That women have yet to achieve equity in earnings is old news and getting older by the decade. Look at the facts – women make up half the workplace but only 18% of top leadership positions across all sectors, and they’ve been stuck there for almost two decades, earning 78 cents for every dollar a man earns. Women hold 17% of Fortune 500 directors of the board seats and under 5% of CEO positions.
According to the Shriver Report released in 2014, women’s average annual paychecks reflected only 78 cents for a man’s dollar. At that rate, the Institute for Women’s Policy Research estimates that women won’t achieve full pay equity until 2058. To make matters even worse, the higher a woman rises in management and pay, the wider the pay gap grows, according to a company that tracks self-reported salary data. Women chief executives earn 71 percent of what equally qualified men earn.
Women Taking Control Of Their Futures
Many women, however, aren’t becoming despondent by the stats. They are taking matters into their own hands and opening their own businesses. The Great Recession and the years since have seen a huge surge in female entrepreneurs, who are not only working for themselves, they’re making a good living in the process. In fact, over the last 17 years, women-owned businesses have increased dramatically. According to the State-Owned Business Report, commissioned by American Express, the rate of increase is a staggering 68% since 1997, with more than 9.1 million women-owned businesses operating in 2014, up from 8.6 million in 2013. This surging-growth pace, which has doubled in three years, has helped to generate nearly $1.5 trillion in revenues for women-owned businesses.
So how can you follow their lead and boost your future earnings? First of all, consider further education. If you felt that you couldn’t afford to go to school, now, you can’t afford NOT to. Schools across the country report increased numbers of women pursuing MBAs and undergraduate degrees in accounting and business signifying women’s investment in their futures. If you have already pursued educational options, add new skills via OJT and increase your professional network.
Starting Your Own Business
Use common sense and carefully weigh the costs and benefits of starting that new business you have been dreaming of, and don’t be afraid to take the leap if you can make the most of current opportunities. Managing money is key when it comes to launching a successful endeavor. Here are five tips that can help you make every dollar count:
- Overcome lack of information and experience by educating yourself about finance.
- Fill in funding gaps with start-up loans from family and friends. Women typically have lower savings to start than men and start-up loans can be hard to get in this regulatory environment.
- Cultivate a dispassionate view of your business.
- Taking things personally will cloud your relationships with money. Don’t rip yourself off by undervaluing what you do.
- Scrupulously keep personal and business money streams separate. Lack of accurate profit and loss information can cause you to miss valuable tax deductions. You may even get into trouble with the IRS if you are not tracking your complete business expenses.
Use Feminine Skills for Success
We know women can be successful as primary breadwinners, chief purchasing agents, and CEOs of their own businesses. Women can also lead by example to change the business environment away from excessively risky behavior and spiraling debt. We can choose to build the economy we want for ourselves and future generations with our own businesses, and change the lives of women, of everyone, around the world.