Kiran Contractor, director of talent acquisition at ADP. “As a small organization, you can take a personalized approach.” She encourages small business owners to do their best to determine what applicants value and incorporate that into the offer.
Founded in 1975, NAWBO is the unified voice of America’s more than 12 million women-owned businesses representing the fastest-growing segment of the economy.
Learn more at NAWBO.org.