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The Global Wealth 2016 report from the Boston Consulting Group reveals that 30 percent of private wealth in the world belongs to self-made women. According to the study, of women with a private net worth of at least $100,000, 44 percent were entrepreneurs or employees who had earned their wealth outside of work.
Report Findings:
- Women’s wealth is expected to grow 7 percent annually
- 27 percent of female respondents received their wealth through inheritance, 15 percent from their spouse, 9 percent from divorce settlements and 5 percent miscellaneously
- 30 percent of female respondents use family and friends as their primary source of investment advice, compared to 11 percent of all survey participants
With the prevalent gender gap and imbalances in the professional arena, is it a surprise that most wealthy women amass their earnings through entrepreneurship—by making their own rules instead of following those of the disparate workplace?
Women-owned businesses grew 27.5 percent from 2007 to 2012, women are starting over 1,100 businesses a day and the Small Business Administration (SBA) is presently awarding $17.8 billion of federal small business contracts to women-owned small businesses. These are successes that are unfortunately often overshadowed by the letdowns: 88 percent of women-owned businesses don’t surpass the $100,000 revenue threshold and 91 percent of women-owned businesses don’t employ anyone besides the owner.
What are the takeaways? As we have written before, we must change circumstances for working women. We need to eliminate the gender pay gap, thereby helping women earn more, increase their purchasing power and accrue wealth. We must also help women-owned businesses, which possess incredible potential to vitalize the economy.
A recent study shows that women’s earnings have a significant impact on the value of their homes; homes owned by single women are worth 10 percent less and appreciate in worth 16 percent slower than homes owned by single men. Gender disparity in the workplace has profound effects that reach all aspects of women’s lives.
In our currently imbalanced professional sector, entrepreneurship is a valuable way for women to increase their wealth. If the rules serve only to hurt you, it’s time to change the circumstances and make your own.