Women-owned businesses matter more than ever. Here's why.
women-owned businesses can restore our economy, strengthen our communities and save our planet
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Women-owned businesses have historically received less venture capital investment compared to their male counterparts in the consumer packaged goods (CPG) sector. Who is surprised by this? Nobody. This has resulted in significant barriers to growth and limited opportunities for women entrepreneurs in this space. If I had a dollar for every women trying to bootstrap her business, doing the most with the least in this challenging time, I could retire. Instead, for the past four years since launching our company on March 8, 2019, we’ve devoted our work to elevating underestimated founders, driving sustainability to the mass market through our mission to challenge and change the future of consumer culture.
Did you know that in 2021, exclusively women-owned companies in the CPG sector received an estimated $434 million in venture capital investment? This represents a significant increase from the previous year and indicates a positive trend towards increased investment in women-owned businesses. However, this still only represents approximately 5% of the total VC investment in the CPG space (boo). These numbers are even more abysmal for Black and Indigenous women leading businesses in our industry. According to ProjectDiane's 2020 report, less than 0.5% of all venture capital funding has gone to Black and Latina women founders since 2009. Racism and systemic bias is the only explanation for this disparity.
While the increase in funding is a positive development, there is still work to be done to ensure that all women entrepreneurs in the CPG sector receive the resources and support they need to grow and thrive. In this blog, we'll explore the economic impact of women-owned businesses, highlight some inspiring examples of women-owned businesses in Canada, and discuss how we’re leading the way in promoting sustainable business practices for consumer packaged goods. Join us in discovering how women-owned businesses can drive economic growth, strengthen communities, and promote a more sustainable future. We’re out here doing it.
Shecovery is actually for all of us.
"Shecovery" is a term that has emerged in response to the COVID-19 pandemic and the disproportionate impact its had on women. It reflects the fact that women must be at the forefront of the post-pandemic recovery in order to address the economic, social, and environmental challenges we face. Women-owned businesses have been hit hard by the economic fallout of the pandemic. Many have had to close their doors temporarily or permanently, and others have seen a significant decline in revenue. According to a study by the National Bureau of Economic Research, the number of active business owners in the United States fell by 22% between February and April 2020, with the decline being more significant among women-owned businesses. By focusing on women-owned businesses, "Shecovery" aims to promote a more equitable and sustainable recovery that benefits everyone. But what does that mean for those of us running our companies, leading in our communities?
It’s important to focus on women-owned businesses in the post-pandemic recovery for several reasons. First, women-owned businesses play a critical role in the economy, accounting for a significant portion of new job creation and economic growth. Second, the pandemic has disproportionately affected women-owned businesses, with many struggling to stay afloat due to a whole range of factors such as decreased demand, supply chain disruptions, and lack of access to funding. Third, women-owned businesses are often rooted in local communities and play a key role in promoting social responsibility and environmental sustainability. By supporting women-owned businesses in the post-pandemic recovery, we can create a more equitable and sustainable economy that benefits everyone. That’s a win-win-win ya’ll.
There’s no healthy economy without women-owned companies.
According to a report by American Express, women-owned businesses in the United States generated $1.8 trillion in revenue and employed 9.4 million people in 2018. This represents a 58% increase in revenue and a 21% increase in employment since 2007. We’re winning, even when the whole system is stacked against us. Imagine what else could happen if that changed?
Furthermore, women-owned businesses tend to be more socially responsible and environmentally sustainable. We care. Like, a lot. Studies have shown that women-led companies are more likely to prioritize the well-being of their employees, invest in their communities, and adopt sustainable business practices. By promoting women-owned businesses, we can create a more equitable and sustainable economy that benefits everyone. When women have the chance to lead they can bring their diverse lived experiences to their approaches and business models - that includes compassion, creativity, and flexibility rooted in reality.
In Canada, women-owned businesses make a significant contribution to the economy. According to a report by BDC, women entrepreneurs contribute an estimated $148 billion to Canada's economy each year, and employ more than 1.5 million people.
However, women-owned businesses in Canada also face unique challenges. For example, women entrepreneurs often have difficulty accessing funding and face bias in the marketplace. According to a study by the Royal Bank of Canada, women entrepreneurs in Canada receive only 4% of all venture capital funding, despite representing nearly half of all new business owners (boo). Women entrepreneurs may not have capacity to chase funding, nor possess the social capital and networks to find it, and frankly we may lack the desire to ‘play the game’, with rules that weren’t written for us making it that much harder to win.
But globally, studies have shown that supporting women-owned businesses can have a significant positive impact on the economy. For example, a report by the International Finance Corporation found that closing the gender gap in entrepreneurship could add $5 trillion to the global economy. $5 trillion! With 8 billion people in the world, $5 trillion could go a long way to generating prosperity and economic dignity, for all.
Overall, women-owned businesses are an important driver of economic growth and job creation. By providing support and resources for women entrepreneurs, we can create a more equitable and sustainable economy that benefits everyone. Sign us up.
Sustainbility is at the heart of our purpose.
Women-owned businesses are increasingly prioritizing sustainability in the production of consumer packaged goods (CPGs), which has been driven by consumer demand for environmentally-friendly products. Women-owned CPG companies are leading the way in promoting sustainable business practices. According to Nielsen, women are responsible for 70-80% of all consumer purchasing decisions, including CPG products. Women have significant power to drive demand for sustainable packaging solutions. We’re both the creators and consumers - this space is ours for the taking. Here are three ways we’re doing the most to shift to a sustainable future.
Firstly, we’re prioritizing the use of eco-friendly materials in our products and packaging. We know first hand the impact of moving to a circular economy through our work with M4 Factory and the US Plastics Pact. And we’re just getting started. For example, our newest client here at AWIA is Elate Beauty, a Canadian women-owned, Bcorp certified business - they transformed packaging in a shift to lower waste. They moved closer to a closed-loop system of packaging. Elate’s updated iteration of packaging design helps reduce waste to save materials and reduce their carbon footprint. We’re proud to join them in a sales sprint for larger retail key accounts in North America, and support their pursuit of conscious consumption, refill over recycling, and making the world a better place every morning - just by putting on makeup. Those of you that follow us on social know Ange loves a lipstick.
Secondly, women-owned CPG companies are also taking steps to reduce our carbon footprint. For instance, Bcorp certified women-owned business, Upfront Cosmetics, has eliminated plastic waste from its production process by producing shampoo and conditioner bars. This move not only reduces the amount of plastic waste generated but also reduces the carbon footprint associated with shipping and transportation. As a 1% For the Planet member, giving back to climate justice is part of their strategy to protect nature.
Thirdly, women-owned businesses are also advocating for sustainability and educating consumers on eco-friendly options. We’ve participated in initiatives like the powerful G20 YEA , supporting PR efforts for youth entrepreneurship, sustainability, and the future of work, while advocating to our governments at all levels for policies that can effectively improve business ownership, for all. And especially for women.
Overall, women-owned businesses are leading the way in promoting sustainable business practices in CPG, which not only benefits the environment but also appeals to consumers who have increasingly prioritized sustainability in their purchasing decisions. We have high expectations as leaders in the CPG space and as consumers ourselves, we want it all - efficacy, impact, performance and purpose. It’s not easy to deliver, but the results for our communities, teams and customers make it all worth it.
AWIA is still betting on women, in 2023.
Women-owned businesses are critical to the post-pandemic recovery, providing economic stability, job creation, and community building. These businesses have a significant impact on the economy and play a crucial role in promoting sustainable business practices. However, women-owned businesses, particularly those owned by Black and Indigenous women, still face significant barriers to success. There’s no excuse from all of those in power and all of us with influence (which is everyone, yes, including you) to make changes that will see a significant shift. As CPG leaders, we can support these businesses by championing their growth, devoting resources to their products and services, and advocating for policies that support their success. Let's work together to create a more equitable and sustainable future by supporting women-owned businesses in our communities - we always have and we always will, at our Impact Agency.
© Angela Wallace Impact Agency 2023
Ange shares this dispatch from Nashville, TN attending WBENC - the world’s largest gathering of women-owned business. She is on the Canadian delegation supported by PARO for the Trade Commissioner Service.
Schedule a free consultation with the Angela Wallace Impact Agency, where Ange works directly with brands like M4 Factory to achieve growth and impact on their own terms.
