Women Drive Entrepreneurship.

Traditional employment is nice, but it has limitations.

I know so many women who are self-employed or who operate small businesses, often as a way to have flexibility in their lives but also as a way to escape traditional American workplace culture, which often isn’t flexible.

And it’s not just my observation. Last month, Wells Fargo released the 2024 Wells Fargo Impact of Women-Owned Business Report, which underscores the significant contribution of women-owned businesses to the economy. Women-owned businesses represent 39.1% of all businesses in the United States, totaling over 14 million establishments, employing 12.2 million workers, and generating $2.7 trillion in revenue.

Between 2019 and 2023, the number of women-owned businesses increased at nearly double the rate of those owned by men. During the pandemic, while many businesses faced closures and economic downturns, women-owned businesses displayed resilience by launching more businesses, expanding their workforces, and increasing their revenue.

The study also examines industry trends, noting that women-owned businesses are no longer concentrated in a few sectors. The top four industries with the highest concentration of women-owned businesses include other services, professional, scientific, and technical services, administrative support and waste management, and healthcare and social assistance. However, sectors such as finance, insurance, real estate, transportation, and warehousing have experienced significant growth in women-owned businesses between 2019 and 2023.

The health of women-owned business supports two points: first, traditional employment doesn’t work for many folks. Second, people who are free of cultural restrictions can get big things done.

Many freelancers are fighting new Department of Labor rules that make them employees. It’s a well-meaning attempt to prevent exploitation of such gig workers as car-service drivers, but it assumes that all contract workers are exploited. Instead, both things are true: some contract workers make very good money, and some contract workers are exploited. Both groups would be better off if we took care of health insurance and family leave, like just about every other country in the world, rather than quibbling about employment status.

I’ve often found it ironic that the United States, which has a culture of independence and entrepreneurship, has policies that assume that traditional employment is the ideal. I’ve had good jobs and bad jobs. I’ve had great years and rough years as a freelancer. Employment can be good, and it can be bad. Both things can be true!

What do you think?