By Stephen Fournier, President, Central New York Market, KeyBank
October is National Women’s Small Business Month and we’ve made great strides in the United States to reach gender parity in business ownership. Today, there are more than 11 million women-owned businesses to celebrate and women now represent more than half of the U.S. workforce.
According to the U.S. Census Bureau, in Syracuse alone, nearly four-in-10 (37 percent) businesses are owned by women.
But we’re by no means finished. Representations of women business owners in society still don’t reflect the makeup of business ownership in the United States. When conducting a search on Google for “real life bosses,” for example, fewer than five images of women appear in the top 50 results, even though women occupy half of leadership roles.
Now more than ever, it’s time to shift the narrative about real life bosses and celebrate contributions from women in leadership positions.
Let Biases Be Bygones
When starting a small business, entrepreneurs invest significantly to turn their vision into a reality. From ideation to execution, aspiring business owners strive to identify and showcase what makes their business unique to stand out among the competition. This is especially true when seeking investors.
According to recent data from KeyBank, most business owners—men and women—are confident in the financial health of their business (64 percent). But when looking for outside capital investment, studies show that investors ask men and women different questions when discussing funding opportunities in relation to their business objections. Typically, men are asked ‘promotion’ oriented questions (e.g., hopes and dreams) and women are asked ‘prevention’ oriented questions (e.g., responsibility and carefulness), which presumes women must focus on potential downside while men can put their energy toward gains and growth.
In some cases, there are guardrails in place to mitigate financial inequality among female business-owners. For example, the U.S. government has created the Women-Owned Small Business Federal Contracting program to award at least five percent of all federal contracting dollars to women-owned small businesses each year.
We can do better. Women in leadership positions and those who champion them must combat common misperceptions and subtle (or not-so-subtle) biases about women in business through inclusive language, counter-stereotyping and mentorship. For the millions of female-owned and operated businesses today, they are a leading example of how to achieve inspiring careers. Together, business leaders can use their collective voice to advocate on behalf of all women in business.
There’s No “I” in Team
According to a recent KeyBank survey, 65% of female business owners have experienced gender-based barriers-to-success and almost half believe the media portrayal of women in business is one of the leading barriers. What’s more, business loan approval rates for women are 15 to 20 percent lower than they are for men, while men receive 16 times more venture capital funding than companies run by women. Whether conscious or not, it’s no surprise that under these circumstances, female entrepreneurs may be more risk-averse or more likely to experience imposter syndrome than their male counterparts, perpetuating a slower growth cycle in their business.
Still, no truly successful entrepreneur operates in a silo. Women absolutely can capture funding opportunities that lead to high growth companies, but it is critical for female entrepreneurs to seek out mentors, overcome self-doubt and embrace leadership opportunities, especially in industries like technology, banking and manufacturing where women are underrepresented.
#RealLifeBosses Want Advocacy, Connections & Empowerment
Whether combatting external factors or looking inwardly, women entrepreneurs and supporters are leading the charge to move our business world in the direction of gender parity. And arguably the richest resource to advance women business owners is an activated professional and personal network—not just for support and guidance, but also for loans and investments.
Since 2005, Key4Women® has been helping women leaders and entrepreneurs through advocacy, connections and empowerment to help their careers and businesses grow. The program seeks to connect even more women to other like-minded entrepreneurs both in Syracuse and across the nation. By scaling the Key4Women® program and creating platforms for women in various cities to connect, we are broadening the conversation and sharing more female perspectives to shift perceptions and representations of women in business.
To continue opening doors and breaking glass ceilings, whether a manager, executive or business owner, during Women’s Small Business Month in October, we invite you to join KeyBank in celebrating the many faces of #RealLifeBosses. Throughout the month, share a photo of women in leadership positions who have influenced your career using #RealLifeBosses on social media and, together, we’ll show the world what #RealLifeBosses look like.
About the author: Stephen Fournier is president of KeyBank’s Central New York Market. He may be reached at either 315-470-5096 or [email protected].
Boosting Financial Wellness for Businesses
When small-business owners are asked how they would define wellness, it’s no surprise their answers capture mental and physical health first, but good financial health and wellness isn’t just about your body and mind. It’s about finances, too.
According to a recent survey of KeyBank small business owners, more than one third of business owners lack confidence in the financial health of their companies. It’s as important to consider the financial wellbeing of your company as it is for your personal life.
For a firmer grasp on your business’ finances, follow these to the five steps to improve your business’ financial wellbeing:
- Understand today’s financial picture. Take a close look at dollars coming in and going out each month to get a clear picture of your cash flow. Take a deep dive into your fixed income and, similarly, understand what must be paid every month.
- Take action. Create a system that tracks every dollar coming in against every dollar going out. Ensure you have set aside enough cash to allow you to cover your businesses cash flow during unexpected downturns. Consider refinancing high-interest debts.
- Build healthy financial habits. Whether you update your books daily or take the second Monday each month to deal with payroll and expense reports, get in the habit of making your financial health a priority. Just like working out, you need to create good habits to get your business “in-shape.”
- Monitor regularly. Checking company record books, credit cards and regular payments will not only help you to better understand where every penny is going, you’ll be able to detect any fraudulent activity sooner.
- Celebrate each success. Once you pay off one debt or achieve a significant milestone for your business, celebrate yourself and the accomplishment you just achieved!
Remember, the financial wellbeing of your business is just as important as it is in your personal life. With a little work and dedication, and the support of your business banking specialist, you can build and maintain strong financial habits for a healthy business that’s poised for continued success.
