2021 was quite a challenging year for small business owners. Even though many patriotic Americans heeded President Biden’s call to get the COVID-19 vaccine and booster, the pandemic still took a toll on our economy, particularly on small businesses, especially those owned by individuals from historically underserved communities.
The COVID-19 pandemic intensified existing economic disparities. Although there have been significant advancements recently, women still lag behind men in business ownership. According to the SBA’s Annual Business Survey, even though there were 1.1 million women-owned employer businesses in 2019, they only represented about 20 percent of all employer firms. Women business owners were also underrepresented in all demographic groups compared to men.
However, the influence of women-owned businesses on our economy is undeniable. In 2019, women-led businesses employed 10.1 million workers and generated $1.8 trillion in receipts. The number of women-owned employer firms grew by six percent between 2014 and 2016, which is twice the growth rate of men-owned firms. This growth was primarily driven by a 14 percent increase in employer businesses owned by minority women.
The SBA takes pride in supporting women entrepreneurs through the Office of Women’s Business Ownership (OWBO). Led by SBA Administrator Isabella Casillas Guzman, OWBO assisted over 88,000 businesses and supported more than 86,000 jobs. It also helped over 3,000 startups and facilitated 1.4 million capital transactions that led to financial growth.
From my time leading OWBO, I’ve seen firsthand the significant impact the SBA makes in the women-owned small business ecosystem. As an entrepreneur myself, I know the multiple challenges faced when growing a business. That’s why we focus on supporting women in every possible way. One of our main initiatives is the Women’s Business Centers (WBC) network. OWBO currently funds and supports the largest WBC network in SBA’s history, with over 140 centers in 49 states and Puerto Rico, including 24 new centers opened since March 2021. These centers are located in diverse communities, reflecting the multicultural nature and experiences of women entrepreneurs, including those from rural and urban areas, HBCUs, and Native American institutions.
OWBO also funded three WBCs associated with Historically Black Colleges and Universities (HBCUs), increasing the number to six. As a Howard University alum, I know how crucial HBCUs are in shaping the future of young, Black women.
WBCs are vital to OWBO’s mission. They provide extensive on-the-ground resources, including free to low-cost counseling, training, technical assistance in business development, and support for women entrepreneurs to start, grow, and expand their businesses.
In 2021, OWBO oversaw a significant allocation of recovery-related grants to women entrepreneurs, funding 14 Resiliency and Recovery Demonstration Projects totalling $2.7 million to help women business owners cope with the pandemic’s effects.
This is just the beginning. In December 2021, Administrator Guzman announced plans to elevate OWBO to report directly to the Office of the Administrator. This change will give visibility and autonomy to this crucial stakeholder group, enabling innovation in the WBC network and more effective strategies to support women entrepreneurs while reducing administrative inefficiencies.
Looking ahead, 2022 promises more successes as we plan to announce new developments in the WBC network and broaden its reach across more states. We will continue to invest in minority communities to ensure they get the support they need. OWBO will keep leading within the SBA and the Biden-Harris Administration to help women business owners pivot and thrive.
The SBA is committed to ensuring that women business owners get all the support they need to not just survive these tough times but to prosper and demonstrate the strength of American women entrepreneurs.
